SPE7L324R0016 PR 7005271919 JA_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PR: 67601955; SOLICITATION: SPE7L117R0033

SOURCE SELECTION INFORMATION SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

ORIGINAL

1. The Defense Logistics Agency, DLA Land and Maritime, is the contracting activity.

2. The action being approved is the acquisition of supplies/services on other than a full and open competition basis. This requirement is in accordance with BOEING COMPANY DBA

BOEING (81205), PN 65C18552-514; DOWNEY MANUFACTURING INC (98315), PN 65C18552-

514; CAMNETICS MANUFACTURING (0P657), PN 65C18552-514; AMERITECH DIE MOLD SOUTH,

INC.( 5HPY1), PN65C18552-514, Connecting Link.

3. The supplies/services required to meet the using activity's needs are described as follows:

This solicitation is for 1,080 EA of NSN 3040-01-618-9591, Connecting Link. The AMC/AMSC code for this item is 1C and does include a 100% option to procure up to a maximum quantity under this contract will not exceed 2,160 EA. The solicitation has an estimated base value of $972,000. The total estimated value with option quantity is $1,944,000. This is a total small business set-aside procurement. The weapon system code is 05F, which belong on the KC- 135 Stratolifter Aircraft. This requirement is in accordance with BOEING COMPANY DBA

BOEING (81205), PN 65C18552-514; DOWNEY MANUFACTURING INC (98315), PN 65C18552-

514; CAMNETICS MANUFACTURING (0P657), PN 65C18552-514; and AMERITECH DIE MOLD

SOUTH, INC. ( 5HPY1), PN65C18552-514.

4. The statutory authority permitting other than full and open competition is:

10 U.S.C. 2304(c) (1) - Available from only one or a limited number of sources.

There are four (4) approved source for this item:

BOEING COMPANY DBA BOEING (81205), PN 65C18552-514

DOWNEY MANUFACTURING INC (98315), PN 65C18552-514

CAMNETICS MANUFACTURING (0P657), PN 65C18552-514

AMERITECH DIE MOLD SOUTH, INC. ( 5HPY1), PN65C18552-514.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code:

BOEING COMPANY DBA BOEING (81205), PN 65C18552-514

DOWNEY MANUFACTURING INC (98315), PN 65C18552-514

CAMNETICS MANUFACTURING (0P657), PN 65C18552-514

AMERITECH DIE MOLD SOUTH, INC. (5HPY1), PN65C18552-514

The use of the authority cited in other than 10 U.S.C. 2304(c)(1) above:

AMC 1. Suitable for competitive acquisition for the second or subsequent time.

AMSC C. This part requires engineering source approval by the design control activity in order to maintain the quality of the part. Existing unique design capability, engineering skills, and manufacturing knowledge by the qualified source(s) require acquisition of the part from the approved source(s). The approved source(s) retain data rights, manufacturing knowledge, or technical data that are not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the

SOURCE SELECTION INFORMATION SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

part. An alternate source must qualify in accordance with the design control activity's procedures, as approved by the cognizant Government engineering activity. The qualification procedures must be approved by the Government engineering activity having jurisdiction over the part in the intended application (see Attachment No. 1).

This item is a critical safety item, and in accordance with DFARS 209.270, DLA must procure this item only from those sources approved by the design control activity. At this time, only Boeing Company, Downey Manufacturing, Inc., Camnetics Manufacturing, and Ameritech Die Mold South, Inc. have been approved by the design control activity to supply this CSI.

6. Efforts to ensure that offers are solicited from as many sources as practicable are:

A pre-solicitation notice was posted on 5/22/2017 and revised on 6/1/2017 to incorporate the option quantity and will be synopsized for 15 days. At the completion of the synopsis period, the PR will be solicited on the internet for 30 days, via the DLA Internet Bid Board System (DIBBS).

Alternate items will not be evaluated for this procurement, but will be referred for possible future acquisitions. For alternate offers, the supplier is required to provide a complete SAR data package, which may take from 30 to 180 days to be evaluated.

Bidders List:

BOEING COMPANY DBA BOEING (81205), PN 65C18552-514

DOWNEY MANUFACTURING INC (98315), PN 65C18552-514

CAMNETICS MANUFACTURING (0P657), PN 65C18552-514

AMERITECH DIE MOLD SOUTH, INC.( 5HPY1), PN65C18552-514

A Sources Sought Notice was posted in FedBizOpps, in accordance with PGI 206.302-1, seeking to identify potential sources of supply for NSN 3040-01-618-9591. The Sources Sought Notice was posted on 3/6/2017, with a response date of 3/17/2017.

No responses were received for the sources sought posted in FedBizOpps.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable.

