Redacted SPE7MX19R0139.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX-19-R-0139

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A)

(April 2014)

ORIGNAL

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

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 supplies required to meet the using activity's needs are described as follows:

BRIEF DESCRIPTION NSN ADQ MAX VALUE AMSC

Metal Tube, Assembly 4710-01-229-7700 47 1C

This requirement is for the acquisition of a Metal Tube, Assembly utilized by the United States Air Force on multiple weapons systems. The Government requires spare parts that are form, fit, and functionally interchangeable with the parts currently being used on the below referenced weapon systems.

This solicitation is a stock order for NSN 4710-01-229-7700, which is a critical application item.

The AMC/AMSC code for this item is 1C.

The proposed action is for the FAR Part 15 solicitation and award of a five (5) year, firm fixed price, Indefinite Quantity Contract (IQC). The five year period consists of a three (3) year base period and two (2) separately priced, one-year option periods. The estimated contract values are below:

o Annual Demand Quantity (ADQ): 47 o Annual Demand Value (ADV):

o Estimated Base Value (ADV * 3):

o 5-Year (3 base/2 option years) Value (ADV*5):

o Maximum Contract Value (ADV * 8):

o Minimum Contract Value (ADV * .03):

There are three (3) OEM/approved sources shown for this item:

o Eaton-Aeroquip LLC (CAGE: 00624 - Large business) o RC Fluid Engineering, Inc. (CAGE: 057Y9 – Women Owned Small Business) o Lockheed Martin, Corporation (CAGE: 81755 – Large Business)

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

1O U.S.C. 2304(c)(l) – available from only one or a limited number of sources.

o (c) The head of an agency may use procedures other than competitive procedures only when-o (I) the property or services needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency.

FSC NIIN WSDC LONG_NAME

4710 012297700 26F AIRCRAFT, F-16

4710 012297700 A4F DRONE, QF-16 AIR SUPERIORITY TARGET PROGRAM

4710 012297700 BTF ENGINE, AIRCRAFT, F100-PW-100 (F-15A/B/C/D)

The AMC/AMSC is 1C. The Government requires spare parts that are form, fit and functionally interchangeable with those currently used on the supported weapon systems. The only manufacturing source specified on the source control drawing is shown below in Section 5.

There are no known pending source approval requests with ESA.

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

The use of the authority cited is other than 10 U.S.C. 2304(c)(l) above: NSN: 4710-01-229-7700

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

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 tis 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.

The quality assurance specialist, verified the AMC/AMSC and certified the coding and sources of supply were accurate on 8/23/2019.

Eaton-Aeroquip LLC, (00624), RC Fluid Engineering (057Y9), and Lockheed Martin Corporation (81755) are classified as a designer, developer, and integrator of the item. As a result, only these three companies are uniquely qualified to provide the required part. In addition, the three firms are the only known firms that possess the technical data, drawings, and specifications necessary to fulfill the Governments requirements on this procurement.

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

A Sources Sought notice was run on FedBizOps from 7/15/2019 to 7/28/2019, with no responses received.

The acquisition will be synopsized on or around 9/3/2019, and will run for 15 days. At the completion of the synopsis period, the Request for Proposal (RFP) will be solicited on the internet for 30 days, via the DLA Internet Bid Board System (DIBBS).

NIIN CAGE PART

NUMBER

COMPANY NAME

012297700 00624 AE8533OU EATON-AEROQUIP LLC. DBA AEROSPACE

012297700 057Y9 180002-00 RC FLUID ENGINEERING INC

012297700 81755 16VP047-1 LOCKHEED MARTIN CORPORATION DBA

The OEM/approved sources for this part, Eaton-Aeroquip, LLC (00624), RC Fluid Engineering (057Y9), and Lockheed Martin Corporation (81755) will be solicited.

The Government will continue to conduct market research, to see if changes occur in the marketplace that would enable future actions for these items to be competitive. The Government will also include a clause in this solicitation that provides that the Government will consider alternate offers, and that alternate offerors should submit a source approval request (SAR) package that will be referred to the engineering activity. If the current procurement cannot be delayed, due to mission requirements and to allow sufficient time for the engineering activity to determine whether to approve the alternate offer, the SAR package will be considered for future awards.

