J-A6.302-1SPE7LX20R0168 - Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION: SPE7LX-20-R-0168

DLA Land & Maritime Justification for Other Than Full & Open Competition

(May 2018)

ORIGINAL J&A

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. The resulting contract will be Firm Fixed-Price with Annual Price Adjustments, Indefinite Quantity Contract under FAR Part 15 for a 3-year base period with the option to extend the contract for two additional years in one-year increments.

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

LINE ITEM NSN Brief Description AMC/AMSC ADQ Estimated ADV

0001 5935014375903 ADAPTER, CONNECTOR 1/C 149

0002 6140015594492 LITHIUM HUB, BATTERY 3/D 11,216

Total Estimated ADV

End Item description and Weapon System:

LINE ITEM NSN WSDC End Item

0001 5935014375903 02N STRATEGIC WEAPON SYSTEMS (POSEIDON AND TRIDENT)

0002 6140015594492 D3N FORD CLASS CARRIERS

The estimated base value is , with an estimated total value (Base + Option) of and a maximum contract value of

4. 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.

The items needed for this acquisition are available from only one or a limited number of responsible sources and no other type of items will satisfy the Agency needs.

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

CLIN NSN Company CAGE Part Number

1 5935014375903 L3 HARRIS TECHNOLOGIES, INC. 14304 10372-1230

5935014375903 DCX-CHOL ENTERPRISES, INC. 27456 10372-1230

2 6140015594492 L3 HARRIS TECHNOLOGIES, INC. 14304 12041-6300-A1

6140015594492 DCX-CHOL ENTERPRISES, INC. 27456 12041-6300-A1

The two manufacturers listed at table above are currently the sources, approved by the design control activity to supply these items. Accordingly, per DFARS 209.270, DLA is required to procure only from sources approved by the design control activity.

The use of the authority cited below:

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

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.

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. AMSC 3, 4, or 5 are valid.

The Quality Assurance Specialist has indicated that the AMC/AMCS code for both NSNs are correct and that L3 Harris Technologies (14304) and DCX-CHOL Enterprises (27456) are the only sources approved by the design control activity. Per the Quality Assurance Specialist these items will be used to replace parts that are incorporated into the military end item Strategic Weapon Systems (Poseidon and Trident Missiles), the Ford Class Carrier and other weapon system platforms, and these items are the only replacement parts that will function properly in the end item in accordance with the military requirements.

Product Procurement history indicates that L3 Harris Technologies (14304) and DCX-CHOL Enterprises (27456) are the actual manufacturer for these items. The Government lacks the technical data needed to acquire these items competitively. L3 Harris Technologies (14304) and DCX-CHOL Enterprises (27456) are the only sources known to possess the complete technical data for these items. As such L3 Harris Technologies (14304) and DCX-CHOL Enterprises (27456) are the only sources approved by the design control activity because they retain 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 parts.

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

a. The acquisition will be synopsized on or about September 9, 2020, and will run for 15 days. At the completion of the synopsis period, the RFP will be solicited on the internet for 30 days, via the DLA Internet Bid Board System (DIBBS).

b. Alternate offeror’s will be evaluated and forwarded for approval to the ESA.

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

Past procurement, history will be reviewed and a price analysis will be performed using the producer price indexes from the Bureau of Labor Statistics. The basis for determining the reasonableness of this procurement will be price analysis; analysis of the prices in the commercial market place plus other than cost or pricing data will be request if needed.

Based upon the above techniques, the Contracting Officer hereby determines that the anticipated cost to the Government will be fair and reasonable.”

8. Market Research/Efforts to Obtain Competition:

a. The product specialist reviewed these NSNs for the project during project creation, and no new sources were found. A Sources Sought notice was posted July 20, 2020, in Beta.SAM.GOV for 10 calendar days to find potential sources for these NSNs and no response were received from companies interested to be manufacturers for these items.

b. For items with an AMCS of C and D, the solicitation will contain Procurement Note L04

– Offers for Part Numbered Items, which increases competition by permitting the considerations of alternate offers.

c. A market survey was conducted on/during: 4/23/2020 – 7/31/2020.

d. Total number of vendors contacted: 2

e. Names of vendors contacted:

1. L3 Harris Technologies, Inc. (14304)

2. DCX-CHOL Enterprises, Inc. (27456)

f. Total number and names of vendors that responded to market survey: 2

1. L3 Harris Technologies, Inc. (14304): No response to the market research

2. DCX-CHOL Enterprises, Inc. (27456): Interested

g. Techniques used to conduct survey: emails, Beta.Sam.Gov, Market survey questionnaire and attachment and follow-up phone calls.

h. Types of information requested: # of base years, # of option years, priced option years versus EPA, FOB origin or destination, quantity breaks, commerciality, commercial sales invoices, Understanding of cost/price data.

i. Summary of information received: The Acquisition Specialist attempted to conduct market research with the companies listed above to assess their interest and capability to perform and only one company indicated an interest which were: DCX-CHOL Enterprises, Inc.

Company Name

CAGE

CODE

Business Size

KTR

Interested in an LTC

KTR Base Years and

Option Yrs.

Preference

KTR PREFERS

A FIRM FIXED

PRICE

CONTRACT

KTR WILL

PROVIDE COST &

PRICING DATA IF

REQUIRED

Phased

Delivery

Commercial

Items

L3 Harris Technologies 14304 Large Business No Response - DCX CHOL Enterprises 27456 Small Business Yes No

Commerciality Determination: The response to the market survey from DCX-CHOL Enterprises, Inc. indicated that these items are not commercial. Per FAR 2.101 (b) the items in this solicitation has been determined to be non- commercial. The following factors that have led to these conclusions are:

A search of the internet was done and there is no evidence that this item can be sold to other than the military.

Items are not commercially price listed.

NSNs are not coded with an AMSC code of “Z”.

The Agency’s need for the acquisition of these items is to sustain numerous critical weapon system platforms and their supporting equipment. As such, these items have strict configurations and standardization requirements for which a Non-Commercial acquisition is more appropriate.

The Acquisition Specialist checked the GSA Schedule for these NSNs and no information was found.

Therefore, it is the determination of the contracting officer that these items are not commercial and FAR Part 15 will be applied to the solicitation.

9. 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.

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

Enterprises, Inc. (27456) the only company that responded to the market survey and expressed an interest in the acquisition. As such, this company will be in the solicitation mailing list.

11. The following actions are being taken to identify additional sources:

a. The solicitation will contain procurement note L04– Offers for Part Numbered Items SEP 2016 and M06 - Evaluation of Offers for Part Numbered Items (SEP 2016).

b. Planned actions to overcome any barriers to competitions are periodic market research and sources sought.

12. The Buyer searched the previous award listed in the contract history in Records

Management for previous Justifications as required by the Defense Federal Acquisition Regulation Supplement (DFARS) and Procedures, Guidance, and Information (PGI)

206.304, and was able to locate Justifications for contract SPE7MX16D0134 which is attached.

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 $700,000, this signature serves as the approval.

Contracting Officer/Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature/Date

APPROVAL REQUIREMENTS

[X] $700,000 to $13,500,000 Competition Advocate

CARABALLO.EDWIN

.1253443274

Digitally signed by

CARABALLO EDWIN.1253443274

Date: 2020.09.11 06:13:45 -04'00'

SHEARER.MARY.E.1

250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2020 09.11 14:35 04 -04'00'