JA Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7M922-R-0001

PR: 0091563863 NSN: 4310-01-163-7887

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

(April 2014) CUI Source Selection Information – See FAR 2.101 & 3.104

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 QTY EST. BASE VALUE AMSC

Block, Cylinder Air 4310-01-163-7887 15 $767,146.80 C

Identify end item, weapon system, or class of item:

This NSN, according to the Item Description, is a Block Cylinder Air to be used as Class IX spare/repair parts for used in (A8N) High Pressure Air Compressors (HIPACS) and FMS -

BUILD FRIGATES CLASS SHIPS (YRN).

ESTIMATED BASE VALUE: $767,146.80 (based on 15 each) MAXIMUM CONTRACT VALUE: $1,278,578.00 (based on purchase of maximum qty break quantity of 25 each on a Firm Fixed Price Contract)

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:

Approved sources of supply: Curtiss-Wright (830Q4) PN 1G4478A The use of the authority cited in other than 10. U.S.C. 2304(c)(1) above:

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

The use of the authority cited is based on:

[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, c010914 Highlight c010914 Highlight

PR: 0091563863 NSN: 4310-01-163-7887

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

The Contract Specialist verified the AMC/AMSC for this procurement with Product Specialist on 18 November 2021. The Product Specialist stated that the AMC/AMSC is a 3C. On 29 December 2021, the Product Specialist certified that the technical information, including the AMC/AMSC codes and approved source, is complete and accurate (See Attachment 2). Curtiss-Wright (830Q4) is the only source approved by the design control activity because Curtiss-Wright 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.

This item is used on the Ingersoll-Rand Air Compressor Model 20NL. The item identified in number 5 identified above has demonstrated the unique and proven manufacturing capabilities to establish and maintain the process control to produce this item. The use of incorrect material, improper manufacturing process or quality control would result in failure of the item in its intended use and result in failure of the next higher assembly, which would result in the degradation of the mission capabilities of the aircraft.

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

a. A Sources Sought with an attached market survey was posted on betasam.gov on

10/21/2021 for 7 days with no response.

b. The acquisition will be synopsized on betasam.gov 15 days on or about 15 January

c. After the completion of the synopsis period, on or about January 30, 2022, the solicitation will be posted on the DLA Internet Bid Board System (DIBBS) for 30 days.

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

Offerors may be required to provide additional information for determining reasonableness of price. The buyer only intends to award this NSN when a fair and reasonable price determination can be made. The Contracting Officer will conduct price analysis by reviewing historical pricing, usage of the Producer Price Index (PPI), and learning curve analysis. Negotiations may take place in an effort to comply with DoD Material Cost

PR: 0091563863 NSN: 4310-01-163-7887

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

Reduction Initiative. An option quantity will not be used for this procurement.

8. Market Research/Efforts to Obtain Competition:

Market Survey [10 U.S.C. 2304(f)(3)(D)]: A Market Survey was sent to the prior awardee on the last four procurements, (7Y333) Argo TurboServe on 10/21/2021.

Name of vendors contacted and responding: The market survey was sent to Argo and was completed & returned by Angela Wall, Government Sales Specialist. Argo stated that they would be interested in submitting an offer to an upcoming solicitation. They are a small business and would supply the approved source- Curtiss Wright. They estimated the delivery at over 500 days and did not recommend any quantity price breaks. They stated that they do have a minimum order price of $200.00. The items size is 12 Cube and weights 615 lbs. They agreed to FOB: Origin and Inspection & Acceptance: Destination or Origin terms. Argo noted that this is a commercial item, but not price listed or an item that they keep in inventory. Additional commerciality documentation was requested to be provided for evaluation. Argo responded on 10/22/2021 that additional documentation has been requested from the OEM. The original manufacturer of the Air Compressors was Dresser-Rand who sold the units to Commercial, Industrial. The Air Compressors were sold to refineries, manufacturers, hospitals and the US Government. Since 2015 D-R sold the business to Siemens Government Technologies who then sold the Government Division to Curtiss-Wright SAS in 2018. The records may not have transferred to Curtiss-Wright, but ATC will pursue an answer. To date, no additional documentation has been received to support their commerciality claim.