I hereby determine that the anticipated cost to the Government will be fair and reasonable based on past buy history and /or a price analysis prepared by the buyer and through market research.

Certified cost or pricing data will not be required per FAR 15.403-1 (c) (1) as there is the expectation that competition will be received among small business, independent manufacturers as a result of the market survey responses. Should this not be the case, the solicitation will be amended to incorporate certified cost or pricing data clauses.

This item is being procured on an All or None basis, and Multiple/Split awards will not be considered.

This will be a definite quantity contract.

8. Market Research/Efforts to Obtain Competition:

Market Survey [10 U.S.C. 2304(f)(3)(D)]:

SOURCE SELECTION INFORMATION SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

Market research was conducted on 3/6/17 with responses due by 3/10/2017.

Total number of vendors contacted four (4).

Name(s) of vendor contacted:

BOEING COMPANY DBA BOEING (81205), PN 65C18552-514

DOWNEY MANUFACTURING INC (98315), PN 65C18552-514

CAMNETICS MANUFACTURING (0P657), PN 65C18552-514

AMERITECH DIE MOLD SOUTH, INC.( 5HPY1), PN65C18552-514

Two responses were received from Camnetics and Ameritech Types of information requested:

Size of business Manufacturer or dealer Commerciality Estimated delivery Whether or not item is quantity/price sensitive

Summary of information requested:

Delivery of 500 days with phased delivery

Raw material pricing and bearing pricing have increased Bearing manufacture is estimated to take 180 ADO

This is not a commercially available item They do not carry inventory FOB Origin is acceptable It is not reasonable to expect similar pricing to the previous Government buy as this is a new NSN with no history available. The vendor stated our pricing was not in line with current market pricing as it was pricing from 2013. The supply planner of record was notified of this development to rectify the pricing within the system. A review of the similar/replacement NSN 3040-01-155-3204 was conducted to ascertain a more realistic expectation of the pricing based on past awards more recent than 2013 (See Attachment No. 3 Market Survey Results).

9. Additional facts supporting other than full and open competition are:

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. This requirement is in accordance with

BOEING COMPANY DBA BOEING (81205), PN 65C18552-514

DOWNEY MANUFACTURING INC (98315), PN 65C18552-514

CAMNETICS MANUFACTURING (0P657), PN 65C18552-514

AMERITECH DIE MOLD SOUTH, INC.( 5HPY1), PN65C18552-514

This is the first time we have procured this NSN as it was a replacement NSN for 3040- 01-155-3204. No other information is available, however, when comparing the pricing to a previous buy for a similar item, obsolete NSN 3040-01-155-3204, we last paid $936.80 per unit from STATZ Corporation, under contract number SPE7L316M3705. The similar item pricing has shown that it may be quantity sensitive and has increased

SOURCE SELECTION INFORMATION SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

throughout the history (See Attachment No. 2 History of Similar Item). In addition, based on the market survey results, the estimated price is expected to be more than the DLA price listed on the PR Trailer (See Attachment No. 3 Market Survey Results).

The product specialist of record confirmed that no significant changes occurred between the cancelled NSN (3204) and the new NSN (9591) other than they are made from different raw materials. The bearing, a component of both NSNs, remains unchanged.

10. A listing of source(s), if any, indicating an interest in the acquisition is (both are small businesses):

CAMNETICS MANUFACTURING (0P657), PN 65C18552-514

AMERITECH DIE MOLD SOUTH, INC.( 5HPY1), PN65C18552-514

11. The solicitation contains the procurement notes L04 and M06.

All recent past procurements of the similar item (NSN 3040-01-155-3204) utilized simplified acquisition procedures and a J&A was not required IAW FAR 6.001(a) and the J&A for SPM7L313C0070 was not available in eProcurement but was awarded to Ameritech Die Mold South, Inc. on 9/30/2013 with a PGC of BA . A search of FBO for contract SPM7L313C0070 J&A yielded no results (See Attachment No. 2).

Attachment(s):

Attachment No. 1 TQ Referral Attachment No. 2 History of Similar Item NSN ending 3204 Attachment No. 3 Market Survey Results

Description DCJ0017 03/02/2017 14:30:28 Hello, Please provide the following information for the enclosed PR. This information will be used on the Acquisition Plan for this solicitation.

PR# 67601955

NSN: 3040-01-618-9591

Nomenclature: Connecting Link

AMC/AMSC: 1C

1. A description of the item, which is in sufficient detail to allow potential alternate offerors to understand the requirement. (i.e. What is the part and what purpose does it serve?)

