JA_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7L420RX023

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 for an Indefinite Quantity Contract (IQC) on other than a full and open competition basis. This is necessary because the Government either lacks complete technical data required to manufacture the supplies or must restrict sources due to the criticality of the part. The rationale specific to this item is detailed by its Acquisition Method Suffix Code (AMSC) as stated below in paragraph 4.

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

NSN ITEM UNIT ADQ

UNIT

PRICE

ADV AMSC

6140‐01‐677‐2079 BATTERY, STORAGE EA 30 D

ESTIMATED BASE (3 YEAR) VALUE:

ESTIMATED TOTAL (5 YEAR) VALUE (BASE + 2 ONE YEAR OPTIONS):

MAXIMUM CONTRACT VALUE:

The item is used on the following weapon systems: AN/SLQ‐32(V) 6, AN/SLQ‐32C (V) 6, and AN/SLQ‐32(V) 7 systems.

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. At this time there is only 1 approved manufacturing source: INTELLIPOWER, INC. (0UMT8).

The use of the authority cited above is supported by the following Acquisition Method Code (AMC) and Acquisition Method Suffix Code (AMSC) of the NSN; which were confirmed as complete and accurate by the Land Product Specialist on 06/25/2020 during the technical review of the NSN for placement on this long term contract initiative.

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

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.

5. The source listed in the table below, confirmed by the DLA Land and Maritime Product Specialist on June 25, 2020, during the technical review of the NSN for placement on this long term contract initiative, is currently the only source with the necessary qualifications, ability, and approval to manufacture the item. This is due to the following:

(X) The listed source is the only source that possesses the complete technical data, rights to the data, and capability necessary to manufacture the item for the required form, fit, function and quality.

(X) The Government either has no data, inadequate data, and/or lacks rights to the data needed to acquire this part from additional manufacturing sources. At this time, only the sources listed possess the complete data and rights to the data.

(X) The above is also supported by the information stated in the items applicable AMSC of D.

Battery Storage for UPS devices are common in the commercial market and this item has commonality with others for sale in the commercial market. However, this item’s design and operating characteristics meet established standards for the AN/SLQ‐32(V) 6, AN/SLQ‐ 32C(V) 6, and AN/SLQ‐32(V) 7 military end items listed above, as confirmed by the product specialist. Market research identified no other commercial product that meets the military’s design and operating requirements for these end items. The manufacturer describes this item as a battery tray and is a subsystem to their UPS end product. Battery trays supply standby power for UPS when main power to the system is lost.

Source:

NSN Description Approved

CAGE

Company Name Approved Part

Number

6140‐01‐677‐2079 BATTERY, STORAGE 0UMT8 INTELLIPOWER, INC. FB00010 / IP98010

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

A Sources Sought Notice was posted to www.fbo.gov on April 27, 2020.

The acquisition will be synopsized in Federal Business Opportunities at least 3 days prior to issuance of solicitation, and will be posted until the closing of the solicitation.

The solicitation will be posted to DIBBS.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable. A price analysis will be conducted using historical pricing, the Producer’s Price Index (PPI), and a learning curve analysis. Offerors may also be required to submit information other than certified cost or pricing data if deemed necessary by the Contracting Officer in order to determine prices fair and reasonable. Based on the above techniques, the Contracting Officer anticipates the costs to the Government will be fair and reasonable.

8. Market Research/Efforts to Obtain Competition included: Researching items on‐line via the internet for availability, commerciality, and features. Reviewing previous procurements of items and determining previous acquisition methods. Determining vendor interest in long term contracting for the items. Researching/gathering info regarding commerciality of the items.

Vendor size and business status information. Delivery.

Market research consisted of review of past procurements. A market survey to the OEM, and internet sources. Market Research shows that this item has been purchased once by DLA. Market research in accordance with FAR Subpart 12.1 was conducted to determine the commerciality of this item, the Contracting Officer determined this item is commercial of a type. Intellipower manufactures multiple configurations of UPS devices that are used for different industries, but this specific device meets the military’s needs. During market research the buyer asked the functionality and the comparability to other like items with the same function. The contractor provided a model number which was found on their website and is included in the market research. The item is only available from one approved source as identified above. The approved source only quotes directly, and has no distributors. The product brochure from Intellipower states they manufacture 2000 variations for different applications and industries but all meet military specifications. The POC at Intellipower did inquire as to whether or not the Government would be interested in procuring remanufactured batteries instead of tray and batteries. This is not possible for this procurement according to our technical department, this is a shelf life and direct ship item.

Procurement history:

A Sources Sought Notice was posted to www.fbo.gov on April 27, 2020 for this specific item. The notice remained open until May 4, 2020. Vendors were requested to provide the name, location, and points of contact for any sources able to manufacture the item to the acquisition specialist listed in the announcement.

Potential sources would be added to the solicitation mailing list. No response was received from the notice. This material has been procured once.

Market Questionnaire were sent out on May 11, 2020.

o Techniques used to conduct survey: E‐mailed correspondence.

o Types of information requested: Business size, manufacturer or dealer, price breaks, estimated delivery, and quantity sensitivity.

o Total number of vendors contacted: 1 ‐ 1 responded on May 15, 2020.

o Names of Vendors Contacted:

• 1) Intellipower Inc. (0UMT8) o Name of vendor and summary of information Received:

1) Intellipower Inc. (0UMT8) – Large Business Manufacture(OEM) They stated they are interested in providing a proposal with a three‐year base, and two one‐year options utilizing a Firm Fixed Price contract. They are capable of 85 days delivery. They are the approved Source. No price breaks were noted.

Buyer researched SAP, the Material Master, MM03, IDS and coordinated with the Product Specialist.

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.

During the project development stage, the NSN included on this solicitation was provided to the DLA Land & Maritime Value Management (VM) Unit and DLA Land and Maritime Product Specialist for review; no additional sources were identified during those reviews.

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

INTELLIPOWER, INC. (0UMT8)

11. This item is subject to the following methods of locating additional sources in an effort to overcome barriers to competition:

Solicitation will be posted to DIBBS for a period of 30 days.

The solicitation will contain DLAD Procurement Note: L04‐Offers for Part Numbered

Items.

The solicitation will contain DLAD Procurement Note: M06‐Evaluation of Offers for Part

Numbered Items.

12. Recent Procurement was under SAT and did not contain a J&A.

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. If not exceeding $700,000, this signature serves as the approval.

Contracting Officer Date

APPROVAL REQUIREMENTS

(X) Up to $700,000 Contracting Officer

07/07/2020