J and A SPE7M5-19-R-0019.pdf
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- Attached to
- Encoder, Shaft Angle Federal contract opportunity
- Solicitation number
- SPE7M5-19-R-0019
About this file
This justification document is for a sole source award of an encoder shaft angle contract to Raytheon Company. The Defense Logistics Agency Land and Maritime requires 185 units of part number 13638873-1, which is only manufactured by Raytheon. Raytheon submitted a price of $9,580 per unit for a total contract value of $1,769,369.60. The agency conducted market research including a sources sought notice on FedBizOpps but received no other responses. As the incumbent and only approved source, Raytheon was awarded contract SPE7M5-20-C-0006 on March 26, 2020 to fulfill this requirement.
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DLA Land & Maritime Justification for Other Than Full & Open Competition
(FEB 2017)
JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION
SOLICITATION SPE7M5-19-R-0019
A Technical Referral was sent to the Product Specialist on 4/12/2019 to validate the AMC/AMSC codes and the approved sources. On 4/16/201 , the Product Specialist Responded stating that the AMC/AMSC codes for this NSN has been changed to “3/C” and that the only approved source for this item is Raytheon Co. (05716).
The Government has retained the right to approve manufacturing sources for this item due to its criticality, and Raytheon Co. (05716) is the only source that has been approved to manufacture this item.
Currently, based on the lack of adequate data, only Raytheon Co. (05716) has the unique capabilities that can meet the Government’s minimum needs to satisfy the Government’s needs for additional units or replacement items for use in the various end items listed above. Only Raytheon Co. (05716) is known to possess the manufacturing capability to make this item to the quality-level needed.
6. Efforts to ensure that offers are solicited from as many sources as practicable are:
[X] The acquisition will be synopsized on or about 05/15/2019.
[X] Other: Will be posted to the DLA Internet Bid Board System (DIBBS).
7. I hereby determine that the anticipated cost to the Government will be fair and reasonable.
The most recent buy for this item was with American Trading Service Inc. (0RU85) and it was determined fair and reasonable based on the adequate price competition and dealer competition and was determined fair and reasonable (PRC coded “BB”).
Since the estimated maximum total is under $2,000,000.00, price analysis will be used (In performance of price comparison, learning curves and the Bureau of Labor Statistics PPIs will be applied to the main buy quantity to be bought and to each incremental pricing structured mid-point quantity (if applicable), allowing for time and quantity variances as compared to the most recent successful award price to establish minimum and maximum pricing. Other than cost and pricing data, along with the use of the resources available through the Pricing Office may be required (if applicable).
Negotiations procedures may be used pending on price analysis results and competition.
8. Market Research/Efforts to Obtain Competition:
Based on aforementioned, Raytheon Co. (05716) is the only approved source for this item that is to be acquired for the second or subsequent time, directly from the actual manufacturer and that requires engineering source approval by the design control activity in order to maintain the quality of the part. A Market Research Survey was sent to Raytheon Co. (05716) to be completed and returned.
In addition to the above, a “Sources Sought Notice” was posted in the Federal Business Opportunities (FedBizOpps) to seek possible potential sources for this item that may possess the expertise, capabilities, and experience to meet the Government’s requirements. A Market Research/Survey was attached to the notice for potential contractors to complete and return.
JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION
SOLICITATION SPE7M5-19-R-0019
Market Survey [10 U.S.C. 2304(f)(3)(D)]:
[X] A market survey was conducted on/during 4/15/2019 and a “Sources Sought Notice” was posted in the Federal Business Opportunities on 4/12/2019 with a suspense date of 4/19/2019.
Total number of vendors contacted: one (1)
Names of vendors contacted and responding:
a) Raytheon Co. (05716)
b) There were no responses to the “Sources Sought Notice” that was posted in the FedBizOpps.
Techniques used to conduct survey:
a) Market Survey was sent via e-mail out to the following approved source:
1) Raytheon Co. (05716)
b) A “Sources Sought Notice” was also posted in the Federal Business Opportunities (FedBizOpps) to seek possible potential sources for this item that may possess the expertise, capabilities, and experience to meet the Government’s requirements. A Market Research/Survey was attached to the notice for potential sources to complete and return.
Types of information requested:
a) A brief summary of information requested by the Market Research/Survey:
(1) Is your company interested in pursuing a Firm Fixed Price contract for this item?
(2) Your company size?
(3) Is your company a manufacturer or dealer of this item?
(4) Do you have a parent company?
(5) Is this a “commercial” item per FAR 2.101 (b)?
(6) Would you be willing to submit an offer on this item?
(7) Based on the estimated buy quantity, for budgetary purposes, what is the estimated unit price?
(8) What is the estimated delivery schedule for this item?
(9) Are there incremental quantity breaks for this item?
(10) Do you have a minimum order?
(11) Is FOB Origin acceptable?
(12) Is Inspection/Acceptance at Origin is acceptable?
(13) Do you currently have any active federal contracts and/or grants in excess of $10,000,000.00?
(14) For contracts estimated over $2,000,000.00, Cost or Pricing Data “may” be required per DFAR
252.215-7010. Is your company and your subcontractors (if applicable) capable of providing this data?
(15) Please list main and the secondary point of contract for procurement questions.
b) “Sources Sought Notice” contained general information pertaining to the item’s requirement and requested that interested parties submit information on their products/services, company, capability, company size/profile, and any other supportive information to the Acquisition Specialist. A Market Research/Survey was also attached to the notice for potential sources to complete and return.
11. The following actions are being taken to identify additional sources:
[X] Solicitation contains DLAD Procurement Notes L04 Offers for Part Numbered Items and M06 Evaluation of Offers for Part Number Items.
12. In compliance with DFARS PGI 206.303-2(B):
A review of procurement history in IHS Haystack Gold, along with Records Management indicates that subject NSN was procured only once. A review of this award indicated that the last procurement was a small buy (SPE7M1-18-P-5107) and was awarded on 6/01/2018 and does not have or require a J&A.
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.
Christine D. Boyer Date Contracting Officer
APPROVAL/CERTIFICATION
I have reviewed and approve this justification. This J&A has an estimated PR value (185 each) of with an estimated value at the top price break (275 each) of
Mary E. Shearer Date Competition Advocate
APPROVAL REQUIREMENTS
[X] Up to $700,000 Contracting Officer
[X] $700,000 to $13,500,000 Competition Advocate
[ ] $13,500,000 to $93,000,000 Head of Contracting Activity (HCA)
[ ] over $93,000,000 Senior Procurement Executive (AQ)
4/30/2019
5/6/2019
BOYER.CHRISTI
NE.D.1249699639
Digitally signed by
BOYER.CHRISTINE.D.1249699639
Date: 2019.04.30 13:07:59 -04'00'
SHEARER.MARY.
E.1250702449
Digitally signed by
SHEARER.MARY.E.1250702449
Date: 2019.05.06 07:51:53 -04'00'
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