Addendum JA SPE7MX22R0063 Redacted.pdf

CUI

SPE7MX-22-R-0063

Therefore, the lowest pricing ranges reflect much higher costs than the Government has paid in the past for higher quantities. Due to the increase in material cost and thus higher unit pricing, the Contracting Officer determined that the lower quantity ranges for all 3 NSNs would not be awarded, and the contract would go from a 5-year total with 3 base years and 2 1-year option periods to a 3-year total contract with 3 base years. This item is Sole Sourced to SRCTec, and they have been the only supplier for all previous LTC’s and small purchase buys.

Justification and approval for previous acquisition was not required as all previous procurements were under the $750,000 threshold or used Simplified Acquisition Procedures.

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief. The estimated total value of the J&A is

Elizabeth Hanlon Date:

Contracting Officer

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

MARY E. SHEARER Date:

Competition Advocate Signature

APPROVAL REQUIREMENTS

Contracting Officer

Competition Advocate

[ ] Up to $750,000

[X] $750,000 to $15,000,000

Attachments:

1 – Signed J&A

HANLON.ELIZABE

TH.EASTON.13783

72107

Digitally signed by

HANLON.ELIZABETH.EASTON.

1378372107 Date: 2022.08.30 10:49:52 -04'00'

CUI Controlled by: DLA Land and Maritime Controlled by: SAPD (Z) CUI Category: Source Selection

Distribution/Dissemination Control: FEDONLY POC: Elizabeth Hanlon, 614-692-1655

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX-22-R-0063

[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 on other than full and open competition basis. This

DLA Land and Maritime acquisition is for an Indefinite Quantity Contract (IQC) for NSNs 5915-016156395, 5985-016164688 and 5996-015818385. The proposed acquisition is for a Filter Band, Antenna and Radio Free Amplifier used on MRAP M-ATV UI Underbody Improvement, MaxsPro and M2A4,M7A4,A4 BFV,A4 Bradley Fighting Vehicle. This acquisition is being pursued to provide continued or improved supply availability to preclude backorders, reduce administrative and production lead-time (ALT and PLT), decrease potential contract administration actions, and obtain reduced and stable unit pricing.

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

CLIN

NSN

Item Description

U/I

AMC/

AMSC

Estimated Annual Demand Quantity (ADQ)

0001 5915-016156395 Filter Band Suppressor EA 3C 359 0002 5985-016164688 Antenna EA 3D 391 0003 5996-015818385 Amplifier Radio Free EA 3D 117

Estimated value and contract duration:

The proposed action is for the solicitation and award of a five-year, Firm-Fixed Price, Indefinite Delivery Indefinite Quantity (IDIQ) type contract. The five-year period is inclusive of a three-year base period and two (one-year) option periods. The estimated annual demand Value is with a base period estimated value of The contract maximum is .

Identify end item, weapon system, or class of item:

This NSN is used to support various military aircraft such as the MRAP M-ATV UI Underbody Improvement, MaxsPro and M2A4,M7A4,A4 BFV,A4 Bradley Fighting Vehicle.

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

10 U.S.C. 2304(c)(1) - Available from only one or a limited number of sources.

SPE7MX22R0063

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

CAGE Part Number

SRCTEC, LLC (4GHA7) SCP2252

SRCTEC, LLC (4GHA7) SRC3251

SRCTEC, LLC (4GHA7) SCP1374

Per the approved manufacturer parts list for these NSNs in SAP, SRCTEC, LLC (4GHA7) is the only approved sources/part numbers by the design control activity because they are the only sources that retain the data rights, manufacturing knowledge, or technical data, which is not economically available to the Government, and that data or knowledge is essential to maintaining the quality of the parts.

The use of the authority cited below:

AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

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. CLIN 0001

AMSC D. The data needed to acquire this part competitively is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation. AMCS 3, 4, or 5 are valid. CLINs 0002 & 0003

Per the approved manufacturer parts list for these NSNs in SAP (as received from the Defense Logistics

Information Service), only CAGE 4GHA7 has been identified as having the proper complete technical data and manufacturing expertise to supply this item to DLA and the using military services. This item has been determined to be non-commercial. A technical review in support of a potential LTC was performed on September 7, 2021, and NSNs were determined to be suitable for a long-term contract. The Product Specialists reviewed the technical information and AMC/AMSC codes and certified it as complete and accurate on September 9, 2021.

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

The acquisition will be synopsized on or about February 21, 2022, for 15 days prior to the solicitation opening. At the completion of the synopsis period, this acquisition will be solicited on the internet for 30 days via the DLA Internet Bid Board System (DIBBS).

