JA_SPE7MX22R0026_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX-22-R-0026

DLA Land & Maritime Justification for Other Than Full & Open Competition (October 2020)

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

LINE ITEM NSN Company CAGE Part Number

0001 5999016245931 STRATUS SYSTEMS INC 3AX04 01-0-15-100-1FL

0002 6035015427319 STRATUS SYSTEMS INC 3AX04 15-9-15-075-0FL

0003 6035015427321 STRATUS SYSTEMS INC 3AX04 15-9-15-103-0FL

For NSN 6035015427321 the Government lacks the technical data needed to acquire this item competitively.

Stratus Systems Inc. is the only source known to possess the complete technical data for this item.

For NSNs 5999016245931 and 6035015427319, Stratus Systems Inc. (CAGE 3AX04) is the only source approved by the design control activity because Stratus Systems Inc. retains the data rights, manufacturing knowledge, or technical data that is 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.

On 02/25/2021, Quality Assurance Specialist certified that the technical information, including the AMC/AMSC codes and approved source was complete and accurate.

The use of the authority cited below:

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

The use of the authority cited is based on:

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.

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.

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

a. The acquisition will be synopsized on or about December 15th, 2021 and will run for 15 days. At the completion of the synopsis period, the RFP will be solicited on the internet for 30 days, via the DLA Internet Bid Board System (DIBBS).

b. A Sources Sought notice was posted November 9th, 2021, on SAM.GOV for 7 calendar days to find potential sources for these NSNs and no responses were received from companies interested to be manufacturers for these items.

c. Alternate offeror’s will be evaluated and forwarded for approval to the ESA.

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

a. Past procurement, history will be reviewed, and a price analysis will be performed using the producer price indexes from the Bureau of Labor Statistics. The basis for determining the reasonableness of this procurement will be price analysis; analysis of the prices plus certified cost or pricing data.

b. Based upon the above techniques, the Contracting Officer hereby determines that the anticipated cost to the Government will be fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

a. The product specialist reviewed these NSNs for this requirement during project creation, and no new sources were found.

Market Survey [10 U.S.C. 2304(f) (3)(D)]: A market survey was conducted by Sourcing Strategy Specialist and by the Acquisition Specialist during 04/2021– 11/2021. Results of the Market Research are below.

Total number of vendors contacted: 5.

Names of vendors contacted:

1. Pioneer Industries (66200)

2. Kampi Components (7Z016)

3. Ruta Supplies (ONJT4)

4. Brighton Cromwell (3NNX8)

5. Stratus Systems Inc (3AX04)

Total number and names of vendors that responded to Acquisition Specialist market research: 4

1. Stratus Systems Inc (3AX04) – Interested

2. Ruta Supplies (ONJT4) – Not interested

3. Kampi Components (7Z016) – Not interested.

4. Pioneer Industries (66200) – Not Interested.

Techniques used to conduct survey: emails, phone, Sam.Gov, Market Survey Questionnaire, GSA Library and GSA Advantage part number searches.

Types of information requested: # of base years, # of option years, priced option years versus EPA, FOB origin or destination, quantity breaks, commerciality, commercial sales invoices, Understanding of cost/price data.

GSA library and GSA Advantage were both searched for the corresponding part numbers. The part numbers were not available on GSA.

The Internet was searched for the part numbers and the results showed that they are not commercial. The part number was searched, and price listings could not be found.

Manufacturer Stratus Systems Inc was successfully contacted and their feedback included that these parts are not commercial. These items are quantity sensitive. Stratus Systems stated they have provided certified cost and pricing data in the past and are willing to provide cost and pricing data for this requirement. They state that they would like minimum quantities to be 50 each. Stratus Systems cited delivery to be 180 days for CLIN 0001, 90 days for CLIN 0002 and 150 days for CLIN 0003.

Sent emails to possible sources for market research and made follow-up emails with Pioneer Industries, Stratus Systems and Brighton Cromwell. Stratus responded with delivery clarification. No response was received from Brighton Cromwell.

Summary of information received is shown in below table:

Company Name

CAGE

CODE

Business

Size

KTR

Interested in an LTC

KTR Base Years and

Option Yrs.

Preference

KTR Prefers a Firm Fixed

Priced Contract

KTR Will provide Cost & Pricing Data if

Required

Phased

Delivery

Commercial Items

Kampi 7Z016 SB Not Interested

Pioneer 66200 SB Not interested

Ruta Supplies ONJT4 SB Stated they are not a dealer for these items

Brighton Cromwell 3NNX8 SB No reply - - - - - Stratus Systems 3AX04 SB Interested No

Commercial Determination: Per FAR 2.101, “Commercial item”, these items in this solicitation have been determined to be non-commercial. The following factors that have led to this conclusion are:

A search of the internet was done and there is no evidence that these items can be sold to other than the military.

Items are not available on GSA Advantage.

Items are not commercially price listed.

Manufacturer Stratus Systems stated in their Market Survey Questionnaire that these items are not commercial.

NSNs are not coded with AMSC code of “Z”.

Therefore, it is the determination of the contracting officer is that these items are not commercial and FAR Part 15 will be utilized for this requirement.

9. 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 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)

Stratus Systems Inc (3AX04) expressed interest in performing on a long term contract for this requirement.

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

a. The solicitation will contain Procurement Note L04 – Offers for Part Numbered Items and M06 - Evaluation of Offers for Part Numbered Items, which increases competition by permitting the considerations of alternate offers.

b. Planned actions for the future to overcome any barriers to competitions will be periodic market research and sources sought.

12. The Contract Specialist searched in the contract history of Records Management for previous Justifications as required by the Defense Federal Acquisition Regulation Supplement (DFARS) and Procedures, Guidance, and Information (PGI) 206.304, and was not able to locate any previous Justifications for the national stock numbers 5999016245931, 6035015427321, and 5999016245931. It appears after review of the procurement history these were all under SAT, so a J&A was not required.

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.

Ty Phipps - Contracting Officer

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature

APPROVAL REQUIREMENTS

PHIPPS.TY.A.125861

Digitally signed by

PHIPPS.TY.A.1258611388

Date: 2021.12.13 09:56:05 -05'00'

SHEARER.MARY.E.1

250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2022.01.13 14:21:16 -05'00'

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