2. What is the Weapon System Designator Code, and what vehicle does this item support?

3. Is the drawing package complete and up-to-date?

4. Is the AMC/AMSC code up to date?

5. Is the item commercial or is it made specifically for the military?

Thank you, Ceresa

Description DAD0038 03/06/2017 17:00:39 I will be happy to assist you. Answers to your questions are as follows:

1. This is a Rigid Connecting Link (Rear Engine Mount)

2. 05F / KC-135

3. Data package is complete and up-to-date with an expiration date of 26 July, 2021.

4. AMC/AMSC is a 1C which is up to date.

5. This item is military specific.

Feel free to contact ,e if you have any further questions.

ADerrick/FLBD/2-6738

J&A Attachment No. 1 SPE7L117R0033 Page 6 of 14

Source Selection Sensitive Information For Official Use Only - FAR 2.101 and 3.104 apply

From: Derrick, Adam J CIV DLA LAND AND MARITIME (US) To: Justus-Lee, Ceresa L CIV DLA LAND AND MARITIME (US) Subject: RE: NSN 3040-01-618-9591 / Connecting Link / PR067601955 Date: Monday, April 03, 2017 12:10:40 PM

Ceresa, They are basically the same part, but made of a different material. Not sure about the bearing because in the part list of these assemblies they call out the same bearing part number. But the part itself is made of a different raw materials between the 2 NSNs. 3040-01-618-9591 will eventually replace the 01-155-3204. Let me know if

V/r

Adam J. Derrick DLA Land Maritime-FLBD Quality Assurance Specialist Phone: 614-692-6738

DSN: 850-6738

Fax: 614-692-3361 Email: adam.derrick@dla.mil

"DISCLAIMER -- Be advised that I have no contractual authority to bind or obligate the Government. This email is for information gathering purposes only. This correspondence shall in no way be interpreted to change any terms or conditions in existing contracts with the Government. If you require action on your open contracts, please contact the administrator located in the Issued by Block of your contract."

-----Original Message----- From: Justus-Lee, Ceresa L CIV DLA LAND AND MARITIME (US) Sent: Monday, April 03, 2017 10:40 AM To: Derrick, Adam J CIV DLA LAND AND MARITIME (US) <Adam.Derrick@dla.mil> Cc: Brubaker, Sunshine S CIV DLA ACQUISITION (US) <Sunshine.Brubaker@dla.mil> Subject: FW: NSN 3040-01-618-9591 / Connecting Link / PR067601955 Importance: High

Hi Adam, Can you tell me what the differences are between the new NSN 3040-01-618-9591 and the cancelled NSN 3040-01-155-3204? Per two of the approved sources, the estimate per unit cost is $900 and not $624 as listed on the trailer. I would like to know what changes there are that would warrant the price increase. According to the approved OEM, the cost increase is due to the raw materials and bearings. Do you know if either of the requirements for the raw mateials and bearings changed from NSN to NSN?

Thanks, Ceresa

-----Original Message----- From: Justus-Lee, Ceresa L CIV DLA LAND AND MARITIME (US) Sent: Monday, April 03, 2017 10:35 AM To: Brunotte, Teresa K CIV DLA LAND AND MARITIME (US) <Teresa.Brunotte@dla.mil> Cc: Carter, Renee Y CIV DLA LAND AND MARITIME (US) <Renee.Carter@dla.mil>;

Brubaker, Sunshine S CIV DLA ACQUISITION (US) <Sunshine.Brubaker@dla.mil> Subject: NSN 3040-01-618-9591 / Connecting Link / PR067601955

J&A Attachment No. 1 SPE7L117R0033 Page 7 of 14

Importance: High

Hi Teresa, I received market research back on this item and we have two small OEM's that are expected to provide offers on this item once on solicitation. On the market research response, the vendor stated the pricing value is incorrect as it is 2013 pricing. He explained that the per unit cost is $900 based on the increase of raw materials and bearings (but not the final assembly costs). It is recommended that we correct our estimated value pricing as this PR value is now over $900K for the base quantity. Is the full quantity still needed? I reviewed IDS and DPC and do not see any backorders against this NSN. Please see the attached phased delivery schedule and estimated value worksheet. Do you know if the end user is willing to pay the per unit price?

The phased delivery schedule #1 is based on the first OEM market survey response comments, #2 is based on the second OEM market survey response comments, and the DLA phased delivery is what I am suggesting we propose on the solicitation as the 240 ADO is based on both OEM stating they could begin phased delivery at this timeframe. Bearing manufacturing is estimated to take 140-180 days ADO which will then be shipped to the OEM for final assembly.

As this item was a replacement NSN for 3040-01-155-3204, I am contacting Tech to see what changes were made between these two items that would warrant the increase in price.

Please let me know if there are questions and if the estimated value and quantity are valid and if the end user is willing to pay the per unit price.

