SPE7LX-16-R-0140 - reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION: SPE7LX16R0140

[X] 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.

This modification will increase the current contract maximum from to a new contract maximum of ; a total increase of Increasing the contract maximum will provide additional funds to continue the life of the contract closer to the final expiration date. The contract has an expiration date of August 30, 2022 (base year + 2 option years) and is scheduled to max out earlier than expected. This modification to increase the maximum value will retain the terms and conditions of the original contract SPE7LX-17-D-0080. These NSN's are managed by DLA Land and Maritime and has a new cumulative annual dollar value of $ and a cumulative five-year total of $ . The estimated contract maximum is The original contract was solicited under FAR Part 15.

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

BRIEF DESCRIPTION NSN ADQ ADV AMC/AMSC

SHAFT, FLEXIBLE 3040-00-411-3133 82 1/C

SHAFT, FLEXIBLE 3040-00-411-3134 109 1/P

Identify end item, weapon system, or class of item: H1 Iroquois helicopter and all variants

ESTIMATED BASE VALUE:

ESTIMATED TOTAL VALUE (BASE + OPTIONS):

NEW MAXIMUM CONTRACT VALUE:

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.

This modification will be a sole-source contract action to increase the contract maximum threshold of contract SPE7LX-17-D-0080, which is estimated to max out within the next two months instead of the expiration date of 8/30/2022. This is an out of scope add on and the sources are being restricted to one source, Control Products Corporation. Subject NSNs are both CORE items. This means these items are part of a population that represents a significant portion of demands and these items are consistent demand drivers in both Annual Demand Value (ADV) and Annual Demand Forecast (ADF). Research shows that the demand for the items have increased since the initial forecasts. Increasing the contract maximum will provide additional funds to continue the life of the contract closer to the final expiration date. The contract has an expiration date of August 30, 2022 (base year + 2 option years) and is currently getting ready to max out. The ceiling increase will keep the terms and conditions of the current contract SPE7LX-17-D-0080 by reference for the administrative convenience of the Government. This modification will meet the Government’s needs until the next competition. A successor project has been started since the current contract is trending to max out early.

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

CLIN NSN Item Name UI Approved

CAGE

Company Name

Approved Part Number

0001 3040-00-411-3133 Shaft, Flexible

EA

97499 Bell Textron 209-001-195-1 27520 Control

Products Corp 0002 3040-00-411-3134 Shaft, Flexible EA 97499 Bell Textron 209-001-196-1

27520 Control Products Corp

A technical and quality review was initiated by the SAPD Strategic Sourcing Specialist during the project development stage for this acquisition. During the review the Acquisition Method and Acquisition Method Suffix Codes were reviewed and verified for the included NSNs. The items were also reviewing by Value Engineering and they confirmed the data is proprietary. DLA Land and Maritime Product Specialist, performed a technical review and verified the NSNs and the AMC/AMSC codes on 2/27/2015 and 10/24/2018. Value Engineering performed a review in November 2019.

The use of the authority cited below:

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

The use of the authority cited is based on:

(The following are the AMSC descriptions. The full text is available in DFARS PGI 217.7506 Part 2).

[X] 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. If one source is approved, AMCs 3, 4, or 5 are valid. If at least two sources are approved or if data is adequate for an alternate source to qualify in accordance with the design control activity's procedures, AMCs 1 or 2 are valid.

[X] AMSC P. The rights to use the data needed to purchase this part from additional source(s) are not owned by the Government and cannot be purchased, developed, or otherwise obtained. It is uneconomical to reverse engineer this part. This code is used in situations where the Government has the data but does not own the rights to the data. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid.

Bell Textron (97499) and Control Products Corp (27520) are the only sources currently approved by the design control activity. They are the only known source to possess the requisite rights to technical data for these items.

