J A6.302-1cSPE7LX15D0054_Redacted.pdf

SPE7LX-14-R-0225

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-14-R-0225

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. The action being approved is the acquisition of a Switch, Thermostatic for an Aircraft Stratfortress B-52 (04F). CLIN 0001 is for cage code 0YFP0 part number 975-0021-002 or cage code 81205 part number 10-30196-3. This part requires engineering source approval by the design control activity in order to maintain 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 Government will be using other than full and open competition by restricting manufacturing sources to the only two sources approved by the engineering support activity to manufacture the item.

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

National Stock Number (NSN) Item Name

Acquisitio n Method

Code

(AMC)

Acquisitio n Method

Suffix Code

(AMSC)

Annual Demand Quantity (ADQd0

Annual Demand Value

(ADV)

5930-00-822-4675

SWITCH,

THERMOSTATIC 1 C 57

Identify end item, weapon system, or class of item:

Aircraft Stratfortress B-52 (04F) This is a critical application item FAR 6.303-2(b)(5)

ESTIMATED YEARLY VALUE:

ESTIMATED TOTAL VALUE:

CONTRACT MAXIMUM:

For Add-Ons, Provide Value of Option Years Remaining: N/A

4. The statutory authority permitting other than full and open competition is 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) name and CAGE code. Any company offering products other than those approved would need to get their part numbers approved. The approved sources of supply for these CLINs are:

Due to a sophisticated production process and testing only these two sources have been approved by the Engineering Support Activity (ESA) as current approved sources. Honeywell and Boeing are the only companies known to possess the manufacturing knowledge necessary to maintain the requisite quality of the part.

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

AMSC C. Part requires engineering source approval by the design control activity in order to maintain the quality of the part.

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

(X) The acquisition will be synopsized at least 15 days prior to issuance of solicitation.

7. The end item is a Code & Part numbered item in which the Government does not have drawings, although there is a description of the item. This item does not have a nuclear hardened feature or any other critical feature such as tolerance, fit restriction or application. This NSN is not known to contain a precious metal. A clause for precious metals will not be included in the solicitation. The HMIC code in SAP indicates a “P” for this item. There is no information in the HMIS; however, the NSN of this FSC is in the Table II of Federal Standard 313 and a MSDS may be required by the user.

8. Market survey was conducted on/during 24 March 2014 and closed on 02 April 2014.

Total number of vendors contacted: 3.

Names of vendors contacted and responding:

LKD Aerospace Inc. (0CUF4)—Responded WKF (Friedman) Enterprises, Inc. (3BQS1)—Responded Honeywell International (0YFP0)—No response

Techniques used to conduct survey:

Market Research CM14006004 was posted via Sources Sought – Federal Business Opportunities.

CLIN NSN Item Name UM Approved

Cage Company

Name Approved

Part Number

0001 5930-00-822-4675

SWITCH,

THERMOSTATIC Each 0YFP0 Honeywell

International 975-0021-002

0001 5930-00-822-4675

SWITCH,

THERMOSTATIC Each 81205 The Boeing

Co. 10-30196-3 c011521 Sticky Note None set by c011521 c011521 Highlight

A sources sought was posted on FedBizOpps on 24 March 2014 with a response date of 02 April 2014. The sources sought posting resulted in (1) additional company expressing interest in proposing on this acquisition: Allied Defense Industries (0GD25).

Reviewed previous buys

Types of information requested: The market survey requested that companies provide their stock delivery, state if the item is commercial, indicate the amount of option years they would be willing to quote, as well as Firm-Fixed pricing, Economic Price Adjustment (EPA), and if they could provide the packaging requirements.

Summary of information received: Two of the three responses received stated they are interested however; they are unable to provide any information requested certified Cost or Pricing Data if required. The response received from LKD Aerospace Inc. (0CUF4) on 25 March 2014. LKD is a distributor, not a manufacturer.

The response received from Allied Defense Industries (0GD25) (ADI) on 31 March 2014. ADI is a distributor, not a manufacturer.

LKD and ADI both are capable of the STD-COM PKG with the MIL-STD-129 markings and indicated the item is not commercial. Neither wants to utilize Economic Price Adjustments for the escalation prices for base years 2 and 3.

The third survey’s respondent WKF (Friedman) Enterprises, Inc. (3BQS1) indicated they will not be submitting a quote. They are out of stock.

Information received regarding the commerciality of the item(s): Both vendor LKD and ADI states this item is not commercial. Buyer researched SAP and the material master and this item is not considered commercial.

9. I hereby determine the anticipated cost to the Government will be fair and reasonable. Cost or Pricing data in accordance with FAR 15.403-1(c)(1)(ii) will not be required. Subsection (c)(1) of FAR 15.403-1 references there was a reasonable expectation, based on market research or other assessment, that two or more responsible offerors, competing independently, would submit priced offers in response to the solicitation’s expressed requirement. The buyer will utilize price analysis based upon previous buy history, Producer Price Index (PPI) and learning curve analysis to establish Government Targets. By using the above techniques, the Contracting Officer anticipates that the costs to the Government will be fair and reasonable. This requirement is being solicited with a three year base with no option periods.

[X] Previous buy history will be reviewed and a PPI price analysis will be performed.

[X] Based upon buy history and information received during the market survey stage, it is anticipated that pricing and delivery will be determined fair and reasonable.

10. Additional fact 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.

11. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state)

LKD Aerospace Inc. (0CUF4) Allied Defense Industries (0GD25)

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 is 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

( ) VE Bailment Program ( ) Source Development Review ( ) Reverse Engineering

(X) Other: A sources sought notice was posted on FedBizOpps on 24 March 2014, with a response date of 02 April 2014. One inquiry was received as a result of this notice.

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 $650,000, this signature serves as the approval.

Aric Allen, Phone Date Contracting Officer

Approval/Certification

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

APPROVAL REQUIREMENTS

(X) Up to $650,000 Contracting Officer

() $650,000 to $12,500,000 Competition Advocate

( ) $12,500,000 –$85,500,000 Head of the Contracting Activity (HCA)

( ) over $85,500,000 Senior Procurement Executive (AQ)

2-3558 9/4/2014

ALLEN.ARIC.J.124283

Digitally signed by ALLEN.ARIC.J.1242832562 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DLA, cn=ALLEN.ARIC.J.1242832562 Date: 2014.09.04 13:26:48 -04'00'