Thanks, Ceresa

Ceresa L. Justus-Lee Contract Specialist DLA Land & Maritime Land Supplier Operations

MRAP IST

(614) 692-6535 Ceresa.justus-lee@dla.mil NOTE: This email and/or its attachments may contain Source Selection Sensitive Information and is For Official Use Only. FAR 2.101 and 3.104 apply.

J&A Attachment No. 1 SPE7L117R0033 Page 8 of 14

For Official Use Only

Please understand and comply with all regulations concerning Source Selection Information per FAR 2.101 and 3.104

DLA LAND AND MARITIME - MARKET RESEARCH

Company: AMERITECH DIE & MOLD SOUTH INC

CAGE: 5HPY1

Your Name: CHUCK LAYMON Phone Number: 386-677-1770 E-Mail address: CLAYMON@AMDIEMOLD.COM Date: 3-6-2017

REQUIREMENTS:

NSN ITEM NAME UI QTY Code and PN

GOVT, REQUIRED

DELIVERY

3040-01-618-9591 CONNECTING LINK,RIG EA 1,080

THE BOEING COMPANY DBA BOEING (81205) P/N 65C18552-514

AMERITECH DIE MOLD SOUTH, INC. (5HPY1) P/N 65C18552-514

DOWNEY MANUFACTURING INC (98315) P/N 65C18552-514

CAMNETICS MANUFACTURING (0P657) P/N 65C18552-514

PLEASE COMPLETE THE FOLLOWING:

Do you intend to quote on this NSN? YES NO If not, why?______________

LARGE OR SMALL BUSINESS (select one)

AND

as a MANUFACTURER OR DEALER (select one)

YES NO If not, what is your delivery?_No one can make this delivery as the bearings (part of the assembly) ; and there is only one bearing company approved by Boeing to make them; and they do not stock. We can start deliveries of 100 ea per month at 270 days and possibly 240 days.

Do You Carry This Item in Your Inventory? YES NO (the bearings that go to the assembly are too expensive to stock)

Are any of these items Commercial Items per FAR 2.101(b)? YES NO

If YES to question above, can you provide commercial sales invoices, listing in catalogs or brochures, known established price list to commercial market place, availability or announcement to the general public?

YES NO

Does This Item Contain Hazardous Material? YES NO

Is FOB Origin Acceptable? YES NO

If required is Inspection/Acceptance at Origin Acceptable? YES NO

Is There a Minimum Order Quantity? YES NO

- 1080__________________________

Please Provide Any Recommended Economical QTY Price Breaks:

Can Your Firm Provide Cost & Price Data if Required? YES NO

The Government last paid $577.27EA for a similar item. Is it reasonable to expect a unit price near this for the current requested

J&A Attachment No. SPE7L117R0033 Page 10 of 14

Please understand and comply with all regulations concerning Source Selection Information per FAR 2.101 and 3.104 quantity? This is for planning only, and is not a binding quote. YES NO

COMMENTS/FEEDBACK: THE PRICING FOR THE SIMILAR ITEM ABOVE IS NOW AROUND $900.00 PER PART. YOUR PRICING IS

FROM 2013 AND MATERIALS HAVE GONE UP DRASTICALLY OVER THE PAST 4 YEARS. MOST OF THE COSTING IS IN THE RAW

INCONEL AND THE BEARING NOT THE MACHINE AND ASSEMBLY TIME THAT WE PERFORM.

SPE7L117R0033 Page 11 of 14

Source Selection Sensitive Information For Official Use Only - FAR 2.101 and 3.104 apply

J&A Attachment No.

Justus-Lee, Ceresa L CIV DLA LAND AND MARITIME (US)

From: Mark Reaney <mreaney@camneticsmfg.com> Sent: Tuesday, March 07, 2017 6:24 PM To: Justus-Lee, Ceresa L CIV DLA LAND AND MARITIME (US) Subject: [Non-DoD Source] RE: Request for Market Survey - SPE7L117R0033 / NSN

3040-01-618-9591 / Connecting Link - Response requested by 1:00 PM EST 3/10/17 Attachments: 65C18552-514 Market Survey.PDF

Justin Lee, Attached is the market survey. Delivery for this material bar stock is currently running 20 22 weeks if not in stock as we currently have material on order for a current contract on a similar part. Due to the high cost of material phased deliveries are more suitable for production and delivery. Let me know if you need anything else.

Thank you, Bud Reaney

Mark Reaney Camnetics Mfg. Corp., 0P657 2303 West 1300 North Clinton Utah 84015 Phone: (801) 773 9590 Fax: (801) 773 9595 mreaney@camneticsmfg.com

Export Control Statement: Information contained in, or documents attached to, this email may contain technology subject to U.S. export control laws.

