J&A_Redacted_-_R0196_.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION - SPE7LX-16-R-0196

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

SPE7LX16R0196

ORIGINAL

1. The Defense Logistics Agency, DLA Land and Maritime, is the contracting activity.

2. The action being approved is the acquisition of an item of supply on other than a full and open competition basis.

This DLA Land and Maritime acquisition is for a Federal Acquisition Regulation (FAR) Part 12, Corporate Indefinite Quantity Contract (IQC) for DLA-managed consumables identified in Section B of the solicitation. This Acquisition was generated with 25 National Stock Numbers (NSNs), but was reduced to 21 to remove items that don’t met the requirements for Long Term Contracts (LTC)s. This acquisition is being pursued to provide continued and/or improved supply availability, to preclude backorders, reduce administrative and production lead times (ALT and PLT), decrease potential contract administration actions, and obtain reduced and stable unit pricing.

DLA Land and Maritime intends to enter into a Fixed-Price with Annual Price Adjustments, Indefinite Quantity Contract (IQC) issued under FAR Part 12 with a 3-year BASE period and two 1-year option periods that may be exercised at the discretion of the Government, for a total contract period of five years, if both options are exercised.

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

This solicitation is necessary in order for Defense Logistics Agency (DLA) to provide gaskets and electronic shielding gaskets for avionics and antennas on aircraft used by the U.S. Military including the C-130 Hercules, C/KC-135 Stratolifter, A-10 Thunderbolt, EA-6B Prowler, F/A- 18, C-17A Airlifter, E-3B AWACS, HH-60 Helicopter, UH-60 Blackhawk, HH/UH-1 Iroquois Helicopter, AH-64A Apache Helicopter, and MH-60R Helicopter.

CLIN NSN Item Description Annual Demand Quantity

DLA Price Unit Cost

Estimated Annual Demand Value

Acquisition Method Code

(AMC)

Acquisition Method

Suffix Code

(AMSC)

0001 5330015289997 GASKET 856 3 D

0002 5330015305080 GASKET 108 3 D

0003 5999015026911 SHIELDING GASKET,ELECTRONIC 241 3 D

0004 5999015064338 SHIELDING GASKET,ELECTRONIC 2,075 3 R

0005 5999015086042 SHIELDING GASKET,ELECTRONIC 21 3 L

0006 5999015135207 SHIELDING GASKET,ELECTRONIC 22 5 R

0007 5999015151942 SHIELDING GASKET,ELECTRONIC 36 3 C

0008 5999015229973 SHIELDING GASKET,ELECTRONIC 20 3 L

0009 5999015257253 SHIELDING GASKET,ELECTRONIC 48 3 D

0010 5999015303628 SHIELDING GASKET,ELECTRONIC 355 3 R

0011 5999015313540 TAPE, SHIELDING, ELECTRIC 3,600 3 R

0012 5999015400364 SHIELDING GASKET,ELECTRONIC 39 5 L

0013 5999015400626 SHIELDING GASKET,ELECTRONIC 89 3 C

0014 5999015440120 SHIELDING GASKET,ELECTRONIC 98 3 D

0015 5999015445535 SHIELDING GASKET,ELECTRONIC 168 3 D

0016 5999015773557 SHIELDING GASKET,ELECTRONIC 431 3 D

0017 5999015822196 SHIELDING GASKET,ELECTRONIC 656 3 C

0018 5999015822204 SHIELDING GASKET,ELECTRONIC 54 3 D

0019 5999015867559 SHIELDING GASKET,ELECTRONIC 44 3 D

0020 5999015966569 SHIELDING GASKET,ELECTRONIC 53 3 R

0021 5999016087388 SHIELDING GASKET,ELECTRONIC 58 3 D

Annual Demand Value Contract Minimum = ADV * .01 3 year BASE period Contract Maximum = ADV *6 3 year BASE + 2 Options = 5 years

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

SPE7LX16R0196

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 Commercial and Government Entity (CAGE) code:

CLIN NSN Item Description CAGE Company Name Part Number AMC AMSC

0001 5330015289997 GASKET 1NPE1 AVIATION DEVICES AND ELECTRONIC SG787000-02 3 D

0002 5330015305080 GASKET 1NPE1 AVIATION DEVICES AND ELECTRONIC SG278000-01 3 D

0003 5999015026911 SHIELDING GASKET, ELECTRONIC 1NPE1 AVIATION DEVICES AND ELECTRONIC AG843000-41 3 D 0004 5999015064338 SHIELDING GASKET, ELECTRONIC 1NPE1 AVIATION DEVICES AND ELECTRONIC AG736000-01 3 R 0005 5999015086042 SHIELDING GASKET, ELECTRONIC 1NPE1 AVIATION DEVICES AND ELECTRONIC AG728000-04 3 L 0006 5999015135207 SHIELDING GASKET, ELECTRONIC 1NPE1 AVIATION DEVICES AND ELECTRONIC AG867000-04 5 R 0007 5999015151942 SHIELDING GASKET, ELECTRONIC 1NPE1 AVIATION DEVICES AND ELECTRONIC AG843000-02 3 C 0008 5999015229973 SHIELDING GASKET, ELECTRONIC 1NPE1 AVIATION DEVICES AND ELECTRONIC AG477000-11 3 L 0009 5999015257253 SHIELDING GASKET, ELECTRONIC 1NPE1 AVIATION DEVICES AND ELECTRONIC AG843000-33 3 D 0010 5999015303628 SHIELDING GASKET, ELECTRONIC 1NPE1 AVIATION DEVICES AND ELECTRONIC AG367000-01 3 R 0011 5999015313540 SHIELDING GASKET, ELECTRONIC 1NPE1 AVIATION DEVICES AND ELECTRONIC HT3935-7-050 3 R 0012 5999015400364 SHIELDING GASKET, ELECTRONIC 1NPE1 AVIATION DEVICES AND ELECTRONIC SG301000-02 5 L 0013 5999015400626 SHIELDING GASKET, ELECTRONIC 1NPE1 AVIATION DEVICES AND ELECTRONIC AG768000-06 3 C 0014 5999015440120 SHIELDING GASKET, ELECTRONIC 1NPE1 AVIATION DEVICES AND ELECTRONIC AG843000-55 3 D 0015 5999015445535 SHIELDING GASKET, ELECTRONIC 1NPE1 AVIATION DEVICES AND ELECTRONIC AG843000-48 3 D 0016 5999015773557 SHIELDING GASKET, ELECTRONIC 1NPE1 AVIATION DEVICES AND ELECTRONIC AG768000-24 3 D 0017 5999015822196 SHIELDING GASKET, ELECTRONIC 1NPE1 AVIATION DEVICES AND ELECTRONIC FG323000-04 3 C 0018 5999015822204 SHIELDING GASKET, ELECTRONIC 1NPE1 AVIATION DEVICES AND ELECTRONIC FG323000-05 3 D 0019 5999015867559 SHIELDING GASKET, ELECTRONIC 1NPE1 AVIATION DEVICES AND ELECTRONIC AG843000-66 3 D 0020 5999015966569 SHIELDING GASKET, ELECTRONIC 1NPE1 AVIATION DEVICES AND ELECTRONIC AG728000-46 3 R 0021 5999016087388 SHIELDING GASKET, ELECTRONIC 1NPE1 AVIATION DEVICES AND ELECTRONIC AG844000-62 3 D

The use of the authority cited is based on:

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

(The following are the AMSC descriptions. The full text is available in DFARS PGI 217.7506 Part 2).

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

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.

AMSC L. The annual buy value of this part falls below the screening threshold established by DoD components and field activities.

*APPLIES TO LTCs - An item identified by AMSC A, H, or L has been subjected to limited screening. The Government does not physically have in its possession sufficient, accurate, or legible data to purchase this item from other than the identified source. Items identified by

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

SPE7LX16R0196

AMSC A, H, or L on Long Term Contracts, are subject to annual review for possible assignment of a different or permanent AMSC. DLA Land and Maritime agrees to maintain a continual review of these items to ensure that an annual review at a minimum, in part to determine if new technical data is available to allow for assignment of a more permanent AMSC. Any item determined to be competitively available during the solicitation evaluation phase will be removed from the acquisition requirement. Any item determined after contract award to be competitively available may be deleted from the contract and re-solicited.

