44 Redacted JA.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7M2-22-R-0014

CUI

Source Selection Information – See FAR 2.101 and 3.104 – CUI

- Draftco Incorporated (1M994), Duhadaway Tool and Die Shop, Inc. (1V517) and A.C.R.

Machine, Inc. (4J831) in accordance to Navy Drawings, with a designated part number of 613493-1

The use of the authority cited below:

AMC 1: Suitable for competitive acquisition for the second or subsequent time.

The use of the authority cited is based on:

AMSC C: This part requires engineering source approval by the design control activity in order to maintain the quality of the part. Existing unique design capability, engineering skills, and manufacturing knowledge by the qualified source(s) require acquisition of the part from the approved source(s). The approved source(s) retain data rights, manufacturing knowledge, or technical data that are not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the part. An alternate source must qualify in accordance with the design control activity's procedures, as approved by the cognizant Government engineering activity. The qualification procedures must be approved by the Government engineering activity having jurisdiction over the part in the intended application. If one source is approved, AMCs 3, 4, or 5 are valid. If at least two sources are approved or if data is adequate for an alternate source to qualify in accordance with the design control activity's procedures, AMCs 1 or 2 are valid.

It is noted that the process of developing and releasing a Purchase Request (PR) requires, first a review and determination by the Product Specialist that the technical data is correct, including the AMC and AMSC codes, and it reflects the minimum requirements for the item.

Additionally, the Product Specialist of record confirmed on 8/11/22 that the AMC/AMSC of 1/C is still accurate, the current sources are acceptable and there are no other sources approved by the design control activity at this time. They also verified Draftco Incorporated (1M994), Duhadaway Tool and Die Shop, Inc. (1V517) and A.C.R. Machine, Inc. (4J831) as the only known sources to own or possess the manufacturing knowledge and capability to produce the item to required quality standards (Attachment #1).

Although the government possesses drawings for this part it is necessary to limit competition to those companies with engineering source approval by the design control activity. This requirement is because the Aircraft Launch and Recovery Equipment (ALRE) includes catapult launch and arrested landing system equipment that launches aircraft from an aircraft carrier or air capable ship, guides the aircraft back to the ship or expeditionary airfields, and recovers the aircraft safely. Over the past 30-plus years, aircraft have continued to increase in weight, while many of the ALRE systems and components have not undergone significant redesign to accommodate these higher energy loads, resulting in diminished safety. In response, NAVAIR established the ALRE Flight Safe Program, which governs the life-cycle management of ALRE Critical Safety Items (CSI) and Critical Application Items (CAI). These items, as determined by NAVAIR, are essential to weapons system performance and the preservation of life and the safety of operational personnel.

ALRE CSI and CAI are identified in the DLA Enterprise Business Systems (EBS) Material Master, Classification Tab, CIM sub-tab, with a Special Procedures Code (SPC) of “01.”

NAVAIR designates ALRE items as CSI or CAI through the Navy Joint Deficiency Reporting System, which feeds the code (SPC-01) into EBS. Technical Data Requirements (TDR) containing a list of approved sources, as designated by NAVAIR and NAVSUP, are required for all such items. When an ALRE item is coded SPC-01, DLA procures as instructed per the TDR from the list of approved sources in accordance with NAVAIRISNT 13800.18A. It is essential to the integrity of the ALRE Flight Safe Program and critical to naval aviation safety that DLA only procure the product of an approved source. In addition, NAVAIR INST 4200.56 states the following with regard to sources. Per references (a) and (g), a CSI shall be purchased or repaired and/or overhauled only from sources approved by the TA. References are as follows: (a) Public procurement of Aviation Critical Safety Items and Related Services and (g) SECNAVINST 4140.2. Based on all of the above, it is demonstrated that Draftco Incorporated (1M994), Duhadaway Tool and Die Shop, Inc. (1V517) and A.C.R.

Machine, Inc. (4J831) have the unique and proven manufacturing capabilities to establish and maintain the process controls to manufacture this item and are the only sources known to possess the manufacturing knowledge and capability to produce the item to required quality standards.

The components being acquired under this solicitation have been classified as “critical” requiring engineering source approval by Naval Air Systems Command (NAVAIR). Only those companies who have submitted requests for source approval and have been approved will be eligible for award. Those not approved by NAVAIR will be required to submit a Source Approval Request (SAR) Package for the Navy ESA to review for future procurements.

6. Efforts to ensure that offers are solicited from as many sources as practicable are:

a. A Sources Sought Notice was posted on SAM.gov with a Market Survey attached (see section 8).

b. A Market Survey was mailed directly to the approved sources that are registered via

DIBBS.

c. The acquisition will be synopsized on SAM.gov for a period of 15 days.

d. The solicitation will be posted publicly via DLA Internet Bid Board System (DIBBS) and will be open for a 30 day period.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable based on a review of the most recent previous procurements, market research and PPI Price Analysis. This solicitation is for a one time buy, for a quantity of 21 EA. A review of Records Management revealed two procurements for this item in the last two years, all were determined fair and reasonable. The price for this procurement will be negotiated as needed after evaluation.

8. Market Research/Efforts to Obtain Competition:

The three most recent procurements were researched in Records Management. No alternate sources submitted offers. The GSA Advantage web site was reviewed on July 11, 2022, for the item, but it was not found. Market research was conducted via surveys and a Sources Sought July 15, 2022, through July 25, 2022.

b. This is a Critical Safety Item with a Special Procedures Category (SPC) code of “01”.

Naval Air Systems Command, Lakehurst (NAVAIR) is the design control activity and determines which manufacturers are capable of producing the item to its CSI requirements. The components being acquired under this solicitation have been classified as “critical” requiring engineering source approval by Naval Air Systems.

Command (NAVAIR). Only those companies who have submitted requests for source approval and have been approved will be eligible for award. Any manufacturers that are not approved by NAVAIR will be required to submit a Source Approval Request (SAR) Package for the Navy ESA to approve for future procurements.

10. A listing of sources, if any, indicating an interest in the acquisition are:

-A.C.R. Machine, Inc. (4J831)

11. The following actions are being taken to identify additional sources:

a. The solicitation contains DLAD Procurement Note M06 Evaluation of Offers for Part Numbered Items and DLAD Procurement Note L04 Offers for Part Numbered Items.

b. The Government will continue to conduct market research to see if changes occur in the marketplace that would enable future actions for this item to be competitive.

c. Any manufacturers or vendors who would like to pursue source approval will need to receive Source Approval guidance for submission to the design activity, NAVAIR, and the DLA Competition Advocate’s Office.

12. The previous J&A is attached for review (Attachment #2).

13. Attachments:

1. Technical Certification

2. Previous J&A

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief. If not exceeding $750,000, this signature serves as the approval.

Contracting Officer Date

Approval/Certification

I have reviewed and approve this justification.

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

( ) Up to $750,000 Contracting Officer

( X ) $750,000 to $15,000,000 Competition Advocate

DUFFALA.JAME

S.E.1230229100

Digitally signed by

DUFFALA.JAMES.E.1230229100

Date: 2022.08.15 11:38:28 -04'00'

SHEARER.MARY

.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2022.08.19 11:06:29 -04'00'