Recipient is solely responsible for ensuring that any export, re export, transfer or disclosure of this information outside of the United States, or to foreign nationals within the United States, is in accordance with applicable export control laws.

Proprietary Information: This e mail and any attachments are solely for the use of the addressee and may contain Proprietary Information that is disclosed in confidence. If you are an unintended recipient of this e mail, use, disclosure or distribution of its contents is prohibited. Please notify the sender by return email and immediately delete this message.

Original Message From: Justus Lee, Ceresa L CIV DLA LAND AND MARITIME (US) [mailto:Ceresa.Justus Lee@dla.mil] Sent: Monday, March 06, 2017 8:01 AM To: mreaney@camneticsmfg.com Subject: Request for Market Survey SPE7L117R0033 / NSN 3040 01 618 9591 / Connecting Link Response requested by 1:00 PM EST 3/10/17

Hello, Please see the request for market survey attached and return a completed copy to my attention. A response by 1:00 PM EST, March 10, 2017 is requested.

Thank you, Ceresa

J&A Attachment No. SPE7L117R0033 Page 13 of 14

Ceresa L. Justus Lee Contract Specialist DLA Land & Maritime Land Supplier Operations

MRAP IST

(614) 692 6535 Ceresa.justus lee@dla.mil NOTE: This email and/or its attachments may contain Source Selection Sensitive Information and is For Official Use Only. FAR 2.101 and 3.104 apply.

J&A Attachment No. SPE7L117R0033 Page 14 of 14

SOURCE SELECTION INFORMATION SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

ORIGINAL

1. The Defense Logistics Agency, DLA Land and Maritime, is the contracting activity.

2. The action being approved is the acquisition of supplies/services on other than a full and open competition basis. This requirement is in accordance with BOEING COMPANY DBA

BOEING (81205), PN 65C18552-514; DOWNEY MANUFACTURING INC (98315), PN 65C18552-

514; CAMNETICS MANUFACTURING (0P657), PN 65C18552-514; AMERITECH DIE MOLD SOUTH,

INC.( 5HPY1), PN65C18552-514, Connecting Link.

3. The supplies/services required to meet the using activity's needs are described as follows:

This solicitation is for 1,080 EA of NSN 3040-01-618-9591, Connecting Link. The AMC/AMSC code for this item is 1C and does include a 100% option to procure up to a maximum quantity under this contract will not exceed 2,160 EA. The solicitation has an estimated base value of

. The total estimated value with option quantity is . This is a total small business set-aside procurement. The weapon system code is 05F, which belong on the KC- 135 Stratolifter Aircraft. This requirement is in accordance with BOEING COMPANY DBA

BOEING (81205), PN 65C18552-514; DOWNEY MANUFACTURING INC (98315), PN 65C18552-

514; CAMNETICS MANUFACTURING (0P657), PN 65C18552-514; and AMERITECH DIE MOLD

SOUTH, INC. ( 5HPY1), PN65C18552-514.

4. The statutory authority permitting other than full and open competition is:

10 U.S.C. 2304(c) (1) - Available from only one or a limited number of sources.

There are four (4) approved source for this item:

BOEING COMPANY DBA BOEING (81205), PN 65C18552-514

DOWNEY MANUFACTURING INC (98315), PN 65C18552-514

CAMNETICS MANUFACTURING (0P657), PN 65C18552-514

AMERITECH DIE MOLD SOUTH, INC. ( 5HPY1), PN65C18552-514.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code:

DOWNEY MANUFACTURING INC (98315), PN 65C18552-514

AMERITECH DIE MOLD SOUTH, INC. (5HPY1), PN65C18552-514

The use of the authority cited in other than 10 U.S.C. 2304(c)(1) above:

AMC 1. Suitable for competitive acquisition for the second or subsequent time.

AMSC C. This part requires engineering source approval by the design control activity in order to maintain the quality of the part. Existing unique design capability, engineering skills, and manufacturing knowledge by the qualified source(s) require acquisition of the part from the approved source(s). The approved source(s) retain data rights, manufacturing knowledge, or technical data that are not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the part. An alternate source must qualify in accordance with the design control activity's procedures, as approved by the cognizant Government engineering activity. The qualification procedures must be approved by the Government engineering activity having jurisdiction over the part in the intended application (see Attachment No. 1).

This item is a critical safety item, and in accordance with DFARS 209.270, DLA must procure this item only from those sources approved by the design control activity. At this time, only Boeing Company, Downey Manufacturing, Inc., Camnetics Manufacturing, and Ameritech Die Mold South, Inc. have been approved by the design control activity to supply this CSI.

