SPE7L322R0017 - JA_Redacted.pdf
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- Attached to
- PISTON, INTERNAL COM Federal contract opportunity
- Solicitation number
- SPE7L322R0017
About this file
This justification document outlines a sole source contract award for a piston part used on Navy vessels. The Defense Logistics Agency Land and Maritime plans to award an indefinite delivery/indefinite quantity contract to Fairbanks Morse, LLC as the item's original equipment manufacturer and only known source. Market research found the part to be non-commercial without equivalent alternatives. The incumbent contractor JGILS, LLC and distributor CHAND, L.L.C indicated willingness to bid but could not independently manufacture the item. The contract award not to exceed $750,000 is expected in June 2022 based on a fair and reasonable price determination from the item's procurement history.
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CUI
JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION
SOLICITATION SPE7L322R0017
DLA Land & Maritime Justification for Other Than Full & Open Competition
(FEB 2017)
[X] ORIGINAL
[ ] ADDENDUM (attach copy of original J&A for add-ons or revisions)
1. The Defense Logistics Agency, DLA Land and Maritime, is the contracting activity.
2. The action being approved is the acquisition of supplies on other than a full and open competition basis.
3. The supplies required to meet the using activity’s needs are described as follows:
BRIEF DESCRIPTION NSN QUANTITY EST. VALUE AMSC
PISTON,INTERNAL COM 2815-01-522-4828 42 D
Estimated Base Value:
Estimated Max Value w/ 100% option Identify end item, weapon system, or class of item: This part is a PISTON,INTERNAL COM used on
LPD-17 Class Amphibious Assault Transport Dock manufactured by FAIRBANKS MORSE, LLC
(7PZX0) P/N PM65838.
IAW DFARS PGI 6.3, the previous J&A must be attached. (See Attachment 1)
4. The statutory authority permitting other than full and open competition is:
[X] 10 U.S.C. 2304(c)(1) - Available from only one or a limited number of sources.
5. If restricted to the only source(s) of supply, include source(s) and CAGE code:
FAIRBANKS MORSE, LLC (7PZX0) P/N PM65838
The use of the authority cited below:
[X] AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.
The use of the authority cited is based on:
[X] AMSC D. The data needed to acquire this part competitively is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation. AMCS 3, 4, or 5 are valid.
On 03/17/2022 the buyer received confirmation from the product specialist that the AMC/AMSC of 3/D is accurate (See attachment 1). The approved source is FAIRBANKS MORSE, LLC (7PZX0) P/N PM65838. Per the Product Specialist, this is the only known source that possesses the technical data for the manufacturing of this item, thus, demonstrating that FAIRBANKS MORSE, LLC (7PZX0) has the unique design capability, engineering skills, and manufacturing knowledge for this NSN. The Engineering Support Activity (ESA) has declared FAIRBANKS MORSE, LLC (7PZX0) P/N PM65838 is the only acceptable part. Any other commercial, or non-commercial, offerings would be required to submit a Source Approval Request (SAR) to the ESA for approval.
Product Specialist certified the above information is correct as of 04/07/2022 (See Attachment 2).
6. Efforts to ensure that offers are solicited from as many sources as practicable are:.
The acquisition will be synopsized on or about 04/04/2022 and will be on the DLA Internet Bid Board
(DIBBS).
Dealers of the manufacturers will be solicited.
SOLICITATION SPE7L322R0017
DLA Land & Maritime Justification for Other Than Full & Open Competition
(FEB 2017)
7. I hereby determine that the anticipated cost to the Government will be fair and reasonable.
The most recent buy for this NSN was on 06/26/2020. PO# SPE7L720P3899 was awarded to JGILS, LLC (1N8T8) for 33 EA at $22,028.62 each. This price was determined Fair and Reasonable based on comparison to purchase history and was coded BG.
