JA_SPRDL120R0008_RedactedFinal.pdf

Justification & Approval: SPRDL1-20-R-0008 (There is no J&A document from previous procurements)

DEFENSE LOGISTICS AGENCY

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

1. Contracting Activity: The Contracting Activity for this action is the Defense Logistics Agency – Land Warren (DLA Land Warren).

2. Description of Action: The proposed award action is for the purchase of a quantity of 9 each Mettler-Toledo, LLC. Titrator T7 units for the Petroleum Quality Analysis System – Enhanced (PQAS-E). The PQAS-E is a mobile testing lab for determining fuel quality in theatre in accordance with the modified level B standard per MIL-STD- 3004, ASTM International and ISO standards. The PQAS-E increases the testing capabilities to ensure the quality of fuel that is received, stored, and issued from either commercial, military, and/or captured enemy stocks throughout the theater of operation.

This procurement will be restricted to Mettler-Toledo, (CAGE: 12021), as this firm is the only responsible source for this item, and no other supplies will satisfy agency requirements. This action will be funded using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: The proposed contract action is to procure 9 each Titrator T7 units (NSN of 6630-01-564-5504) from Mettler-Toledo, part number 64089596, with an option quantity of 9 each. The estimated unit value is , for an estimated total contract value of . Pertinent details regarding the proposed acquisition are listed below:

Acquisition Method Code (AMC): 3 – Acquire, for the second or subsequent time, directly from the actual manufacturer.

Acquisition Method Suffix Code (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.

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 USC 2304(c) (1), as implemented by FAR 6.302-1, “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. Reason for Authority Cited: The Government does not own or have rights to the technical data for this item, as the Mettler-Toledo Titrator T7 was developed and tested at private expense; as a result, the technical data is considered proprietary to the manufacturer. The Government did not fund any efforts in developing or testing this item, nor did the Government fund any efforts to prepare a fully detailed technical data package (TDP) after approval. Mettler-Toledo is the sole source owner of the drawing package and technical data rights. The lack of such data requires the Titrator T7 to be procured on a non-competitive basis from the current manufacturer for all replenishment acquisitions.

Procurement by other than full and open competition is necessary because the Mettler- Toledo Titrator T7 is the only proven source that has been used with the PQAS-E and is needed to insure standardization of equipment, test procedures, training, spare parts, and manuals with the PQAS-E. These Mettler-Toledo items are the only approved items for this system. Due to the specific dimensions of the interior of the PQAS-E, the only suitable titrator available is the Mettler Toledo model. Also, the mounting brackets and trays have been specifically designed for the Mettler-Toledo Titrator T7, and will not work with any other models. Furthermore, counter space is also conserved due to the small size of the instrument which allows for it to be mounted on the countertop. If a new instrument were used, it would be required to comply with these size specifications.

Also, the Technical Manual (TM) has been written specifically for this instrument. If a new instrument were to be used, it would be costly and time consuming to update the TM to reflect the new operating procedures.

6. Efforts to Obtain Competition: The Government does not own the fully detailed TDP required to manufacture this item. There are no vendors in the process of being qualified at this time, nor will be prior to the contract award due to funding constraints.

There are no planned efforts to qualify additional sources due to the fact that that there is no technical data available to produce a competitive TDP, nor are there any funding available to conduct the extensive (costly and time consuming) qualification testing requirements. The estimated time to reverse engineer the Titrator is three (3) years at a cost of approximately .

This would have a negative impact on the PQAS-E program as those funds are not available, and the time is not acceptable. Army units with a PQAS-E that need a new Titrator would not be fully mission capable until the reverse engineering effort was completed and then a contractor was selected to produce the instrument. Testing and validation would need to be verified before approval is granted. Reverse engineering, testing, and all other efforts to become a secondary approved source would be at the contractor’s expense. Therefore, this action will only be limited to Mettler-Toledo, the owner of the intellectual property and manufacturer of the Titrator.

7. Actions to Increase Competition: There are no known funding efforts in progress at this time to develop the competitive technical data required needed to make the Titrator fully competitive.

