JA SPE7LX19R0086 - reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX19R0086

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

(FEB 2017)

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. DLA

Land and Maritime proposes to enter into a fixed price with Economic Price Adjustment (EPA), long-term indefinite quantity contract. The solicitation will be for a total of eight years, which includes a five-year base period and three one-year option periods.

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

Note: CLINs #7 and #31 are no longer in procurement. Explanation in section 5 below.

CLIN NSN ITEM ADV

(MILTON)

ADQ

(MILTON) AMC AMSC PIC QCC BASE

UNIT

PLT &

Delivery

0001 2990014565701 SENSOR,MASS AIR FLO 403 3 C 2 DCA EA 285

0002 3040010561391 WORM SHAFT 2 3 L 2 DAA EA 163

0003 4940014395713 REPAIR KIT,ELECTRIC 12 3 D 2 DAA EA 180

0004 5340012297252 COVER,ACCESS 295 3 R 2 CAA EA 150

0005 5805003331651 HOWLER,CALL SIGNAL 135 3 D 2 DAA EA 150

0006 5805005488014 GENERATOR,RINGING,H 212 3 D 2 CAA EA 180

0007 5830011524831 CALL-SIGNAL STATION 62 1 C 2 DAA EA 180

0008 5930010372857 SWITCH BOX 29 3 C 2 DAA EA 165

0009 5935015327459 JACK BOX 23 3 D 2 DAA EA 233

0010 5945002203562 RELAY,ELECTROMAGNET 6 5 L 2 CAA EA 40

0011 5945009729236 RELAY ASSEMBLY 6 3 C 2 DAA EA 177

0012 5945013170509 RELAY,ELECTROMAGNET 39 3 C 2 DAA EA 180

0013 5945014876272 RELAY,ELECTROMAGNET 39 3 C 2 DAA EA 163

0014 5965000868513 SHELL,EARPHONE 4 3 D 2 DAA EA 167

0015 5965005098716 MOUTHPIECE,MICROPHO 59 3 L 2 DAA EA 150

0016 5965005219820 EARPHONE ELEMENT 813 3 D 2 DAA EA 150

0017 5965009006401 HEADSET-CHEST SET,E 3,577 3 C C DAA EA 234

0018 5965010397250 HEADSET-CHEST SET,E 2 3 R 2 CAA EA 181

0019 5965015395799 LOUDSPEAKER,PERMANE 5 3 D 2 DAA EA 178

0020 5985003566675 ATTENUATOR,VARIABLE 27 3 L 2 DAA EA 120

0021 5996004267370 AMPLIFIER ASSEMBLY 48 3 C 2 DAA EA 178

0022 5996012148125 AMPLIFIER,AUDIO FRE 0 3 H 2 DAA EA 240

0023 5998010216228 CIRCUIT CARD ASSEMB 3 3 C 2 DAA EA 167

0024 5998010216229 CIRCUIT CARD ASSEMB 3 3 C 2 CAA EA 96

0025 5998010313001 CIRCUIT CARD ASSEMB 22 3 D 2 DAA EA 57

0026 5998010686264 ELECTRONIC COMPONEN 369 3 D 2 DAA EA 180

0027 5998010804606 ELECTRONIC COMPONEN 20 3 R 2 CAA EA 226

0028 5998010954923 CIRCUIT CARD ASSEMB 0 3 D 2 DAA EA 188

0029 5998011091607 CIRCUIT CARD ASSEMB 9 3 L 2 DAA EA 326

0030 5998011480118 CIRCUIT CARD ASSEMB 16 3 R 2 DAA EA 185

0031 5998012179046 CIRCUIT CARD ASSEMB 100 1 C 2 CAA EA 180

0032 5998012559763 CIRCUIT CARD ASSEMB 1 3 R 2 DAA EA 207

0033 5998014388081 CIRCUIT CARD ASSEMB 5 3 C 2 DAA EA 172

0034 5998014464822 CIRCUIT CARD ASSEMB 14 3 C 2 CAA EA 126

0035 5998014588773 CIRCUIT CARD ASSEMB 62 3 C 2 DAA EA 180

CLIN NSN ITEM ADV ADQ

(MILTON) AMC AMSC PIC QCC BASE

UNIT

PLT &

Delivery

0036 5998014588779 CIRCUIT CARD ASSEMB 45 3 C 2 CAA EA 180

0037 5998014588782 CIRCUIT CARD ASSEMB 71 3 C 2 DAA EA 201

