JA reviewed Redacted.pdf

DLA Land & Maritime Justification for Other Than Full & Open Competition (April 2014)

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

only approved source for this item because they are the only known source with the data necessary to manufacture this item.

AMSC R (NSN 3040014691139). The Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid. The Government does not have the data or rights to the data and it is not economical for the Government to obtain or otherwise develop the data. Metrex is uniquely qualified because they are the only know source to possess the technical data necessary to manufacture this item.

Please also note that the Product Specialist confirmed that there are no open 339s for these items. Based on the limited data the Government possesses, only Metrex can meet the Government’s minimum needs for these items. If new sources are approved prior to award, the solicitation will be reissued allowing for the new source(s) a chance to compete for this acquisition.

6. Efforts to ensure that offers are solicited from as many sources as practicable are: The acquisition was synopsized on July 10, 2020 for 10 days prior to the solicitation opening. At the completion of the synopsis period, this acquisition will be solicited on the internet for 14 days via the DLA Internet Bid Board System

(DIBBS).

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable. Certified Cost or Pricing Data requirements do not apply, per FAR 15.403-1(b)(3). In accordance with FAR Part 12.209, while the Contracting Officer must establish price reasonableness in accordance with 13.106-3, 14.408-2, or Subpart 15.4, as applicable, the Contracting Officer should be aware of customary commercial terms and conditions when pricing commercial items. Commercial item prices are affected by factors that include, but are not limited to, speed of delivery, length and extent of warranty, limitations of seller’s liability, quantities ordered, length of the performance period, and specific performance requirements. The Contracting Officer must ensure that contract terms, conditions, and prices are commensurate with the Government’s need. The Contracting Officer will determine that the contract award prices are fair and reasonable in accordance with FAR Subpart 15.4. The buyer may request information other than cost or price data to support price reasonableness if necessary. If other than certified cost or pricing data cannot be obtained, at a minimum, the Contracting Officer shall determine the prices fair and reasonable based on price analysis of the proposed prices to the historical prices paid for all items. Based upon the above techniques, the Contracting Officer hereby determines that the anticipated cost to the Government will be fair and reasonable.

8. Market Research/Efforts to Obtain Competition: A Sources Sought and a Market Research Questionnaire were posted on 4/29/20, on beta.SAM.gov looking for other sources of supply willing and able to produce these items, but no responses were ever received. Market surveys were sent to Metrex, Era Contract Sales, Inc.

(0FA68), AM-MAC Incorporated (0VW10), TNL Sales LLC (1XLG2), Dela Technology Corporation (2U435), Statz Corporation (3WGD1), R & M Government Services, Inc. (6FN58), Eastern Power Technologies, Inc.

(7SXP5), Kampi Components Inc. (7Z016), RBY Industries (670K9), Metrex Valve Corp. (21013) and Pioneer Industries, Inc. (66200). Kampi Components Inc. and Metrex were the only two companies who responded to the market survey and a summary of their responses are listed below.

The following is a summary of the information received from Kampi Components:

Small business dealer with approximately 50 employees.

Interested in pursuing an LTC.

Items are not commercial.

FOR OFFICIAL USE ONLY

On April 30, 2020 the Buyer sent a follow-up request to Metrex Valve Corp. as they are the approved source and had not responded to the initial request from the Sourcing Strategy Branch. On May 19, 2020 Metrex Valve Corp. (21013) replied. The Buyer had some questions and needed clarification. Emails and calls took place between Xiomara Seda-Vargas and , Office Manager, until all the information from Metrex Valve Corp. was obtained on June 9, 2020.

The following is a summary of the final information received from Metrex Valve Corp.:

Small business manufacturer with approximately 30 employees.

Interested in pursuing an LTC. Will only quote directly to DLA and will not quote to dealers.

Items are commercial.

They are the actual manufacturer of these items.

Information received regarding the commerciality of the item(s): The Contracting Officer has determined these items to be commercial per the definition listed within FAR 2.101. Commerciality was investigated using different techniques. The buyer performed an internet research looking for commercial sales history, catalogs/brochures, or established price lists that yielded three (3) results for NSNs 3040-01-469-1139, 4820-01- 478-7824 and 4820-01-570-2299. Approved source, Metrex Valve Corp. (21013) provided datasheets for NSNs 4810-01-463-2118 and 4810-01-468-9578, their similar items and commercial invoices. A search of the approved part number on GSA yielded no results. The SAP COTS field is blank.

CLIN 0001, NSN 3040-01-469-1139, Actuator, Mechanical, Nonaircraft is determined to meet the definition of a commercial item per FAR 2.101(1)(ii) as it is an item of a type customarily used by the general public or by non-governmental entities for purposes other than governmental purposes, and has been offered for sale, lease, or license to the general public. Part Number EA1002 was found in https://www.h-mac.com website listed at $36,474.49 each. See Attachment # 2.