6. Efforts to ensure that offers are solicited from as many sources as practicable are:

A pre-solicitation notice was posted on 5/22/2017 and revised on 6/1/2017 to incorporate the option quantity and will be synopsized for 15 days. At the completion of the synopsis period, the PR will be solicited on the internet for 30 days, via the DLA Internet Bid Board System (DIBBS).

Alternate items will not be evaluated for this procurement, but will be referred for possible future acquisitions. For alternate offers, the supplier is required to provide a complete SAR data package, which may take from 30 to 180 days to be evaluated.

Bidders List:

AMERITECH DIE MOLD SOUTH, INC.( 5HPY1), PN65C18552-514

A Sources Sought Notice was posted in FedBizOpps, in accordance with PGI 206.302-1, seeking to identify potential sources of supply for NSN 3040-01-618-9591. The Sources Sought Notice was posted on 3/6/2017, with a response date of 3/17/2017.

No responses were received for the sources sought posted in FedBizOpps.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable.

I hereby determine that the anticipated cost to the Government will be fair and reasonable based on past buy history and /or a price analysis prepared by the buyer and through market research.

Certified cost or pricing data will not be required per FAR 15.403-1 (c) (1) as there is the expectation that competition will be received among small business, independent manufacturers as a result of the market survey responses. Should this not be the case, the solicitation will be amended to incorporate certified cost or pricing data clauses.

This item is being procured on an All or None basis, and Multiple/Split awards will not be considered.

This will be a definite quantity contract.

8. Market Research/Efforts to Obtain Competition:

Market Survey [10 U.S.C. 2304(f)(3)(D)]:

Market research was conducted on 3/6/17 with responses due by 3/10/2017.

Total number of vendors contacted four (4).

Name(s) of vendor contacted:

Two responses were received from Camnetics and Ameritech Types of information requested:

Size of business Manufacturer or dealer Commerciality Estimated delivery Whether or not item is quantity/price sensitive

Summary of information requested:

9. Additional facts supporting other than full and open competition are:

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. This requirement is in accordance with

This is the first time we have procured this NSN as it was a replacement NSN for 3040- 01-155-3204. No other information is available, however, when comparing the pricing to a previous buy for a similar item, obsolete NSN 3040-01-155-3204, we last paid $936.80 per unit from STATZ Corporation, under contract number SPE7L316M3705. The similar item pricing has shown that it may be quantity sensitive and has increased throughout the history (See Attachment No. 2 History of Similar Item). In addition, based on the market survey results, the estimated price is expected to be more than the DLA price listed on the PR Trailer (See Attachment No. 3 Market Survey Results).

The product specialist of record confirmed that no significant changes occurred between the cancelled NSN (3204) and the new NSN (9591) other than they are made from different raw materials. The bearing, a component of both NSNs, remains unchanged.

10. A listing of source(s), if any, indicating an interest in the acquisition is (both are small businesses):

11. The solicitation contains the procurement notes L04 and M06.

All recent past procurements of the similar item (NSN 3040-01-155-3204) utilized simplified acquisition procedures and a J&A was not required IAW FAR 6.001(a) and the J&A for SPM7L313C0070 was not available in eProcurement but was awarded to Ameritech Die Mold South, Inc. on 9/30/2013 with a PGC of BA . A search of FBO for contract SPM7L313C0070 J&A yielded no results (See Attachment No. 2).

Attachment(s):

Attachment No. 1 TQ Referral Attachment No. 2 History of Similar Item NSN ending 3204 Attachment No. 3 Market Survey Results

Description DCJ0017 03/02/2017 14:30:28

Please provide the following information for the enclosed PR. This information will be used on the Acquisition Plan for this solicitation.

PR# 67601955

NSN: 3040-01-618-9591

Nomenclature: Connecting Link

AMC/AMSC: 1C

1. A description of the item, which is in sufficient detail to allow potential alternate offerors to understand the requirement. (i.e. What is the part and what purpose does it serve?)

2. What is the Weapon System Designator Code, and what vehicle does this item support?

3. Is the drawing package complete and up-to-date?

4. Is the AMC/AMSC code up to date?

5. Is the item commercial or is it made specifically for the military?

Thank you, Ceresa

Description DAD0038 03/06/2017 17:00:39 I will be happy to assist you. Answers to your questions are as follows:

1. This is a Rigid Connecting Link (Rear Engine Mount)

2. 05F / KC-135

3. Data package is complete and up-to-date with an expiration date of 26 July, 2021.

4. AMC/AMSC is a 1C which is up to date.

5. This item is military specific.

Feel free to contact ,e if you have any further questions.