0038 5998014657741 CIRCUIT CARD ASSEMB 3 3 R 2 CAA EA 177

0039 5998014831979 CIRCUIT CARD ASSEMB 1 3 C 2 DAA EA 170

0040 5998015595699 PRINTED CIRCUIT BOA 36 3 Z 2 DAA EA 192

0041 5998015599855 CIRCUIT CARD ASSEMB 19 3 Z 2 DAA EA 190

0042 5999011415469 CAP,ELECTRICAL 108 3 D 2 DAA EA 150

0043 6105014733637 MOTOR ASSEMBLY,ELEC 2 3 C 2 DAA EA 190

0044 6110011593667 CONTROL PANEL,LOUDS 8 3 D 2 DAA EA 465

0045 6110012525439 DISTRIBUTION BOX 589 3 C 2 DAA EA 180

0046 6110014976773 CONTROLLER,MOTOR 1 3 Q 2 DAA EA 175

0047 6130004998098 POWER SUPPLY 4 3 C 2 DAA EA 222

0048 6130011208347 CHARGER,BATTERY 88 3 Q 2 DAA EA 180

0049 6130015429491 POWER SUPPLY ASSEMB 2 3 D 2 DAA EA 220

0050 6140011357445 BATTERY AND CASE AS 42 3 D 2 DAF EA 180

0051 6625011264886 TEST FIXTURE 1 3 C 2 DAA EA 237

0052 6625012138832 VOLTMETER 6 5 L 2 DAA EA 184

Identify end item, weapon system, or class of item: Items in this project are widely used in several Weapon Systems and share the same highest priority Weapon System Designator Code (WSDC): 21N Nuclear Reactor Program. They are audio and video parts used in devices to send and receive voice data. The NAICS code selected for the solicitation is 334310 Audio and Video Equipment Manufacturing, business size standard of 750 employees.

The cost of the procurement is as follows:

Inventory Control

Points (ICP)

National Stock

Number

(NSN)

Contract Minimum

(1% ADV)

Estimated Annual Demand

Value (ADV)

Estimated Five Years Base Period

Value (ADV x 5)

Estimated Five Years Base Period Value Plus Three

Options Years (ADV x 8)

Contract Maximum (Based on demands spikes, KID category, back orders, order history and ADF)

DLA Land and Maritime

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.

There is only one approved source to manufacture these items.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code:

Dynalec Corporation (12763) is the sole source for all the items in this project. Two NSNs, 5830-01-152-4831 in CLIN #7 and 5998-01-217-9046 in CLIN #31, were deleted from the project. These two items have an additional source besides Dynalec. These sources are Wing Corp (97536) for CLIN #7 and Electric Boat (96169) for CLIN #31. The Government did not make changes to the value of the project, because these 2 NSNs, combined, are under 2% of the annual demand quantity of the procurement.

The use of the authority cited is based on (including number of NSNs with the referenced code):

Acquisition Method Code (AMC):

AMC 3 (48 NSNs) = Acquire, for the second or subsequent time, directly from the actual manufacturer.

AMC 5 (2 NSNs) = Acquire directly from a sole source contractor which is not the actual manufacturer.

The use of the authority cited is based on (including number of NSNs with the referenced code):

Acquisition Method Suffix Code (AMSC):

AMSC C (19 NSNs) = 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.

AMSC D (14 NSNs) = 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.

