J&A6.302-1cSPE7LX17R0008.pdf

Source Selection Information See FAR 2.101 & 3.104 For Official Use Only

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-17-R-0008

PROJECT CL16280002

ORIGINAL

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.

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

CLINs NSN Nomenclature UM AMC/AMSC PIC QCC ADQ Annual Demand Value (ADV)

0001 5930-20-007-8311 Switches & Raytheon EA 3D 2 DAA 245

0002 5965-01-597-8695 Antennas Fuses & Circuit Brea EA 3D 2 DAA 91

0003 6135-01-384-3915 Battery Assembly EA 3C C EAF 604

Estimated value and contract duration:

The proposed action is for the solicitation and award of five-year, Firm-Fixed Price, Indefinite Delivery Indefinite Quantity type contract. The 5-year period is inclusive of one 3-year base period and two separately priced 1-year option periods. Estimated values are as follows –

ESTIMATED ADV VALUE:

ESTIMATED (3-Year) BASE VALUE:

ESTIMATED TOTAL VALUE (3-Year BASE + OPTIONS):

MAXIMUM CONTRACT VALUE:

No J&A from the previous acquisition could be located.

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

The following tables identify the various highest priority weapon systems (WSDC) being supported by these items –

CLIN 0001

CLIN 0002

CLIN 0003

See FAR 2.101 & 3.104 For Official Use Only

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) and CAGE code:

CLINs NSN Nomenclature UM AMC/

AMSC

Company Name Approved

CAGE

Approved Part Number

0001 5930-20-007-8311 Switches & Raytheon EA 3D DRS TECHNOLOGIES

CANADA LTD

38200 148961-1

0002 5965-01-597-8695 Antennas Fuses & Circuit Brea

EA 3D DRS TECHNOLOGIES

CANADA LTD

38200 902163-1

0003 6135-01-384-3915 Battery Assembly EA 3C DRS TECHNOLOGIES

CANADA LTD

38200 136783-1

As confirmed with technical personnel, DRS Technologies Canada Ltd (CAGE 38200), Large Business, is the sole source manufacturer known to possess the data and/or rights needed to manufacture these items.

The description of the assigned AMC/AMSC authorities are cited below. The full text is available in DFARS PGI 217.7506 Part 2.

AMC 3: Acquire, for the second or subsequent time, directly from the 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.

AMSC C: This part requires engineering source approval by the design control activity in order to maintain the quality of the part. Existing unique design capability, engineering skills, and manufacturing knowledge by the qualified source(s) require acquisition of the part from the approved source(s). The approved source(s) retain data rights, manufacturing knowledge, or technical data that are not economically available to the Government, and the data or knowledge is essential to maintaining 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 qualification procedures must be approved by the Government engineering activity having jurisdiction over the part in the intended application. If one source is approved, AMCs 3, 4, or 5 are valid. If at least two sources are approved or if data is adequate for an alternate source to qualify in accordance with the design control activity's procedures, AMCs 1 or 2 are valid.

See FAR 2.101 & 3.104 For Official Use Only

The items contained on this project shall be procured according to its assigned AMC/AMSC code using other than full and open competition in accordance with 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1. Other than full and open competition is authorized as this item is available from only one or a limited number of responsible sources and no other material will satisfy DLA Land & Maritime’s requirement.

The Government does not own, or have access to, the technical data for these NSN. At this time, DRS Technologies Canada Ltd. (CAGE: 38200) is the only source known to possess the complete technical data necessary to manufacture these items.

6. Efforts to ensure that offers are solicited from as many sources as practicable are: A Sources Sought Notice posted to FedBizOps on 11 August 2016 and this acquisition will be synopsized for 15 days prior to the solicitation opening. At the completion of the synopsis period, the PR will be solicited on the internet for 30 days, via the DLA Internet Bid Board System (DIBBS). The approved manufacturer and dealer(s) will be solicited. The item will be procured on an “All or None” basis. Alternate proposals for CLIN 0003, NSN 6135-01- 384-3915, will not be evaluated for this procurement due to the requirement for engineering source approval and current backorders. The referenced item has an AMC/AMSC code of 3C and 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. Additionally, our records, EMALL, show unfilled order lines/quantity as follows – IPG-I 23/83, IPG-II 93/210, and IPG-III 12/67. Alternate proposals for CLIN 0003 will be referred for possible future acquisitions.

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

The basis for the Government’s fair and reasonable price determination is anticipated to be price analysis IAW FAR 15.404-1(b)(2)(i), comparison of proposed prices received in response to solicitation, where adequate price competition establishes a fair and reasonable price and 15.404-1(b)(2)(ii), comparison of proposed prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items.

Further, this procurement will be a five-year, Firm-Fixed Price, Indefinite Delivery Indefinite Quantity type contract. The 5-year period is inclusive of one 3-year base period and two separately priced 1-year option periods. As such, the price analysis for further years will be based on the Global Insights Producer Price Index (PPI) forecasts. Global Insights PPI forecast provides accurate price and cost analysis and the historical records for thousands of commodity prices and wages around the globe. This forecast allows procurement professionals to understand supplier cost structure and better negotiate supplier proposals.

