SPE4A618R0348_J&A_FAR_6.302-1.pdf

DEFENSE LOGISTICS AGENCY

AVIATION

8000 JEFFERSON DAVIS HIGHWAY

RICHMOND, VIRGINIA 23297-5002

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

This is a Class Justification and Approval (J&A) to request authority for Other Than Full and Open Competition to support the requirements generated for any Department of Defense (DoD) activity. The contracting authority for this requirement is Defense Logistics Agency (DLA) Aviation, Richmond, Virginia, Strategic Acquisition Programs Directorate (AC). The purchase request number supporting this contracting action is 1000062286.

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED

Due to the circumstances described herein, this activity requests authority to acquire the items/spares listed in this document using Other Than Full and Open Competition as prescribed by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. This action will result in the award of a follow-on contract, for Long Term Contract SPM4A2-14-D-0004, whose ordering period will expire May 26, 2019. The contract will be a fixed price with economic price adjustment (EPA), Indefinite Delivery, Indefinite Quantity (ID/IQ) contract with a basic year plus four one-year ordering periods in which additional quantities may be ordered. This sole source requirement will be purchased from the following company:

LORD Corporation Aerospace Division Erie, PA 16505

CAGE: 76005

Large Business

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS

DLA Aviation, Strategic Acquisition, Richmond, VA, seeks to establish a Joint Opportunity (JO) follow-on contract with LORD Corporation (LORD) for items managed and procured by any DoD activity, including, but not limited to, DLA and the Military services. The contract will be a fixed price, with Economic Price Adjustment. The contract period will be for a one-year base period and four (4) one-year option periods. The estimated annual quantities for the applicable NSNs vary with each NSN. The non-availability of some of the items may cause the weapons systems to be grounded. The Working Capital Fund is the type of appropriation that will be used to fund each requirement.

The applications range from unique weapon system specific uses to use on multiple DoD aircraft. A sample of weapon system components supported with LORD parts are airframe structural guided missile handling and servicing equipment, and miscellaneous engine accessories.

The J&A will cover all sole source LORD spare parts that are across multiple Federal Supply Classes (FSCs) which are included in both the initial and add on NSN lists for this procurement (Attachment 1). This class

Solicitation Number: SPE4A6-18-R-0348 justification estimated five-year value is $ . The estimate is based upon historical quantity levels applied to the most recent available pricing applicable to the initial NSN population. It also includes an estimate for add-on requirements. An initial candidate population of 17 active NSNs, and an add on population with 13 in-active, unpriced, NSNs, with an estimated five-year value of $ has been identified from the class population as the items to be initially solicited for this acquisition, as reflected in Attachment 1. This contract will be expanded by adding items in groups or phases throughout the contract period. Only the items solicited as part of the add on NSN list will be eligible for addition to this procurement. The estimated values are calculated by multiplying the cost basis unit price by the Estimated Annual Demand Quantity (EAD) for a five year contract duration.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPENCOMPETITION

10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS OR

NATURE OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED ABOVE

This Class J&A covers two groups of items, 17 initial NSNs and 13 add on NSNs that belong to LORD CAGE code of 76005, which may be added in subsequent phases only after reviewing, screening, and verifying the items are commercial and sole source to LORD CAGE 76005. The Acquisition Method Codes (AMC) that apply are 3, 4, and 5 which require acquisition directly from a sole source

All of the initial 17 NSNs are coded AMC 3 which means acquire for the second or subsequent time directly from the actual manufacturer. Items within the population are sole source for a variety of reasons, including, in part, that the technical data is proprietary or is not otherwise available to the Government; the parts require engineering source control approval by the design control activity; and/or the parts must be acquired from a manufacturing source(s) specified on a source control drawing.

All items, initial and additions will have to be certified as sole source to LORD by the cognizant technical authority before being incorporated in this contract. The Product Specialist has provided the initial NSN population technical certifications completed for the 17 NSNs. The spare parts covered under this proposed contract have been procured from LORD on a sole source basis for the life of the applicable systems. Thus, only LORD has the requisite engineering expertise, data, tooling, qualification testing capability, and configuration control knowledge required to ensure that performance specifications conform to the proper form, fit, and function and the ability to resolve technical issues associated with performance.

Any item determined to be competitively available before contract award will be removed from the acquisition.