No contractors are in the process of being qualified at this time, nor will be prior to the contract award due to funding constraints. Currently, there has not been any expressed interest by any known vendor(s) to become qualified source(s) to produce this item.

Any new vendor who decides to pursue the qualification process will be directed to the Competition Advocate’s Source Approval Program (SAP). The Competition Management Office (CMO) would encourage interested parties to submit a Source Approval Request (SAR) at this time for future buys.

8. Market Research: Market research was conducted by

. The research included reviewing online manufacturer websites, including sigmanaldrich.com, coleparmer.com, thomassci.com, mt.com, and hach.com. Phone conversations were held with manufacturers in the fuel testing markets (specifically DCScientific, Falex and PAC) to see if they offered an equivalent instrument to the Mettler-Toledo T7 Titrator. This market research was conducted from 22 Jul 2019 - 02 Aug 2019. The results of this search did not produce any new information on any company that could provide a replacement for the Titrator. No detailed technical data is available for the Titrator.

A Sources Sought Synopsis was posted on 20 Aug 2019 (see below). To date, no other sources have expressed an interest in providing the subject item. Any interested source will be directed to the Source Approval Program though the competition advocate’s office for information on becoming a qualified source of supply.

Sources Sought Notice#: 2019-554 Component: Titrator

NSN: 6630-01-564-5504

Part Number: 64089596 End Item: Petroleum Quality Analysis System (PQAS-E)

Fed Biz Ops Link:

https://www.fbo.gov/index?s=opportunity&mode=form&id=ea8568a6e69f2b802b98283bee3f 9cf1&tab=core& cview=0

9. Interested Sources: There has not been any expressed interest by any known contractors to become a qualified source to produce the Titrator item. The notices required by FAR 5.201 will be published, and any bids or proposals received will be referred to the applicable engineering office for analysis and will be considered.

10. Other Facts:

(1) Procurement History:

Purchase Order: W56HZV-19-P-0100, awarded on 21 May 2019 to Mettler-Toledo, LLC. for a quantity of 3 each Titrator units with a total dollar value of $82,202.82.

Purchase Order: SPRDL1-19-P-0223, awarded on 15 May 2019 to GFS Supply Services for a quantity of 5 each Titrator units with a total dollar value of $144,995.00.

Purchase Order: SPRDL1-19-P-0060, awarded on 21 Nov 2018 to GFS Supply Services for a quantity of 4 each Titrator units with a total dollar value of $112,396.00.

Purchase Order: SPRDL1-17-P-0311, awarded on 10 May 2017 to Mettler-Toledo, LLC. for a quantity of 3 each Titrator units with a total dollar value of $90,314.70.

Contract: SPRDL1-15-C-0048, awarded on 02 Mar 2015 to Mettler- Toledo, LLC. for a quantity of 3 each Titrator units with a total dollar value of $71,651.34. A J&A document was not required, as the total evaluated price was under the simplified acquisition threshold at $143,302.68.

(2) The above buys were solicited and awarded under Other Than Full and Open Competition.

(3) FAR 6.302-1, Only One Responsible Source was utilized

(4) Acquisition Data Availability: The Government does not own or have rights to the technical data for the Titrator NSN for this procurement.

(5) Unusual and Compelling Urgency: N/A

11. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Name:

Title:

Date: 14 AUG 2019 Signature:

Name:

Title:

Date: 25SEP19

12. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Name:

Title:

Date: 30SEP19

13. Fair and Reasonable Cost Determination: The required item will be solicited on Request for Proposals (RFP) SPRDL1-20-R-0008. It is proposed to negotiate a Firm- Fixed-Price definitive contract with Mettler-Toledo for part number 64089596. This is the only responsible source and no other supplies or services will satisfy requirements.

The rationale for restricting competition is explained above.

I hereby determine that the anticipated cost for this contract action will be fair and reasonable. Normal acquisition procedures will be followed to determine that the contract price is fair and reasonable. The appropriate forms of cost and/or price analysis will be utilized, and negotiations will be conducted if necessary.

I also certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Timothy A. Nichols Title: Contracting Officer, ZGBC Date: 26 Dec 2019 Signature: //TAN//

14. Legal Concurrence:

Concur:

Date: 12/30/2019