J A6.302-1cSPE7LX15D0002.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SPE7LX‐14‐R‐0006

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.

This DLA Land and Maritime acquisition is for an Indefinite Quantity Contract (IQC) with firm fixed price with annual economic price adjustment (EPA) for the duration of three (3) base years plus two (2) option years for a potential total of five (5) years for various vehicle parts. The proposed acquisition is for DLA managed item for which UME VOICE, INC. (1VNZ2) is the only approved source of supply. The acquisition will include a population of one (1) National Stock Number (NSN) with electronic system information delineated in the next paragraph. This acquisition is being pursued to provide continued or improved supply availability to preclude backorders, reduce administrative and production lead time (ALT and PLT), decrease potential contract administration actions and obtain reduced and stable unit pricing.

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

*If too numerous, attach list of NSNs and AMSC codes

Identify end item, weapon system, or class of item(s):

NAICS 334310 (Audio and Video Equipment Manufacturing)

Weapon system(s) being supported with this project:

There is no weapon code associated with this item.

ESTIMATED BASE VALUE:

ESTIMATED TOTAL VALUE (BASE + OPTIONS): $

MAXIMUM CONTRACT VALUE:

FOR ADD‐ONS, PROVIDE VALUE OF OPTION YRS REMAINING: N/A

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: UME VOICE, INC. (1VNZ2)

The current source approved is the only company capable of manufacturing this item necessary to meet the Government requirements. UME Voice is the only company to manufacture and/or maintain the item as no technical data is available on the item and data cannot be obtained economically. UME Voice is the only company the Government knows to possess the data required to manufacture the part and meets the Government requirements. Any company offering a product other than the approved sources part would need to get their part number approved.

The use of the authority cited is based on: (The following are condensed versions of the AMSC descriptions.

The full text is available in DFARS PGI 217.7506 Part 2).

(X) AMC 3 ‐ Acquire, for the second or subsequent time, directly from the manufacturer

(X) AMSC D ‐ No technical data on item and data cannot be obtained economically

CLINs BRIEF DESCRIPTION NSN CAGE P/N ADQ ADV AMSC

0001 MICROPHONE, MAGNETIC 5965015981231 1VNZ2 871A 2263 D

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

(X) The acquisition will be synopsized on or about: 05/13/14

(X) Other (Explain): Any sources received from Market Surveys and/or previous procurements. In an effort to encourage participation by manufacturers in the acquisition process and to help decrease barriers for companies looking to become sources of supply, DLA Land & Maritime hosts Captains of Industries bringing in industry leaders for particular commodities or weapon systems. DLA depending on budget allowance also holds supplier conferences.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable. Past procurements stating and/or showing competition; price analysis, “should cost” negotiations, Producer Price Index (PPI), learning curve analysis, informal cost breakdown and other avenues, if necessary, will be explored to ascertain price reasonableness. Based upon the acquisition value, Cost and Pricing Data and Cost Analysis are anticipated and will be utilized in order to make a price reasonableness determination.

8. A Sources Sought Notice:

(X) Was posted to www.fbo.gov on: 11/13/13

Total number of vendors responded: 0

Names of vendors responded: NONE

Type of information requested: Sources interested in becoming approved sources for this NSN was asked to submit the appropriate information to become approved as outlined in DLAD 52.217‐9002, Conditions for Evaluation and Acceptance of Offers for Part Numbered Items. A complete market survey questionnaire was also uploaded and attached to the notice and sources interested in offering on this solicitation were also asked to complete the market survey questionnaire and return it to the buyer via email by 11/25/13.

Summary of information received: NONE

9. A Market Survey:

(X) Was conducted on/during: 11/13/13

Total number of vendors contacted: 2

Names of vendors contacted: ESE, INC (1GN08) and UME VOICE, INC (1VNZ2)

Techniques used to conduct survey: Emailed survey to contractor and called as well.

Type of information requested: The contractor was asked to provide their stock delivery, state if the items are quantity sensitive, indicate the amount of base/option years they would be willing to quote, asked if FOB Destination and Inspection/Acceptance at Origin would be acceptable (if required) and if willing to provide Cost and Pricing (C&P).

Summary of information received:

a. UME VOICE, INC (1VNZ2): Received a voice mail response to market survey on 11/20/13. The contractor has indicated an interested on this NSN (5965015981231) and would like the longer version of the survey; so this was emailed and to respond by 11/27/13. No response was received, so another email was sent on 11/27/13. The contractor responded saying he will try to work and get it back to me the same day if possible; otherwise it'll have to wait till about Dec.

10th since the contractor will be traveling on business. No response was received and another email was sent, as well as another contact, on 12/10/13. No response was received and a last attempt was sent on 01/08/14 and to respond by 01/09/14. The contractor called on 01/09/14 and left voice mail about the survey and he sent it as well. I emailed the contractor back with info he provided and requested some info he left off the survey. I called a little later and spoke to the

NOTE:

An email was sent on 04/15/14 to UME to clarify the minimum buy and the DO Min of 142;

and this was forward to the Supply Planner of record and they concur and the Delivery Order Minimum will now be 500 in lieu of the calculated quantity of

142. The new quantity ranges were calculated by taking the "TO" field and subtracting it from the "FROM" field that were calculated by using the formulas located under Section J (Pricing/Range Structure) and the new figures calculated were 141, 565, 565 & 1980. The following ranges are:

500 + 141 = 641 642 + 565 = 1207 1208 + 565 = 1773 1774 + 1980 = 3754

b. ESE, INC (1GN08): Received no response to market survey emailed on 11/13/14 and 11/27/13. A phone call was made on 03/04/14 and spoke to stated that at one time, they provided the item from UME Voice, Inc, but UME now sell directly to the Government and the only thing ESE does is packaging for UME, if requested, and states UME will be the best price the Government will obtain and stated a price around $151.50.

Information received regarding the commerciality of the item(s): The requirement will be solicited based on FAR Part 15 procedures. The commerciality code in EBS is blank. The OEM responded on the market survey, indicating the item is not commercial.

10. 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

(X) Other (Explain): This NSN included on this solicitation was reviewed by the Strategic Acquisition Programs Directorate (SAPD) Product Specialist during the project development phase. No additional sources were identified during that review.

Forecast information is available to the potential source for the sole source item. The DLA Supplier Requirements Visibility Application (SRVA) is a database that is available via the DLA Internet Bid Board System (DIBBS). SRVA provides potential sources the opportunity to search for information on DLA’s anticipated requirements based on updated monthly forecasts. Essentially it provides 24 months of sole source and competitive projected purchase order quantities. Potential alternate sources for current sole source items can easily see DLA’s forecasted procurements and can contact the Value Management Unit to become approved sources for sole source and code and part number items. The DLA Land & Maritime Value Management Unit continually seeks out sole source, limited competition, over‐priced, low reliability and hard to buy items to improve their value and support posture. The DLA Land & Maritime Internet website contains information for all potential sources on how to challenge prices, how to submit a Value Engineering Change proposal, a link to DoD’s Value Engineering program and the necessary contact info for both the DLA Value Engineering program and the DoD Value Engineering program.

11. A listing of sources, if any, indicating an interest in the acquisition is: (List sources received from Market Survey): UME VOICE, INC (1VNZ2).

12. In addition to the specific actions being taken by Technical Support personnel to overcome barriers to competition before any subsequent acquisitions or recertification of class determination are made, these item(s) are subject to the following methods of locating additional sources:

(X) The solicitation contains the provision entitled Conditions for Evaluation and Acceptance of Offers for

Part Numbered Items