In November 2019, the Contracting Officer sent the items to be reviewed by Value Engineering to see if it was possible to have their AMC/AMSC coding switched from 1/C and 1/P, respectively, to both being 1/G, and therefore, better competed. A request was submitted to Value Engineering to determine if the change to 1/G is feasible. In December 2019, Value Engineering responded that the data for both NSNs is still proprietary, so they are not suitable for breakout at this time. The Government does not have a complete, unrestricted data package at this date and all means to obtain a technical data package adequate for manufacture of these items have been exhausted. As stated previously, these parts are used on all variants of the H1 helicopters and only OEM Bell Textron (97499) and Control Products Corp (27520) parts have been approved for military use.

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

[X] The acquisition was synopsized in Fed Biz Ops on June 7, 2019 for a period of seven days.

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

This acquisition includes a 3-year base period and two 1-year option periods. The original contract was entered into on August 31, 2017. Because this date is prior to July 1, 2018, the applicable threshold for obtaining certified cost or pricing data is $750,000. Further, the original contract maximum was $2.1 million and the ceiling increase is for an additional $1.3 million, thus, the original contract amount and combined amounts both exceed the $750,000 threshold for obtaining certified cost or pricing data. Although the original contract fell under an exception to the requirement for certified cost or pricing data due to the expectation of competition in accordance with FAR 15.403-1(c)(1)(ii)(A)(1)(2), this exception now only applies for agencies other than DoD, NASA, and the Coast Guard. A waiver of cost or pricing data was signed by the Head of Contracting Activity (HCA) on March 9, 2020. The offered prices of Control Products Corporation (27520) are determined to be fair and reasonable in accordance with FAR 15.404- 1(b)(2)(ii), Comparison of proposed prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items. The prices for this action are the same as the prices on the current contract. The price reasonableness code is BG, price comparison to prior price(s) determined reasonable via valid price analysis.

8. Market Research/Efforts to Obtain Competition:

A successor project was started in March 2019 since the current contract was trending to max out early.

Both approved sources were contacted in Market Research. Only Control Products Corporation responded and indicated that they would bid.

An email was sent to Control Products Corp (27520) on May 9, 2019 asking them if they would consider ceiling increase for the current contract SPE7LX-17-D-0080 because the contract is in maxing out early. On May 9, 2019, agreed.

An updated combined Sources Sought Notice/Market survey was posted on FedBizOpps June 7, 2019 with a response date June 14, 2019 for the intent to increase the contract maximum value of this contract. The source sought notice resulted in zero additional companies expressing interest in this procurement increase.

This Source sought/Market survey combination asked if the company currently manufactures NSNs 3040- 00-411-3134 and/or 3040-00-411-3133. They were asked if they have ever provided a solicitation for the NSNs and if so to provide the solicitation number.

They were asked if their company has supplied the NSNs to DLA in the past and if so to provide the contract number. They were also asked if they their company is considered a small business under NAICS code 333613 and if their company was a commercial supplier of NSNs. Additionally, they were asked if they would be able to immediately supply these NSNs on an IDIQ basis. No responses were received as a result of the Sources sought/Market survey.

Commerciality- the original contract was solicited non-commercial under FAR Part 15. The contractor stated these items are not sold commercially. Research conducted via the Internet produced no commercial sales history, catalogs/brochures or established price lists. Also, the SAP COTS fields designates these items are not commercial. There is no new information from the original contract that would indicate these items are now commercial.

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

[X] Based on 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: Control Products Corporation (27520).

11. As required by DFARS PGI 206.304, the original J&A is attached.

CONTRACTING OFFICER CERTIFICATION

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief. If not exceeding $700,000, this signature serves as the approval.

BRANDY WARNER, Contracting Officer

I have reviewed and approve this justification. The estimated contract maximum value of the J&A is

Competition Advocate

WARNER.BRANDY.D

ANIELLE.1251897880

Digitally signed by WARNER.BRANDY.DANIELLE.1251897880 Date: 2020.03.27 13:31:05 -04'00'

HOPSON.LILLI.A.123

0127324

Digitally signed by

HOPSON.LILLI.A.1230127324

Date: 2020.03.27 13:35:08 -04'00'