JA_SPE7MX20RX012_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX-20-R-X012

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

(May 2018) P a g e | 1

[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.

FAR Subpart 13.5 procedures are being used in accordance with 41 U.S.C. 1901.

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

BRIEF DESCRIPTION NSN/P/N

ANNUAL

DEMAND

QUANTITY

EST. ANNUAL

DEMAND

VALUE AMC AMSC KID WSIC

Contact Assembly, Electrical 5935-01-317-6470 980 3 C 1 F Maintenance Kit, Electrical Connector 5999-01-447-2960 2,084 3 C 1 F 1-year Estimated Value =

5-year Total Estimated Value = Contract Maximum =

Estimated value and contract duration:

The proposed action is for the solicitation and award of a five-year, Firm-Fixed-Price, Indefinite Delivery Indefinite Quantity type contract. The five-year period is inclusive of one (1) one-year base period, and four (4) one-year option periods. The one-year base period estimated value is The five-year total estimated value is The contract maximum is .

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

The items are used on the following weapon systems across the US Air Force:

NSN FSC NIIN WSDC LONG_NAME

5935013176470 5935 013176470 25F AIRCRAFT, AWACS, E-3A

5935013176470 5935 013176470 26F AIRCRAFT, F-16

5935013176470 5935 013176470 DTF AIRCRAFT, AIRLIFTER C-17A

5935013176470 5935 013176470 MVF

JOINT STARS TARGET RADAR

SYSTEM

5935013176470 5935 013176470 PAF U-2 AIRFRAME

5999014472960 5999 014472960 25F AIRCRAFT, AWACS, E-3A

5999014472960 5999 014472960 26F AIRCRAFT, F-16

5999014472960 5999 014472960 92F

SUPPORT EQUIPMENT, F-16

AIRCRAFT

5999014472960 5999 014472960 DTF AIRCRAFT, AIRLIFTER C-17A

5999014472960 5999 014472960 MVF

JOINT STARS TARGET RADAR

SYSTEM

5999014472960 5999 014472960 NPF 72KW GENERATOR SET

5999014472960 5999 014472960 PAF U-2 AIRFRAME

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. Acquisition is restricted only to the following source(s) of supply for the item:

CAGE 0SMN2 / ITW GSE, Inc.

The use of the authority cited below:

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

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.

[X] Other: (Explain) Due to the criticality of the items, the Government has reserved the right to approve sources and only CAGE 0SMN2 has been approved for both NSNs. In addition, per the approved manufacturer parts list for these NSNs in SAP (as received from the Defense Logistics Information Service), only CAGE 0SMN2 has been identified as having the proper complete technical data and manufacturing expertise to supply the items to DLA and the using military services. The Government does not have rights to the technical data.

Both NSNs have a WSIC code of F, indicating that failure of the part will render the end item inoperable. These are replacement parts incorporated into a higher level assembly used for ground power sent to aircraft on ground undergoing maintenance. The ground power unit can provide electricity to the aircraft being serviced for activities like refueling, reloading of ammunition (in the case of military aircraft), and engine and fuselage examination. If the ground power unit does not transmit the correct voltage and amperage to the aircraft while being used, the aircraft’s electrical and electronic communication and operation systems can be damaged and render the aircraft inoperable. These two replacement items are integral to the connection between the ground power unit and the aircraft itself, and these are the only know replacements that will ensure the ground power unit operates properly when connected to the aircraft. Therefore, competition must be limited to offers of the product of CAGE 0SMN2. Most recent product specialist of record technical reviews were conducted in January 2020 for the NSNs (per SAP) and no additional sources were identified at that time. In addition, a technical review in support of a potential LTC was performed in November 2019. The NSNs were determined to be suitable for an LTC at that time by SAPD’s product specialists.

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

[X] The acquisition will be synopsized on or about 01/15/2020.

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

This will be a five-year, firm fixed price, indefinite delivery indefinite quantity type contract. The five-year period is inclusive of one (1) one-year base period and four (4) 1-year option periods. As such, the price analysis for the future year will be based on the Global Insights Producer Price Index (PPI) forecasts. The Global Insights PPI forecast provides timely, accurate price and cost analysis, and historical records for thousands of commodity prices and wages around the globe, allowing procurement professionals to understand supplier cost structure and better negotiate supplier quotes. Based on the results of market research, the buyer anticipates receiving an offer of a sole manufacturer’s parts from the large manufacturer. Adequate price competition is not expected to exist at time of evaluation of proposals. The buyer anticipates using comparison to past reasonable purchases (adjusted for passage of time and quantity sensitivity), in addition to comparison to commercial market prices, to support a reasonableness determination.

8. Market Research/Efforts to Obtain Competition:

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DLA Land and Maritime conducted various forms of market research including the publishing of a formal Sources Sought notice and market survey to www.beta.sam.gov. On the previous canceled projects for both these NSNs (projects CM18031001 and CM19028001) dealer Aviation Ground Support Equipment (CAGE 0TMZ0) was contacted and indicated interest in the acquisition. However, they later stated that they would be submitting an alternate offer from a previous manufacturer for both solicitations. They did not, however, submit the alternate offers despite multiple follow-ups by the contracting officer. The OEM was contacted by SAPD’s deputy director regarding providing pricing for a potential LTC. The OEM did indicate that they would provide pricing in support of an LTC.

Sources Sought Notice:

On 11/15/2019, a Sources Sought notice was posted to www.beta.sam.gov, which also contained attached market survey documents. The date of return referenced on the sources sought notice was 11/22/2019. That sources sought notice contained both NSNs. As of 11/26/2019, no additional sources have responded to either notice.

Market Research Conclusion:

A market survey was conducted on: 11/15/2019 – 01/02/2020.

Total number of vendors contacted: 1 Names of vendors contacted and responding:

CAGE 0SMN2 / ITW GSE Inc. – responded.

Techniques used to conduct survey: E-mail, telephone.

Types of information requested: Commerciality, Length of Contract, FOB, Delivery & General information questions.

Summary of information received:

1. CAGE 0SMN2 / ITW GSE Inc. indicated the following:

i.

ii. Large manufacturer offering own product

iii. Initially not willing to quote on a long term contract according to their response received for projects CM18031001 and CM19028001 in early 2019 – “...it is not advantageous as it’s only a yearly steady amount, not a quarterly projection or increasing amount.”

**However, after being contacted by SAPD’s deputy director via telephone in late October 2019, ITW GSE changed their willingness to provide pricing on an LTC and plans to provide a quote for a new solicitation (this acquisition).** iv.

vi. Considers items to be commercial in nature, can provide supporting proof for price reasonableness vii.

Information received regarding the commerciality of the item(s): MM03 COTS field has an entry of ‘No’ for the NSNs, indicating the technical community has made the recommendation to determine the items non-

P a g e | 4 commercial. The manufacturer does, however, consider these items to be commercial in nature, and provided unredacted commercial invoices to non-Governmental customers as support for any commerciality determination. The manufacturer also provided a copy of their price sheet #PL01012019, showing both part numbers being solicited and their user price. The contracting officer reviewed the unredacted commercial invoices and confirmed that the customers cited on the invoices are not governmental or military entities, and that the prices paid on the unredacted invoices were less than the price list price for both NSNs. While the manufacturer has an internet-published product brochure available for their unit that utilizes these particular part numbers, there was no indication that the parts are readily available for purchase by the general public via normal commercial outlets such as brick and mortar stores or online retailers; the website allows for the general public to request a quote from the manufacturer. Given, though, the unredacted sales invoices, and the usage of the end item for non-governmental purposes (i.e. any commercial aircraft needing this ground support equipment for power purposes), the contracting officer has determined that these items meet the FAR Part 2.101 definition of a “commercial item” under (1)(i), and the acquisition will be conducted under FAR Part 13.5, Acquisition of Certain Commercial Items. The NSNs are not listed on any GSA Federal Supply Schedules.

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

[X] 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) ITW GSE, Inc.

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

[X] The solicitation contains DLAD Procurements L04, Offers for Part Numbered Items, and M06, Conditions for Evaluation of Offers for Part Numbered Items.

[X] The Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions for this item to be competitive.

12. All previous purchases of NSN 5935-01-317-6470 were either subject to simplified acquisition procedures or the contract’s J&A is not available to the contracting officer for review. All previous purchases of NSN 5999-01-447-2960 were subject to simplified acquisition procedures.

Approvals appear on the next page.

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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.

Carol M. Bucher Date Contracting Officer

APPROVAL/CERTIFICATION

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

Competition Advocate Date Signature

APPROVAL REQUIREMENTS

[X] $700,000 to $13,500,000 Competition Advocate

Attachment:

Technical Certification

Digitally signed by

BUCHER.CAROL.M.1267565690

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DLA, cn=BUCHER.CAROL.M.1267565690

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2020.01.23 11:57:43 -05'00'

01/22/2020

01/23/2020