5036C349 Justification for Other Than Full and Open Competition_redacted.pdf

CUI

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPMYM1-25-Q-0060

Controlled by: DLA Land and Maritime Columbus

Controlled by: DLA Land and Maritime NNSY CUI Category: PROCURE/SSI

Distribution/Dissemination Control: FED ONLY POC: monica.richardson@dla.mil

DLA Land & Maritime Justification for Other Than Full & Open Competition

(March 2023)

[X] ORIGINAL

[ ] ADDENDUM (attach copy of original J&A for add-ons or revisions)

1. The Defense Logistics Agency, DLA Land and Maritime, is the contracting activity.

2. The action being approved is the acquisition of supplies/services on other than a full and open competition basis.

3. The supplies/services required to meet the using activity’s needs are described as follows:

CLIN DESCRIPTION QTY ESTIMATED

UNIT PRICE

ESTIMATED TOTAL

VALUE

STERN TUBE GROUNDING DEVICE SLEEVE

6.2 Acquisition Requirements

a) CASTINGS, NICKEL-COPPER ALLOY Mil-

C-24723 7 June 1989

b) Two (2) Centrifugal castings required

c) 7” L x 28.500” OD x 26.150” ID, Machined to size specified, and stress relieved Tolerances: (OD:+0.063”/-0.000”; id: +0.000”/- .063”; +0.063”/-0; approx. 250 RMS finish on all surfaces)

d) Comp: M-30C

e) See Paragraph 2.2 of MIL-C-24723

f) N/A

g) Centrifugal cast

h) N/A

i) N/A

j) N/A

k) Test bars are not required.

l) N/A

m) N/A

n) Preserve and pack shipment as per ASTM A700-

o) The castings shall be permanently marked in accordance with MIL-STD-792E and include specification and alloy number, pattern or drawing number, heat number, lot number, and manufacturer’s name or trademark.

2 EA $14,225.00 $28,450.00

0002 AFT PROPELLER BEARING SLEEVE

178.0” L x 28.500” OD x 26.100” ID

2 EA $121,660.00 $243,320.00

0003 STERN TUBE COUPLING COVER SLEEVE

37.50” L x 28.500” OD x 26.250” ID

2 EA $39,820.00 $79,640.00

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0004 PROPELLER COUPLING COVER SLEEVE

22.750” L x 28.500” OD x 26.220” ID

2 EA $19,900.00 $39,800.00

ESTIMATED BASE VALUE: $391,210.00

ESTIMATED TOTAL VALUE (BASE + OPTIONS): Not Applicable

MAXIMUM CONTRACT VALUE: $391,210.00

4. The statutory authority permitting other than full and open competition is:

[X] 10 U.S.C. 3204(a)(1) - Available from only one or a limited number of sources.

[ ] 10 U.S.C. 3204(a)(2) - Urgency.

Brief narrative supporting the situation and weapon system:

The Norfolk Naval Shipyard (NNSY) requires two (2) Grounding Device Sleeves, two (2) AFT Prop Sleeves, two

(2) Propeller Coupling Cover Sleeves, and two (2) Stern Tube Coupling Cover Sleeves to protect the encased components from wear, corrosion, erosion, and impact.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code:

MetalTek International, Cage Code – 93812 Spunalloys Ltd, Cage Code – U2BP5

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

The acquisition will be solicited on SAM.gov to encourage potential supplier participation on or about 04/11/2025.

Dealers of manufactures will be solicited. The Government will continue to conduct market research to see if changes occur in the marketplace that would enable future actions for these items to be competitive.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable.

In accordance with FAR 13.106-3(a), the Contracting Officer will make a determination that the proposed price is fair and reasonable based upon comparison of the proposed price with prices found fair and reasonable on previous purchases, as well as other cost, price, and buyer analysis. Information from market research, governmental sources, and Producer Price Index Industry (PPI) Data will also be used to help establish price reasonableness when needed. The length of contact will be formed when the contract is awarded and accepted until 2 each of the required items are delivered to NNSY.

