JA6.302-1cSPE7MX21D0098 - 21R0054.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SPE7MX21R0054

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. This DLA Land and

Maritime acquisition is for an Indefinite Quantity Contract (IQC) with firm fixed price for the duration of a 3 year base period with 2 one-year option periods for a potential total of 5 years. This procurement is for 1 NSN and supports end item identified in the tables below and in Section B of the solicitation.

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

This initiative is to provide support for 1 Weapon System identified in the table below, for use by the Department of Defense.

This item being procured is listed below and includes the Reference Number Category Code (RNCC), which is a code that designates the relationship of the part number to an item of supply. The Reference Number Variation Code (RNVC) which indicates that a cited part number is or is not item identifying or is for information only. The proposed acquisition is for DLA-managed item for which large business HDT Expeditionary Systems, Inc. (92878) is the only source manufacturer. The requirement is being bought to a code and part (AMC/AMSC of 5/D). The approved source is:

CLIN NSN BRIEF DESCRIPTION COMPANY CAGE P/N RNCC RNVC AMC AMSC

0001 5930014979010 SENSOR, FUEL PRESS HDT Expeditionary Systems, Inc. 92878 5000-30017 3 2 5 D

*If too numerous, attach list of NSNs and AMSC codes.

RNCC CODE:

3 - Design Control Reference. The primary number used to identify an item of production or a range of items of production, by the manufacturer (individual, company, firm, corporation, or Government activity) which controls the design, characteristics, and production of the item by means of its engineering drawings, specifications, and inspection requirements.

RNVC CODE: 2 - A design control or other reference number that is an item-identifying number for an item of production, or a source control reference or a specification or standard part, type, or similar reference number that is an item-identifying number for an item of supply.

Identify end item, weapon system, or class of item(s):

NAICS CODE NAICS INDUSTRY DESCRIPTION BUSINESS SIZE

334513 Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables 750

Weapon system(s) being supported with this project:

CLIN NSN WEAPON SYSTEM WSDC

0001 5930014979010 TANK, ABRAMS M-1 36A

ESTIMATED BASE VALUE:

ESTIMATED TOTAL VALUE (BASE + OPTIONS):

MAXIMUM CONTRACT VALUE:

FOR ADD-ONS, PROVIDE VALUE OF OPTION YRS REMAINING: N/A

Estimated total award value and cost goals:

CLIN NSN ADQ QFD

ESTIMATED BASIC

ANNUAL DEMAND

VALUE (ADV)

ESTIMATED

THREE YEAR

BASE TOTAL

ESTIMATED TOTAL

CONTRACT VALUE

INCLUDING OPTION YEARS

CONTRACT

MINIMUM

CONTRACT

MAXIMUM

(ADV * 1%) (ADV * 10)

0001 5930014979010 173 43

TOTALS

4. The statutory authority permitting other than full and open competition is:

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:

HDT Expeditionary Systems, Inc. (92878) is the only source manufacturer approved by the military customer’s design control activity with the comprehensive knowledge and expertise necessary to manufacture this item. HDT Expeditionary Systems, Inc.

(92878) is the only source manufacturer that own the data rights to manufacture this item. The Government does not currently possess or have access to detailed technical data sufficient to provide a description of all required form, fit, and function characteristics of this part.

The use of the authority cited is based on:

The Acquisition Method Code (AMC) and Acquisition Method Suffix Code (AMSC) are also listed below. The AMC code describes to the Contracting Officer and other Government personnel the results of a technical review of a part and its suitability for breakout, and the AMSC code provides the Contracting Officer and other Government personnel with engineering, manufacturing, and technical information. The Contracting Officer verified with SAPD Tech on 01/21/2021 that the AMC/AMSC codes are correct for this procurement. Reference table below:

AMC AMSC

AMC 5: Acquire directly from a sole source contractor which is not the actual manufacturer.

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.

A description of the Federal Supply Groups (FSG) and the Federal Supply Class (FSC) for this item is listed below. The FSG is represented by the first two digits of the NSN and identifies, by title, the commodity area covered by classes within the group.

The FSC is represented by the first four digits of the NSN and the code covers a relatively homogeneous area of commodities, in respect to their physical or performance characteristics, or in the respect that the item included therein is such as are usually requisitioned or issued together or constitute a related grouping for supply management purposes. Reference table below:

FSG: 59 - Electrical and Electronic Equipment Components

FSC 5930: Switches

Includes: Rotary, Knife, Toggle, Push Button, Mercury, Thermostatic, and Differential Pressure Switches.

Excludes: Switchgear.

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

The acquisition will be synopsized 15 days. At the conclusion of the synopsis period, the solicitation will be posted to DIBBS for 30 days.