ADerrick/FLBD/2-6738

Attachment No. 1 SPE7L117R0033 Page 6 of 14

From: Derrick, Adam J CIV DLA LAND AND MARITIME (US)

Subject: RE: NSN 3040-01-618-9591 / Connecting Link / PR067601955 Date: Monday, April 03, 2017 12:10:40 PM

Ceresa, They are basically the same part, but made of a different material. Not sure about the bearing because in the part list of these assemblies they call out the same bearing part number. But the part itself is made of a different raw materials between the 2 NSNs. 3040-01-618-9591 will eventually replace the 01-155-3204. Let me know if

V/r

Adam J. Derrick DLA Land Maritime-FLBD Quality Assurance Specialist Phone: 614-692-6738

DSN: 850-6738

Fax: 614-692-3361 Email: adam.derrick@dla.mil

"DISCLAIMER -- Be advised that I have no contractual authority to bind or obligate the Government. This email is for information gathering purposes only. This correspondence shall in no way be interpreted to change any terms or conditions in existing contracts with the Government. If you require action on your open contracts, please contact the administrator located in the Issued by Block of your contract."

-----Original Message----- From: Justus-Lee, Ceresa L CIV DLA LAND AND MARITIME (US) Sent: Monday, April 03, 2017 10:40 AM To: Derrick, Adam J CIV DLA LAND AND MARITIME (US) <Adam.Derrick@dla.mil> Cc: Brubaker, Sunshine S CIV DLA ACQUISITION (US) <Sunshine.Brubaker@dla.mil> Subject: FW: NSN 3040-01-618-9591 / Connecting Link / PR067601955

Hi Adam, Can you tell me what the differences are between the new NSN 3040-01-618-9591 and the cancelled NSN 3040-01-155-3204? Per two of the approved sources, the estimate per unit cost is $900 and not $624 as listed on the trailer. I would like to know what changes there are that would warrant the price increase. According to the approved OEM, the cost increase is due to the raw materials and bearings. Do you know if either of the requirements for the raw mateials and bearings changed from NSN to NSN?

Thanks, Ceresa

-----Original Message----- From: Justus-Lee, Ceresa L CIV DLA LAND AND MARITIME (US) Sent: Monday, April 03, 2017 10:35 AM To: Brunotte, Teresa K CIV DLA LAND AND MARITIME (US) <Teresa.Brunotte@dla.mil> Cc: Carter, Renee Y CIV DLA LAND AND MARITIME (US) <Renee.Carter@dla.mil>;

Brubaker, Sunshine S CIV DLA ACQUISITION (US) <Sunshine.Brubaker@dla.mil> Subject: NSN 3040-01-618-9591 / Connecting Link / PR067601955

Attachment No. 1 SPE7L117R0033 Page 7 of 14

Hi Teresa, I received market research back on this item and we have two small OEM's that are expected to provide offers on this item once on solicitation. On the market research response, the vendor stated the pricing value is incorrect as it is 2013 pricing. He explained that the per unit cost is $900 based on the increase of raw materials and bearings (but not the final assembly costs). It is recommended that we correct our estimated value pricing as this PR value is now over $900K for the base quantity. Is the full quantity still needed? I reviewed IDS and DPC and do not see any backorders against this NSN. Please see the attached phased delivery schedule and estimated value worksheet. Do you know if the end user is willing to pay the per unit price?

The phased delivery schedule #1 is based on the first OEM market survey response comments, #2 is based on the second OEM market survey response comments, and the DLA phased delivery is what I am suggesting we propose on the solicitation as the 240 ADO is based on both OEM stating they could begin phased delivery at this timeframe. Bearing manufacturing is estimated to take 140-180 days ADO which will then be shipped to the OEM for final assembly.

As this item was a replacement NSN for 3040-01-155-3204, I am contacting Tech to see what changes were made between these two items that would warrant the increase in price.

Please let me know if there are questions and if the estimated value and quantity are valid and if the end user is willing to pay the per unit price.

Thanks, Ceresa

Ceresa L. Justus-Lee Contract Specialist DLA Land & Maritime Land Supplier Operations

MRAP IST

(614) 692-6535 Ceresa.justus-lee@dla.mil NOTE: This email and/or its attachments may contain Source Selection Sensitive Information and is For Official Use Only. FAR 2.101 and 3.104 apply.

Attachment No. 1 SPE7L117R0033 Page 8 of 14

Please understand and comply with all regulations concerning Source Selection Information per FAR 2.101 and 3.104

DLA LAND AND MARITIME - MARKET RESEARCH

Company: AMERITECH DIE & MOLD SOUTH INC

CAGE: 5HPY1

Your Name: CHUCK LAYMON Phone Number: 386-677-1770 E-Mail address: CLAYMON@AMDIEMOLD.COM Date: 3-6-2017

REQUIREMENTS:

NSN ITEM NAME UI QTY Code and PN

GOVT, REQUIRED

DELIVERY

3040-01-618-9591 CONNECTING LINK,RIG EA 1,080

THE BOEING COMPANY DBA BOEING (81205) P/N 65C18552-514

AMERITECH DIE MOLD SOUTH, INC. (5HPY1) P/N 65C18552-514

DOWNEY MANUFACTURING INC (98315) P/N 65C18552-514

CAMNETICS MANUFACTURING (0P657) P/N 65C18552-514

PLEASE COMPLETE THE FOLLOWING:

Do you intend to quote on this NSN? YES NO If not, why?______________

LARGE OR SMALL BUSINESS (select one)

AND

as a MANUFACTURER OR DEALER (select one)

YES NO If not, what is your delivery?_No one can make this delivery as the bearings (part of the assembly) ; and there is only one bearing company approved by Boeing to make them; and they do not stock. We can start deliveries of 100 ea per month at 270 days and possibly 240 days.

Do You Carry This Item in Your Inventory? YES NO (the bearings that go to the assembly are too expensive to stock)

Are any of these items Commercial Items per FAR 2.101(b)? YES NO

If YES to question above, can you provide commercial sales invoices, listing in catalogs or brochures, known established price list to commercial market place, availability or announcement to the general public?

YES NO

Does This Item Contain Hazardous Material? YES NO

Is FOB Origin Acceptable? YES NO

If required is Inspection/Acceptance at Origin Acceptable? YES NO

Is There a Minimum Order Quantity? YES NO

- 1080__________________________

Please Provide Any Recommended Economical QTY Price Breaks:

Can Your Firm Provide Cost & Price Data if Required? YES NO

The Government last paid $577.27EA for a similar item. Is it reasonable to expect a unit price near this for the current requested

Attachment No. SPE7L117R0033 Page 10 of 14

Please understand and comply with all regulations concerning Source Selection Information per FAR 2.101 and 3.104 quantity? This is for planning only, and is not a binding quote. YES NO

COMMENTS/FEEDBACK: THE PRICING FOR THE SIMILAR ITEM ABOVE IS NOW AROUND $900.00 PER PART. YOUR PRICING IS

FROM 2013 AND MATERIALS HAVE GONE UP DRASTICALLY OVER THE PAST 4 YEARS. MOST OF THE COSTING IS IN THE RAW

INCONEL AND THE BEARING NOT THE MACHINE AND ASSEMBLY TIME THAT WE PERFORM.

SPE7L117R0033 Page 11 of 14

Attachment No.

Justus-Lee, Ceresa L CIV DLA LAND AND MARITIME (US)

From: Mark Reaney <mreaney@camneticsmfg.com> Sent: Tuesday, March 07, 2017 6:24 PM

Subject: [Non-DoD Source] RE: Request for Market Survey - SPE7L117R0033 / NSN

3040-01-618-9591 / Connecting Link - Response requested by 1:00 PM EST 3/10/17 Attachments: 65C18552-514 Market Survey.PDF

Justin Lee, Attached is the market survey. Delivery for this material bar stock is currently running 20 22 weeks if not in stock as we currently have material on order for a current contract on a similar part. Due to the high cost of material phased deliveries are more suitable for production and delivery. Let me know if you need anything else.

Bud Reaney

Mark Reaney Camnetics Mfg. Corp., 0P657 2303 West 1300 North Clinton Utah 84015 Phone: (801) 773 9590 Fax: (801) 773 9595 mreaney@camneticsmfg.com

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Original Message From: Justus Lee, Ceresa L CIV DLA LAND AND MARITIME (US) [mailto:Ceresa.Justus Lee@dla.mil] Sent: Monday, March 06, 2017 8:01 AM To: mreaney@camneticsmfg.com Subject: Request for Market Survey SPE7L117R0033 / NSN 3040 01 618 9591 / Connecting Link Response requested by 1:00 PM EST 3/10/17

Please see the request for market survey attached and return a completed copy to my attention. A response by 1:00 PM EST, March 10, 2017 is requested.

Ceresa

Attachment No. SPE7L117R0033 Page 13 of 14

Ceresa L. Justus Lee Contract Specialist DLA Land & Maritime Land Supplier Operations

MRAP IST

(614) 692 6535 Ceresa.justus lee@dla.mil NOTE: This email and/or its attachments may contain Source Selection Sensitive Information and is For Official Use Only. FAR 2.101 and 3.104 apply.

Attachment No. SPE7L117R0033 Page 14 of 14