JA_SPE4A620R0417.pdf

DEFENSE LOGISTICS AGENCY

AVIATION

8000 JEFFERSON DAVIS HIGHWAY

RICHMOND, VIRGINIA 23297-5002

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLE SOURCE SERVICE DISABLED VETERAN OWNED SMALL BUSINESS

(SDVOSB)

(1) Identification of the agency and the contracting activity

This justification and approval (J&A) is submitted to request authority for the use of other than full and open competition to support requirements generated by the Defense Logistics Agency (DLA). The contracting authority for this requirement is DLA Aviation, FAKB, Richmond, VA.

(2) Nature and/or description of the action being approved.

This J&A seeks approval to issue Solicitation SPE4A6-20-R-0417 as a sole source SDVOSB set-aside directed to Ace Electronics Defense Systems, LLC (CAGE: 5TWH2), 6210 Guardian Gateway, Suite, 150, Aberdeen Proving Ground, MD, 21005-1323, UNITED STATES.

(3) A description of the supplies or services required to meet the agency’s needs (including the estimated value)

The solicitation proposes to award an Indefinite Quantity Contract (IQC) quantity contract for National Stock Numbers 5995-01- -4566 and 5995-01-631-5541. The item(s) has a AMC/AMCS of “1Q” - Suitable for competitive acquisition for the second or subsequent time/The Government does not have adequate data, lacks rights to data, or both. It is not economical to buy the data or rights to the data.

and AMC/AMCS of “1C” - Suitable for competitive acquisition for the second or subsequent time/ This part required engineering source approval by the design control activity in order to maintain the quality of the part. Ace Electronics Defense Systems, LLC is the only SDVOSB source identified through market research that is capable of manufacturing these NSNs. The contract will cover a Base Period of 3 years (with no Option period) for each item. The total estimated dollar value is .

(4) An identification of the statutory authority permitting other than full and open competition.

A sole source SDVOSB set-aside is justified under 10 USC 2304(c)(5), FAR 6.302-5, authorized or required by statute.

(5) A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

FAR 19.1406(a)(1)-(5) specify when a sole source SDVOSB set-aside is appropriate. This acquisition meets those circumstances, as follows:

(1) The contracting officer does not have a reasonable expectation that offers will be received from two or more service-disabled veteran-owned small business concerns;

Market research identified Ace Electronics Defense Systems, LLC as the only

SDVOSB manufacturer capable of manufacturing these NSNs.

(2) The anticipated award price of the contract, will not exceed—

(i) $6.5 million for a requirement within the NAICS codes for manufacturing; or

(ii) $4 million for a requirement within any other NAICS code;

The applicable NAICS code is 334419, Aircraft Engine and Engine Parts Manufacturing, so the $6.5 million limitation applies. As stated above, the estimated (and maximum) dollar value is

(3) The requirement is not currently being performed by an 8(a) participant under the provisions of Subpart 19.8 or has been accepted as a requirement by SBA under Subpart 19.8;

No performance by an 8(a) participant was identified during market research.

(4) The service-disabled veteran-owned small business concern has been determined to be a responsible contractor with respect to performance;

Ace Electronics Defense Systems, LLC has a history of successful performance on previous contracts for Cable NSNs.

(5) Award can be made at a fair and reasonable price. Cost and Pricing data may not be required if the pricing is in line with previous prices determined reasonable through price competition.

Review of DLA Aviation’s procurement history indicates that Ace Electronics Defense Systems, LLC has received numerous awards for these NSNs. Also, the contractor is interested in providing an offer for these items. Based on this, the Contracting Officer has a reasonable expectation that Ace Electronics Defense Systems, LLC can supply the items at fair and reasonable prices which will be based on Fair market prices utilizing previous buys with price competition.

(6) A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies.

There was a potential source identified through market research consisting of a sources sought notice.

Addon UBT JV, LLC, (CAGE 7U3LO) indicated an interest in the requirement; however they are not listed as an approved source of these items. In addition, the solicitation will be synopsized on beta.sam.gov website, which meets the requirement at FAR 5.201. Any potential source requesting a copy of the solicitation will be provided one and any offers, which qualify under the terms of the SDVOSB set-aside, will be considered.

(7) A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer has determined that the cost to the Government will be determined fair and reasonable and Ace Electronics Defense Systems, LLC will provide Fair market prices utilizing previous buys with price competition.

(8) A description of the market research conducted and the results or a statement of the reason market research was not conducted.

Market research was conducted to identify potential suppliers that have supplied or are capable of supplying the items for the acquisition. Using both historical data and information gathered from the vendors, there is no reasonable expectation that competition exists between two or more SDVOSBs.

There was one vendor that responded to beta.sam.gov, Sources Sought posting. Market Research via email transmittal indicated one supplier was interested in the requirement. The only approved sources for these NSNs are DRS Network (CAGE 1RWE7), Ace Electronics Defense (CAGE 5TWH2) and Northrop Grumman, (CAGE 0J198)

(9) Any other facts supporting the use of other than full and open competition.

No long-term adverse impact to competition is anticipated and set-aside will be dissolved if award is not made at a fair market price.

(10) A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

Potential Supplier Business Type Ace Electronics Defense Systems, LLC Addon UBT JV, LLC

SDVOSB manufacturer 8(a) Total Small Business, Women-Owned Small Business manufacturer

(11) A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

As this acquisition is authorized by the Veterans Benefits Act of 2003 and supports the DoD's goals to leverage SDVOSBs for prime contract business opportunities, no action will be taken to overcome this barrier. No long-term adverse impact to competition is anticipated and the set-aside will be dissolved if award cannot be made at fair market prices.

(12) Contracting officer certification that the justification is accurate and complete to the best of the contracting officer’s knowledge and belief.

The Contracting Officer’s signature on the coordination and approval documents provides evidence that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

Attachments Market Research documentation

Coordination and Approval, J&A for other than full and open competition, Solicitation

SPE4A6-20-R-0417.

I hereby certify that the information contained in this justification is complete and accurate to the best of my knowledge.

Date Delores Mallory

Contracting Officer

07/22/2020