JA6.3021CSPE7LX19R0113.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-19-R-0113

FOR OFFICIAL USE ONLY

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.04

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

Acme Aerospace, Inc. (CAGE 6HAR8)

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 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.

Per the approved manufacturer parts list for this NSN in SAP (as received from the Defense Logistics Information Service), CAGE 6HAR8 is the only source that has been identified as having the proper and complete technical data to supply this item to DLA and the using military services. A technical review in support of a potential LTC was performed on April 1, 2019. The Product Specialist reviewed the technical information and certified it as accurate and complete. The Product Specialist certified that the Government does not physically have in its possession sufficient, accurate, or legible data to purchase this item from other than CAGE 6HAR8 and that all means to obtain a technical data package adequate for manufacture of the item have been exhausted. It is essential that the Government procure CAGE 6HAR8’s part numbered item because the item, although commercial, has been modified to meet the military’s specific needs. Specifically, the item has a more robust fan designed to allow for additional air flow, thus allowing the unit to run significantly cooler. Additionally, this is a replacement part for the F/A 18, and it is necessary to procure only CAGE 6HAR8’s part numbered item to ensure proper operation of the aircraft.

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

The acquisition will be synopsized on or about December 13, 2019.

The solicitation will be posted to DIBBS for 30 days.

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

a. Certified Cost or Pricing data is not required, as this is a commercial acquisition. This item will be solicited as Other Than Full and Open Competition. The buyer only intends to award the NSN if fair and reasonable price determinations can be made.

b. I hereby determine that the anticipated cost to the Government will be fair and reasonable based on commercial pricing, conducting a Price analysis, Producer Price Index (PPI), learning curve analysis, and/or informal cost breakdown.

7. Market Research/Efforts to Obtain Competition:

DLA Land and Maritime conducted various forms of market research including the publishing of a formal Sources Sought notice and market survey to www.fbo.gov. In addition to the publishing of a Sources Sought notice, the Market Survey team contacted suppliers from the procurement history.

Sources Sought Notice:

The Sources Sought Notice was posted to FBO on April 30, 2019, and closed on May 7, 2019. No responses were received.

Market Research Conclusion:

Market surveys were conducted on: Initial market surveys were sent on January 29, 2019. Follow-up surveys were sent between March 7, 2019, and July 15, 2019. Two responses were received.

Total number of vendors contacted: 4

Names of vendors contacted:

Name of Source CAGE Size Status Responded

Acme Aerospace, Inc. 6HAR8 Large ECI Defense Group, Inc. 3SDB5 Large Statz Corp. 3WGD1 Small JBL 5WRH4 Large

Techniques used to conduct survey: E-mail

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

Summary of information received:

• ECI Defense Group, Inc. (CAGE 3SDB5):

On January 29, 2019, of ECI Defense Group, Inc. stated “this is an Acme Aerospace part. ECI is no longer a distributor for Acme parts, and we do not keep any in stock. Although we are still performing on some older, existing LTC commitments for Acme parts, we are not bidding new solicitations. Your best bet would be to contact Acme directly for a quote. I'm sorry we couldn't help you this time.”

• JBL (CAGE 5WRH4):

On March 2, 2019, of JBL stated “JBL is no longer bidding new work for a host of reasons.”

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

The buyer conducted online research for the item and the results indicated that it is not readily available to the commercial market place. GSA Advantage was checked to see if the item is available for purchase. No results were found. Extensive research was done by the buyer with Acme, the Contracting Officer and Land &The previous LTC was determined commercial based on FAR 2.101 (3)(i) – Modifications of a type customarily available in the commercial marketplace. The prior LTC documented that:

“Extensive research was done by the buyer with Acme, the Contracting Officer and Land & Maritime’s Engineers to deem the item as of a commercial type – Per DSCC/DLA Land and Maritime’s Mechanical Engineer, “The insides of Acme's power source pack part number 174PS101-5 (6130- 014554497) have the same components as their commercial power source with one difference, the fan and associated electronics. NSN 6130-014554497 is located in a tight small space in the aircraft so a more robust fan was needed to provide additional air flow allowing the unit to run significantly cooler. Also, additional testing is required on part number 174PS101-5 as compared to Acme's commercial power source. The commercial power source must pass a series of environmental tests as required by the FAA (DO-160, Environmental Conditions and Test Procedures for Airborne Equipment). The military power source is required to meet MIL-STD-810 (ENVIRONMENTAL ENGINEERING CONSIDERATIONS AND LABORATORY TESTS). MIL-STD-810 has many of the same testing requirements of FAA's DO-

160. However, MIL-STD-810 has additional requirements. Part number 174BS101-5 is subject to the Environmental Stress Screen (ESS) and a commercial power source is not. ESS refers to the process of exposing a newly manufactured or repaired product or component (typically electronic) to stresses such as shock and vibration in order to force latent defects to manifest themselves by permanent or catastrophic failure during the screening process. ESS is destructive testing.

Based on the information stated above, NSN 6130014554497 (part number 174PS101-5), is comparable to the commercial part number 225BS-101-1. The military and commercial item essentially hold the same components just configured differently. Also, the military part is subject to additional Environmental requirements due application of its use. There is a major difference, in terms of material cost, the fan.

Based on the information given by the contractor, the military version is 11% higher than commercial price due to the cost of the fan. This is also based on Acme bidding direct instead of going through a supplier.

The fan is a modification customarily available in the commercial market place.”

A request to the Defense Contract Management Commercial Item Group (DCMA CIG) for assistance was sent on July 17, 2019. A response was received on October 10, 2019. The report noted that there is a prior Commercial Item Determination (CID) for this item and per NDAA guidance only the HCA may overturn a prior existing CID signed by a warranted contracting officer. It has been determined that this item is commercial.

8. 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.

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

NONE

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

Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items.

Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items.

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.

Per PGI 206.304, the requirement states, “the justification shall include a copy of the previous justification to assist the approval authority in determining whether the planned actions to remove any barriers to competition cited on the previous justification were completed”. Based on a review of the recent contract history, prior award SPE7MX18D0062 included a Justification and Approval (J&A) (See Attachment 1 –

SPE7MX18D0062 J&A).

In an effort to encourage participation by manufacturers in the acquisition process and to help decrease barriers for companies looking to become sources of supply, DLA Land and Maritime hosts Captains of Industries bringing in industry leaders for particular commodities or weapon systems. DLA, depending on budget allowance, also holds supplier conferences.

ATTACHMENT:

1 – SPE7MX18D0062 J&A

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 $700,000, this signature serves as the approval.

MEGAN M. SAYLOR, Date Contracting Officer

APPROVAL/CERTIFICATION

I have reviewed and approve this justification. The estimated total contract value of this acquisition is

Competition Advocate Signature Date

Head of the Contracting Activity (HCA) Date Signature

APPROVAL REQUIREMENTS

[ ] Up to $700,000 Contracting Officer

[ ] $700,000 to $13,500,000 Competition Advocate

[X] $13,500,000 to $93,000,000 Head of Contracting Activity (HCA)

SAYLOR.MEGAN.M.1364088848 Digitally signed by SAYLOR.MEGAN.M.1364088848 Date: 2020.01.07 16:55:47 -05'00'

SHEARER.MARY.E.1250702449 Digitally signed by SHEARER.MARY.E.1250702449 Date: 2020.01.09 08:52:34 -05'00'

BROWN.MARK.ALBERT.10411750

Digitally signed by

BROWN.MARK.ALBERT.1041175032

Date: 2020.01.09 11:23:22 -05'00'