AMSC R. Government does not own the data rights needed to purchase this part from another source and it has been determined not to be economically feasible to procure the data or rights to the data

The identified sources are the only ones that own the data or are the only ones capable of manufacturing the item to meet critical operational and reliability requirements.

a. (Contract Line Item Number) CLINs 0007, 0013, and 0017 contain an AMSC Code C, meaning the part requires Engineering Support Activity (ESA) approval to maintain the quality of the part and for these items. Aviation Devices and Electronic Components (1NPE1) is currently the only source approved by the ESA to manufacture these items.

b. CLINs 0001 - 0003, 0009, 0014 - 0016, 0018, 0019, and 0021 contain an AMSC Code D, meaning there is no technical data on these items and data cannot be obtained economically, and for these items. Aviation Devices and Electronic Components (1NPE1) is the only source that owns or possess the data.

c. CLINs 0005, 0008, and 0012, contain an AMSC Code L, meaning the Government does not have in its possession sufficient, accurate, or legible data, and for these items.

Aviation Devices and Electronic Components (1NPE1) is the only source that own or possess the data. Items coded with an AMSC Code L are subject to annual review for possible reassignment to a different or permanent AMSC code.

d. CLINs 0004, 0006, 0010, 0011, and 0020 contain an AMSC Code R, meaning the Government does not own the data rights needed to purchase these items from another source. Aviation Devices and Electronic Components (1NPE1) is the only source that own or possess the data.

The AMC/AMSC code for this procurement were determined to be correct on 7/8/2015 per technical readiness email from the product specialist to ZAA Sourcing Strategy Specialist (SSS).

Updated AMC/AMSC codes were received from the product specialist on 9/14/2016.

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

(X) The acquisition will be synopsized on or about 12/16/2016.

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

(X) Dealers of the manufacturer will be solicited.

( ) A synopsis exception cited in FAR 5.202 applies. (explain)

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

SPE7LX16R0196

(X) SOURCES SOUGHT NOTICE: A Sources Sought Notice was posted to the Federal Business Opportunities website (FedBizOps) for the required NSNs on 5/20/2015 and requested responses by close of business (COB) 5/27/2015. No responses were received.

An Additional Sources Sought Notice was posted to FedBizOps on 8/2/2016 with a response date of 8/9/2016. No responses were received. Although not expected, additional sources may be identified by the DLA Land and Maritime – Office of Small Business Programs (DU) and Small Business Administration – Procurement Center Representative (SBA-PCR) reviews, and will be solicited when practicable. As of 9/29/2016, no additional inquiries have been received as a result of the Sources Sought Notice.

(X) Other (Explain): In order to enhance competition and promote small business participation, the buyer completed a review of recent procurement history for the NSNs, researching the Abstracts in Record Management (RM) for recent spot buys for a pool of potential small business dealers who may have offered in the past in an attempt to increase the potential number of small business offers for SPE7LX-16-R-0196. Five small business dealers in good standing were found: AM-MAC Incorporated (0VW10), JGILS, LLC (1N8T8), Dreamfind, Inc (1V4T7), Phoenix Trading, Inc. (4LF36), and Pioneer Industries, Inc. (66200) and will be included on the solicitation mail list as potential sources.

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

This solicitation is for a Federal Acquisition Regulation (FAR) Part 12, Corporate Indefinite Quantity Contract (IQC) with a fixed price 3-year BASE period and two 1-year option periods and contains 21 NSNs The items needed for this acquisition are available from only one responsible source and no other type of items will satisfy the Agency’s needs Aviation Devices and Electronic Components (1NPE1) is a large business manufacturer and the only approved source of supply on all NSNs. Additional items within the scope of the acquisition that meet the requirements of 10 U.S.C. 2304 (c)(1) may be added to this solicitation or any resulting contract(s) at a later date in accordance with (IAW) DLAD 52.216-9006 - Additional/Deletion of Items by way of addendum to this Justification. The Government will solicit on a NSN by NSN basis pursuant to “UCF Section B, All or None.”

