SPE4A824R0001_Redacted.pdf

CUI SPE4A8-24-R-0001

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DDEFENSE LOGISTICS AGENCY

AVIATION

6090 STRATHMORE ROAD

RICHMOND, VIRGINIA 23237

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 (VI).

Contracting authority for this requirement is Defense Logistics Agency (DLA)-Aviation, Industrial Plant Equipment/VICA. The purchase request number supporting this contracting action is 23-13-1001 for one (1) Computer Numerically Controlled (CNC) High Speed Propeller Profiler to include all accessories and attachments.

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 or Services Will Satisfy Agency Requirements. This action will result in the award of a new contract, which will be a firm-fixed price. This sole source requirement will be purchased from the following company:

Starrag USA, Inc.

2379 Progress Drive Hebron, KY 41048

CAGE: 42FD7

Large Business

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

AGENCY’S NEEDS

Under the contemplated contract, Starrag, will provide the following supplies which are required to support the Trident II SWS Missile – Ohio Class Submarines/SSBN and Columbia Class Submarine in accordance with VIBB 23-13-1001 to support Naval Foundry and Propeller Center (NFPC):

CONTROLLED BY: DLA Aviation

CONTROLLED BY: VICA

CUI CATEGORY: General Procurement DISSEMINATION CONTROL: FED Only

POC:

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head changer. The table load shall be 440,000 lbs. The machine shall accommodate nominal parts that are 24.5ft in diameter. By purchasing the SU27 from Starrag, NFPC will have the ability to machine all their required jobs on interchangeable machines, without costly workarounds or reprograming and set up on other machines.

The estimated cost savings of procuring the Droop+Rein FOGS 85 85 TT85 M30 C (SU27) is based on savings realized of interchangeability of attachment heads, machine consumables, and re-work of fixtures and part programs. A full discussion/breakdown of this is described herein. The costs were derived by NFPC/Plant Equipment Support Office personnel based on historical purchases, market research, shop data/shop costs. The savings are as follows:

Currently at NFPC, there are five (5) other Starrag High Speed Propeller Profilers: SU 16, 17, 18, 19, and 20. These existing machines utilize the same identical ram attachment heads. This continuity allows for the interchangeability of attachment heads. NFPC currently owns 45 attachment heads for the existing machines. The interchangeability allows for the event that if one is unusable, another can easily be used in its place. NFPC will have efficiency and synergy by maintaining the same brand within the shop. As part of this procurement, NFPC is procuring 12 attachments heads with SU27 at an estimated cost of . In order to achieve interchangeability of attachment heads with a different brand, NFPC would not only need to procure the specific machines, but also re-procure all of the other machines in the shop, as this item is specific to the machine manufacturer. This repurchase would be an estimated cost of

See spare heads tab on J&A Cost Derived attachment.

As part of their current material/stock, NFPC has 5500 programs full developed, tested, and proven to manufacture multiple CLASSIFIED components for the Virginia and Columbia class submarines. These programs, CNC attachment heads, and post processor are interchangeable between the existing five machines and this procurement. The programs, attachments, and post processor are used to manufacture components such as: rotors, rings, stators, etc. If a CNC machine besides Starrag is purchased these pre-programmed parts would all need to be redone.

The re-work of these programs has an estimated cost of see Program Data tab on J&A Cost Derived attachment.

Lastly, NFPC has an existing maintenance contract number N6449819D4037 with Starrag USA Inc. for the existing five (5) Droop+Rein FOGS currently in use at NFPC. Contract award date is 27 September 2019, it is a 5-year contract with 1-year options with the final option expiring on 26 September 2024. This contract is currently in the process of renegotiation and will extend out through FY29. To add SU27 to this contract it would cost . Market research for the industry has shown for the cost of a maintenance contract to a non-Starrag machine is of the machine contract value. The estimated contract value for this machine is . This would be to procure a maintenance contract from competition. Therefore, based on this, NFPC will realize a cost savings of

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VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

This requirement will be synopsized on sam.gov as required by FAR 5.201. 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 the item listed in section III from any other source, any source who responds to the Government because of this synopsis will be identified to the prime contractor as a potential for subcontracting possibilities.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

This is a commercial item. The overall cost of this acquisition will be considered fair and reasonable based upon FAR 12 negotiation procedures using 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 negotiation objective will be developed using local technical analysis applied to direct and indirect rate factors recommended by 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 NOT

CONDUCTED

Pursuant to FAR Part 10, market research was conducted by reviewing results of recent market research undertaken to meet the same or similar requirements.

The requiring activity performed market research and identified two sources: Walter Siegen and Pietro. Walter Siegen is unable to supply a machine that meets NFPC’s requirements, and they do not accept Defense Priorities and Allocations System (DPAS) DX contracts. The DX rating is applicable due to the specific nature of the Columbia Class of submarines which includes Cruise Missile Submarines/SSGN, submarines with the Trident II SWS Missile-Ohio Class Submarines/SSBN, Columbia Class Submarines (formerly Ohio Replacement Class)/SSBN (X), and all future submarines that carry the Trident. The Trident missile is a submarine-launched ballistic missile (SLBM) equipped with multiple independently targetable re-entry vehicles. These missiles are launched from nuclear-powered ballistic missile submarines.

Pietro machines are designed for turning and they are unable to supply attachment heads that can interchange with the current Starrag machines in place at NFPC. Only Starrag has the capability to supply the attachment heads that can interchange with the existing machines.

DLA Aviation posted a sources sought/RFI to sam.gov for 30 days. The responses received were from the proposed sole-source, Starrag, and a non-manufacturing source quoting the Starrag Machine. The non-manufacturing source provided “traceability”; however, in Starrag’s sources sought response they explicitly stated that no other source is authorized to represent the resale of this specific machine to the US Government. Therefore, the non-manufacturing source is not considered a valid source for this procurement.

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

OPEN COMPETITION

Results of market research indicate that due to unique capability requirements and specialized knowledge required to continue performance, other commercial or non-developmental items/ services cannot be incorporated or modified to meet the Government’s needs. Therefore, there is a high level of confidence that Starrag is the only firm capable of providing supplies and services described above without the warfighter experiencing substantial duplication of cost that cannot reasonably be expected to be recovered through competition and without the warfighter experiencing unacceptable delays in fulfilling requirements.

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

ACQUISITION

Sources that expressed interest in the acquisition are:

WiseCom Tech (CAGE 88KZ6), Dealer

Starrag USA, Inc. (CAGE 42FD7), Manufacturer

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

Market Research will be completed on any future procurement to determine if any additional sources have entered the market, or if commercial items or non-developmental items are available to meet the Government’s need.

XII. CONTRACTING OFFICER’S CERTIFICATION

The contracting officer’s signature on the Coordination and Approval Document evidences that he/she has determined this document to be both accurate and complete to the best of his/her 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. Supporting documents (Technical IOM, sources sought posting, responses to sources sought posting) are attached.