J and A Redacted SPE7MX19R0141.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION __SPE7MX-19-R-0141____

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A)

(April 2014)

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 items of supply on other than a full and open competition basis. This DLA Land and Maritime acquisition is for an Indefinite Quantity type contract for various electronic components. The proposed acquisition is for DLA-managed items with one approved source: Stratus Systems (CAGE 3AX04). The acquisition includes four (4) National Stock Numbers (NSNs).

DLA Land and Maritime intends to enter into a firm fixed price, long-term contract (LTC) consisting of a three-year base period and two option years.

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

CLIN ITEM NSN ADQ ADV AMSC

0001 ELECTRONICS-MODULE 5963016007765 2,128 D

ELECTRONIC

COMPONEN

5998016298476 116 D

0003 BATTERY,NONRECHARGE 6135015014632 696 D

0004 LIGHT STRIP ASSMBLY 6220016007770 548 D

Identify end item, weapon system, or class of item: The highest weapon system being supported for each of the NSNs is reflected in the table below.

CLIN NSN WSDC END ITEM

0001 5963016007765 EEN

E2/C2 ALL SERIES AIRCRAFT

0002 5998016298476 EAN

HELICOPTERS CH-53

0003 6135015014632 EEN

E2/C2 ALL SERIES AIRCRAFT

0004 6220016007770 YLN

HELICOPTER, SEAHAWK, H-60

ESTIMATED BASE YEAR ONE VALUE

ESTIMATED TOTAL VALUE (BASE + OPTIONS)_

MAXIMUM CONTRACT VALUE _

FOR ADD-ONS, PROVIDE VALUE OF OPTION YRS REMAINING ___________________

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.

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

Stratus Systems (CAGE 3AX04).

The use of the authority cited is based on:

(X) AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

(The following are the AMSC descriptions. The full text is available in DFARS PGI 217.7506 Part 2).

[X] 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. AMCS 3, 4, or 5 are valid.

Stratus Systems is the only known source that has the data necessary to manufacture the items to meet the military customer’s needs. Product specialist validation of the AMSC was received on 2/7/19.

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

(X) The acquisition will be synopsized 15 days prior to solicitation issuance.

( ) Manufacturers of similar products identified in the market research will be solicited.

( ) Dealers of the manufacturer will be solicited.

( ) A synopsis exception cited in FAR 5.202 applies. (explain)

(X) Other (Explain) A sources sought was posted on FEDBIZOPPS on 2/8/19 with a return response of 2/15/19. No responses were received as a result of the sources sought that was posted.

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

Cost or pricing data in accordance with FAR 15.403-4 will be required as NSNs are not determined commercial. Audit will be conducted and negotiations will address the individual cost elements. A price analysis will also be conducted using historical pricing, the Producer Price Index (PPI) and learning curve analysis. By using the above techniques, the Contracting Officer anticipates that the cost to the Government will be fair and reasonable. Requirement is being solicited with a three-year base period and two option years.

8. Market Research/Efforts to Obtain Competition:

Describe the market research conducted and the results. Market research questionnaire was emailed to the coded source of supply. A sources sought was posted on FEDBIZOPPS on 2/8/19 with a response date of 2/15/19. The sources sought resulted in no companies showing interest in proposing on the requirement.

Market Survey [10 U.S.C. 2304(f) (3) (D)]:

A market survey was conducted on/during: June 6, 2019 through June 17, 2019 Total number of vendors contacted: 1

Names of vendors contacted and responding: Vendor contacted was: Stratus Systems (CAGE 3AX04). Stratus System responded positively with interest in proposing on subject solicitation.

Techniques used to conduct survey: Email and posting a sources sought on FEDBIZOPPS.

Types of information requested: Company was asked about its interest in proposing on these NSNs based on a long term contract arrangement with a 3-year base and option years, questions relating to commerciality of the item, if it can provide cost and pricing data, an estimated delivery and whether there is a minimum order requirement for the NSNs.

Summary of information received:

Stratus Systems (3AX04): Company responded with market research questionnaire on 10/30/18. Company is a veteran-owned (not service-disabled) small business manufacturer and is interested in pursuing a Long Term Contract for the items.

Company indicated the items were commercial and they would be willing to provide evidence of commercial sales. This information was requested from them on 2/6/18 and then again on 7/1/19. Market survey response indicated its website offered the commercial sales of its parts and is the public domain. However, when buyer viewed its website there was nothing on the site that a query could be done by part number.

The previous LTC was awarded based on review of cost data submitted.

Information received regarding the commerciality of the item(s): Stratus Systems indicated the items were commercial. The commercial code in the material master indicates “N” for CLIN 0003 NSN and is blank for the remainder of the NSNs. The parts could not be found using a Google parts search nor could they be found on a GSA schedule. Company was asked to provide copies of unredacted invoices to support sales to commercial entities. On 7/9/19 company representative provided a return response that they only sell to companies who would use the parts on military applications.

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.

Copy of the J&A prepared for previous solicitation is provided at attachment #1. Only three of the NSNs to this project were on the previous J&A: CLIN 0001 NSN 5963016007765, CLIN 0003 NSN 6135015014632 and CLIN 0004 NSN 6220016007770.

NSN 5998015838043 was on the previous J&A. It was found once company proposed a superseding PN that the superseding PN had a new NSN established which is on this project as CLIN 0002 NSN 5998016298476. No J&A addendums could be found addressing the new NSN.

Prior to CLIN 0002 NSN being on LTC of SPE7MX-16-D-0030 the only other history for NSN was for spot buys under the simplified acquisition threshold.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) Stratus Systems (3AX04).

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

(X) The solicitation contains DLA Procurement Notes L04, Offers for Part Numbered Items and M06, Evaluation of Offers for Part Numbered Items.

( ) VE Bailment Program ( ) Source Development Review ( ) Reverse Engineering

(X) Other: Forecast information is available to all potential sources for both sole source and competitive items. The DLA Supplier Requirements Visibility Application (SRVA) is a database that is available via the DLA Internet Bid board System (DIBBS). SRVA provides potential sources the opportunity to search for information on DLA’s anticipated requirements based on updated monthly forecasts. Essentially it provides 24 months of sole source and competitive projected purchase order quantities. Potential alternate sources for current sole source items can easily see DLA’s forecasted procurements and can contact the Value Management Unit to become approved sources for sole source and code and part number items.

The DLA Land and Maritime Value Management Unit continually seeks out sole source, limited competition over-priced, low reliability and hard to buy items to improve their value and support posture. The DLA Land & Maritime internet website contains information for all potential sources on how to challenge prices, how to submit a Value Engineering Change proposal, a link to DoD’s Value Engineering program and the necessary contact information for both the DLA Value Engineering program and the DoD Value Engineering Program.

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

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature

APPROVAL REQUIREMENTS

[X] Up to $700,000 Contracting Officer

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

HAYDEN.ESTHE

R.A.1206755578

Digitally signed by

HAYDEN.ESTHER.A.120675557

Date: 2019.07.29 09:10:18 -04'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.07.30 09:41:49 -04'00'