J A.SPE7M523Q0040.Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7M523Q0040 / PR 0095890689

[ 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 a full and open competition basis under FAR part 13.5 Simplified Procedures for Certain Commercial Items in accordance with 41 U.S.C. 1901.

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

BRIEF DESCRIPTION NSN QUANTITY EST. VALUE AMSC

Circuit Card Assembly 5998-01-692-6476 1906 B

*Estimated unit price-

CONTRACT TYPE

Firm Fixed Price: Price Breaks requested qty 1000- qty 3000.

The solicitation will use FAR Part 13.5 (Simplified Procedures for Certain Commercial

Products and Commercial Services).

Estimated Unit Price: $ Estimated PR Value: $ Estimated Maximum Value for a quantity of 3000 each: $

This acquisition is for a fixed quantity; however, price breaks will be solicited permitting the Government to order up to the maximum quantity of the price break solicited.

End Item Description, Weapon System, or class of item: Item is a Circuit Card used on the Control Intercommunication Set (FFCS) with the Next Higher Assembly, P/N

A3205746, NSN 5830-01-382-3218.

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

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

[X ] 10 U.S.C. 2304(c)(1) : The head of an agency may use other than competitive procedures only when the property or services needed by the agency are available from only a limited number of responsible sources and no other type of property 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:

Chelton Limited (U1907) P/N A3206602

The use of the authority cited is based on 10 U.S.C. 2304(c)(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.

On 11/17/2022, the Product Specialist certified that NSN 5998-01-692-6476 has an AMC/AMSC of 3/B; Chelton Limited (U1907) P/N A3206602 is the only approved manufacturing source(s) per the source-controlled drawing Source Controlled for US Army (80063) drawing A3206602.

Chelton Limited (U1907) is the only approved source that has been confirmed by the Army ESA (DSCC-FM-21-38524, this item was previously procured by TYAD directly and therefore proven to be an approved source of supply and is the Original Equipment Manufacturer (OEM) for the AN/VIC-3 system).

Next higher assembly for Circuit Card Assembly, NSN 5998-01-692-6476 is PN A3205746 (AN/VIC-3 System) This item is considered modified “Of a Type”. Per Chelton Limited, this item relates to Chelton’s Vehicle Intercom Systems product line, notably the VIC-3 intercom model.

Chelton’s Intercoms are considered “of a type” used by the general public for internal and external voice communications between air and ground vehicle vehicles operating in high noise environments, which require active noise cancellation, hearing protection and radio connection capability. The VIC -3 Intercom System performs these identical essential functions, with modifications related to ruggedization for extreme operational environments required by Government operation.

The A3206602 circuit card which is part of the electronics that makes up a VIC-3 Full function Crew Station (FFCS) was designed and successfully passed the requirements of a US Army First Article Test (FAT). As part of the FFCS final assembly, the CCA was subject to rigorous testing to ensure it was sufficiently ruggedized to comply with the operating conditions envisaged by the US Army. Such testing included: Ballistic shock, Vibration, High & Low temperature, Explosive Atmosphere, Immersion/Spray, Lightning, Surge/Spike, and EMI & EMC. This is a few of the many tests performed during FAT which are most relevant to ruggedization which conveys the extremes to which these circuit cards need to perform.

Chelton Limited is the only source specified on the source control / item drawing. Because the Government has the drawings or data available but does not have complete drawings or data to make the acquisition fully competitive, Chelton Limited is uniquely qualified as they are the only known source that possesses the necessary technical data for the manufacturing of this item, thus, demonstrating unique design capability, engineering skills, and manufacturing knowledge for this NSN.

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 November 2022 on the DLA Internet Bid Board (DIBBS) and will be solicited for 30 days on or about December 2022 on the DLA Internet Bid Board (DIBBS).

A Sources Sought was posted to https://SAM.gov on 9/28/2022 with a respond by date of 10/6/2022.

o ECI Defense Group (4BJ65) responded on 9/29/2022 that ECI Defense Group (4BJ65) is partnered with Chelton Ltd, however this is a no bid as Chelton will quote this item directly to the Government.

o On 10/24/2022, Aeroforce Logistics (7K6J5) inquired if this solicitation was still open. The Buyer responded on 10/24/2022 stating that the solicitation for this requirement has not been posted to DIBBs.

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 completed and additional support from Price and Cost Office 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.

If additional analysis is needed for the fair and reasonable determination, support will be sought from the Pricing Office. The contract maximum value is expected to exceed the TINA threshold of $2.0M. However, IAW FAR 15.403-1(b)(3), Certified Cost/ Price Data will not be required as this NSN has been determined to be a commercial product.

8. Market Research / Efforts to Obtain Competition:

A market survey was sent to Chelton Limited (U1907) on 9/28/2022 stating a new solicitation for NSN 5998-01-692-6476 would be issued late November/Early December.

APPROVAL REQUIREMENTS

( ) Up to $750,000 Contracting Officer

(X) 750,000 - $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)

Attachment:

Previous J A (SPE7M522P8152, Sept 2022) Technical Certification