JA6.3021CSPE7MX24R0015.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX24R0015

DLA Land & Maritime Justification for Other Than Full & Open Competition (March 2023)

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

[X] 10 U.S.C. 3204(a)(1) - Available from only one or a limited number of sources.

Brief narrative supporting the situation and weapon system:

Technical certification dated October 19, 2023, was provided by a SAPD Technician. The certification states that these parts require engineering source approval by the design control activity in order to maintain 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 (CLINs 0001-0004). For CLIN 0005, acquisition of this part is restricted to source (s) specified on a Source Control and, Altered Item or A Selected Item drawings/documents.

For CLIN 0006, the data or the rights to use the data needed to purchase this part from additional sources are not owned by the Government and it has been determined that it is uneconomical to purchase them. DLA does not possess adequate data, lacks rights to data, and/or has no record of an alternate Design Control Activity approved source. The data presently available reflects the minimum needs of the Government. These items are to be procured from the approved manufacturers (See Attachment 1 – Technical Certification). Valcor Engineering Corp. (96487) is the only company known by the Government to possess the technical data necessary to manufacture these items.

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

CLIN Contractor CAGE Part Number 0001 Valcor Engineering Corp. 96487 877988

0002 Valcor Engineering Corp. 96487 281907

0003 Valcor Engineering Corp. 96487 877837

0004 Valcor Engineering Corp. 96487 V7000-07

0005 Valcor Engineering Corp. 96487 V14500-184

0006 Valcor Engineering Corp. 96487 V44778-329-2

Valcor Engineering Corp. is the only source that has been identified as having the proper complete technical data and manufacturing expertise to supply these items to DLA and the using military services. These items are spare parts that support several different end items, including Aircraft, FA-18, A-D, E/F, G (Growler) (Z9N), Helicopter, UH-60A, UH-60L, UH-60V (40A), Helicopter, Seahawk, H-60 (YLN), and Aircraft, Osprey V-22A, Marine

(CXN).

The approved CAGE and part numbers were confirmed by checking the Procurement Item Description (PID) and the Product Master. The Product Specialist reviewed the technical information and recommended for LTC on February 7, 2024. The technical data has indicated that these items are limited to Valcor Engineering Corp. as the approved source.

The use of the authority cited below:

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

The use of the authority cited is based on:

[X] 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. (CLIN 0005)

[X] 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. (CLINs 0001-0004)

[X] 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. (CLIN 0006)

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

[X] The acquisition will be synopsized on or about February 21, 2024 for 15 days prior to the solicitation opening.

At the completion of the synopsis period, this PR will be solicited on the internet for 30 days via the DLA Internet Bid Board System (DIBBS).

[X] Dealers of the manufacturer will be solicited.

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

a. Certified Cost or Pricing data is required. The contract maximum exceeds $2M; therefore, cost and pricing data will be required per FAR 15.403-4(a) (1). None of the exceptions apply. Cost or pricing clauses/provisions will be incorporated into the solicitation. In the event, that competitive offers are received, an amendment will be issued to remove the Cost or pricing clauses/provisions. These items will be solicited as other than full and open competition. The buyer only intends to award the NSNs if a fair and reasonable price determination can be made.

b. I hereby determine that the anticipated cost to the Government will be fair and reasonable based on cost data, price analysis, Producer Price Index (PPI), and/or learning curve analysis.

8. 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.SAM.gov. In addition to the publishing of a Sources Sought notice, the Market Survey team contacted the approved sources and past provider from the procurement history.

Sources Sought Notice:

The Sources Sought Notice was posted to www.SAM.gov on October 31, 2023 and closed on November 8, 2023.

No responses were received.

Market Survey [10 U.S.C. 3204(e)(2)(D)]:

[X] A market survey was conducted on/during August 9, 2023.

Total number of vendors contacted: 5.

Names of vendors contacted and responding: AllClear Aerospace & Defense Inc. (1ZK21), HC Pacific (53037), Dela Technology Corp. (2U435), Statz Corp. (3WGD1), and Valcor Engineering Corp. (96487). A positive response was received from AllClear Aerospace & Defense Inc. (1ZK21) and HC Pacific (53037). Valcor Engineering Corp. (96487) provided a response to the Market Survey stating that they "sell these items through dealer/distributors". They indicated that the dealer for CLINs 0001-0003 is 53037 and for CLINs 0004-0006 is

1ZK21.

Techniques used to conduct survey: Email.

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

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

[X] Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items [X] Solicitation contains DLA Procurement Note, L22 Restriction of Alternate Offers for Source Controlled Items

(CLIN 0005)

[X] Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items [X] Other (Explain) 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 contract history, CLINs 0001-0005 have been previously procured as one-time buys under the J&A threshold. CLIN 0006 was procured as a one-time buy over the J&A threshold; however, the buyer was not able to locate a 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 $750,000, this signature serves as the approval.

Megan M. Mielke, Contracting Officer Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

[ ] Up to $750,000 Contracting Officer

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

[ ] Over $15,000,000 to $100,000,000 Head of Contracting Activity (HCA)

[ ] Over $100,000,000 Senior Procurement Executive (SPE)

Attachment:

1 – Technical Certification

MIELKE.MEGAN

.M.1364088848

Digitally signed by

MIELKE.MEGAN.M.1364088848

Date: 2024.02.13 09:37:38 -05'00'

WIEBUSCH.JAM

IE.1251897324

Digitally signed by

WIEBUSCH.JAMIE.1251897324

Date: 2024.02.20 12:00:54 -05'00'