CLIN 0002, NSN 4810-01-463-2118, Valve, Linear, Directional Control is determined to meet the definition of a commercial item per FAR 2.101(3)(i) as it is an item of a type customarily used by and sold to the general public and non-government entities for other than government use, but for modifications customarily available in the commercial marketplace. This Valve, Linear, Directional Control, is used on the Arleigh Burke-class guided missile destroyer. Metrex produces a full range of water regulating valves for both commercial and naval shipboard service. Metrex stated that while 4810-01-463-2118 is not used in a commercial application, this item is manufactured using the same application and function as comparable commercial parts. The approved part number for this NSN is EAOM-513-NF2-3W (5” 3-Way, Electric Actuated Seawater Regulating Valve). Metrex provided the datasheet for this part number and also provided a datasheet for part number EAMDF-800MF-3W (8” 3-Way, Electric Actuated Seawater Regulating Valve), which is a commercially sold valve used in stationary land based applications valves and marine shipboard service. Metrex also provided a table showing the differences and similarities between the valves. The Buyer reviewed the datasheets and table and determined that while there is a minor difference in size and materials for body and cover, both items are: 3-way valves, to be used in seawater, use electric actuators, 115 VAC, 60Hz, and 1 PH. A commercial invoice was provided for EAMDF-800MF-3W showing a price of $40,078 each. Based on this information, the Buyer determined NSN 4810-01-463-2118 commercial “of a type”. See Attachment # 3.

CLIN 0003, NSN 4810-01-468-9578, Valve, Regulating, Fl is determined to meet the definition of a commercial item per FAR 2.101(3)(i) as it is an item of a type customarily used by and sold to the general public and non-government entities for other than government use but for modifications customarily available in the commercial marketplace. This Valve, Regulating, Fl is used on the Ticonderoga class guided-missile cruisers. Metrex produces a full range of water regulating valves for both commercial and naval shipboard service. Metrex stated that while 4810-01-468-9578 is not used in a commercial application, this item is manufactured using the same application and function as comparable commercial parts. The approved part number for this NSN is EHOYM-3145-NF2 TA (6” 2-Way, Electric Actuated Seawater Regulating Valve).

Metrex provided the datasheet for this part number and also provided a datasheet for part number EAMDF- 800MF-3W (8” 3-Way, Electric Actuated Seawater Regulating Valve), which is a commercially sold valve used in stationary land based applications valves and marine shipboard service. Metrex also provided a table showing the differences and similarities between the valves. The Buyer reviewed the datasheets and table and determined that while there is a slight difference in size and the government part is 2-way and the commercial part is a 3-way valve, both valves are: made of bronze, to be used in seawater , use electric actuators, are 115 VAC, 60Hz, 1 PH, manual override, 150 PSI water pressure rating. A commercial invoice was provided for EAMDF-800MF-3W showing a price of $40,078 each. Based on this information, the Buyer determined NSN 4810-01-468-9578 commercial “of a type”. See Attachment # 4.

CLIN 0004, NSN 4820-01-478-7824, Regulating Element, Flow, Valve is determined to meet the definition of a commercial item per FAR 2.101(1)(ii) as it is an item of a type customarily used by the general public or by non-governmental entities for purposes other than governmental purposes, and has been offered for sale, lease, or license to the general public. Part Number EHOMX-600-NF2-3W-TB was found in http://www.patriot-supply.com website listed at $86,801.19 each. See Attachment # 5.

CLIN 0005, NSN 4820-01-570-2299, Valve, Regulating, Fluid Pressure is determined to meet the definition of a commercial item per FAR 2.101(1)(ii) as it is an item of a type customarily used by the general public or by non-governmental entities for purposes other than governmental purposes, and has been offered for sale, lease, or license to the general public. Part Number M900PST-150FL9-2W was found in http://www.patriot-supply.com website listed at $5,547.94 each. See Attachment # 6.

9. Additional facts supporting other than full and open competition are: Based upon the technical certification on file in DLA Land and Maritime – VEP the rights to use the technical data is not owned by the Government and cannot be purchased, developed, or otherwise obtained to permit full and open competition. The data presently available reflects the minimum needs of the Government.

10. A listing of sources that expressed interest in the acquisition: Kampi Components Inc. and Metrex are the only sources that have expressed interested in the acquisition. However, Metrex indicated: “Due to the size and nature of this potential LTC, Metrex Valve Corp. is interested only in working with the DLA directly.”

11. These items are subject to the following methods of locating additional sources:

The solicitation contains Procurement Notes L04 – Offers for Part Numbered Items and M06 – Evaluation of Offers for Part Numbered Items.

12. Previous J&A for Large Contract SPE7M4-18-C-0006 (NSN 4810-01-463-2118) was found in Records Management and is included as Attachment # 7.

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.

Charles E. Mielke II Date Contracting Officer

Approval/Certification

I have reviewed and approve this justification. The estimated total value of the J&A is

Competition Advocate – Mary E. Shearer Phone Date

Head of the Contracting Activity (HCA) Signature Date

APPROVAL REQUIREMENTS

(X) $13,500,00 –$93,000,000 Head of the Contracting Activity (HCA)

Attachments:

1. Tech Cert and PID

2. Commerciality Information for NSN 3040-01-469-1139

3. Commerciality Information for NSN 4810-01-463-2118

4. Commerciality Information for NSN 4810-01-468-9578

5. Commerciality Information for NSN 4820-01-478-7824

6. Commerciality Information for NSN 4820-01-570-2299

7. Justification and Approval (J&A) for SPE7M4-18-C-0006

8/4/20MIELKE.CHARLES.E

VANS.II.1253169750

Digitally signed by

MIELKE.CHARLES.EVANS.II.1253169

Date: 2020.08 04 13:21:19 -04'00'

692-3760 8/7/2020SHEARER.MARY.

E.1250702449

Digitally signed by

SHEARER MARY.E.1250702449

Date: 2020.08.07 12:53:23 -04'00'

BROWN.MARK.AL

BERT.1041175032

Digitally signed by

BROWN.MARK.ALBERT.104117503

Date: 2020.08 07 13:15:47 -04'00'