SAP Justification.pdf

Subj: USE OF OTHER THAN FULL AND OPEN COMPETITION FOR AN

ACQUISITION UNDER THE SIMPLIFIED ACQUISITION THRESHOLD

I. BACKGROUND:

1. FAR 13.106-1(b)(1)(i) states for purchases not exceeding the simplified acquisition threshold, Contracting Officers may solicit from one source if the Contracting Officer determines that the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, brand-name or industrial mobilization).

2. As required by FAR 13.106-3(b)(3)(i), this memorandum explains the absence of competition for this acquisition, as only one source will be solicited for this requirement (or for a portion of the requirement) and the requirement is not expected to exceed the simplified acquisition threshold.

II. DESCRIPTION OF ITEM OR SERVICE:

The subject requirement is for the purchase of 22,000 KG of granular activated carbon to be used for drinking water treatment at Naval Station Rota. The carbon shall meet the requirements of standard UNE EN 12915-1, and the vendor shall provide a laboratory analytical report certifying that the carbon meets the parameters specified in the UNE EN 12915-1 and is free of contaminants. The required source of supply is CPL Galaquim S.L., and the estimated delivery date is 20 weeks from award of purchase order.

III. THE DETERMINATION FOR USE OF OTHER THAN FULL AND OPEN

COMPETITION IS BASED ON THE FOLLOWING:

A. X ONLY ONE RESPONSIBLE SOURCE (select all that apply):

1. RESTRICTIVE RIGHTS. The source has established proprietary rights, limited rights in data, patent rights, copyrights or secret processes in the item or service required.

[Explain what rights are restricted, why the restrictive rights make the required item or service availablefrom only one source, and why another company could not satisfy the Government need.]

2. EXCLUSIVE LICENSING AGREEMENTS. The item or service is only available from the Original Equipment Manufacturer (OEM), or there is only one authorized distributor or technical representative for the OEM.

3. X OTHER REASONS. Other reason not identfIed above. Provide details on mission impact frequirement is not solicitedfrom only one source.

Since 2014, NAVSUP Fleet Logistics Center Sigonella (FLCSI), Detachment Rota issued 8 purchase orders to vendor CPL Galaquim S.L. for the purchase of granular activated carbon

AUG 2018

Page lof5 for NAVFAC PWD Rota (information gathering through a search of EDA). In July 2024, NAVFAC PWD Rota submitted a procurement package to NAVSUP FLCSI for 22,000 KG of granular activated carbon to be used for dnnking water treatrne"

FAR 5.202(a)(12) provides an exception for soliciting via the Government Point of Entry (i.e. SAM.gov) when the proposed contract action will be made and performed outside the United States and its outlying areas, and only local sources will be solicited.

FAR Part 8 provides the required sources of supply, giving precedence to Federal Prison Industries, and GSA Federal Supply Schedules, before open market. However, the Agreement on Defense Cooperation, Armex 6 encourages the use of Spanish material, labor, and equipment whenever feasible. Also, the shipping costs of 22,000 KG of carbon from required sources would considerably increase the overall cost to the Government.

FAR 13.104 advises that the contracting officer must promote competition to the maximum extent practicable, and to request quotes from two or more source not included in the previous solicitation. As this office did not previously purchased the carbon in the past, there are no known sources except those identified by the customer or through market research.

The contract specialist emailed several local vendors (CPL Galaquim, Brentag, ECSE, and Frio Clima) to identify sources of supply; however, only CPL Galaquim S.L. responded affirmatively that they could supply the requested carbon CPL Galaquim but maintains an active SAM registration

According to FAR 13.106-3, the contracting officer may base price reasonableness on a comparison of the proposed price with prices found reasonable on previous purchases.

Below is an abstract of historical prices for the subject requirement, and the final row shows the current quote from CPL Galaquim for the granular activated carbon:

Year Purchased Contract # Quantity (KG) �/KG Total Price

2017 N6817117P6024 44000 �

2018 N6817118P6069 42000

2020 N6817120P6068 44000 �

2022 N6817122P6049 26000 �

2023 N6817123P6050 22000 � �jL.iITi 2024 CPLGaIaquim Quote 22000 � ..

A review of the historical prices show a considerable increase from 2020 to 2022. An International Monetary Fund (IMF) Working Paper (European Department) describes a substantial price increase of carbon in European countries during this timeframe: "Many countries have enacted national carbon taxes with varying levels of ambition and, after a long period of very low prices, the flagship Emissions Trading System (ETS), that covers 40 percent of the European Union (EU) emissions, has seen prices at a comparatively high level of around 85 Euro per ton of C02 since early 2022," while the effective prices of carbon were approximately �40 per ton of C02 in 2021. This explains the substantial price increase of carbon from 2020 to 2022. As such, the contract specialist used the historical unit prices from 2022 and 2023 to assess the current quote. The results of the price analysis are summarized in the table below.

Year Purchased Contract# Quantity (KG) �/KG Total Price 2022 N6817122P6049 26000 ( ii_:J.

2023 N6817123P6050 22000

2024 CPLGalaquim Quote 22000

Mean

STD Deviation � 0.05

Lower Range

Higher Range

CPL Galaquim's currently quoted unit price (1JI) is 1.95% lower than the 2023 price awarded under purchase order N6817122P6049 UL.J) and 3.8% lower than the 2022 price awarded under purchase order N6817123P6050 ((). The mean price of the historical prices is and the standard deviation is �0.05. CPL Galaquim's current quote is and lower than then 2022 and 2023 purchase orders (respectively) and is within one standard deviation of the mean.

In summary, CPL Galaquim's unit price for the subject requirement is detennined to be fair and reasonable based on the price analysis technique listed at FAR 13.106-3(2)(ii) -comparison of the proposed price with prices found reasonable on previous purchases.

B. BRAND NAME. Item required must be a brand name product, or feature of a product, particular to one manufacturer.

C. UNUSUAL AND COMPELLING URGENCY. The supplies or services are of such unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals.

Urgent requirements are supplies or services that will result in a work stoppage, or are mission critical and the routine processing time would result in injury to the Government. The determination that the procurement for the above itemlservice is an urgent and compelling requirement is based on the following:

1. Date on which the requirement was first identified:

2. Required delivery date/period ofperformance:

3. Explanation of why delivery/commencement of services by the date mentioned above is required:

4. If appropriate, include any additional pertinent information.

IV. CERTIFICATIONS/APPROVALS:

Technical / Requirements Certification: I certify that the facts and representation under my cognizance which are included in this justification are complete and accurate to the best of my knowledge and belief

DENNISON.REBECCA. Digitallysignedby

DENNISON.REBECCA.RHEA

R HEA. _____ Date: 2024.09.13 13:10:34 +0200'

Rebecca Dennison, Contract Specialist 317-727-1095

Contracting Officer Approval

I certify that this Justification is accurate and complete to the best of my knowledge and belief

HEPLER.WILLIAM.JOH N. Digitally signed by

-P

HEPLER.WILLIAM.JOHN. PL

Date: 2024.09.13 13:44:19 +02'OO'

Signature Name (Printed) Date