Base year period pricing will be compared to reasonable past purchases of the same items using PPI analysis to adjust for quantity sensitivity and passage of time for a fairness and reasonable determination. Additionally, negotiations will be conducted if necessary to ensure reasonableness. An offer is expected from DRS Technologies Canada Ltd. (CAGE:

38200). This acquisition may be subject to the Canadian Commercial Corporation requirements.

See FAR 2.101 & 3.104 For Official Use Only

8. Market Research/Efforts to Obtain Competition/Determination of Commerciality:

DLA Land and Maritime conducted various forms of market research including the publishing of a formal Sources Sought notice and market survey. In addition to publishing of a Sources Sought notice, the Sourcing Strategic Team’s Contract Specialist also researched the procurement history for the items on this project and emailed each of the suppliers that still had a valid registered CAGE code.

Sources Sought Notice:

On 11 August 2016, a Sources Sought notice was posted to www.fbo.gov, which also contained an attached market survey. The date of return referenced on the Sources Sought notice was 18 August 2016 and no responses were received.

Market Research / Survey Summary:

Market survey was conducted on/during on 11 August 2016 Names of vendors contacted o DRS LAUREL TECHNOLOGIES, CAGE: 0ERB9 – No Response o DRS TECHNOLOGIES, CAGE: 36452 – No Response o DRS TECHNOLOGIES, CAGE: 38200 – Responded o JGILS INC, CAGE: 1N8T8 – No Response o CANADIAN COMMERCIAL CORP, CAGE: 98247 – No Response

Techniques used to conduct survey: Market survey was conducted through e-mail.

Types of information requested: Commerciality Information, Length of Contract, FOB, Delivery and general information questions.

One response was received and the supplier, DRS Technologies (CAGE 38200), sole approved manufacturer, is interested in submitting a proposal. The results of the survey are as follows:

DRS Technologies Canada Ltd. (CAGE 38200) Supplier, POC: Contract Specialist, identified her company as a manufacturer and large business on her response to the market survey during 24 August 2016. Contractor is agreeable to accept a long term contract

Contractor indicated that these NSNs are neither commercially available items nor listed on GSA Schedule. All Google results for these NSNs were tied to Government information sources. Additionally, a search was performed in GSA Advantage no exact matches were found.

Both CLIN 0001 and 0002 are managed by DRS Laurel Technologies (CAGE 0ERB9) and the Government is not aware of a minimum order quantity for NSNs. However, for CLIN 0003, Battery Item, there is a vendor-imposed minimum buy requirements of battery cells and

See FAR 2.101 & 3.104 For Official Use Only

Information received regarding the commerciality of these items: The Commercial Off the Shelf (COTS) field in the Material Master of SAP is either blank or indicates NO; in both instances indicating the technical community considers these items to be non-commercial.

Market research supports the non-commerciality of these supplies based on the following –

Market research via internet resources for commercial sale offerings yielded no results to show that this item has been offered for sale, lease or license to the general public as defined in FAR 2.101, “Commercial Item.” All search results yielded government sales history or current/recent government requisitions.

Market research did not yield any readily available published catalog price lists, schedules or other form of commercial pricing that are regularly maintained and updated by a manufacturer or vendor that are available to the general public for inspection nor is there evidence of sale prices at which sales were made to a significant number of buyers constituting the general public. General public is interpreted as individuals using such parts in a non-governmental or military capacity.

Per FAR 12.205, a review of this item shows that there is no existing product literature generally available in the industry to determine its adequacy for purposes of evaluation.

Review of market research for these items indicates as follows – Items are available from a large manufacturer. The manufacturer does direct business with the Government and these items have been provided by a sister

These particular NSNs are not listed on any GSA Federal Supply Schedules Non-Commercial Items

9. Certified Cost or pricing data will not be required. DFAR 215.403-1(4)(c) applies -- DoD has waived the requirement for submission of certified cost or pricing data for the Canadian Commercial Corporation (CCC) and its subcontractors. If the Government needs other than certified cost or pricing data, procedures outlined in DFAR 225-870-4(c) will be utilized and clauses prescribed in DFAR 215.408(3) will be incorporated into the contract.

10. 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. A technical and quality review was initiated by the SAPD Strategic Sourcing Specialists during the project development stage for this acquisition. During the review the Acquisition Method Code (AMC) and Acquisition Method Suffix Codes (AMSC) were reviewed and verified for the included NSNs.

See FAR 2.101 & 3.104 For Official Use Only

11. A listing of sources, if any, indicating an interest in the acquisition is:

DRS TECHNOLOGIES, CAGE: 38200

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, this item is subject to the following methods of locating additional sources:

The solicitation contains Procurement Notes L04, Offers for Part Numbered Items, and M06, Evaluation of Offers for Part Numbered Items. The Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions for these items to be competitive.

Date: 2016.12.07 09:56:08 -05'00'

9 Dec 16