SPE4A722R0653_Redacted.pdf

DEFENSE LOGISTICS AGENCY

AVIATION

6900 STRATHMORE ROAD

RICHMOND, VIRGINIA 23297-5002

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLE SOURCE HISTORICALLY UNDERUTILIZED BUSINESS ZONE (HUBZone)

(1) Identification of the agency and the contracting activity

This justification and approval (J&A) is submitted to request authority for the use of other than full and open competition to support requirements generated by the Defense Logistics Agency (DLA). The contracting authority for this requirement is DLA Aviation, FAQE, Richmond, VA.

(2) Nature and/or description of the action being approved.

This J&A seeks approval to issue Solicitation SPE4A7-22-R-0653 as a sole source HUBZone set-aside directed to Malone’s CNC Machining Inc., Grove, OK, CAGE 2V045.

(3) A description of the supplies or services required to meet the agency’s needs (including the estimated value)

The solicitation proposes to award a contract for NSN 1560-01-646-5571. The item is limited source and Malone’s CNC Machining Inc. is the only HUBZone source identified through market research that is capable of manufacturing the NSN. The contract will cover a base period of five (5) years with zero

(0) options. The total estimated dollar value is .

(4) An identification of the statutory authority permitting other than full and open competition.

A sole source HUBZone set-aside is justified under 10 USC 2304(c)(5), FAR 6.302-5, authorized or required by statute.

(5) A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

FAR 19.1306(a)(1)-(6) specify when a sole source HUBZone set-aside is appropriate. This acquisition meets those circumstances, as follows:

(1) The contracting officer does not have a reasonable expectation that offers will be received from two or more HUBZone small business concerns;

Market research identified Malone’s CNC Machining Inc. as the only HUBZone manufacturer capable of manufacturing this NSN.

(2) The anticipated award price of the contract, including options, will not exceed—

(i) $6.5 million for a requirement within the NAICS codes for manufacturing; or

(ii) $4 million for a requirement within any other NAICS code;

The applicable NAICS code is 336413, Other Aircraft Parts and Equipment Manufacturing, so the $6.5 million limitation applies. As stated above, the estimated value is $6.5 million will be the contract maximum to ensure the limitation is not exceeded.

(3) The 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 SBA under Subpart 19.8;

No performance by an 8(a) participant were identified during market research.

(4) The acquisition is greater than the simplified acquisition threshold.

(5) The HUBZone concern has been determined to be a responsible contractor with respect to performance;

Malone’s CNC Machining Inc. has a history of successful performance on previous contracts for these items.

(6) Award can be made at a fair and reasonable price.

Review of DLA Aviation’s procurement history indicates that Malone’s CNC Machining Inc.

has received awards for this NSN, all at prices determined fair and reasonable. Based on this, the Contracting Officer has a reasonable expectation that Malone’s CNC Machining Inc. can supply all the items at fair and reasonable prices.

(6) A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies.

As an effort to maximize competition, a sources sought notice was posted on Contract Opportunities on the SAM.gov website on 15 July 2022. The solicitation was synopsized on 20 July 2022 on Contract Opportunities, which meets the requirement at FAR 5.201. Any potential source requesting a copy of the solicitation will be provided one and any offers, which qualify under the terms of the HUBZone set-aside, will be considered. None of the previous acquisitions for this item required a J&A. The situation has not changed since the last purchase of this item.

(7) A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer has determined that the cost to the Government will be fair and reasonable. As stated above, Malone’s CNC Machining Inc. has previously supplied this item at prices that were determined fair and reasonable.

(8) A description of the market research conducted and the results or a statement of the reason market research was not conducted.

Market research was conducted to identify potential suppliers that have supplied or are capable of supplying the items for the acquisition. Using both historical data and information gathered from the vendors, there is no reasonable expectation that competition exists between two or more HUBZones.

Date Robert Sebold

Associate Counsel DLA Aviation

This justification has been reviewed and is approved.

SEBOLD.ROBERT.E. Digitally signed by

SEBOLD.ROBERT.E

Date: 2022.07.22 11:03:12 -04'00'