SPE7LX-18-R-0194 - reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-18-R-0194

DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018)

[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. This acquisition is to establish a firm fixed-priced, indefinite quantity contract for a base period of 3 years and 2 one-year option periods. The action being approved is the acquisition of supplies on other than a full and open competition basis.

3. This acquisition is to establish a firm, fixed-price contract for the following supplies. The supplies required to meet the using activity’s needs are:

BRIEF DESCRIPTION NSN/P/N QUANTITY EST.5 YR AMC/AMSC

SKIN,PROPELLER 2010015459562 51 1/C

MANIFOLD,EXHAUST 2805013508874 47 3/C

SEAL ASSEMBLY,SHAFT 4320014390131 48 3/C

FILTER,FLUID 4330011954453 11 3/C

These items procured being are in support of the Landing Craft, Air Cushioned (LCAC), Weapon System Code-

EDN.

ESTIMATED BASE VALUE:

ESTIMATED TOTAL VALUE (BASE + OPTIONS):

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.

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

Shapes Group Ltd. (3CJ11)

The use of the authority cited below:

[X] AMC 1. Suitable for adequate competition [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 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. The AMC/AMSC codes were verified by Product Specialist on July 3, 2018. The AMC/AMSC code of 1/C for CLIN 0001 was verified by Product Specialist on March 4, 2019. Product Specialist verified on May 22, 2019 that the data was adequate for an alternate source to qualify in accordance with the design control activity’s procedures.

These items being solicited are various items that are used to support the Landing Craft, Air Cushioned (LCAC) hovercraft. The Government currently does not have the data available to acquire these parts competitively. Shapes Group Ltd (3CJ11) is the only known source that has the complete data. A Sources Sought notice was posted on FedBizOpps on October 16, 2017 and again on November 7, 2018 with no responses received. As of this date, there are no other known sources for these items. The LCAC provides personnel transport, evacuation support, lane breaching, mine countermeasure operations, and Marine and Special Warfare equipment delivery. The four main engines are all used for lift and all used for main propulsion. The craft can continue to operate, at reduced capability, with two engines inoperable. They are interchangeable for redundancy. A transport model can seat 180 fully equipped troops. Cargo capacity is 1,809 sq ft (168.1 m2). The LCAC is capable of carrying a 60-ton payload (up to 75 tons in an overload condition), including one M-1 Abrams tank, at speeds over 40 knots. Fuel capacity is 5000 gallons. The LCAC uses an average of 1000 gallons per hour. Maneuvering considerations include requiring 500 yards or more to stop and 2000 yards or more turning radius. The bow ramp is 28.8 ft (8.8 m) wide while the stern ramp is 15 ft (4.6 m) wide.

The LCAC is a dramatic innovation in modern amphibious warfare technology. It provides the capability to launch amphibious assaults from points over the horizon (OTH) from up to 50 nautical miles offshore, thereby decreasing risk to ships and personnel and generating greater uncertainty in the enemy's mind as to the location and timing of an assault, thereby maximizing its prospects of success. The LCAC propulsion system makes it less susceptible to mines than other assault craft or vehicles. Due to its tremendous over-the-beach capability, the LCAC can access more than 80% of the world's coastlines. Previously, landing craft had a top speed of approximately eight knots and could cross only 17% of the world's beach area. Assaults were made from a few miles off-shore. Its high speed complements a joint assault with helicopters, so personnel and equipment can be unloaded beyond the beach in secure landing areas.

For 20 years, helicopters have provided the partial capability to launch OTH amphibious assaults. Now, with LCAC, landing craft complement helos in speed, tactical surprise and without exposing ships to enemy fire. It is essential that the Government procure these items manufactured by Shapes Group Ltd because they are the only known products available that satisfy the military-specific requirements outlined above.

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

[X] The acquisition will be synopsized on or about June 2, 2019.

[X] Dealers of the manufacturers will be solicited.

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

a. Certified Cost and Pricing data is required I/A/W FAR 15.403-1(b)(3), as this acquisition will be procured utilizing FAR Part 15 procedures and is over the TINA threshold of $2m and competition is not expected. These items will be solicited as Unrestricted Other Than Full and Open Competition. The buyer only intends to award the NSNs if fair and reasonable price determinations can be made.

7. Market Research/Efforts to Obtain Competition:

Total Number of Vendors Contacted: 2

Names of Vendors Contacted:

o Shapes Group Ltd. (CAGE 3CJ11) o Senior Aerospace (CAGE 98769)

Names of Vendors that responded in writing to the Market Survey and expressed interest in proposing on requirement:

o Shapes Group Ltd (CAGE 3CJ11)

Types of information requested: The following includes some of the information requested on the Market Survey: Interest in Long Term Contract and number of years preferred, commerciality per FAR 2.101(b), business type (large, small, SDVOSB, WOSB), would an offeror be willing to provide Cost and Pricing Data, estimated delivery, whether an item is quantity sensitive, among other questions.

A Sources Sought notice was posted on October 16, 2017 and again on November 7, 2018.

There were no responses received.

Summary of information received: A detailed response was received from the approved source, see synopsis below:

1. Shapes Group Ltd (CAGE 3CJ11):

responded on October 11, 2017. She stated that Shapes Group is a small business manufacturer with 89 employees.

She stated that these are not commercial items. The buyer followed up on November 11, 2018 and verified the information previously submitted was still valid except she adjusted the production lead times.

Information received regarding the commerciality of the item: The Market Survey respondent stated these items are not commercial items. These items are used exclusively by the military on the LCAC hovercraft. Based on the market research response, and buyer’s Internet research, the Contracting Officer has determined that these items are not commercial items.

8. 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.

9. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) Shapes Group Ltd (3CJ11)

10. The following actions are being taken to identify additional sources:

[X] Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items [X] Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items [ ] Reverse Engineering

A prior J & A was found for CLIN 0002 2805-01-350-8874. A search of the past buy history was conducted and no prior J & A’s for the remaining CLINs were found.

Attachments:

1. SPE7L5-18-R-0016 J & A

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.

Carrie Krafft Spayde Contracting Officer Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

[X] Up to $700,000 Contracting Officer

[ X] $700,000 to $13,500,000 Competition Advocate

05/22/19

SHEARER.MARY.E.125

0702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.05.29 07:33:42 -04'00' 5/29/19

KRAFFT

SPAYDE.CARRIE.L.129937202

Digitally signed by KRAFFT

SPAYDE.CARRIE.L.1299372029

Date: 2019.05.22 15:32:33 -04'00'