J A 7002770291 _Redacted.pdf

PDF 428 KB Posted

Attached to
Microcircuit, Hybrid Federal contract opportunity
Solicitation number
SPE7M523R0034
Issued by
Defense Logistics Agency Land and Maritime

About this file

This justification document supports a sole source award for a hybrid microcircuit to the incumbent supplier CMC Electronique. The Defense Logistics Agency requires the spare part to maintain weapon systems including various models of the F-18 aircraft. Technical data for the custom device is considered proprietary and not available to permit full and open competition. The solicitation will be posted on the DIBBS system from July 26th for 30 days, with pricing to be determined fair and reasonable based on past procurement history and market research. The maximum contract value is estimated at $. The sole source justification and award to CMC Electronique was approved on specified dates by contracting personnel.

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7M523R0034 / PR 7002770291

provided on associated drawings. The only personnel capable of answering that question would be the engineering support activities for those weapons systems not listed.

FSC 5962 (and 5961) represents electronic components that have the potential of being designed into countless assemblies that could be part of other weapons systems. Only selected, programmed or hybrid microcircuits have the potential to fall into the category of narrow usage into specific systems.

This NSN represents a source control drawing. That source control drawing, H8000069-002F represents a custom hybrid microcircuit and a specific manufacturer as the source. Since this device defines a custom hybrid, that definition reduces (but does not necessarily eliminate) the possibility of usage across multiple platforms: it is custom designed to perform a specific function identified by Raytheon for use in a Raytheon system and not sold for commercial usage as a manufacturer’s mass-produced device. Only Raytheon could identify their usage of this device across other platforms they support or supply.

The OEM, Raytheon, lists no information for NEXT ASSEMBLY or USED ON application on this drawing. Since no additional usage information is available to DLA on the drawing, no additional part numbers can be researched in the supply system.

Since no other service is listed as a user and the Navy only identifies versions of the F-18 as the applicable end item, this office is limited to confirm only the weapons codes currently assigned by the sole user: Navy. This data shows no other known weapons systems that would use this device or the next higher assembly (unknown) that this custom hybrid device is installed into.

The Navy ESA did not specify the next higher assembly information under any recent 339 case to which this device is installed so this office has no other research tools available to make any further determinations outside of the 4 listed weapons systems identified.

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.

[X ] 10 U.S.C. 3204(a)(1) – The head of an agency may use procedures other than competitive procedures only when the property or services needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency;

The government requires spare parts that are form, fit, and functionally interchangeable with those currently used on the supported weapon system.

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

CMC Electronique (CMC) (90073) P/N 264-339691-001

CMC Electronique (CMC) (90073) P/N 264-339691-001D

The use of the authority cited is based on 10 U.S.C. 3204(a)(1):

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

[X ] AMSC B. This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-

100. Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. Although, by DoD-STD- 100 definition, altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

A Technical Referral was sent to the Product Specialist to validate the AMC/AMSC code and source of supply.

On 6/16/2023, the Product Specialist confirmed the AMC/AMSC of 3/B and confirmed the item has one approved source, CMC (90073). There are no other sources of supply for this material.

Item is a limited rights drawing in which the exact and detailed operations of the device are complex and considered proprietary to Raytheon.

The Product Specialist certified the above technical information, is complete and accurate on 6/16/2023.

DLA does not possess adequate data, lacks rights to data, and/or has no record of an alternate Design Control Activity approved source.

CMC (90073) is the only source that has the rights or data to manufacture this item.

CMC (90073) retains the data rights, manufacturing knowledge, or technical data that is not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the part.

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

[X] The acquisition will be synopsized for 16 days on or about July 10, 2023 on the DLA Internet Bid Board (DIBBS) and will be solicited for 30 days on or about July 26, 2023 on the DLA Internet Bid Board (DIBBS).

A Sources Sought was posted to https://SAM.gov on 6/9/2023 with a respond by date of 6/16/2023.

o One response was received from DAC International (0JHC9) as an interested party.

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

To determine the cost as fair and reasonable, Price Analysis will be calculated using past procurement history, a Learning Curve, PPI, current market value of item and/or similar items, negotiation procedures, traceability, and the use of resources available through the Pricing Office.

Commercial Determination: Information received regarding the commerciality of the item(s):

o Per SAP MM03 – Entry for “Commercial Off-the-Shelf” is “blank”.

This is a complex custom hybrid microcircuit . Item has known material obsolescence issues based on previous attempts to purchase. This item is not a “Commercial Off-the-Shelf” item.

o The sole source part number was researched in Haystack, GSA, and Google. No additional data was found to indicate that this part is available commercially.

o The AMC/AMSC is not coded as a commercial product by the Product Specialist.

The AMC/AMSC is coded as a 3/B; Acquire for the second or subsequent time, directly from the manufacturer. This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-100. Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application.

Although, by DoD-STD-100 definition, altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained.

The AMC/AMSC code was certified as accurate by the Product Specialist on 6/16/2023.

Commerciality Summary: After reviewing all market research, which includes contacting knowledgeable individuals (Product Specialist), use of market surveys, sources sought notices, procurement history, and research of the market through key words searches on the internet and database, the Contracting Officer has determined that it is in the best interest of the Government to proceed as a non-commercial item, using FAR Part 15 procedures in lieu of FAR Part 12.

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

[ X ] 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.

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

CMC (90073)

DAC International (0JHC9)

11. This item is subject to the following methods of locating additional sources:

Solicitation will include, but is not limited to, the following Procurement Notes:

L22 Restriction of Alternate Offers for Source Controlled Items.

M01 Approved Suppliers for Federal Supply Class (FSC) 5961, Semiconductors and Hardware Devices, and FSC 5962, Electronic Microcircuits (JUN 2020)

IAW DFARS PGI 206.303-2(B), a copy of the J&A from the last procurement will be included in the file. There were no previous J&As for this item as all past procurements were under the Simplified Acquisition Threshold (SAT).

CONTRACTING OFFICER CERTIFICATION

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief.

The estimated PR Value of this J&A is $ The estimated Maximum Value (at the top price break) of this J&A is $

Christine Boyer, Contracting Officer Date

APPROVAL/CERTIFICATION

Competition Advocate Date Date

APPROVAL REQUIREMENTS

(X ) Up to $750,000 Contracting Officer

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

( ) $15,000,00 –$100,000,000 Head of the Contracting Activity (HCA)

( ) over $100,000,000 Senior Procurement Executive (AQ)

Attachments Technical Certification Tech Referral

BOYER.CHRISTIN

E.D.1249699639

Digitally signed by

BOYER.CHRISTINE.D.12496996

Date: 2023.07.27 11:59:30 -04'00'

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