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

Relevant pricing issues: The solicitation will utilize FAR Part 15 procedures with the cost or pricing clauses.

Basis for determining that the anticipated price/cost will be fair and reasonable: Per FAR 15.404-1(a)(2), a price analysis will be conducted. The price analysis will be conducted using historical pricing determined fair and reasonable for the same or similar item, the Producer Price index (PPI) and learning curve analysis.

This is a five-year, Firm-Fixed-Price, Indefinite Delivery Contract (IDC). The five-year period is inclusive of one three-year base period and two separately priced one-year option periods. As such, the price analysis for future years will be based on the Global Insights Producer Price Index (PPI) forecasts. The Global Insights PPI forecast provides timely, accurate price and cost analysis, and historical records for thousands of commodity prices and wages around the globe allowing procurement professionals to understand supplier cost structure and better negotiate supplier quotes.

By using the above techniques, the Contracting Officer anticipates that the prices to the Government will be fair and reasonable

8. Market Research/Efforts to Obtain Competition:

Market research was conducted to find the following:

o Researching items on-line via the internet for availability and features.

o Reviewing previous procurements of items and determining previous acquisition methods.

o Determining vendor interest in long-term contracting for the items.

o Researching/gathering information regarding commerciality of the items.

o Vendor size and business status information.

o Delivery estimates.

o Possibility for Economic Price Adjustment of Option Years.

o Base year and option years; optimal lengths, possible price/cost advantages.

o Distributor involvement.

DLA Land and Maritime conducted various forms of market research in advance of this solicitation. A Sources Sought notice, with a copy of the market survey attached, was posted on FedBizOpps from 7/15/2019 through 7/28/2019, with no responses received. In addition, the market research specialist contacted all three OEM/approved sources, shown below, by e-mail on 7/10/2019, with a request to complete a market survey:

o Eaton-Aeroquip LLC (CAGE: 00624) o RC Fluid Engineering, Inc. (CAGE: 057Y9) o Lockheed Martin, Corporation (CAGE: 81755)

Summary of market research response:

o of Eaton-Aeroquip, LLC (00624) called in response to the Market Research Request and confirmed interest in manufacturing the required NSN.

o Lockheed Martin Corporation (81755) failed to communicate or respond to any market research inquiries.

o returned a completed market survey on 7/24/2019. In summary, RC Fluid Engineering. (CAGE 057Y9):

• Is a Women Owned Small Business (WOSB) Manufacturer

Information received regarding the commerciality of the item:

Based on market research information and internet search, this item is not considered commercial. RC Fluid Engineering, an OEM/approved source for this part, has indicated that this item is not commercial. An internet search, including GSA Advantage, was conducted by the market research specialist, with no results found. The Commercial Off-The- Shelf block in the master file reads as "N", indicating that the product specialist has found this item to be non-commercial. As this item does not meet the definition of a commercial item, per FAR 2.101, it is determined to be non-commercial.

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

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:

Eaton-Aeroquip, LLC. (00624) RC Fluid Engineering, Inc. (057Y9)

11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

A sources sought notice for the current acquisition was run on FedBizOps from

7/15/2019 to 07/28/2019. No responses were received in response to the posting.

A synopsis will be posted on FedBizOps for 15 days.

At the close of the synopsis, the solicitation will be posted on the DLA

Internet Bid Board System (DIBBS) for 30 days.

Per PGI 206.304, the most recent large contract for this item (SPE7MX-19-

D-0087_Qty 5_Awarded 4/25/2019). A comprehensive search was completed, however, no J&A was found in order to determine previous efforts to overcome barriers to competition.

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.

John. W. Hutcheson Contracting Officer

Approval/Certification I have reviewed and approve this justification. The estimated total value of the J&A is

MARY E. SHEARER

Competition Advocate

APPROVAL REQUIREMENTS

( ) Up to $700,000 Contracting Officer

(X) $700,000 to $13,500,000 Competition Advocate

( ) $13,500,000 to $93,000,000 Head of Contracting Activity (HCA)

HUTCHESON.JOHN.W

.1073665759

Digitally signed by

HUTCHESON.JOHN.W.1073665759

Date: 2019.11.06 14:50:27 -05'00'

SHEARER.MARY.E.12

50702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.11.08 11:42:31 -05'00'