Redacted JA CM21228002.pdf

CUI

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX-21-R-0162

Source Selection Information -- See FAR 2.101 and 3.104

Controlled by: DLA Land and Maritime Controlled by: DSCC SAPD-ZAA

CUI Category: Source Selection Distribution/Dissemination Control: FED ONLY

POC: Miranda.Coon@dla.mil

CUI

Source Selection Information See FAR 2.101 and 3.104 Page 1 of 6

ORIGINAL

ADDENDUM (attach copy of original J&A for add-ons or revisions)

1. The Defense Logistics Agency (DLA) Land and Maritime (L&M) is the contracting activity.

2. The action being approved is the acquisition of supplies on an “Other than Full and Open

Competition” basis. This DLA L&M acquisition is for an Indefinite Quantity Contract (IQC), Fixed Price with Economic Price Adjustment (EPA), Long Term Contract (LTC), for the duration of one (1), three-year (3-year) base and two (2), one-year (1-year), option periods, which may be exercised at the discretion of the Government, for a potential total contract period of five (5) years, if both options are exercised. The proposed acquisition is for three

(3) DLA managed items; Contract Line-Item Number (CLIN) 0001, National Stock Number (NSN) 2040-00-850-5144 (Probe and Carrier), CLIN 0002, NSN 2040-00-850-5146 (Fueling Receiver), and CLIN 0003, NSN 4720-00-933-1454 (Hose Assembly, Nonme). Approved sources for each National Stock Number (NSN) are listed below in Table A. Solicitation will be issued as a Historically Underutilized Business Zone (HUBZone) sole source acquisition utilizing Federal Acquisition Regulation (FAR) 15 (Contracting by Negotiation) procedures in accordance with 40 United States Code (U.S.C.) 1104.

Table A

CLIN NSN Company Name

Company Commercial and

Government Entity (CAGE) code

Business Size Part Number

0001 2040-00-850-5144

Hydrasearch Company, LLC 32142 Large D16863 Hydrasearch Company, LLC 32142 Large B-AY-S/P

Global, Incorporated 7H596 HUBZone 2255758 Babcock International Group PLC K1953 Foreign M150-1

0002 2040-00-850-5146

Hydrasearch Company, LLC 32142 Large 810-2255762 Hydrasearch Company, LLC 32142 Large B-S/P/REC

Meggitt (North Hollywood), Inc. 79318 Large M450 Meggitt (North Hollywood), Inc. 79318 Large M450-1

Global, Incorporated 7H596 HUBZone 2255761-B Babcock International Group PLC K1953 Foreign M450-1

0003 4720-00-933-1454 Hydrasearch Company, LLC 32142 Large H/A-7-REC-104L Global, Incorporated 7H596 HUBZone BT-70242-2

SOLICITATION SPE7MX-21-R-0162

Source Selection Information -- See FAR 2.101 and 3.104

See FAR 2.101 and 3.104 Page 2 of 6

3. The supplies required to meet the using activity's needs are described in Table B below.

Table B

CLIN NSN Item Description

Estimated Annual Demand

Quantity (ADQ)

Estimated Three-Year (3-year) Base Value

0001 2040-00-850-5144 Probe and Carrier 14 0002 2040-00-850-5146 Fueling Receiver 22 0003 4720-00-933-1454 Hose Assembly, Nonme 205

These items are going on multiple weapon systems to include but not limited to the Joint High- Speed Vessel (JHSV), Nimitz Class CVN, and Supply Class Taoe Ship.

Total Estimated Annual Demand Value (ADV):

Total Estimated Three-Year (3-year) Base Value:

Estimated Total Value (Base + Options):

Maximum Contract Value (ADV*7.5):

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

(X) 10 U.S.C. 2304(c)(5), - statute expressly authorizes or requires that the procurement be made from a specified source. The authority for use of Other than Full and Open Competition is Federal Acquisition Regulation (FAR) 6.302-5 – Authorized or Required by Statute.” FAR 6.302-5(b)(5) states “Sole source awards under the HUBZone Act of 1997 – 15 U.S.C. 657a (see FAR 19.1306).”

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

Acquisition is set aside for HUBZone and restricted to one (1) responsible source of supply as identified in Table C below.

Table C

CLIN NSN Company Name Company

CAGE

code

Business Size

Part Number

Acquisition Method

Code

(AMC)

Acquisition Method Suffix Code

(AMSC)

0001 2040-00-850-5144 Global, Incorporated 7H596 HUBZone 2255758 1 C 0002 2040-00-850-5146 Global, Incorporated 7H596 HUBZone 2255761-B 1 C 0003 4720-00-933-1454 Global, Incorporated 7H596 HUBZone BT-70242-2 1 C

See FAR 2.101 and 3.104 Page 3 of 6

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:

The following AMSC description is available in Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance, and Information (PGI) 217.7506 Part 2.

[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.

A technical review performed by the Product Specialist was completed for the NSNs identified in Table A above on August 6, 2021 to certify the accuracy of the AMC, AMSC, and approved source(s) for each NSN.

