SPE7LX-20-R-0155 - reviewed_Redacted.pdf

DLA Land & Maritime Justification for Other Than Full & Open Competition (April 2014)

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

sources. A technical and quality review was initiated by the SAPD Strategic Sourcing Specialist during the project development stage for this acquisition. The Acquisition Method Code (AMC)/ Acquisition Method Suffix Code (AMSC) and technical data were reviewed and verified by , Quality Assurance Specialist, FLBC, Long Term Contracting Team on June 25, 2020. The Buyer confirmed the approved sources by reviewing the Product Item Description (PID) and by searching the Product Master – Approved CAGE Part Numbers database in SRM on 6/23/20. See attachment # 2.

The use of the authority cited above:

AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

AMC 5. Acquire directly from the sole source contractor, who is not the manufacturer.

AMC C (1 NSN). 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. Thales Defense & Security, Inc. (Thales) is the only approved source and they are the only known source to own or possess the technical data necessary to manufacture these items.

AMSC D (6 NSNs). 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. For the NSNs listed above, Thales is the only approved source for these items because they are the only known source with the data necessary to manufacture the items.

AMSC L (1 NSN). The annual buy value of this part falls below the screening threshold established by DoD components and field activities. However, this part has been screened for additional known sources, resulting in either confirmation that the initial source exists or that other sources may supply the part. No additional screening was performed to identify the competitive or noncompetitive conditions that would result in assignment of a different AMSC. This code shall not be used when screening parts entering the inventory. This code shall be used only to replace AMSC O for parts under the established screening threshold. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid. For items coded AMSC L, Thales is the only known source and the items have been screened for additional sources, but none have been identified.

AMSC Q (1 NSN). The Government does not have adequate data, lacks rights to data, or both needed to purchase this part from additional sources. The Government has been unable to economically buy the data or rights to the data, although the part has been undergoing full screening for 12 or more months. Breakout to competition has not been achieved, but current, continuing actions to obtain necessary rights to data or adequate, reprocurement technical data indicate breakout to competition is expected to be achieved. This part may be a candidate for reverse engineering or other techniques to obtain technical data. All AMSC Q items are required to be reviewed within the timeframes cited in 2-203(b). If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid. For items coded AMSC Q, Thales is the only source with the data necessary to produce these items.

AMSC R (1 NSN). The Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights. 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. For the NSN listed above, the Government does not have the data or rights to the data and it is not economical for the Government to obtain or otherwise develop the data.

AMSC Z (2 NSNs). This part is a commercial/nondevelopmental/off-the-shelf item. Commercial item descriptions, commercial vendor catalog or price lists or commercial manuals assigned a technical manual number apply. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources are available, AMCs 1 or 2 are valid. For items coded AMSC Z, Thales has material available for these items; the Government knows of no other sources, nor is technical data available.

Thales Defense & Security, Inc. (23386) is the only entity known to possess the requisite technical data and/or rights to that data. Because Thales Defense & Security, Inc. is the only source that possess rights or data for these items, they are the only source uniquely qualified to manufacture these items, therefore, this acquisition will be solicited with other than full and open competition under the authority of 10 U.S.C. 2304(c) (1), as implemented by FAR 6.302-1.

6. Efforts to ensure that offers are solicited from as many sources as practicable are A Sources Sought and a Market Research Questionnaire were posted to beta.SAM.gov from April 30, 2020 to May 7, 2020 but no responses were received. An updated Sources Sought, including the new NSN was posted in beta.SAM.gov from June 3, 20202 to June 8, 2020. No additional sources responded to the notice.

The Government will solicit under the authority of FAR Part 12 – Acquisition of Commercial Items. The synopsis will be posted on beta.SAM.gov for a period of 10 days. Solicitation will be posted on the DLA Internet Bid Board System (DIBBS) for 30 days.

The solicitation will provide that alternate offerors should submit a source approval request (SAR) package that will be forwarded to the engineering support activity (ESA). Additionally, the solicitation will include Procurement Note M06, which provides that offers of alternate product will not be evaluated for the contract action if the time proposed for award does not permit evaluation and delay of award would adversely affect the Government. If such alternate offers are not evaluated for this contract action, the request will be forwarded to the ESA for evaluation for technical acceptability for future procurements.