Cost or pricing data under FAR Part 12-Acquisition (IAW) FAR 15.403-4 will not be requested as the acquisition falls under the exception at 15.403-1(b)(3) and a commercial determination has been made. Proposed prices will be reviewed for fair, reasonable and realistic pricing in accordance with FAR 15.404-1(b)(2)(iv), comparison with competitive published price lists, published market prices of commodities, similar indexes and discount or rebate arrangements.

Price analysis will also be conducted by comparison of the offer received with the past acquisition history, movement of the producer’s price index and comparisons to similar items. If needed, other than cost and pricing data may be requested to provide additional pricing support to the contracting officer.

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

SPE7LX16R0196

8. Market Research/Efforts to Obtain Competition:

Describe the market research conducted and the results. Market Research was conducted by the DLA Land and Maritime Sourcing Strategy Specialists (SSS) Branch ZAA from 5/20/2015 through 5/28/2015. Market Surveys, including a market research questionnaire and spreadsheet, were sent to the approved source of supply Aviation Devices and Electronic Components (1NPE1) on 5/20/2015 as well as five small business dealers: AM-MAC Incorporated (0VW10), JGILS, LLC (1N8T8), Dreamfind, Inc (1V4T7), Phoenix Trading, Inc (4LF36), and Pioneer Industries, Inc. (66200). As a result, three responses were received from Aviation Devices and Electronic Components, LLC; Dreamfind, Inc; and JGILS, LLC. However, only Aviation Devices and Electronic Components, LLC indicated a desire and ability to propose.

Additional market research was conducted by the Contract Specialist from 8/2/2016 through 8/9/2016 in an attempt to validate previous market survey information or attain updated information. Additional Market Surveys, including a market research questionnaire and spreadsheet, were sent to the approved source of supply Aviation Devices and Electronic Components, LLC (1NPE1) on 8/2/2016 as well as five small business dealers: AM-MAC Incorporated (0VW10), JGILS, LLC (1N8T8), Dreamfind, Inc (1V4T7), Phoenix Trading, Inc (4LF36), and Pioneer Industries, Inc. (66200). As a result, only one response was received from Aviation Devices and Electronic Components, LLC which indicated that the information provided on its previous market survey response (dated 5/26/2016) is still valid.

A Sources Sought Notice was posted on FedBizOps (for 7 days) on 5/20/2016. No responses were received. An additional Sources Sought Notice was posted on for 7 days on 8/2/2016. No responses were received. The solicitation will be synopsized and posted on the DLA Internet Bid Board System (DIBBS) website for interested offerors. The solicitation shall contain DLAD Procurement Notes M06-Evaluation of Offers for Part Numbered Items an L04-Offers for Part Numbered Items

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

Techniques used to conduct survey: Email, phone calls, posting Sources Sought notice on FedBizOps, and research of past procurements in Records Management.

Types of information requested: The Market Survey incorporated a request for contractors to consider a 3-year BASE period in lieu of the one-year base and were asked questions regarding business size and type of business (manufacturer vs dealer), Electronic Data Interchange (EDI) capability, option years (pricing and desirability), cost or pricing data, commerciality, Freight on Board (F.O.B.) preferences, packaging, and delivery questions.

A. Summary of information received:

See Attachment# 1 for a summary of market research.

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

SPE7LX16R0196

All NSNs are now under the First Destination Transportation (FDT) program, and as a result the F.O.B. will be at Origin (Government managed freight). The Inspection/Acceptance will be Destination for all NSNs in this initiative. The vendors(s) are to be EDI or electronic mail capable.

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

Market research determined that all NSNs in this initiative are Commercial Items. They are made from the same raw materials and are available for purchase to the general public direct from the factory. Additionally, nine NSNs (CLINs 0001, 0002, 0003, 0008, 0011, 0012, 0014, and 0015) were previously solicited commercially under FAR Part 12 on solicitation SPM7MX-11-R-0125 and awarded on contract SPM7MX-12-0146.