There have been 15 purchases for this NSN since 2013. Previous purchase quantities have ranged from 1 to 41 each. Prices have ranged from $1,530.00 to $22,059.80. The weighted average of all prices was
This is a DLA direct item. The estimated price of the solicited maximum quantity of 42 each with a 100% option may exceed $750,000. If the contract value exceeds $750,000.00, a subcontracting plan will be required.
In order to determine the cost as fair and reasonable, Price Analysis will be calculated using past procurement history, a Learning Curve and PPI. If additional analysis is needed for the fair and reasonable determination, support will be sought from the Pricing Office.
Negotiation procedures may be used pending price analysis results and competition.
Length of contract: A firm-fixed price contract will be issued.
Quantity: 42 each with a 100% option
8. Market Research/Efforts to Obtain Competition:
Market Survey [10 U.S.C. 2304(f)(3)(D)]:
Market surveys were sent to JGILS, LLC (1N8T8), HOWCO DISTRIBUTING CO. (5E074), PIONEER INDUSTRIES, INC. (66200) and CHAND, L.L.C. (0D5X4) on 03/16/2022 with a respond by date of 03/23/2022.
A Sources Sought was posted on 03/16/2022 and closed on 3/22/2022. No responses to the Sources Sought were received.
Total number of vendors contacted: 4 Names of vendors contacted and responding: 3
Techniques used to conduct survey:
The market survey was sent via email..
Types of information requested:
Information requested included: business size, commerciality, preference for submissions of offers through distributors/dealers or directly to the government, source of supply, catalogue price, is the item in inventory, willingness to quote the item, economical production quantities, their price break ranges, delivery, and if they are registered in SAM.
Summary of information received:
HOWCO DISTRIBUTING CO. (5E074) responded 03/16/2022 that they no longer sell Fairbanks Morse. JGILS, LLC (1N8T8) responded 3/21/2022. They indicated they intended to quote the requirement; they are a small business; the item is not commercial; . CHAND, L.L.C.
(0D5X4) responded 3/22/2022. They indicated they intended to quote the requirement; they are a large business;
the item is commercial; and .
Information received regarding the commerciality of the item(s):
The COTS field in SRM is blank. Market research did not yield any readily available published catalog price lists, schedules or other form of commercial pricing that are regularly maintained and updated by a manufacturer or vendor that are available to the general public for inspection nor is there evidence of sale prices at which sales
SOLICITATION SPE7L322R0017
DLA Land & Maritime Justification for Other Than Full & Open Competition
(FEB 2017)
CUI
were made to a significant number of buyers constituting the general public. Therefore, the Contracting Officer determines this item to be non-commercial and the solicitation shall be issued pursuant to FAR Part 15 procedures.
Synopsis will state that based upon market research, the Government is not using the policies contained in FAR Part 12. However, interested persons may identify to the contracting officer their interest and capability to satisfy the Government’s requirement with a commercial item within 15 days of this notice.
9. Additional facts supporting other than full and open competition are:
[X] Based upon the technical certification on file in DLA Land and Maritime – VEP technical data is not available and cannot be developed to permit full and open competition. The data presently available reflects the minimum needs of the Government.
10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) JGILS, LLC (1N8T8) and CHAND, L.L.C. (0D5X4)
11. The following actions are being taken to identify additional sources:
This solicitation will contain Conditions for Evaluation and Acceptance of Offers for Part Numbered Items, Procurement note L04, Offers for Part Numbered Items, and M06, Evaluation of Offers for Part Numbered Items.
I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief.
Monica Whiting, Contracting Officer Date
Competition Advocate Signature Date
APPROVAL REQUIREMENTS
[ ] Up to $750,000 Contracting Officer
[ X] $750,000 to $15,000,000 Competition Advocate
ATTACHMENT:
Attachment 1: Previous J&As Attachment 2: Product Specialist Certification
WHITING.MONICA.L.
1378381815
Digitally signed by
WHITING.MONICA.L.1378381815
Date: 2022.04.12 08:08:10 -04'00'
SHEARER.MARY.E.1
250702449
Digitally signed by
SHEARER.MARY.E.1250702449
Date: 2022.04.22 07:47:58 -04'00'
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