AMSC H* (1 NSN) = The Government physically does not have in its possession sufficient, accurate, or legible data to purchase this part from other than the current source(s). This code is applicable only to parts under immediate buy requirements and only for as long thereafter as the deficiency is under review for resolution and appropriate recoding. This code is only assigned at the conclusion of limited screening, and it remains assigned until the full screening process resolves physical data questions and results in assignment of a different AMSC. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

AMSC L* (6 NSNs) = The annual buy value of this part falls below the screening threshold established by DoD components and field activities. However, this part has been screened for additional known sources, resulting in either confirmation that the initial source exists or that other sources may supply the part. No additional screening was performed to identify the competitive or noncompetitive conditions that would result in assignment of a different AMSC. This code shall not be used when screening parts entering the inventory. This code shall be used only to replace AMSC O for parts under the established screening threshold. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

AMSC Q (2 NSNs) = The Government does not have adequate data, lacks rights to data, or both needed to purchase this part from additional sources. The Government has been unable to economically buy the data or rights to the data, although the part has been undergoing full screening for 12 or more months. Breakout to competition has not been achieved, but current, continuing actions to obtain necessary rights to data or adequate, reprocurement technical data indicate breakout to competition is expected to be achieved. This part may be a candidate for reverse engineering or other techniques to obtain technical data. All AMSC Q items are required to be reviewed within the timeframes cited in 2-203(b). If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

AMSC R (6 NSNs) = 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.

AMSC Z (2 NSNs) = This part is a commercial/nondevelopmental/off-the-shelf item. Commercial item descriptions, commercial vendor catalog or price lists or commercial manuals assigned a technical manual number apply. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources are available, AMCs 1 or 2 are valid.

*APPLIES TO LTCs - An Item identified by AMSC A, H, or L has been subjected to limited screening. The Government does not physically have in its possession sufficient, accurate, or legible data to purchase this item from other than the identified source. Items identified by an AMSC of L on Long Term Contracts, are subject to annual review for possible assignment of a different or permanent AMSC. DLA Land and Maritime agrees to maintain a continual review of these items to ensure that an annual review at a minimum, in part to determine if new technical data is available to allow for assignment of a more permanent AMSC. Any item determined to be competitively available during the solicitation evaluation phase will be removed from the acquisition requirement. Any item determined after contract award to be competitively available may be deleted from the contract and resolicited.

These items are used in both commercial and military-specific maritime vehicle applications. For the reasons stated above and based upon market research summarized below, Dynalec is the only known source who currently manufactures or is capable of manufacturing these items to meet the military customer(s)’ need.

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

- A Sources Sought Notice was posted to the Federal Business Opportunities website 21 July 2018 through 28

July 2018 to with no responses received back.

- The acquisition will be synopsized on or about 3/19/2019.

- Solicitation will be posted on the DLA Internet Bid Board System for a minimum of 15 days.

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

This solicitation is being issued I/A/W FAR 15.403-4, following procedures in FAR Part 15 Contracting by Negotiation. The estimated dollar value meets the threshold for Certified Cost & Pricing Data. Dynalec stated they has provided this requirement before, and confirmed they will do it for this procurement. 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.

8. Market Research/Efforts to Obtain Competition:

A Sources Sought was issued on FedBizOpps from 21 July, 2016 to 28 July, 2016. There were no responses received in regards to the market research. Market research consisted of a formal market survey and direct communications with Dynalec Corporation. Requests for market surveys were sent to eight vendors on 07/21/2016, again on 02/08/2018 and 2/12/2018.

Market Survey [10 U.S.C. 2304(f)(3)(D)]:

A market survey was conducted on/during 7/21/206.

