JA63021CSPE7M225R0005.pdf

JUSTIFICATION FOR FULL AND OPEN COMPETITION

SOLICITATION SPE7M225R0005

[ X] ORIGINAL

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.

3. The proposed action is for solicitation and award of a Firm-Fixed-Price (FFP) contract with no options. The supplies required to meet the using activity’s needs are described as follows:

BRIEF DESCRIPTION NSN/P/N QTY TOTAL EST. VALUE AMSC

Release Element 1720-00-869-5453 328 BX C

Identify end item, weapon system, or class of item: This NSN 1720-00-869-5453 is described as a Release Element for the 82N Aircraft Launch and Recovery Equipment (ALRE) and is part of the arresting gear for shipboard aircraft recovery operations. The item is utilized as a holdback of aircraft attached to steam catapults on aircraft carriers prior to launch. The item is a Critical Safety Item (CSI) and has a special procedures category code of (01). WSIC F: . This item will be solicited for a Firm- Fixed-Price (FFP) contract for 328 BX with no options, but with quantity ranges up to 400 BX.

Length of contract: This solicitation is for a Firm-Fixed Price, definite quantity contract and will not include options. The length of the contract will be determined by the awarded delivery. Delivery is estimated at which is based on market research and the Production Lead Time.

ESTIMATED VALUE:

ESTIMATED MAXIMUM VALUE:

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.

5. If restricted to the only source(s) of supply, include source(s) and CAGE codes: CAGE (0A0B7) Mainstream Engineering is the only approved source listed by NAVAIR. NAVAIR (80020) is the design activity for the drawings. Sources listed by NAVAIR on their Technical Data Requirements (TDR) document are the only manufacturers that have the appropriate manufacturing expertise and quality capabilities. Although the government possesses drawings for this part, it is necessary to limit competition to those companies with engineering source approval by the design control activity. Part number 417599-1 has been identified as the the part number for this approved source.

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 redesign to accommodate these higher energy loads, . 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).

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 has been demonstrated that CAGE (0A0B7) Mainstream Engineering possesses 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 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 3/C is complete and accurate. (See FAR 6.303-2 (c) MFR - Technical Data Supporting Limited Sources)

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 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.

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 (9SWS7) BHPE LLC. The acquisition will be synopsized on or about 12 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 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.

8. Market Research/Efforts to Obtain Competition:

Market Survey [10 U.S.C. 3204(e)(2)(D)]: The most recent procurement was reviewed in Records Management. Past procurement research shows no indication of interest for this item from alternate sources, nor did the past solicitations produce alternate proposals. 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 conducted via a survey/questionnaire sent to CAGE (0A0B7) Mainstream Engineering.

Total number of vendors contacted: One (1)

Names of vendors contacted and responding: CAGE (0A0B7) Mainstream Engineering. A response to the sources sought was received from CAGE (9SWS7) BHPE LLC. The Buyer provided the current Source Approval Request (SAR) guidance for BHPE LLC to complete and send to the DLA Competition Advocate’s office.

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.

Use of previous market surveys and contracts for same item.

Internet Search.

Types of information requested: Business size, estimated price and delivery, economical quantities, commerciality, purpose and function, and capability to provide Certified Cost and Pricing Data.

Summary of information received:

CAGE (0A0B7) Mainstream Engineering: Mainstream Engineering is a small business manufacturer.

CAGE (9SWS7) BHPE LLC:

Information received regarding the commerciality of the item(s): This is exclusively used for the ALRE, Catapult and Arresting Gear. Review of Material Master indicates that this NSN has an AMC/AMSC rating of 3/C, and the “Commercial Off the Shelf” box in MM03 is blank. An internet Google search was conducted and while this NSN is listed on multiple Government part resale sites, there is no pricing shown. No true commercial sales websites for this NSN were found. The item does not appear on GSA Advantage. The internet search and the technical information provided by the Product Specialist do not identify this item as commercial. There is no evidence that this NSN is available on the commercial market nor is it of a type customarily used by the general public or by non-governmental entities for purposes other than government or military purposes as defined in FAR 2.101. The Contracting Officer, after review of all the information provided regarding commerciality of the item, has determined that this item is non-commercial. Therefore, FAR 15 procedures will be utilized.

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

[X] Other: (Explain) This is a Critical Safety Item with a Special Procedures Category (SPC) code of “01”.

Naval Air Systems Command, Lakehurst (NAVAIR) is the design control activity and determines which manufacturers possess the capability of producing the item to its CSI requirements. The components being acquired under this solicitation have been classified as 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.

10. A listing of sources, if any, indicating an interest in the acquisition is: CAGE (0A0B7) Mainstream Engineering and CAGE (9SWS7) BHPE LLC.

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

[X] Other (Explain): The solicitation will post to the DLA DIBBs website for 30 days. Any manufacturers or vendors who would like to pursue source approval will receive Source Approval guidance for submission to the design activity, NAVAIR, and the DLA Competition Advocate’s Office. The solicitation will include DLAD Procurement Notes L04 and M06.