The original equipment manufacturer (OEM) Aviation Devices and Electronic Components, LLC (1NPE1) provided unredacted commercial invoices to the Sourcing Strategy Specialist (SSS) on 6/23/2015 for CLINS: 0001, 0002, 0004 - 0006, 0009 - 0011, 0016 - 0020 (See Attachment# 2). The Contract Specialist sent a request to Aviation Devices and Electronic Components, LLC for additional invoices to support the remaining NSNs. A response was received on 8/11/2016 with commercial invoices for CLINS: 0003, 0007, 0015, and 0021 (See Attachment# 2). The information provided by Aviation Devices and Electronic Components, LLC, is proof that these items are of a type customarily used by non-governmental entities for use on commercial aircraft and have been sold to the general public which meets the definition provided under FAR 2.101 (1)(i) for Commercial item.

Aviation Devices and Electronic Components, LLC could not provide commercial invoices on the remaining CLINS: 0008, 0012, 0013, and 0014. It stated that these items have no recent commercial sales but they are made from the same material and shaped in the required specifications as needed. Additional research was preformed and information was found in the AV-DEC website (Attachment# 3) indicating that all the Gaskets that have a part number that starts with the letters “AG” (CLINS: 0003 - 0010, 0013 - 0016, 0020, and 0021) are known as HI-TAK Polyurethane Conductive Gaskets. Gaskets that have a part number that starts with the letters “SG” (CLINS: 0001, 0002, and 0012) are known as HI-TAK Conductive Specialty Gaskets. They are also made from the same raw materials as the “AG” Gaskets. Items from either part number series are used on military and commercial aircraft for corrosion prevention, improved avionics reliability, and antenna repair/scrap cost avoidance. They are also available for sale to the general public and can bought direct from Aviation Devices and Electronic Components, LLC. Based on the information collected from the Aviation Devices and Electronic Components website, the above CLINS are determined to be commercial with minor modification that does not significantly alter the unit for military use per FAR 2.101 (b)(3)(ii)

Based on the information provided above and attached, the Contracting Officer made the determination that these items meet the commercial item definition in FAR 2.101 and determines these items to be commercial. As a result, the items in this initiative will be solicited utilizing FAR 12 “Acquisition of Commercial Items.”

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

SPE7LX16R0196

9. Additional facts supporting other than full and open competition are:

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 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 and 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 the Department of Defense (DoD) Value Engineering program and the necessary contact information for both the DLA Value Engineering program and the DoD Value Engineering Program.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) Aviation Devices and Electronic Components (1NPE1)

11. This item is subject to the following methods of locating additional sources:

(X) The solicitation contains DLAD Procurement Notes M06-Evaluation of Offers for Part Numbered Items an L04-Offers for Part Numbered Items ( ) VE Bailment Program

(X) Source Development Review ( ) Reverse Engineering

(X) Actions under the previous solicitation SPM7MX-11-R-0125 were accomplished during the term of the LTC contract SPM7MX-12-D-0146. See Attachment# 4, Historical J& A for Solicitation SPM7MX-11-R-0125/LTC contract SPM7MX-12-D-0146.

Attachments:

1 – Market Research 2 – AV-DEC Commercial Invoices 3 – AV-DEC Website Screenshots 4 – Historical J&A for Solicitation SPM7MX-11-R-0125/LTC contract SPM7MX-12-D-0146.

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

SPE7LX16R0196

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.

CARRIE L. KRAFFT SPAYDE Phone Date Contracting Officer

Approval/Certification

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

MARY E. COUTURE Phone Date DLA Land and Maritime Competition Advocate

APPROVAL REQUIREMENTS

(X) Up to $700,000 Contracting Officer

(X) $700,000 to $13,500,000 Competition Advocate

KRAFFT

SPAYDE.CARRIE.L.1299372029

Digitally signed by KRAFFT

SPAYDE.CARRIE.L.1299372029

Date: 2016.12.30 13:52:20 -05'00' 614-692-7569 12/30/2016

9 Jan '17