JA SPE7LX25R0018 redacted_Redacted.pdf

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Seal, Air, Stationary
Solicitation number
SPE7LX25R0018
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This document is a Justification for Other Than Full and Open Competition for a Defense Logistics Agency (DLA) Land and Maritime solicitation (SPE7LX25R0018). The solicitation is for a Stationary Air Seal (NSN 5330-01-512-8019) with a quantity of 51 units, intended for Aircraft F-404 engines. The contract will be a Firm, Fixed Price Contract for 3 base years with up to 2 optional years, set aside exclusively for Small Businesses.

The procurement is limited to three approved sources: Ferrotherm Corp, Twigg Corp, and General Electric Company, who are the only manufacturers with the engineering source approval and technical data rights for this Critical Safety Item. Market research conducted from November to December 2024 revealed limited commercial interest, with only two of the three sources expressing potential participation. The solicitation will be synopsized on beta.SAM.gov, posted on the DLA Internet Bid Board System for 30 days, and will require a fair and reasonable price determination using historical pricing analysis, Producer Price Index data, and comparison of similar NSNs.

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Decontrolled by michael.2.allen@dla.mil on 6/2/2025

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

JUSTIFICATION FOR OTHER THAN FULL AND OPEN

COMPETITION SOLICITATION SPE7LX25R0018

The use of the authority cited below:

[X] AMC 1. Suitable for competitive acquisition for the second or subsequent time.

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, 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.

Ferrotherm, Twigg, and GE are the only approved sources for this Critical Safety Item (CSI). This part requires engineering source approval by the design control activity in order to maintain 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. Ferrotherm, Twigg, and GE are uniquely qualified because they are the only known sources with the data or rights to the data necessary to manufacture the item. All means to obtain a technical data package adequate for manufacture of the item have been exhausted.; therefore, this acquisition will be solicited with other than full and open competition under authority of U.S.C 3204(a)(1), as implemented by FAR 6.302-1.

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

[X] The acquisition will be synopsized on or about 1/5/2025 on beta.SAM.gov.

[X] All CSI approved sources will be solicited.

[X] The Government published a Sources Sought on the beta.SAM.gov website for seven business days from 11/18/2024 – 11/25/2024.

[X] Other: Solicitation will be posted on the DLA Internet Bid Board System for a minimum of 30 days.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable. This solicitation is being issued as a Total Small Business set-aside. The Contracting Officer will ensure that contract terms, conditions, and prices are commensurate with the Government’s need. The buyer only intends to award the NSNs if a fair and reasonable price determination can be made.

Contract history will be reviewed for historical pricing to compare to the offered prices received. Historical prices will be indexed using Producer Price Index (PPI) data for the North American Industry Classification System for each NSN. Additionally, the historical prices will be compared with quantity as a factor to ensure the comparisons are as similar as feasible. Similar NSN may be compared for price if their technical characters can be determined by the product specialist team to be detailed and similar enough for adequate comparison. Contract length and price escalation will be evaluated using PPI data and trends to estimate potential inflation.

The threshold for obtaining Certified Cost or Pricing Data (CCPD) of $2 million has not been met for this acquisition and CCPD will not be required FAR 15.403-4(a)(1). Uncertified cost and pricing data will be requested if the

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