JA6.302-1cSPE7MX21D0114 - 21R0053.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SPE7MX21R0053

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 ITT Aerospace Controls, LLC (98087) is the only source manufacturer. The requirement is being bought to source controlled drawing (AMC/AMSC of 3/B). The approved source is:

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

0001 5930012148845 Switch, Pressure 98087 ITT Aerospace Controls, LLC 1500PT0152 3 2 3 B

*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

334419 Other Electronic Component Manufacturing 750

Weapon system(s) being supported with this project:

CLIN NSN WEAPON SYSTEM WSDC

0001 5930012148845 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 5930012148845 105 26

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:

ITT Aerospace Controls, LLC (98087) is the only manufacturing source listed on the drawing. ITT Aerospace Controls, LLC (98087) 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. ITT Aerospace Controls, LLC (98087) 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) is 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 03/09/2021 that the AMC/AMSC codes are correct for this procurement. Reference table below:

AMC AMSC

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

AMSC B: This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-100.

Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application.

Although, by DoD-STD-100 definition, altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 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 SPE7M820P0314. There is no prior J&A related to 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: 01/15/2021

Total number of vendors contacted: 6

Names of vendors responding: BDS Supply (33YQ3), Howe Machine & Tool Corp (65777) and ITT Aerospace Controls, LLC (98087)

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: 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 6 vendors the market survey: Am-Mac Incorporated (0VW10), BDS Supply (33YQ3), Howe Machine & Tool Corp (65777), ITT Aerospace Controls, LLC (98087), SIT Corporation (1MQB3), and TNL Sales, LLC (1XLG2), with Howe Machine and ITT Aerospace providing the surveys. An out of office email was received from Am-Mac and no other responses was received. A bounced email was received from one of the contacts with BDS Supply as well as from one of the contacts with SIT Corp. Dan Spencer with BDS Supply responded stating they are shutting down the business and would not be interested in the LTC (Reference Attachment 1).

The current Contracting Officer emailed SAPD Tech on 01/19/2021 to performed AMC/AMSC Tech Cert review. SAPD Tech responded stating the NIIN currently has an expired TDP as of 01/06/2021; that a 339 Case DSCC-ZA-21-12110 has been submitted for a 5 Year TDP review/revalidation and that the ECD for this case is 03/07/2021. SAPD Tech received the 339 back and performed the Tech Cert on 03/09/2021.

For this project, the Sources Sought was conducted by the Contracting Officer. A Sources Sought was issued on FedBizOpps on 03/09/2021 and closed on 03/18/2021. 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. From the Sources Sought Notice, no responses were received.

Based on market research, a proposal is anticipated by Howe Machine & Tool Corp (65777), offering the part number from ITT Neo-Dyn Switches (98087) and ITT Aerospace Controls, LLC (98087) offering their own part number.

Information received regarding the commerciality of the item(s): The requirement will be solicited based on FAR Part 15 procedures. The commerciality code on the Data Refresh Spreadsheet received from the Sourcing Strategy Branch ZAA is “Blank” and “Blank” in MM03. Both Howe Machine and ITT Aerospace responded to the market surveys and checked “No” when asked if this item was commercial. A search online did not indicate that this item is 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:

• Howe Machine & Tool Corp (65777)

• ITT Aerospace Controls, LLC (98087)

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

The solicitation contains Procurement Notes L22 “Restriction of Alternate Offers for Source Controlled 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: 2021.03.30 12:51:02 -04'00'

04/02/2021

03/30/2021

HOPSON.LILLI

.A.1230127324

Digitally signed by

HOPSON.LILLI.A.123012732

Date: 2021.04.02 16:44:50 -04'00'