J&A6.302-1cSPE7LX17D0029.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-16-R-0167

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A)

(April 2014)

X ORIGINAL

ADDENDUM (attach copy of original J & A for add-ons or revisions)

1. The purchasing activity for this acquisition is the Defense Logistics Agency, DLA Land and Maritime.

2. The action being approved is for the acquisition of supplies on other than full and open competition basis. This DLA Land & Maritime acquisition is for an Indefinite Quantity Contract (IQC), with firm fixed pricing for the duration of three (3) base years plus two (2) – 1 year option periods for an Engine Preoiler that supports the F/A-18 and Growler aircraft Weapon Systems.

The acquisition will include 1 National Stock Number (3040-01-546-4129).

3. This requirement is for the acquisition of an Engine Preoiler used on the F/A-18 and Growler aircrafts for use by the Department of Defense. All of the items being procured are listed below and include the Reference Number Category Code (RNCC), which is a code that designates the relationship of the part number to an item of supply. The Reference Number Variation Code (RNVC) which indicates that a cited part number is or is not item identifying, or is for information only. The proposed acquisition is for a DLA managed item for which small business Hydraulics International, Inc. (56529) is the sole source manufacturer. The CLIN is a code and part numbered item and is listed below:

NSN Part Number RNCC RNVC AMC AMSC CAGE Company Name 3040015464129 061475-100 3 2 3 D 56529 Hydraulics International, Inc.

RNCC CODE: 3 - Design Control Reference. The primary number used to identify an item of production or a range of items of production, by the manufacturer which controls the design, characteristics, and production of the item by means of its engineering drawings, specification and inspection requirements.

RNVC CODE: 2• A design control reference or other reference number that is an item-identifying number for an item of production, or is a source control reference, a specification or a standard part, type, or similar reference number that is an item-identifying number for an item of supply.

Identification of end item, weapon system, or class of item is provided in the table below:

NSN Item Name Weapon Item Name Weapon

System Code

3040015464129 ENGINE PREOILER, AIR

AIRCRAFT, F/A-18,

A-D, E/F, G (GROWLER) Z9N

The proposed action is for the solicitation and award of a five-year, Firm-fixed-Price, Indefinite Delivery Indefinite Quantity type contract. The five-year period is inclusive of one three-year base period and two separately priced option periods. The contract values are listed below.

ANNUAL DEMAND VALUE (ADV): $112,969.51

3 YEAR BASE PERIOD: $338,908.53

MINIMUM CONTRACT VALUE: $1,129.70, which is 1% of ADV MAXIMUM CONTRACT VALUE: $677,817.06, which is ADV x 6 per NSN

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:

Hydraulics International, Inc. (56529) is the only manufacturing source approved by the military customer's design control activity with the comprehensive knowledge and expertise necessary to manufacture this item. Hydraulics International, Inc. owns the data rights to manufacture this item. The Government does not currently possess or have access to detailed technical data sufficient to provide a description of required form, fit, and function characteristics of these parts.

The Acquisition Method Code (AMC) and Acquisition Method Suffix Code (AMSC) are also listed below. The AMC code describes to the Contracting Officer and other Government personnel the results of a technical review of a part and its suitability for breakout, and the AMSC code provides the Contracting Officer and other Government personnel with engineering, manufacturing, and technical information.

The use of the authority cited is based on the information provided in the table below:

AMC AMSC

3 – Acquire directly from the actual manufacturer

AMSC D - 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.

The data needed to acquire this part competitively is not physically available, it is only available from Hydraulics International, Inc. (56529).

The Product Specialist of record was contacted and stated that the AMC/AMSC code is correct and that the approved source is the only source capable of providing this item.

A description of the Federal Supply Groups (FSG) and the Federal Supply Class (FSC) for the item is listed below. The FSG is represented by the first two digits of the NSN and identifies, by title, the commodity area covered by classes within the group. The FSC is represented by the first four digits of the NSN and the code covers a relatively homogeneous area of commodities, in respect to their physical or performance characteristics, or in the respect that the item included therein is such as are usually requisitioned or issued together, or constitute a related grouping for supply management purposes.

FSG 30: Mechanical Power Transmission Equipment

FSC 3040: Miscellanous Power Transmission Equipment

This class includes shafts and shafting; collars; gearshafts, ball joints; actuating cylinders.

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

(X) The acquisition will be synopsized concurrently with the solicitation on or about:

October 1, 2016. The synopsis period will remain on the internet for 15 days, via the DLA Internet Bid Board System (DIBBS).

