J A6.302-1cSPE7LX16D0027_-_14R0102.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SPE7LX‐14‐R‐0102

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 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 items for which THE BOEING COMPANY (77272), BEAVER AEROSPACE (088K1) and LINEAR MOTION LLC (0A335) are the only approved sources of supply. The acquisition will include a population of three (3) National Stock Numbers (NSNs) with vehicle 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 333613 (Mechanical Power Transmission Equipment Manufacturing) NAICS 335312 (Motor and Generator Manufacturing)

05A (3040009866194): Helicopter, Chinook, CH‐47 CBF (3040015478677): Engine, Aircraft, J85‐GE‐5/13 (F‐5A/B, T‐38A) 01F (6105016026993): Missile, Minuteman III, LGM‐30

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:

CLIN 0001: THE BOEING COMPANY (77272) & BEAVER AEROSPACE (088K1)

CLIN 0002: LINEAR MOTION LLC (0A335) & BEAVER AEROSPACE (088K1)

CLIN 0003: BEAVER AEROSPACE (088K1)

The current sources approved are the only companies capable of manufacturing these items necessary to meet the Government requirements. For CLIN 0001 (NSN: 3040009866194), The Boeing Company and Beaver Aerospace are the only companies with the rights to use the data necessary to manufacture

CLINs BRIEF DESCRIPTION NSN CAGE P/N ADQ ADV AMSC

0001 SHAFT, THRUST, CONTRO 3040009866194

77272 088K1

114CS107‐1

A5415 47 P

0002 SHAFT ASSEMBLY, STRA 3040015478677

0A335 088K1

897487 B20610‐100‐G 90 B

0003 MOTOR, STEPPING 6105016026993 088K1 BA22931 5 D

and/or maintain the item as the rights to the data is not owned by the Government and cannot be purchased, developed or otherwise obtained. For CLIN 0002 (NSN: 3040015478677), Linear Motion LLC and Beaver Aerospace are the only companies listed on the "Source Control" drawing with the rights to manufacture and/or maintain the item; due to the criticality of the item, procurement is restricted to source(s) specified on that list. For CLIN 0003 (NSN: 6105016026993), Beaver Aerospace 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. 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 in other than 10. U.S.C. 2304(c)(2) above:

(X) AMC 1 ‐ Suitable for competitive acquisition for the second or subsequent time

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

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) AMSC B ‐ Due to the criticality of the item, procurement is restricted to source(s) specified on "Source

Control" drawing

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

(X) AMSC P ‐ Rights to data is not owned by Govt. and cannot be purchased, developed or otherwise obtained

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

(X) The acquisition will be synopsized on or about: 01/14/14

( ) Manufacturers of similar products identified in the market survey will be solicited

( ) Dealers of the manufacturer will be solicited

( ) A synopsis excerption cited in FAR 5.202 applies (Explain):

(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: 09/16/13

Total number of vendors responded: 0

Names of vendors responded: NONE

Type of information requested: Sources interested in becoming approved sources for these NSNs were 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 09/26/13.

Summary of information received: NONE

9. A Market Survey:

(X) Was conducted on/during: 09/16/13

Total number of vendors contacted: 6

Names of vendors contacted: BEAVER AEROSPACE & DEFENSE, INC (088K1), COMPERIPHERALS, INC (1JZF1), DREAMFIND, INC (1V4T7), LINEAR MOTION, LLC (0A335), SARCO, INC (0ABX5) and THE

BOEING COMPANY (77272)

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. BEAVER AEROSPACE & DEFENSE, INC (088K1): Received response to market survey on 10/03/13.

Contractor has indicated an interest on all 3 NSNs. The contractor is a small manufacturer and showed an interest in a and states this is not commercial.

Contractor was contacted on 10/16/13 to clarify delivery and contractor stated: ,

b. COMPERIPHERALS, INC (1JZF1): Received response to market survey on 09/16/13. Contractor stated they we regret that they would not be able to quote on a long term proposal for these items at this time. A request on why was sent, and the contractor stated the reason is that they would not be able to enter into and IDPO type contract for these items as they are not the manufacturer and they would not be in a good position to forecast pricing for the option years.

c. LINEAR MOTION, LLC (0A335): Received response to market survey on 09/18/13 as the contractor requested a word version; this was emailed to them, but they never responded back to my email or phone call to send the survey back.

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 has blank or “no”. Of the companies responding with market survey information, one indicated the items are 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): The NSNs included on this solicitation were 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 all potential sources for both sole source and competitive items.

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): BEAVER AEROSPACE & DEFENSE, INC (088K1) and possibly LINEAR MOTION, LLC (0A335).

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: