Consolidation Memo SPE Signed_Redacted.pdf

DEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

MEMORANDUM FOR RECORD

SUBJECT: Consolidation Detennination:

Background

DLA Aviation proposes to award a long-te1m contract consisting of a Fixed-price with prospective price redetermination, multiple year Indefinite Delivery Indefinite Quantity, Joint Opportunity contract for up to 44,274 supply items sole source to United Technologies Aerospace Systems (UTAS). This joint opportunity acquisition seeks to extend the Defense Logistic Agency's (DLA) Strategic Supplier Alliance with UTAS. Under the contract, UTAS will provide worldwide support for up to 44,274 consumable and Depot Level Reparable (DLR) National Stock Numbers (NSNs) managed by DLA and the Military Services. The acquisition will be conducted under the authority of Other Than Full and Open Competition, 10 U.S.C. § 2304(c)(l), Federal Acquisition Regulation 6.302-1. The goals of this initiative are to improve production lead time (PLT), production capacity, forecasting, and material availability (MA); reduce administrative lead time (ALT), unfilled orders, and set up costs and unit prices; and achieve 100 percent on-time delivery. The sole source UTAS items to be rocured under the contract su ort multi le wea ons s stems, includin , but not limited to the

Because DLA now buys many of these NSNs separately under numerous individual contracts, the proposed acquisition constitutes a consolidation as defined in FAR Subpa1t 7 .107-2. The attached acquisition plan and benefit analysis provide the details of the proposed acquisition. Relevant po1tions are summarized below.

Market Research

Limited effo1ts were made to conduct market research since the Government has internal info1mation that demonstrates the items are not competitive. A technical review of the items verifies they are all coded as sole source to UTAS. Coordination with the DLA Aviation Competition Advocate reveals there is extensive history to suppo1t that these items have been and will continue to be sole source to UTAS. In addition, a synopsis will be issued to the Federal Business Opportunities web site as a pre-solicitation notice to advise industry of the pending procurement and solicit inquiries from interested paities. It is anticipated that no source other than UTAS, the only known source capable of meeting this requirement, will be interested in this procurement.

Source Selection Info1mation - See FAR 2.101 & 3 .104

CUI

CUI Controlled by: DLA Weapons Support Philadelphia CUI Category: PROCURE

Distribution/Dissemination Controls: None POC: Mary Lindsay, 267-660-8079

CUI

Source Selection Information – See FAR 2.101 & 3.104

Identification of Alternative Contracting Approach

DLA Aviation considered the alternative contracting strategy of using the traditional transactional buy approach in order to lessen effects of consolidation. The traditional approach would avoid any consolidation of requirements and would allow for more frequent negotiations with UTAS, which possibly could allow the government to obtain better prices. It would, however, achieve none of the benefits arising from the proposed acquisition strategy, which could also result in lower prices because of its long-term commitment.

Determination

For the reasons stated above, I hereby determine:

The proposed acquisition constitutes a consolidation of contract requirements.

The contract requirements being consolidated exceed a total value of .

The benefits of consolidating the contract requirements substantially exceed the benefits of the possible alternative contracting approach.

The consolidation of contract requirements is necessary and justified.

MATTHEW R. BEEBE

Senior Procurement Executive

Attachments:

As Stated

BEEBE.MATTHEW.RI

CHARD.1012725473

Digitally signed by

BEEBE.MATTHEW.RICHARD.1012

725473 Date: 2017.06.19 12:25:27 -04'00'