Any item determined to be competitively available after contract award may be deleted from the contract and competitively re-solicited.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM

AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

This requirement was synopsized on Federal Business Opportunities (FedBizOpps) as required by FAR 5.201 on 2 January 2018. It is anticipated that sources having an interest in subcontracting may be identified through synopsis. Although the Government does not own data to support acquisition of these NSNs from any other source, any source who responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential for subcontracting possibilities.

Surplus dealers, small business dealers and distributors having existing stocks of surplus or newly manufactured material will be invited to respond to the synopsis and/or solicitation and will be evaluated and awarded on a line-by-line basis. The respondents will be required to include a completed surplus certificate, Procurement Note C04, Government Surplus Material, or adequate traceability documentation to show product is acceptable. In addition, respondents will be required to identify quantity available and price. DLA Aviation will consider all such responses and may alter the acquisition strategy if purchase of existing surplus or newly-manufactured inventory is in the best interests of the Government.

A sources sought synopsis was issued on June 13, 2017 to determine if companies other than LORD are capable of manufacturing, or legitimately obtaining the items proposed for solicitation. No responses were received as a result of the sources sought synopsis. A copy of the sources sought synopsis is attached (Attachment 2).

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST

TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

The overall cost of this acquisition will be considered fair and reasonable based upon negotiation and will utilize price and cost analysis. Methodologies to assure this will be commercial pricing techniques utilizing publicly offered catalogs, comparison to historical contractor sales and/or analysis of limited cost and pricing information which could be made available by the contractor. In the event that limited cost and pricing information is made available, the Government’s negotiation objective will be developed using local technical analysis applied to direct and indirect rate factors recommended by the DCAA and/or DCMA. Based on the foregoing, the Contracting Officer hereby determines the anticipated cost to the Government will be fair and reasonable.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS, OR

STATEMENT OF THE REASONS MARKET RESEARCH WAS NOTCONDUCTED

Limited efforts were made to conduct Market Research since the Government has internal information that demonstrates that the items are not competitive. The Engineering Authority for each NSN lies with the DoD Services that manage the affected aircraft. As the Engineering Authority, the Services conduct continuous Market Research and Market Awareness relative to the specific items under their control. Their findings are documented and a record is created and regularly updated for each NSN. This documentation includes the item’s procurement history, the AMC assigned, and the rationale for procuring the item through any means Other Than Full and Open Competition. For the items to be acquired here, the responsible Engineering Authority has determined that no source other than LORD can satisfy the Government’s requirement. History supports that these items have been and will continue to be sole source to LORD.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION

The items to be procured are complex and flight critical. This Original Equipment Manufacturer (OEM) is not willing to sell data rights to the Government, which means the technical data package, specification, and engineering description suitable for Full and Open Competition cannot be developed without reverse engineering. The Government has determined that reverse engineering is cost prohibitive due to the critical operational and reliability requirements for these flight critical items and cannot be met by any other source than LORD.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE ACQUISITION

At present no sources have expressed an interest as previously stated in section VI above, the Contracting Officer will synopsize the requirement before issuing the solicitation, which will provide interested parties the opportunity to review and express interest in the requirement.

XI. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR

OVERCOME ANY BARRIERS TO COMPETITION BEFORE MAKING SUBSEQUENT

ACQUISITIONS FOR THE SUPPLIES

There are currently no plans to compete this procurement. LORD is the only source with the capability of furnishing the required supplies. DLA Aviation will continue to synopsize future requirements to allow industry the opportunity to identify competitive items.

Surplus dealers, small business dealers and distributors having existing stocks of surplus or newly manufactured material will be invited to respond to the synopsis and/or solicitation and will be evaluated and awarded on a line-by-line basis. The respondents will be required to include a completed surplus certificate and provide adequate traceability documentation to show product is acceptable. In addition, respondents will be required to identify the quantity available and unit price. DLA will consider all such responses and may alter the acquisition strategy if purchase of existing surplus or newly-manufactured inventory is in the best interests of the Government.

The cognizant Competition Advocate will review both the initial requirements and all potential add-on items.

Any items that subsequently become competitive after award will be removed from the contract.

XII. CONTRACTING OFFICER’S CERTIFICATION

The contracting officer’s signature on the Coordination and Approval Document evidences that he has determined this document to be both accurate and complete to the best of his knowledge and belief.

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

As evidenced by their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.