CLIN 0001 (NSN 2040-00-850-5144), CLIN 0002 (NSN 2040-00-850-5146), and CLIN 0003 (NSN 4720-00-933-1454) are all coded with an AMSC of C. All CLINs are used directly on the end items detailed above in Item 3 under Table B. Utilizing Other than Full and Open Competition is justified under 10 U.S.C. 2304(c)(5) and FAR 19.1306 as this acquisition meets the following requirements:

a. The Contracting Officer does not have a reasonable expectation that offers would be received from two (2) or more HUBZone small business concerns.

b. The anticipated price of the contract, including options, will not exceed $7.5 million for a requirement within the North American Industry Classification System (NAICS) codes for manufacturing.

c. This requirement is not currently being performed by an 8(a) participant under the provisions of subpart 19.8 or has been accepted as a requirement by Small Business Administration (SBA) under subpart 19.8.

d. The acquisition is greater than the simplified acquisition threshold.

e. The HUBZone small business concern has been determined to be a responsible contractor with respect to performance.

See FAR 2.101 and 3.104 Page 4 of 6

f. Award can be made at a fair and reasonable price.

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

(X) A Sources Sought was posted on the website, https://beta.sam.gov/ on January 29, 2021 with responses requested by February 12, 2021. No sources responded to the Sources Sought.

(X) The acquisition will by synopsized at least 15 days prior to the solicitation opening date.

(X) Global, Incorporated identified in the market research who expressed interest in this project will be solicited.

(X) At the completion of the synopsis period, the solicitation will be solicited on the internet for a minimum of 30 days to the DLA Internet Bid Board System (DIBBS).

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

Prices will be determined fair and reasonable through price analysis based upon the application of the Producer Price Index (PPI) / Global Insight Information (GII) to the past acquisition. Certified Cost or Pricing Data (CCPD) is required in accordance with FAR 15.403-4. Based upon the above techniques to be used, the Contracting Officer hereby anticipates the costs to the Government will be fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

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

Market surveys were completed on April 14, 2021.

Total number of vendors contacted: 5 Names of vendor contacted and responding: A market survey was issued to Meggitt

(North Hollywood), Inc. (CAGE code 79318), Global, Incorporated (CAGE code 7H596), Hydrasearch Company, LLC (CAGE code 32142), ITL LLC (CAGE code 7BGA2), and Jamaica Bearing Group (CAGE code unknown). Global, Incorporated and ITL LLC returned completed market surveys. Meggitt (North Hollywood), Inc.

replied it uses Jamaica Bearing Group. Hydrasearch Company, LLC replied it uses ITL LLC. No response was received from Jamaica Bearing Group.

Techniques used to conduct survey: Electronic mail (E-Mail) Types of information requested: The market survey was broken into several sections:

General interest questions such as company size and status, interested in a LTC, minimum/maximum quantities, price breaks, number of option years, Commerciality, Free on Board (F.O.B.) questions, Zone questions, Delivery questions, and miscellaneous questions such as Electronic Data Interchange (EDI) capability, pricing adjusted based on PPI and any final comments.

Summary of information received:

o Global, Incorporated’s market survey stated it is a HUBZone small business manufacturer with approximately 51 employees, interested in a LTC, and

It indicated these items are non-commercial items.

See FAR 2.101 and 3.104 Page 5 of 6 o ITL LLC’s market survey stated it is a Service-Disabled Veteran-Owned small business (SDVOSB) distributor with approximately 9 employees, interested in a LTC, It indicated these items are non-commercial items.

Information received regarding the commerciality of the item(s): The NSNs to be acquired on this solicitation/contract are determined by the Contracting Officer to be non-commercial in accordance with FAR 2.101. The market surveys research performed did not find these NSNs in any commercial price list. The Acquisition Specialist conducted additional research through past buys, commercial sales history, catalogs/brochures, and online searches to see if these items were determined commercial. No information to support commerciality was found. The technical review performed by the Product Specialist indicates these items are non-commercial.

Per DLAD 12.102(a)(i)(S-91)(1)(i), a search of the General Services Administration (GSA) for these items returned no results.

9. A listing of sources, if any, indicating an interest in the acquisition is listed in Table D.

Table D Company Name Company CAGE code

Global, Incorporated 7H596

ITL LLC 7BGA2

10. The following actions are being taken to increase competition:

(X) Solicitation contains Defense Logistics Agency Directive (DLAD) Procurement Note, L04 Offers for Part Numbered Items.

(X) Solicitation contains DLAD Procurement Note, M06 Evaluation of Offers for Part

Numbered Items.

(X) Every effort will be made to obtain potential sources by synopsis through the https://beta.sam.gov/ website. Any vendor that believes it can provide these NSNs while meeting the same requirements as the existing item should seek qualification as a secondary source through the Competition Management Office Source Approval Program at their own expense.

11. The previous procurements for CLINs 0001, 0002, and 0003 were under the Simplified

Acquisition Threshold (SAT) and did not require a Justification for Other than Full and Open Competition.

See FAR 2.101 and 3.104 Page 6 of 6

CONTRACTING OFFICER CERTIFICATION

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.

HEIDI TREADWAY Date Contracting Officer

Approval/Certification

I have reviewed and approve this justification.

Competition Advocate Date Signature

APPROVAL REQUIREMENTS

(X) 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)

TREADWAY.HEIDI.E.1299

371855

Digitally signed by

TREADWAY.HEIDI.E.1299371855

Date: 2021.09.23 07:33:56 -04'00'

SHEARER.MARY.E.12507

02449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2021.09.24 17:09:41 -04'00'