JA_SPE7MX21R0169 _CUI_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX-21-R-0169

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

Source Selection Information – See FAR Part 2.101 and 3.104.

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[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

EST. ANNUAL

DEMAND

VALUE

AMC

AMSC

Switch, Push 5930-01-058-7178 12 3 C

5-year estimated total 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) separately priced one-year option periods. The 1-year base period estimated value is , and the base period plus four option years’ estimated value is

. The contract maximum is .

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

The NSN is tied to the F-16 Fighting Falcon aircraft (WSDC = 26F). It has been assigned a highest weapon system indicator code (WSIC) of L. Code L is assigned when failure will render the end item inoperable. The weapon system is operated by the Air Force.

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:

CAGE 08719 / Ducommun Labarge Technologies, Inc., P/N 10620GS1-4

The use of the authority cited below:

[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

P a g e | 2 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) The Government has reserved the right to approve sources and only CAGE 08719 has been approved. In addition, per the approved manufacturer parts list for this NSN in SAP (as received from the Defense Logistics Information Service), only CAGE 08719 has been identified as having the proper complete technical data and manufacturing expertise to supply this item to DLA and the using military service. Therefore, competition must be limited to offers of the product of CAGE 08719. The most recent technical review in support of a potential LTC was performed on 08/11/2021, for this NSN. The NSN was determined to be suitable for an LTC at that time and the technical certificate dated 08/11/2021 is attached to this justification. The product specialist certified on 08/11/2021 that the technical information, including the AMC/AMSC codes and approved source, is complete and accurate.

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

[X] The acquisition will be synopsized on or about 09/15/2021.

[X] The solicitation will be posted to DLA DIBBS on or about its issuance date of 10/01/2021 and will be posted for 30 days.

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) separately priced one-year option periods. As such, the price analysis for future years 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 does not anticipate receiving more than one offer, and adequate price competition is not expected to exist at time of evaluation of proposals. As the acquisition is estimated under the $2,000,000 threshold for requiring certified cost/price data, the contracting officer will not request certified cost/price data from the sole offeror expected to submit a proposal for this acquisition. The contracting officer will, however, request informal cost/price data if deemed necessary, and analysis of the informal cost/price data, along with comparison to past reasonable purchases of the same item, will be used as the basis to determine a fair and reasonable price.

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.sam.gov. In addition to the publishing of a Sources Sought notice, the Sourcing Strategy team’s Contract Specialist also researched the procurement history for the item on the proposed solicitation and emailed each of the suppliers that still had a valid registered CAGE. Twelve CAGEs received a market survey in the market research conducted for previous project CM21182002, which contained this item and was canceled.

Sources Sought Notice:

A Sources Sought notice in www.sam.gov was published on 8/11/2021 and closed on 8/18/2021. As of 8/19/2021 no responses to the sources sought notice had been received.

Market Research Conclusion:

A market survey was conducted on: 07/01/2021 through 8/18/2021.

Total number of vendors contacted: 12 Names of vendors contacted and responding:

08719 / Ducommun Labarge Technologies, Inc. – responded.

5N582 / Seal Dynamics, LLC – responded.

0PPN6 / Mark Electronics – did not respond.

81755 / Lockheed Martin – did not respond.

61LP1 / Shoreline Aerospace – did not respond.

7CNG1 / Unical Defense – did not respond.

5ZD19 / FBC Enterprises – responded.

61125 / JGB Hose, Inc. – responded.

4GCC4 / Access Electronics – did not respond.

05584 / Autodyne Manufacturing – did not respond.

7TR63 / Legacy Product Support – did not respond.

1PJC2 / RF Micro – did not respond.

Techniques used to conduct survey: E-mail and Sources Sought notice.

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

Summary of information received:

a. CAGE 08719 / Ducommun Labarge Technologies, Inc. stated that they would support the requirement through their distributor Seal Dynamics, LLC / 5N582.

b. CAGE 5ZD19 / FBC Enterprises stated they were not interested in the acquisition.

c. CAGE 61125 / JGB Hose, Inc. stated they were not interested in the acquisition.

d. CAGE 5N582 / Seal Dynamics, LLC stated the following in their returned survey:

1) Large business distributor/dealer offering the product of large manufacturer Ducommun Technologies

2) Has 150 employees 3)

4) Is willing to pursue an LTC with DLA L&M 5)

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6) 7)

8) Does not consider the item commercial 9) 10)

Information received regarding the commerciality of the item(s):

A review of the COTS field in the material master for this NSN in SAP shows no entry, indicating the technical community has not made any kind of recommendation regarding the commerciality of the item. A search of Bing does not show that this part number or NSN is available for purchase by the public through brick-and-mortar stores or Internet retailers. None of the previous purchases appearing in the NSN’s purchase history were subject to commercial terms and conditions.

Therefore, based on the lack of publicly available information about this NSN, market research results, and no previous commercial item determinations, the contracting officer has determined that this NSN is not commercial in accordance with FAR 2.101’s definition of commercial items.

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. CAGE 08719 is the only approved source for this NSN.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state)

CAGE 5N582 / Seal Dynamics, LLC

11. This item is subject to the following methods of locating additional sources:

[X] Solicitation contains DLA Procurement Notes, L04 Offers for Part Numbered Items, and M06 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. None of the previous purchases of this item were subject to FAR Part 12, 13.5 or 15 terms and conditions so there are no previous justifications available for review.

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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 $750,000, 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

[X] $750,000 to $15,000,000 Competition Advocate

Attachments:

CM21215004 Tech Cert

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

08/26/2021

09/01/2021

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2021.09.01 10:59:24 -04'00'