JA SPE7LX19R0119 redacted.pdf

PDF 247 KB Posted Sep 28, 2020

Attached to: GAU-21 gun components
Solicitation number: SPE7LX19R0119
Issued by: Defense Logistics Agency Land and Maritime

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX19R0119

DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018)

[ 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.

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

BRIEF DESCRIPTION NSN/P/N ANNUAL

DEMAND

QUANTITY

ANNUAL DEMAND

VALUE

AMC AMSC

See Attachment # 1 NSN Data

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

The items are components of the GAU-21 .50 caliber machine gun system. The GAU-21 machine gun is used as a door gun on multiple aircraft systems, including the MH60 Helicopter, H1 Helicopter, MH53 Helicopter, and CV22 Osprey Aircraft. There is only one approved manufacturer for the items; (B0897) FN Herstal SA.

ESTIMATED 4 YEAR BASE VALUE:

ESTIMATED 7 YEAR TOTAL VALUE (BASE + OPTIONS):

MAXIMUM CONTRACT VALUE: $

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: FN Herstal SA/B0897

The CAGE listed below is the current approved manufacturer for the items. Any company offering a product from other than the approved source would require approval for the alternate part.

NSN Approved Manufacturer/CAGE P/N See attachment #1 for NSNs. FN Herstal SA/B0897 See attachment #1 for P/N’s.

The use of the authority cited below:

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

[ X ] AMC 4. Acquire, for the first time, directly from the manufacturer.

The use of the authority cited is based on:

DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018)

[ 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, 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.

[ X ] 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.

[ X ] AMSC H. 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.

[ X ] AMSC L. 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.

[ X ] AMSC P. The rights to use the data needed to purchase this part from additional source(s) are not owned by the Government and cannot be purchased, developed, or otherwise obtained. It is uneconomical to reverse engineer this part. This code is used in situations where the Government has the data but does not own the rights to the data.

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.

[ X ] AMSC R. 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 Product Specialist of record reviewed the AMC/AMSC coding and source information. The Product Specialist verified it was complete and accurate on December 18, 2018.

DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018)

The Government does not possess a complete technical data package for the items with an AMSC code of C, D, H, or R. FN Herstal SA (B0897) is the only known source that possesses the technical data necessary to manufacture these items. Therefore, FN Herstal SA has the unique capability to produce the items.

For the item with an AMSC code of P, FN Herstal SA is the only source currently approved by the design control activity to supply the item.

For items with an AMSC code of L, the Government does not own the necessary data rights and the data is proprietary to FN Herstal SA.

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

The acquisition was synopsized on June 7, 2019. The solicitation was posted to DIBBS.

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

Cost or pricing data in accordance with FAR 15.403-4 will be required. Cost or pricing data will be reviewed by the DCAA or DCMA auditor and/or the DLA Land and Maritime pricing office to determine allowability, allocability, and price reasonableness. Negotiations will address the individual cost elements. A price analysis will also be conducted using historical pricing, the Producer Price Index (PPI), and learning curve analysis. Based on the above techniques, the Contracting Officer anticipates the costs to the Government will be fair and reasonable. The buyer will review the purchase history for these NSNs and if needed a comparison with similar items. NSNs will not be awarded unless a fair and reasonable determination can be made on pricing.

8. Market Research/Efforts to Obtain Competition:

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

A market survey was conducted on/during March 1, 2019 through April 5, 2019.

Total number of vendors contacted: 1.

Names of vendors contacted and responding:

Vendors contacted: (B0897) FN Herstal SA Vendors responding: (B0897) FN Herstal SA

Techniques used to conduct survey: A market research form was emailed to the approved manufacturer of the items (B0897) FN Herstal SA. A Sources Sought Notice was posted to FedBizOps on March 5, 2019 with a response date of March 12, 2019. A market research form was attached to the sources sought notice. No responses were received to the sources sought notice.

Types of information requested: Vendors were asked to identify if they are a manufacturer, dealer or distributor, and their business size. Vendors were also asked about interest in pursuing a Long Term Contract for the items, their inventory capability, if items are quantity sensitive or hazardous, base/option year structure, willingness to propose option years, questions as to commerciality of the items, FOB points/impact on price, zone pricing, delivery information, packaging, and EDI capability.

Summary of information:

DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018)

(B0897) FN Herstal SA. - Received response to market survey on April 5, 2019 from , Sales Administration Supervisor. Identified as a manufacturer. Indicated an interest in pursuing a Long Term Contract for the items.

Indicated items are not commercial items per FAR 2.101(b) and cannot provide evidence of commercial sales.

Information received regarding the commerciality of the item(s): (B0897) FN Herstal SA indicated the items are not commercial. The buyer conducted an internet search of the items; the search resulted in no evidence of commerciality. Items are used on the GAU-21 .50 caliber machine gun system and have no known commercial applications.

9. Additional facts supporting other than full and open competition are:

The NSNs included on this solicitation were reviewed by the Strategic Acquisition Programs Directorate (SAPD) Product Specialist during the project development phase. No additional sources were identified during that review.

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: (If none, so state)

(B0897) FN Herstal SA.

11. The following actions are being taken to identify additional sources:

Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items.

Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items.

Forecast information is available to all potential sources for both sole source and competitive items. The DLA Supplier Requirements Visibility Application (SRVA) is a database that is available via the DLA internet Bid Board System (DIBBS.) SRVA provides potential sources the opportunity to search for information on DLA’s anticipated requirements based on updated monthly forecasts. Essentially it provides 24 months of sole source and competitive projected purchase order quantities. Potential alternate sources for current sole source items can easily see DLA’s forecasted procurements and can contact the Value Management Unit to become approved sources for sole source and code and part number items. The DLA Land & Maritime Value Management Unit continually seeks out sole source, limited competition, over-priced, low reliability and hard to buy items to improve their value and support posture. The DLA Land & Maritime internet website contains information for all potential sources on how to challenge prices, how to submit a Value Engineering Change proposal, a link to DoD’s Value Engineering program and the necessary contact info for both the DLA Value Engineering program and the DoD Value Engineering program.

Pursuant to DFARS PGI 206.303-2, the previous J&A (Solicitation SPM7LX-13-R-0038 / Contract SPE7LX-14- D-0121) is included as Attachment # 2 to this J&A.

DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018)

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/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature Date

Head of the Contracting Activity (HCA) Date

APPROVAL REQUIREMENTS

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

Attachment # 1: NSN Data

Attachment # 2: J&A SPE7LX-13-R-0038

A tta ch m e nt

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File details come from the government source that posted it. Updated Sep 28, 2020.