Total number of vendors contacted: eight on 7/21/2016. Dynalec was contacted several times afterwards. Exact that dates are 9/7/2016, 10/4/2016, 2/8/2018 and 2/12/2018.

i) Dynalec Corp

ii) WKF Friedman Enterprises, CAGE 6KB87

iii) Kwat Enterprises, CAGE 9L863

iv) Liberty Logistics, CAGE 1CBD7

v) Surplus Electrical Innovations, CAGE 0W588

vi) Jet Link, CAGE 6YUL4

vii) Pinnacle Research and Aviation, CAGE 33TC6

viii) Subsea Air Systems, CAGE 6L827

ix) Company D

Names of vendors contacted and responding:

Market surveys were sent to the following companies: Dynalec, WKF Friedman Enterprises (6KB87), Kwat Enterprises (9L863), Liberty Logistics, (1CBD7), Surplus Electrical Innovations (0W588), Jet Link (6YUL4), Pinnacle Research and Aviation (33TC6), Subsea Air Systems (6L827) and Company D (CAGE). The companies were asked to provide information such as willingness to quote priced option years, provide stock delivery, state if the items are quantity sensitive, state if the items are commercial, asked if they could provide packaging requirements and addressed the consolidation requirements.

WKF Friedman Enterprises (6KB87), Liberty Logistics, (1CBD7), Surplus Electrical Innovations (0W588), Jet Link (6YUL4), Subsea Air Systems (6L827) and Company D (CAGE) did not respond to the market survey.

Kwat Enterprises (9L863) indicated that they do not do long term contracts.

Pinnacle Research and Aviation (33TC6) indicated that they sell mostly surplus and were not interested in participating in a long term contract.

Dynalec indicated that they were interested in participating in a long term contract; however, they did not complete the market survey. Dynalec provided the commercial invoices to non-Government entities, for all five NSNs that showed the exact part numbers the Government was procuring, which are located in the file. The invoices show the items in this project have been sold to non-governmental entities in the open commercial market. However, the companies that bought the items are mainly doing business with the Government and/or military services. Dynalec could not produce commercial invoices showing true regular business in the open commercial market . Consequently, all items went back again to one single project. During a phone conversation on 1/30/2019, Dynalec confirmed to the Contracing Specialist they will provide certified cost and pricing data. The invoices in Attachment 1 will be used to assist on price analysis and EPA determination.

In summary, this project is the product of a long market research. It took a long time because the Government and Dynalec tried to identify commercial items that could be object of quicker and less restrictive contracts actions.

Eventually, such commerciality could not be determined.

9. The confirmation of sources listed above was completed by SAPD Product Specialist, Kurtis Starin, during the technical evaluation of this project on July 2016 and, again, on October 2018. Based on the limited data the Government possesses, only the approved source 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.

10. 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 for all CLINs and cannot be developed to permit full and open competition. The data presently available reflects the

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

(FEB 2017)

minimum needs of the Government. Dynalech is the only interested source who has expressed interest in participating in a long term contract for the items listed in this solicitation.

11. Actions to Increase Competition:

In addition to the specific actions being taken by Technical Support personnel to overcome barriers to competition before any subsequent acquisitions or recertification of class determination are made, these items are subject to the following methods of locating additional sources:

As mentioned above, every effort will be made to obtain potential sources by synopsis through the Federal Business Opportunities website. Additionally, the solicitation contains the DLAD procurement notes L04 – Offers for Part Numbered Items and M06 – Evaluation of Offers for Part Numbered Items. Any vendor that believes it can provide these NSNs while meeting the same requirements as the existing item should seek qualification as a secondary source through the Competition Management Office Source Approval Program at their own expense.

12. The J&A for the previous long term contract for these items, SPE7MX14D0051, has been located in Records Management.

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.

_ _04/26/2019__________ Contracting Officer Date

APPROVAL/CERTIFICATION

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

Head of the Contracting Activity (HCA) Date Signature

BROWN.MARK.ALB

ERT.1041175032

Digitally signed by

BROWN.MARK.ALBERT.1041175032

Date: 2019.06.04 12:22:23 -04'00'

APPROVAL REQUIREMENTS

[ X ] $13,500,000 to $93,000,000 Head of Contracting Activity (HCA)