Approved source SRCTEC, LLC and dealer JGB Enterprises, Inc. will be solicited.

In an effort to encourage participation by manufacturers in the acquisition process and to help decrease barriers for companies looking to become sources of supply, DLA Land and Maritime hosts Captains of Industries bringing in industry leaders for particular commodities or weapon systems. DLA, depending on budget allowance, also holds supplier conferences.

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

a. This will be a three-year base plus two one-year option periods, firm fixed price, IDIQ type contract. It is anticipated that Certified Cost or Pricing data IAW FAR 15.403-4 will be required. This requirement is over the threshold of $2,000,000. Price analysis will also be conducted on comparison of the offer received with the past acquisition history, movement of the producer price index, and comparisons to similar items. The price analysis for future years will be based on the Global Insights Producer Price Index (PPI) forecasts. The buyer anticipates using Certified Cost and Pricing Data price analysis as well as comparison to past reasonable purchases to support a reasonableness determination.

b. I hereby determine that the anticipated cost to the Government will be fair and reasonable based on Certified Cost and Pricing data, price analysis, Producer Price Index (PPI) and learning curve analysis.

Market Research/Efforts to Obtain Competition:

DLA Land and Maritime conducted various forms of market research including the publishing of a formal Sources Sought notice and market survey to www.SAM.GOV. In addition to the publishing of a Sources Sought notice, the Market Survey team contacted the approved source from the procurement data pull.

Sources Sought Notice:

On 1/28/2022, a Sources Sought notice was posted to www.SAM.GOV, which also contained attached market survey documents. The date of return referenced on that Sources Sought notice was 2/9/2022. No responses were received.

Market Research Conclusion:

A market survey was conducted on 9/7/2021 to 9/16/2021 with follow up research done by the Buyer 1/28/2022 to 2/9/2022.

Total number of vendors contacted: The 1 approved source and 1 dealer providing the product of the approved source were contacted.

Names of vendors contacted and responding:

SRCTEC, LLC - responded JGB Enterprises, Inc. - responded

Techniques used to conduct survey: E-mail.

Types of information requested: Commerciality, Length of Contract, FOB, Delivery, can they provide Certified Cost and Pricing Data & General information questions.

Summary of information received from SRCTEC, LLC .:

They are interested in pursuing a long-term contrac

They are a large business manufacturer.

They would prefer ‘firm fixed price’ for base They indicated that the NSNs are not commercial, and they can provide C&P data. Noted they had provided C&P data on current contract SPE7LX17D0054.

Summary of information received from JGB Enterprises, Inc.:

They are interested in pursuing a long-term contract with a

They are a large business dealer providing the product of SRCTEC, LLC .

JGB stated they can provide certified cost pricing data.

They would prefer ‘firm fixed price’ They indicated that the NSNs are not commercial, and they have provided all 3 NSNs via simplified acquisition buys.

Information received regarding the commerciality of the item(s): The manufacturer, SRCTEC, LLC considers these items to be non-commercial due to the end item they are used on. The Product Specialist of Record has deemed the NSNs non-commercial, and the previous procurement was deemed non-commercial. Therefore, the item is determined to not be non-commercial, and acquisition will be conducted under FAR Part 15.

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

Based upon the technical certification on file in DLA Land and Maritime – VEP 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.

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

SRCTEC, LLC the approved source and large business manufacturer as well as JGB Enterprises, Inc. a large business dealer providing the product of SRCTEC, LLC are both interested in submitting a proposal. Both companies responded to the Market Survey and past history indicates that they have both provided in the past.

10. 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.

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

Per PGI 206.304, the requirement states, “the justification shall include a copy of the previous justification to assist the approval authority in determining whether the planned actions to remove any barriers to competition cited on the previous justification were completed”. Based on a review of the recent contract history, the previous contract SPE7LX17D0054 required a J&A, see attachment 2.

ATTACHMENT:

1 – Tech 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.

Elizabeth Hanlon, Date Contracting Officer

APPROVAL/CERTIFICATION

I have reviewed and approve this justification. The estimated total value of the J&A is

MARY E. SHEARER, Date Competition Advocate

APPROVAL REQUIREMENTS

[X] Up to $750,000 Contracting Officer

[X] $750,000 to $13,500,000 Competition Advocate

HANLON.ELIZABE

TH.EASTON.13783

72107

Digitally signed by

HANLON.ELIZABETH.EASTON.

1378372107 Date: 2022.02.15 08:00:26 -05'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2022.02.23 07:32:34 -05'00'