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

The proposed action will be for up to a five (5) year Firm Fixed Price Indefinite Quantity Contract. The five (5) year period is inclusive of a three (3) year base period and two (2) one (1) year options. Certified Cost or Pricing Data requirements do not apply, per FAR 15.403-1(b)(3). In accordance with FAR Part 12.209, while the Contracting Officer must establish price reasonableness in accordance with 13.106-3, 14.408-2, or Subpart 15.4, as applicable, the Contracting Officer should be aware of customary commercial terms and conditions when pricing commercial items. Commercial item prices are affected by factors that include, but are not limited to, speed of delivery, length and extent of warranty, limitations of seller’s liability, quantities ordered, length of the performance period, and specific performance requirements. The Contracting Officer must ensure that contract terms, conditions, and prices are commensurate with the Government’s need. The Contracting Officer will determine that the contract award prices are fair and reasonable in accordance with FAR Subpart 15.4. The buyer may request information other than cost or price data to support price reasonableness if necessary.

8. Market Research/Efforts to Obtain Competition:

A Sources Sought and a Market Research Questionnaire were posted to beta.SAM.gov from April 30, 2020 to May 7, 2020 but no responses were received. An updated Sources Sought, including the new NSN was posted in beta.SAM.gov from June 3, 2020 to June 8, 2020. No additional sources responded to the notice.

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

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

A market survey was conducted from March 26, 2020 to March 31, 2020 and from May 1, 2020 to June 24, 2020.

Total number of vendors contacted: two (2) vendors were contacted, Subsea Air Systems LLC (6L827) and Thales Defense and Security (23386).

Names of vendors responding: Thales Defense and Security (23386).

Techniques used to conduct survey: The market survey was conducted by e-mail.

Types of Information Requested: The market survey requested the vendor to provide information including business type, business size, interest in LTC and length of contract, commerciality of the item and supporting documentation, quantity ranges, delivery, inspection and packaging compliance.

Summary of information received:

On March 26, 2020, an Acquisition Specialist from the Sourcing Strategy Branch emailed market surveys to the following two (2) vendors: Subsea Air Systems LLC (6L827) and Thales Defense and Security (23386). The project was assigned to the Buyer with no responses. On May 1, 2020 the Buyer sent a follow-up request to Thales Defense Security (23386) as they are the approved source and had not responded to the initial request from the Sourcing Strategy Branch.

On May 15, 2020 Thales Defense and Security (23386) replied. The Buyer had some questions and needed clarification. Emails and calls took place between until all the information from Thales Defense and Security was obtained on June 24, 2020.

The following is a summary of the final information received from Thales Defense Security:

Large business manufacturer with approximately 600+ employees.

Interested in pursuing a LTC. Will only quote directly to DLA and will not quote to dealers.

Items are commercial and five (5) commercial invoices were provided for NSNs 5930-01-487-0993, 6130-01-510-9922, 5895-01-585-8015, 6130-01-618-4110 and 6117-01-643-5506. The Buyer found online pricing for seven (7) NSNs, 5985-01-487-1134, 5985-01-487-1135, 5995-01-487-1139, 6160-01- 487-1151, 6130-01-487-1154, 6130-01-512-0183 and 5995-01-530-7166.

NSN 6140-01-487-1153 replaced by NSN 6140-01-665-0882. NSN 6140-01-665-0882 is not managed by DLA and will not be included in the solicitation.

NSN 6117-01-618-3626 replaced by NSN 6117-01-643-5506. NSN 6117-01-643-5506 was approved by the Product Specialist on June 3, 2020 and will be added to the solicitation.

Information received regarding the commerciality of the item(s):

The Contracting Officer has determined these items to be commercial per the definition listed within FAR

2.101. The resulting IQC will be a successor of contract SPE7MX-16-D-0050, which was awarded using FAR Part 12 procedures and is due to expire on August 26, 2021. Eleven (11) NSN’s are currently on commercial

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

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.

Charles E. Mielke II Date Contracting Officer

Approval/Certification

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

Competition Advocate Phone Date

Head of the Contracting Activity (HCA) Signature Date

APPROVAL REQUIREMENTS

(X) $13,500,00 –$93,000,000 Head of the Contracting Activity (HCA)

Attachments:

1 - Procurement History 2 - Tech Cert and PID

3 - GSA

4 - Justification and Approval (J&A) for SPE7MX-16-D-0050

7/22/20

MIELKE.CHARLES.E

VANS.II.1253169750

Digitally signed by

M ELKE.CHARLES.EVANS.II.1253169

Date: 2020.07.22 10:16:37 -04'00'

HOPSON.LILLI.A.

1230127324

Digitally signed by

HOPSON.LILLI.A.1230127324

Date: 2020.07.24 14:41:26 -04'00'

BROWN.MARK.AL

BERT.1041175032

Digitally signed by

BROWN.MARK.ALBERT.1041175032

Date: 2020.07.24 15:35:34 -04'00'