(X) All companies who expressed an interest in the project during the market survey period will be sent a copy of the solicitation as soon as it has opened on DIBBS.

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

(X) Dealers of the manufacturer will be solicited.

(X) Alternate items will be evaluated for this procurement if they are offered.

( ) A synopsis exception cited in FAR 5.202 applies.

(X) Other. Any sources 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 and the DLA Industry Forum, bringing in industry leaders for particular commodities or weapon systems.

J&A’s for previous acquisitions are not available because the acquisitions were below SAT.

7. Price/cost considerations (10 U.S.C. 2304(f)(3)(C))

a. Cost or Pricing data is not anticipated. This item will be solicited as Other Than Full and Open Competition and will be solicited under FAR Part 15. Cost or Pricing Data is not required due to the dollar value falling below the Cost and Pricing Data threshold.

Offerors may be required to provide additional information for determining reasonableness of price. This data may consist of material cost or an explanation of their pricing approach. The buyer only intends to award the NSN if fair and reasonable price determination can be made.

b. It is not anticipated that adequate competition will exist. Therefore, I hereby determine that the anticipated cost to the Government will be fair and reasonable by conducting a Price analysis, "should cost" negotiations, Producer Price Index (PPI), learning curve analysis, and/or informal cost breakdown.

8. A Sources Sought Notice:

(X) Was posted on Fed Biz Ops (www.fbo.gov) on: April 25, 2016, thru May 2, 2016, by the Market Research Team.

No responses were received.

Types of Information Requested: Sources interested in becoming approved sources for this NSN were asked to submit the notice and sources interested in offering on this solicitation were asked to complete the market survey questionnaire appropriate information to become approved 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 sources sought.

9. Market Research/Efforts to Obtain Competition:

Market Survey was conducted on April 25, 2016.

Total Number of Vendors Contacted: 4

Names of Vendors Contacted:

o Hydraulics International, Inc. (56529) o JGB Enterprises, Inc. (61125) o Talon Air (58CE0) o American Industrial, Inc. (1B7X2)

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

o Hydraulics International, Inc. (56529)

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.

Summary of information received: A detailed response was received from the approved source and a dealer/distributor, see synopsis below.

1. Hydraulics International, Inc. (56529):

On April 25, 2016, Mr. Reza Grami of Hydraulics International, Inc. provided the following results to the Market Survey:

Hydraulics is a Woman Owned Small Business manufacturer They will not be able to provide Cost or Pricing Data if required They are interested in pursuing a Long Term Contract with a 3-year base period for the item They indicated that steel (75%) and rubber (25%) are the primary material drivers of this item They indicated that this item is not commercial They indicated that there is a maximum quantity that can be delivered They do not carry this item in inventory They stated this item is quantity sensitive This item does not contain hazardous materials

2. JGB Enterprises, Inc. (61125):

Declined the Market Survey stating “this item is Hydraulics International part number. They sell direct to DLA and unfortunately they are sole source”.

3. American Industrial, Inc. (1B7X2)

They declined to complete the Market research as they no longer manufacture the product.

4. Talon Air (58CE0)

They did not respond.

Summary of information received: A detailed response was received from the approved source and a dealer/distributor, see synopsis below.

Information received regarding the commerciality of the item: The Market Survey respondent stated that this item is not a commercial-off-the-shelf item. Based on the market research response and buyer’s additional research, the Contracting Officer has determined that this item is not a commercial item.

10. Additional facts supporting other than full and open competition:

(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.

Forecast information is available to all potential sources. 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-prices, low reliability, and hard to buy items to improve their value and support posture. The FLA 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. In additional 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, this 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.

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.

Caroline R. Watson, Contracting Officer Date

This justification has been reviewed for legal sufficiency:

DLA Land and Maritime Counsel Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification. The estimated total value of the J&A is $677,817.06.

APPROVAL REQUIREMENTS

[X] Up to $700,000 Contracting Officer

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

[ ] $13,500,000 to $93,000,000 Head of Contracting Activity (HCA)

[ ] over $93,000,000 Senior Procurement Executive (AQ)

WATSON.CAROLI

NE.R.1299372142

Digitally signed by

WATSON.CAROLINE.R.1299372

Date: 2016.09.02 13:53:00 -04'00'

HEER.ADAM.

J.1456947715

Digitally signed by

HEER.ADAM.J.1456947715

Date: 2016.09.15 16:08:32 -04'00'