The previous purchase order for this project is SPE7M120D60GM. There is no prior J&A related for the previous purchase order as this was under the simplified acquisition threshold.

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

Certified cost and pricing data is not required, as the dollar value of the requirement does not exceed the $2M threshold. Other than certified cost or pricing data may be requested if adequate price competition is not received. A price analysis will be conducted using historical pricing, the Producer Price Index (PPI) and learning curve analysis. By using the above techniques, the Contracting Officer anticipates that the cost to the Government will be fair and reasonable. Requirement is being solicited with a three-year base period and two option years.

8. Market Research/Efforts to Obtain Competition:

Market Survey [10 U.S.C. 2304(f)(3)(D)]:

A Market Survey was conducted on/during: 02/12/2021

Total number of vendors contacted: 2

Names of vendors responding: HDT Expeditionary Systems, Inc. (92878), Windward Enterprises, LLC (0UKB6)

Techniques used to conduct survey: Email to include a Market Survey questionnaire, an excel spreadsheet and posting a Sources Sought.

Type of information requested: Inquired about the interest of pursuing a Long Term Contract (LTC) for 5-year period to include delivery, cost and pricing data and commercial requirements.

Summary of information received: For this project, there is no project info by the SSS as this NSN was pulled from the Abrams project. Per the previous Contracting Officer, most of the Abrams projects were SBSA; that this NSN should be Unrestricted, and the reason this NSN was dropped; that the value was over SAT and they did not expect to receive offers from two different SB manufacturers. The current Contracting Officer emailed 2 vendors the market survey: HDT Expeditionary Systems, Inc. (92878) and Windward Enterprises, LLC (0UKB6), with Windward providing the survey (Reference Attachment 1).

For this project, the Sources Sought was conducted by the current Contracting Officer. A Sources Sought was issued on FedBizOpps on 01/21/2021 and Closed on 02/01/2021. A market survey, an excel spreadsheet, and an alternate offer and source approval request guidance (AO-SAR) package were provided for contractors to fill out for this posting. No responses were received.

Based on market research, a proposal is anticipated by Windward Enterprises, LLC (0UKB6), offering the part number from HDT Expeditionary Systems, Inc. (92878).

Information received regarding the commerciality of the item(s): The requirement will be solicited based on FAR Part 15 procedures. The commerciality code(s) on the Data Refresh Spreadsheet received from the Sourcing Strategy Branch ZAA was “Blank” and “Blank” as well as in MM03. Windward Enterprises responded to the market survey and checked “No” when asked if the item(s) are commercial. A search online did not indicate that the item(s) are commercial. A separate memorandum detailing this determination has been prepared and is included in the solicitation file.

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

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.

Other: As stated above, there is no project info by the SSS as this NSN was pulled from the Abrams project. No additional sources were identified from the previous Contracting Officer.

Forecast information is available to the potential source(s) for the source item(s). The DLA Supplier Requirements Visibility Application (SRVA) is a database that is available via the DLA Internet Bid Board System (DIBBS). SRVA provides potential sources the opportunity to search for information on DLA’s anticipated requirements based on updated monthly forecasts.

Essentially it provides 24 months of sole source and competitive projected purchase order quantities. Potential alternate sources for current source item(s) can easily see DLA’s forecasted procurements and can contact the Value Management Unit to become approved sources for sole source and code and part number item(s). The DLA Land & Maritime Value Management Unit continually seeks out sole source, limited competition, over-priced, low reliability and hard to buy items to improve their value and support posture. The DLA Land & Maritime Internet website contains information for all potential sources on how to challenge prices, how to submit a Value Engineering Change proposal, a link to DoD’s Value Engineering program and the necessary contact info for both the DLA Value Engineering program and the DoD Value Engineering program.

10. A listing of sources, if any, indicating an interest in the acquisition is:

• Windward Enterprises, LLC (0UKB6)

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

The solicitation contains Procurement Notes L04 “Offers for Part Numbered Items” and M06 “Evaluation of Offers for Part Numbered Items.”

ATTACHMENTS:

1. Market Research Summary

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.

Contracting Officer Date

APPROVAL/CERTIFICATION

I have reviewed and approved this justification:

Competition Advocate Date

APPROVAL REQUIREMENTS

Up to $750,000 Contracting Officer

$750,000 to $15,000,000 Competition Advocate

$15,000,000 to $100,000,000 Head of the Contracting Activity (HCA)

Over $100,000,000 Senior Procurement Executive (AQ)

STEIN.MATTHE

W.A.1295794867

Digitally signed by

STEIN.MATTHEW.A.1295794

Date: 2021.03.11 11:48:13 -05'00'

03/17/2021

03/11/2021

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702

Date: 2021.03.17 10:48:07 -04'00'