Justification and Approval.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION >$250K

DLA Land & Maritime Justification for Other Than Full & Open Competition (October 2020)

SPMYM2-22-Q-0249

[ X ] ORIGINAL

[ ] ADDENDUM

1. Defense Logistics Agency (DLA) Land and Maritime Puget Sound is the contracting activity.

2. The action being approved is the acquisition of supplies on another than a full and open competition basis.

Procedures in FAR Parts 12 “Acquisition of Commercial Items” and 13.5 “Simplified Acquisition Procedures” in accordance with 41 U.S.C. 1901 will be utilized for this acquisition.

3. The supplies required to meet the using activity’s needs are described as follows:

BRIEF DESCRIPTION NSN PART NUMBER QUANTI

TY

EST. VALUE

DTRC Epoxy, Yellow 8010-01-224-4907 N10Y8333 & N10V8333 553 DTRC Epoxy, Black 8010-01-224-4908 N10B8333 (A) & N10V8333 (B) 553 Paint, Epoxy-Polyamide Red, F-156 Type IV 8010-01-380-2383 N10R456/N10V456 553 Paint. Epoxy- Polyamide Dark Gray, F-153 Type IV

8010-01-380-2456 N10A453/N10V451-32B-153 663

Seaguard 5000 HS Epoxy Coating, Red 8010-LL-N00-6654 N11R350/N11V350 663 Fast Clad ER Epoxy, Blue OAP Kits 8010-LL-N01-3496 B62L230/B62V230 1,934 Fast Clad ER Epoxy, Blue OAP Cartridges 8010-LL-N01-7388 B62L230/B62V230 13,814 Seaguard 5000 HS Epoxy Coating, Black 8010-LL-N04-2949 N11B350 (A) /N11V350 (B) 663 Seaguard 5000 HS Epoxy Coating, Gray 8010-LL-N05-2205 N11A350/N11V350 691

Type of contract and length: The proposed action is for the solicitation and award of a Single-Award, Firm Fixed Price (FFP), Indefinite-Delivery/Indefinite-Quantity (IDIQ) long-term contract.

End item or class of item: Industrial Paints and Coatings

ESTIMATED BASE VALUE:

ESTIMATED TOTAL VALUE (BASE + OPTIONS):

MAXIMUM CONTRACT VALUE:

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

[ X ] 10 U.S.C. 2304(c)(1) - Available from only one or a limited number of sources.

5. The sole-source manufacturer of the required paints and coatings is The Sherwin-Williams Company, CAGE:

54636. There are small business distributors capable of providing the required paints and coatings from The Sherwin-Williams Company.

The size, chemical make-up, and paint systems required, manufactured by Sherwin-Williams, are designed to work with the existing paint machines that Puget Sound Naval Shipyard’s Shop 71 currently uses. Substitutions for the required paint would have to undergo extensive testing for compatibility with existing paint systems. Even if substitutes were determined compatible with existing paint systems, they could still require the re-procurement of new paint machines used for application of the new paint systems, which would be extremely costly and not an economical use of taxpayer money.

The required paints and coatings are qualified as ‘systems’ and therefore must be used as a ‘system’ because the chemical properties and composition are specific to the sole manufacturer, Sherwin-Williams.

The required paints and coatings must be compatible in all aspects (form, fit and function) with existing paint ‘systems’ already applied to United States Naval vessels undergoing maintenance at Puget Sound Naval Shipyard.

The use of the authority cited below IAW DFARS PGI 217.7506 :

[X] AMC 2. Suitable for competitive acquisition for the first time.

[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. DFARS Procedures, Guidance, and Information PGI 217—Special Contracting Methods 2004 EDITION 217.75-12 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

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

[X] The acquisition was synopsized on 27 October 2021.

[X] The synopsis was posted from 27 October to 2 November 2021.

[X] Dealers of the manufacturers will be solicited.

[X] Other: The solicitation (RFQ) will be posted to the System for Award Management (SAM) for 30 days.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable through the evaluation of competitive offers received, previous purchases determined fair and reasonable, and pricing found through market research.

8. Market Research/Efforts to Obtain Competition:

The end user performed market research and provided a quote from the manufacture of the required paints and coating, The Sherwin-Williams Company. The contract specialist performed market research using a variety of methods that included researching the internet for market availability and pricing, as well as searching for product availability on the Ability One Procurement List, UNICOR/Federal Prison Industries (FPI), the General Services Administration (GSA), Google, the SBA’s Dynamic Small Business Search tool, and the Veterans Administration Vetbiz search tool, and the Federal Procurement Data System (FPDS) EZ-Search tool. The contract specialist also reviewed previous contracts for similar or the same items, gathered information regarding commerciality of the required paints and coatings, vendor size, and business status information through the System for Award

Management (SAM). A source sought synopsis was posted to SAM on 27 October 2021. Four (4) interested and capable small business distributors responded to the sources sought synopsis. The contract specialist also conducted a market survey with the manufacture Sherwin-Williams.

Market Survey [10 U.S.C. 2304(f)(3)(D)]:

[X] A market survey was conducted on 13 October 2021.

Total number of vendors contacted: 1

Names of vendors contacted and responding: The Sherwin-Williams Company

Techniques used to conduct survey: Email

Types of information requested: Product availability, delivery lead time, commerciality, vendor’s CAGE code, and its business information.

Summary of information received: Sherwin-Williams is active in SAM, CAGE code is 54636, and is a large business. Required paints and coatings are sold in substantial quantities throughout the commercial marketplace and are not modified to specifically meet the Government’s requirements. The required paints and coatings are contained in their current inventory and available. Delivery lead time could be within the next two to four weeks.

Information received regarding the commerciality of the item(s): The required paints and coatings are sold in substantial quantities throughout the commercial marketplace and are not modified to meet the Government’s requirements. The required paints and coatings are determined Commercially Available Off-the-Shelf (COTS) items.

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

[X] 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.

10. A listing of sources, if any, indicating an interest in the acquisition is:

The Sherwin-Williams Company B&H International, LLC The MLJ Group AMS Industries, LLC

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

[ X] Solicitation contains DLA Procurement Note, L22.

[ ] Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items [ ] Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items

I certify that statements checked, and information provided above, are complete and correct to the best of my knowledge and do not contain classified information. I understand that the processing of this sole-source justification precludes the use of full and open competition.

Signature Activity (Technical Cognizance) Date

Date: 2021.12.16 12:54:55 -08'00'

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.

Digitally signed by

OZOLS.MICHAEL.1257417375 OZOLS.MICHAEL.1257417375

Date: 2021.11.05 07:22:41 -07'00'

Contracting Officer Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature Date

Head of the Contracting Activity (HCA) Date Signature

DLA General Counsel Date

Senior Procurement Executive (AQ) Date

Date: 2022.01.06 16:19:27 -05'00'

SHEARER.MARY.E.1250702449 Digitally signed by SHEARER.MARY.E.1250702449

Date: 2022.01.12 09:35:42 -05'00'

APPROVAL REQUIREMENTS

[ ] Up to $750,000 Contracting Officer

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

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

[ ] over $100,000,000 Senior Procurement Executive (AQ) (DLA General Counsel signature line required when sending to AQ)