Lastly, a search of Google search was performed to determine any publicly available information for the part. Google search results NSN 4310-01-163-7887. Based on the lack of publicly available part number information, it is the contracting officer’s determination that this item is not commercial.

Commercial Determination: For the reasons stated below, the item covered by this procurement for NSN 4310-01-163-7887, Block, Cylinder Air, will be non-commercial based on the definition of commercial items located in FAR 2.101 and will be procured under FAR part 15. The following non-commerciality determinations have been made:

• Review of the material master in SAP indicates that this NSN has an AMC/AMSC of

3/C, and not 1/Z which would indicate a commercial item. The Product Specialist confirmed the AMC/AMSC codes on 11/18/2021. The industrial specialist tab under classification is blank, showing this is not considered a commercial off the shelf item.

Review of the material number does not show evidence that this NSN is available on the commercial market nor is it of a type customarily used by the general public or by non-governmental entities for purposes other than government or military purposes as defined in FAR 2.101.

• Market research via internet resources for commercial sale offerings yielded no results to show that this item has been offered for sale, lease or license to the general public as defined in FAR 2.101, “commercial item.” A search of the Block, Cylinder Air NSN 4310-01-163-7887 indicates that the only use for the US military and not commercial c010914 Highlight

PR: 0091563863 NSN: 4310-01-163-7887

DLA Land & Maritime Justification for Other Than Full & Open Competition applications. IAW FAR 12.205, a review of the item population shows that for the items being procured under this initiative there is generally no available product literature and that the requirements are Governmental in nature. In the commercial context, contracting officers should allow offerors to propose more than one product that will meet the Government’s need. The acquisition is not compatible with that approach. Per FAR 12.207, contracts for commercial items shall rely on the contactor’s existing quality assurance systems as substitutes for Government inspection and testing before tender for acceptance. The quality requirements and inspections spelled out for this National Stock Number are not compatible, nor feasible, for the item in this acquisition. Therefore, it is determined to be in the best interest of the Government to procure the items under this initiative utilizing non-commercial clauses and terms and conditions.

• The “general public” is interpreted as individuals using parts in a non-governmental or non-military capacity. Market research analysis IAW FAR 12.1 was conducted and it has been determined that the item contained in the survey are not commercial and are not commercial of the shelf items. The research did not yield any information about the part being available to the general public for inspection nor is there any evidence of sale prices at which sales were made to a significant number of buyers constituting the general public.

• The market survey responses were as follows: Argo TurboServe indicates that this item is a commercial item. But no documentation was provided to support/review. A review by the product specialist assigned to this NSN shows that the item is not coded 1/Z for commercial products.

• Per FAR 12.205, a review of the item shows that there is no existing product literature generally available in the industry to determine its adequacy for purposes of evaluation.

9. 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: Argo TurboServe (7Y333)

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

a. The solicitation contains the DLAD Procurement Notes L04OFFERS FOR PART NUMBERED ITEMS (SEP 2016) /M06 Evaluation of Offers for Part Numbered Items.

b. All alternate offers will be forwarded for evaluation

c. The solicitation will be posted on DIBBS for 30 days and the synopsis will be posted on betasam.gov for 15 days.

Prior J&A from 2012 is attached for review

CONTRACTING OFFICER CERTIFICATION

PR: 0091563863 NSN: 4310-01-163-7887

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

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 $750,000.00 this signature serves as the approval.

Herman L. Poe Contracting Officer

Competition Advocate

Approval/Certification

I have reviewed and approve this justification. The estimated total value of the J&A is $1,278,578.00

APPROVAL REQUIREMENTS

(X) Up to $750,000 Contracting Officer

(x) $750,000 - $15,000,000 Competition Advocate

PR: 0091563863 NSN: 4310-01-163-7887

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

Attachment

1. Prior J&A

2. Technical Certification

Attachment 1

Attachment 2