SPE4A720R0673_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

This Justification and Approval to request authority for Other Than Full and Open Competition supports requirements generated for the Defense Logistics Agency, Aviation- FAZA. The contracting authority for this requirement is Defense Logistics Agency (DLA), Aviation-FAZA. The long-term contract (LTC) project supporting this contracting action is

LTC RA20101027.

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

Due to the circumstances described herein, this activity requests authority to acquire the items 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 Will Satisfy Agency Requirements. This action will result in the award of a new contract, which will be a firm-fixed price Indefinite Quantity contract (IQC) with one, three-year base period and two, one-year option periods in which additional quantities may be ordered. This requirement will be purchased under limited competition from the following company.

Essex Industries Inc.

8007 Chivvis Drive St. Louis, MO 63123 CAGE: 0U058, Small Business Manufacturer

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS

The DLA Aviation, Aviation Airframes Division I, a field Activity of the Defense Logistics Agency (DLA), proposes to acquire national stock number (NSN) 1660-01-495-3043, Emergency Passenger Oxygen System (EPOS); through an Indefinite Quantity Contract (IQC) with an estimated annual demand quantity of 10676 each for the base and option periods. The total estimated maximum dollar value for the procurement is , including all option periods. The statutory authority for Other Than Full and Open Competition is 10 U.S.C. 2304(c)(1), available from only one or a limited number of sources. The solicitation is unrestricted. This item is commercial-of-a-type (COAT). The previous long-term contract was awarded as commercial. A Commercial Item Determination Form was approved one level above the contracting officer. DLA Aviation

DEFENSE LOGISTICS AGENCY

AAVIATION

8000 JEFFERSON DAVIS HIGHWAY

RICHMOND, VIRGINIA 23297-50002

Solicitation Number: RFP SPE4A7-20-R-0673 intends to comply with the 15-day time-period for publicizing notice of the proposed contract action (FAR 5.203(a)) as well as the 30-day response time for receipt of proposals (FAR 5.203(c)). This item being purchased will support Aviation Life Support Equipment (ALSE). It is classified as critical application items. This item is not a Critical Safety Items

(CSI).

Under the contemplated contract, the approved source will be requested to provide the following supplies which are required to support ALSE:

Unit

Price

EAD

QTY

EAD Value MAX Qty

Maximum total

Base Period 1 10676 15771 Base Period 2 10676 15771 Base Period 3 10676 15771 Option Year 1 10676 15771 Option Year 2 10676 15771

TOTAL VALUE

TOTAL POTENTIAL MAXIMUM CONTRACT VALUE

Based upon the Time-To-Award (TTA) initiative, an administrative lead-time (ALT) of 280 days is established for LTCs over . The historical production lead-time (PLT) for NSN 1660-01-495-3043 is 226 days. However, the calculated PLT of 186 days from the Industrial Base Management System (IBMS) must be used as the delivery objective for this LTC initiative. The solicitation requires delivery to begin on or before 186 days after receipt of order (ARO).

This item is identified by the AMC/AMSC code of 3C. The AMC code of “3” means acquire for the second or subsequent time directly from the manufacturer. The AMSC code of “C” means these parts require engineering source approval by the design control activity in order to maintain the quality of the parts.

Based upon a review of IBMS, this NSN does not require Surge and Sustainment.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND

OPEN COMPETITION

10 U.S.C 2304(c)(1), as implemented by FAR 6.302-1, Limited Number of Sources 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

The statutory authority for Other Than Full and Open Competition is 10 U.S.C.

2304(c)(1), available from only one or a limited number of sources. The AMC/AMSC is 3C. The AMC code of “3” means acquire for the second or subsequent time directly from the manufacturer. The AMSC code of “C” means these parts require engineering source approval by the design control activity in order to maintain the quality of the parts. The screening evaluation supports the necessity to procure this item under limited competition since a complete, unrestricted data package is not available. It is cost prohibitive for the Government to acquire the data for this item.

According to the product specialist, the sole source listed, CAGE 0U058, Essex Industries Inc., is the only firm currently capable of providing this item. Because this item is a sole source item, the product specialist has indicated that a technical certification is needed.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE

A Sources Sought Synopsis for RFP SPE4A7-20-R-0673, was issued on Contract Opportunities on April 16, 2020, with a response date of April 20, 2020. One response was received from a small business distributor of a part from a foreign company in the United Kingdom. The small business distributor was informed that to be qualified for this requirement, it must provide the part of a domestic small business manufacturer in accordance with DAAWG 19.502-2-9G(c)(1), for small business set-asides over the simplified acquisition threshold. The small business distributor was also informed that it or another company must submit a source approval request package for review and approval to become an approved source of supply for this part. This requirement was synopsized on Contract Opportunities on April 24, 2020, as required by FAR 5.201. Although the Government does not own the data to support the acquisition of this EPOS under full and open competition, any firm requesting a solicitation copy will be provided one. Any other sources who wish to become approved sources of supply for this item will be directed to the original equipment manufacturer (OEM) to obtain the qualification requirements necessary for addition as an approved source in accordance with Procurement Notes L04, Offers For Part Numbered Items, and M06, Evaluation of Offers for Part Numbered Items.

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 fair and reasonable to the Government based upon FAR Part 12 negotiation procedures using price and cost analysis. Although the total maximum value of this acquisition will exceed the Truth In Negotiations Act (TINA) threshold of , in accordance with FAR 15.403-1(b)(3) and (c)(3), the contractor will not be required to provide certified cost or pricing data due to the item being commercial. The acquisition specialist will use commercial pricing techniques to perform thorough price analysis to determine the price fair and reasonable based on comparison to published catalogs or price lists, or a value engineering intrinsic value analysis, or by requesting limited cost or price information. 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

NOT CONDUCTED

There is only one source approved to supply the item. Market research pursuant to FAR Part 10, was conducted by publishing a Sources Sought Notice on Contract Opportunities on April 16, 2020. However, it still would not result in a competitive item description for this acquisition.

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

AND OPEN COMPETITION

This 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.

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

ACQUISITION

The source that has expressed interest in this acquisition is Essex Industries, Inc., CAGE 0U058.

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

An action taken to overcome barriers to competition is posting a Sources Sought Synopsis on Contract Opportunities as a means of conducting market research to identify companies having an interest in and the resources to support this requirement. Another action taken is synopsizing and publicizing this acquisition on Contract Opportunities for at least 15 days prior to issuance of the solicitation. Pursuant to Procurement Notes L04, Offers for Part Numbered Items, and M06, Evaluation of Offers for Part Numbered Items, which are included in the solicitation, alternate offers are not acceptable. Any other sources who wish to become approved sources of supply for this item will be directed to the OEM to obtain the qualification requirements necessary for addition as an approved source. There was no Justification for Other Than Full and Open Competition completed on the previous LTC SPE4A718D5803 for this NSN.

XII. CONTRACTING OFFICER’S CERTIFICATION

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

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

As evidenced in Attachment 2 by the signatures on the attached technical certification documents, the technical personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.