JA63021cSPE7M225R0004.pdf

JUSTIFICATION FOR FULL AND OPEN COMPETITION

SOLICITATION SPE7M225R0004

Over the past 30-plus years, aircraft have continued to increase in weight, while many of the ALRE systems and components have not undergone significant redesigning to accommodate these higher energy loads, resulting in diminished safety. In response, NAVAIR established the ALRE Flight Safe Program, which governs the life-cycle management of ALRE Critical Safety Items (CSI) and Critical Application Items (CAI). These items, as determined by NAVAIR, are essential to weapons system performance and the preservation of life and the safety of operational personnel. ALRE CSI and CAI are identified in the DLA Enterprise Business Systems (EBS) Material Master, Classification Tab, CIM sub-tab, with a Special Procedures Code (SPC) of “01.”

NAVAIR designates ALRE items as CSI or CAI through the Navy Joint Deficiency Reporting System, which feeds the code (SPC-01) into EBS. Technical Data Requirements (TDR) containing a list of approved sources, as designated by NAVAIR and NAVSUP, are required for all such items. When an ALRE item is coded SPC- 01, DLA procures as instructed per the TDR from the list of approved sources in accordance with NAVAIRISNT 13800.18A. It is essential to the integrity of the ALRE Flight Safe Program and critical to naval aviation safety that DLA only procure the product of an approved source.

It has been demonstrated that CAGE (77141) Wirerope Works Inc, CAGE (08721) Wireco Worldgroup, and CAGE (1CK21) Bridon-American Corporation have the unique and proven manufacturing capabilities to establish and maintain the process controls to manufacture this item and are the only sources known to possess the manufacturing knowledge and capability to produce the item to required quality standards. The components being acquired under this solicitation have been classified as “critical” requiring engineering source approval by Naval Air Systems Command (NAVAIR). Only those companies who have submitted requests for source approval and have been approved will be eligible for award. Any manufacturers that are not approved by NAVAIR will be required to submit a Source Approval Request (SAR) Package for the Navy ESA to approve for future procurements.

In addition, NAVAIR INST 4200.56 states the following regarding sources. Per references (a) and (g), a CSI shall be purchased or repaired and/or overhauled only from sources approved by the Technical Authority (TA) Procurement of Aviation Critical Safety Items and Related Services and (g) SECNAVINST 4140.2.

On January 30, 2025 the Product Specialist, , certified that the technical information, including the AMC/AMSC coding of 1/C is complete and accurate. (See Attachment 1 – FAR 6.303-2 (c) MFR - Technical Data Supporting Limited Sources)

The use of the authority cited below:

[X] AMC 1. Suitable for competitive acquisition for the second or subsequent time.

The use of the authority cited is based on:

[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

JUSTIFICATION FOR FULL AND OPEN COMPETITION

SOLICITATION SPE7M225R0004

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. The weapon system indicator code is F “failure will render end item inoperable”. As such, acquisition from the currently approved sources is required to maintain the quality of the part.

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

[X] A Sources Sought notice was posted to SAM.gov/Contract Opportunities on November 22, 2024 for five

(5) business days with an attached market survey. The Sources Sought notice produced one (1) response from CAGE (93AS8) Kastel Enterprises. The buyer forwarded the current Source Approval Request (SAR) guidance for the Competition Advocate’s review. The acquisition will be synopsized on or about 20 February 2025 for 15 days to SAM.gov/Contract Opportunities. The solicitation will then be posted to DIBBs for 30 days.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable based on a review of the most recent previous procurements, market research and PPI Price Analysis with usage of the BLS Producer Price Index (PPI) and the learning curve analysis. This will include the data from past awards in which the price was found to be fair and reasonable. Negotiation procedures may be used pending price analysis results and competition.

Based on the above techniques, the Contracting Officer hereby determines that the anticipated cost to the Government will be fair and reasonable. Certified Cost and Pricing Data will be required as the current estimated value exceeds the threshold of $2 Million, FAR 15.403-4, unless an exception such as adequate price competition exists.

8. Market Research/Efforts to Obtain Competition:

Market Survey [10 U.S.C. 3204(e)(2)(D)]: This is a first time buy for DLA. A Sources Sought notice was posted to SAM.gov on November 22, 2024 to assist the buyer in preparing a beneficial solicitation. Market research was also conducted via a survey/questionnaire sent to CAGE (77141) Wirerope Works Inc, CAGE (08721) Wireco Worldgroup, and CAGE (1CK21) Bridon-American Corporation.

Total number of vendors contacted: Three (3)

Names of vendors contacted and responding: CAGE (77141) Wirerope Works Inc, CAGE (08721) Wireco Worldgroup, and CAGE (1CK21) Bridon-American Corporation CAGE (08721) Wireco Worldgroup, responded by return of a market survey. CAGE (93AS8) Kastel Enterprises emailed the buyer expressing an interest.

Techniques used to conduct survey:

Posted a Sources Sought November 22, 2024 for 5 business days with an attached market survey to

Sam.Gov/Contract Opportunities.

Internet Search.