J-A SPE7MX23R0054 Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX23R0054

DLA Land and Maritime J&A Other Than Full and Open Competition 1

ORIGINAL

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

2. The action being approved is the acquisition of supplies on an other-than full and open competition basis. FAR 15 procedures are being used for an Indefinite Quantity Contract with a 3-year base period and 2 one-year option periods.

3. The supplies required to meet the using activity's needs are shown below.

NSN Data:

Approved Part Numbers:

Identify end item, weapon system, or class of item: Aircraft, Stratolifter C/KC-135

ESTIMATED ANNUAL DOLLAR VALUE: $214,958.00

ESTIMATED BASE VALUE (3-Year Base Period): $644,874.00

MAXIMUM CONTRACT VALUE: $1,980,248.00

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

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

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authorities cited in paragraph 4:

The solenoid valve is part of the Single-Point Refueling (SPR) system for the Stratolifter C/KC-135 Aircraft. The valve is operated with a switch accessible on the refuel control panel in the cockpit. The SPR system allows “hot” refueling on the ground—refueling while at least one of the engines is running. This system cuts the refueling time from 4 to 6 hours down to about 1 hour. The C/KC-135 is a cargo aircraft and is most vulnerable to enemy attack while on the ground, so the SPR is imperative to survivability during missions.

Only the approved parts should be procured ensure crew safety and mission support.

DLA Land and Maritime J&A Other Than Full and Open Competition 2

The Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part.

Further, the Product Specialist (PS) certified that the technical information, including the approved source and AMC/AMSC codes, is complete and accurate on 12/6/2022. The PS also certified that DLA does not possess adequate data, lacks rights to data, and has no record of an alternate approved source. The data presently available reflects the minimum needs of the Government.

The procurement item descriptions (PIDs) are included as Attachment 1.

The use of the authority cited is based on:

AMC 1. Suitable for competitive acquisition for the second or subsequent time.

AMSC R. The Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid.

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

The acquisition will be synopsized on or about 1/20/2023 for about 45 days (through the closing date of the solicitation). On its Issue Date, on or about 2/6/2023, the solicitation will be posted to DIBBS for 30 days for other interested businesses to access.

A sources sought notice was posted on 1/5/2023 for 5 business days to locate sources interested in becoming approved sources and companies who wish to participate in this solicitation by providing the approved parts.

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

Cost or pricing data will not be required, since these items will be solicited using commercial procedures, which satisfies the exception for cost or pricing data listed at FAR 15.403-1 (b) (3).

However, other-than cost data (OTCD) may be requested, if needed. Per FAR 15.404-1(a)(2), a price analysis will be conducted. The price analysis will be performed using pricing from procurements, which were determined fair and reasonable. That pricing will be adjusted by Producer Price indexes (PPIs) and learning curve analysis, as necessary, for comparison with proposed prices for this procurement. Negotiations will be held if needed. Other techniques may be used, if needed.

By using the above techniques, the Contracting Officer anticipates that the cost to the Government will be fair and reasonable.

DLA Land and Maritime J&A Other Than Full and Open Competition 3

8. Market Research/Efforts to Obtain Competition:

The sources-sought notice was posted on 1/5/2023 looking for sources interested in becoming approved sources and companies who wish to participate in this solicitation by providing the approved parts. The notice closed on 1/12/2023. United Valve Company CAGE 0TR84 responded 1/9/2023 by email stating that they have plans to add this item to their license agreement with Parker Hannifin to manufacture this item (and supply under their own CAGE).

The Contracting Officer sent United Valve the instructions for submitting a SAR package. (Per the SAPD PS, this is required even though they would be manufacturing under a license agreement.) United Valve replied that they will not be able to respond on the Sources Sought notice at this time.

A market survey was sent to NMG Aerospace by the Strategic Sourcing Specialist on 12/2/2022, and no response was received. (The NMG Aerospace email address used for emailing the market survey is listed as a point of contact in SAM for Electromotive Inc. (34802), the small business approved source. The immediate owner for Electromotive is National Machine Company (6L817) doing business as NMG Aerospace.)

The Contracting Officer sent an email with some market research questions to Transaero Inc. on 12/21/2022, the main and most recent source on the procurement history. Transaero is interested in a 5-year LTC. Additional questions were asked of Transaero concerning the commerciality of the part and the specific system that the part is used on. Transaero stated that they have not sold the part commercially, and they reported that the part’s end use is the Stratolifter C/KC-135 aircraft, which is information the Contracting Officer already had. Transaero stated by email that they need a guaranteed minimum (contract minimum) of at least $31,000.00, which is approximately 35 EA and a delivery order minimum quantity of at least 15 EA (18 EA is set).

Transaero said that there is a quantity price break at 100 EA of about $25; however, this quantity must be guaranteed to set it as a price break. (The Contracting Officer cannot set that as a minimum, so there will not be any quantity ranges.)

Non-Commercial Determination: Transaero, the provider since2019, has never sold this part commercially. The application is solely for military aircraft. The item is not coded as commercial by the Product Specialist.

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

The Product Specialist certified (Attachment 2) that DLA does not possess adequate data, lacks rights to data, and/or has no record of an alternate approved source. The data presently available reflects the minimum needs of the Government.

10. A list of business sources indicating an interest in the acquisition:

Transaero, Inc. (27541): small business dealer

11. Actions being taken to overcome barriers to competition:

DLA Land and Maritime J&A Other Than Full and Open Competition 4

DLAD Procurement Notes L04, Offers for Part Numbered Items, will be included in the solicitation. Provision M06, Evaluation of Offers for Part Numbered Items, will also be included.

12. There are no previous J&As, since all previous acquisitions were below the simplified acquisition threshold.

Attachments:

1 LTC PID-Pkg R0054 2 Tech Cert R0054

DLA Land and Maritime J&A Other Than Full and Open Competition 5

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.

614-692-9252

REBECCA S. HALTEMAN Date Phone Contracting Officer

Approval/Certification

I have reviewed and approve this justification. The estimated total value of the J&A is $1,980,248.00.

614-692-3760 MARY E. SHEARER Date Phone Competition Advocate

APPROVAL REQUIREMENTS

( ) Up to $750,000 Contracting Officer

(X) $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)

HALTEMAN.REB

ECCA.S.1273657

Digitally signed by

HALTEMAN.REBECCA.S.127

3657475 Date: 2023.01.26 14:53:42 -05'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.12507024

Date: 2023.01.27 07:39:20 -05'00'