JA PR 7002433395 _Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7M523R0030 / PR 7002433395

[ 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.

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

BRIEF DESCRIPTION NSN QUANTITY EST. VALUE AMSC

Transformer, Power 5950-01-446-0316 1 $ C

CONTRACT TYPE

Firm Fixed Price: Customer Direct, no price breaks requested.

The solicitation will use FAR Part 15 procedures.

Estimated Unit Price: $ Estimated PR Value: $ Estimated Maximum Value: $

End Item Description, Weapon System, or class of item:

5950-01-446-0316 is a "Transformer, Power." Item is used to transform input power into a particular form of power that is needed for system operation.

It is a component for the following end items:

WSDC WPN-SYS-ESNTL WPN-SYS-NAME

FGN 1 CVN 68 CLASS REACTOR FILL AUXILIARY SYSTEM

JAN NIMITZ CLASS CVN

XBN 1 CVN NUCLEAR REACTOR BOUNDARY AREA

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

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

[X ] 10 U.S.C. 3204(a)(1) – The head of an agency may use procedures other than competitive procedures only when the property or services needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or services 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:

Hitachi Energy (0D3T2) P/N: Z1000-2500KVA

*Effective 1/18/2022, ABB Enterprise Software, CAGE 0D3T2, changed their name to Hitachi Energy USA Inc. CAGE 0D3T2 and address (171 Industry Drive, Bland, VA 24315) remained unchanged.

The use of the authority cited is based on 10 U.S.C. 3204(a)(1):

[X] AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

[X] 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.

A Technical Referral was sent to the Product Specialist to validate the AMC/AMSC codes and source of supply.

On 2/9/2023, the Product Specialist confirmed the AMC/AMSC of 3/C and confirmed the item has one approved source, Hitachi Energy (0D3T2), and that there are no other sources of supply for this material.

The Product Specialist certified the above technical information, is complete and accurate on 2/9/2023.

Per the Product Specialist, DLA does not possess adequate data, lacks rights to data, and/or has no record of an alternate Design Control Activity approved source. The data presently available reflects the minimum needs of the Government.

Hitachi Energy (0D3T2) is the only source approved by the design control activity. Hitachi Energy retains 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 part.

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 July 5, 2023 on the DLA Internet Bid Board (DIBBS) and will be solicited for 30 days on or about July 21, 2023 on the DLA Internet Bid Board (DIBBS).

A Sources Sought was posted to https://SAM.gov on 5/26/2023 with a respond by date of 6/7/2023.

o No responses or inquiries were received from any interested party.

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 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 not expected to exceed the TINA threshold of $2.0M. Therefore, IAW FAR 15.403-4(a)(1), Certified Cost/ Price Data will not be required.

8. Market Research / Efforts to Obtain Competition:

Hitachi Energy provided a proposal for PR 7001419538 / SPE7M523R0014. This information was used for the current PR 7002433395 / SPE7M523R0030.

On 4/11/2023, Hitachi Energy provided a proposal which included the following information.

o .

o o Offer CAGE/PN; (0D3T2) PN Z1000-2500KVA.

o o Hitachi Energy is NIST 800 -171 compliant and registered in SAM.

Other information pertaining to the last award from February 2022, SPE7M522C0011.

o Item is not a commercial item.

o Last award’s delivery for a qty of 1 was 365 days. FOB Origin, I/A

Destination.

o With approval, 52.246-17 Warranty of Supplies of a Non-Complex Nature

(Jun 2003) was added to the contract in Feb 2022.

o The Navy Engineer confirmed that due to the complexity of this item the government could expect to pay $1 million each. Due to the length of time since these items were produced there is a lot of manual labor and lack of automation in the manufacture of these parts.

A Sources Sought was posted to https://SAM.gov on 5/26/2023 with a respond by date of 6/7/2023.

o No responses or inquiries were received from any interested party.

Commercial Determination: Information received regarding the commerciality of the item(s):

o Per SAP MM03 – INDUST SUP “Commercial Off-the-Shelf” is coded as “not” commercial.

o The sole source part number was researched in Haystack, GSA, and Google. No additional data was found to indicate that this part is available commercially.

o Item was determined not a commercial item on the last purchase in February 2022 (SPE7M522C0011) and the proposal received for cancelled solicitation SPE7M523R0014 did not state this was a commercial item.

o The AMC/AMSC is not coded as a commercial product by the Product Specialist.

The AMC/AMSC is coded as a 3/C; Acquire for the second or subsequent time, directly from the manufacturer. This part requires engineering source approval by the design control activity in order to maintain the quality of the part.

The AMC/AMSC code was certified as accurate by the Product Specialist on 2/9/2023.

Commerciality Summary:

After reviewing all market research, which includes contacting knowledgeable individuals (Product Specialist), use of market surveys, sources sought notices, procurement history, and research of the market through key words searches on the internet and database, the Contracting Officer has determined that it is in the best interest of the Government to proceed as a non-commercial item, using FAR Part 15 procedures in lieu of FAR Part 12.

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.

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

Hitachi Energy (0D3T2)

11. This item is subject to the following methods of locating additional sources:

Solicitation will be included, but is not limited to, the following Procurement Notes:

Solicitation will include, but is not limited to, the following Procurement Notes:

L04 Offers for Part Numbered Items M06 Evaluation of Offers for Part Numbered Items

DFARS PGI 206.303-2(B). A copy of the most recent J&A, February 2022 (SPE7M522C0011) is included in the file.

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.

The estimated PR Value of this J&A is $ The estimated Maximum Value (at the top price break) of this J&A is $

Christine Boyer, Contracting Officer Date

APPROVAL/CERTIFICATION

Competition Advocate Date Date

APPROVAL REQUIREMENTS

( ) Up to $750,000 Contracting Officer

BOYER.CHRISTIN

E.D.1249699639

Digitally signed by

BOYER.CHRISTINE.D.1

Date: 2023.06.15 15:03:19 -04'00' 6/15/2023

DAPO.DOUGLA

S.A.1230220014

Digitally signed by

DAPO.DOUGLAS.A.

Date: 2023.06.26 10:43:24 -04'00'

(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)

Attachments Technical Certification Tech Referrals Previous J&A SPE7M522C0011