8. Market Research/Efforts to Obtain Competition:

Describe the market research conducted and the results. The extent of market research required for a procurement varies depending on the estimated dollar value, complexity of the item or service and other factors including, the type of item or service, urgency of the requirement and past experience. However, narrow market research (i.e.

only using market surveys; only contacting the approved source or past awardees) is inadequate.

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This requirement is for various types of shaft sleeves, which is essentially a large pipe made of nickel chromium-alloy. Shaft sleeves are utilized by a wide range of commercial entities in marine fields. While the requested sleeves are specialized to meet government specifications, they are not unique to the Government in function/technology and are available for sale to the general public.

Market research was conducted to determine the commerciality of the sleeves. The Contract Specialist (CS) checked GSA Advantage, UNICOR and AbilityOne as mandatory sources. No results that met the specifications of the requirement were found. The CS met with the requirement owners on March 5, 2025. The NNSY shafting engineer indicated there are three manufacturers capable of manufacturing the sleeves as specified – MetalTek International (CAGE 93812), Spunalloys Ltd (CAGE U2BP5), and Delta Centrifugal LLC (CAGE 1S741). Delta Centrifugal LLC, however, was unable to manufacture the sleeves due to machinery unavailability. A Sources Sought Noice was posted to SAM.gov from 03/07/2025 to 03/21/2025. Three (3) vendors responded to the notice:

MetalTek International, Spunalloys Ltd, and BHPE LLC (CAGE 9SWS7). Representatives from both MetalTek International and Spunalloys responded as manufacturers and indicated that the sleeves are modified commercial items. A representative from BHPE LLC also responded as an interested supplier.

Although there is no indication that any other manufacturer could provide the required items, there is a reasonable expectation that two or more vendors are capable of supporting this requirement based on the information above and outlined herein. Therefore, the Contract Specialist recommends this requirement be solicited as a Brand Name only, 100% small business set-aside with Lowest Price Technically Acceptable (LPTA) as evaluation factors.

Market Survey [10 U.S.C. 3204(e)(2)(D)]:

[X] A market survey was not conducted due to:

Based on the results received from multiple other market research techniques used, a formal market survey was not conducted. The Contract Specialist contacted knowledgeable individuals within the Government regarding market capabilities, published a Sources Sought Notice via SAM.gov, analyzed same and similar past procurement history requirements, queried Government-wide databases, and reviewed catalogs and other product information available on the internet.

9. Additional facts supporting other than full and open competition are:

[ ] Based upon the attached technical certification, technical data is not available and cannot be developed to permit full and open competition. The data presently available reflects the minimum needs of the Government.

[ ] As stated in the attached certification by the requiring activity, the Military Services will be seriously injured in contract award is delayed. The extent and nature of harm are detailed in the attached certification, or provide a narrative Impact Statement below:

[ ] When FAR 6.302-1 is cited for follow-on acquisitions as described in 6.302-1(a)(2)(ii), an estimate of the cost to the Government that would be duplicated and how the estimate was derived.

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[ ] Other: (Explain)_________________________________________________________________________.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state)

METALTEK INTERNATIONAL (CAGE Code 93812) SPUNALLOYS LTD (CAGE Code U2BP5)

BHPE LLC (CAGE 9SWS7)

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

[ ] Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items [ ] Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items [ ] VE Bailment Program [ ] Source Development Review [ ] Reverse Engineering [X] Other (Explain)

This acquisition will be synopsized and solicited on SAM.gov to encourage potential supplier participation. Should the solicitation result in an offeror identifying another manufacturing source of supply, then interested parties will be informed of calibration requirements and procedures. If another manufacturing source becomes approved, then future acquisitions will allow and provide for manufacturer competition.

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.

_________________________________________ 4-10-2025 Contracting Officer Date

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