J_and_A_SPE7LX-17-R-0050_-_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION - SPE7LX-17-R-0050

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

(April 2014)

SPE7LX-17-R-0050

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 15, Corporate Indefinite Quantity Contract (IQC) for DLA-managed consumable item identified in Section B of the solicitation and contains twelve National Stock Numbers (NSNs).

DLA Land and Maritime intends to enter into a Fixed-Price with Annual Price Adjustments, IQC issued under FAR Part 15 with a maximum contract period of five years (a three year base period and two option years).

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

This solicitation is necessary in order for DLA to support the Black Hawk Helicopter, UH-60A, Black Hawk Aircraft, HH-60L Medivac and Electronic Countermeasures Helicopter along with other vehicles used by the U.S. military.

CLIN NSN Item Description Annual Demand Quantity (ADQ)

DLA Price Unit Cost

Estimated Annual Demand

Value (ADV)

Acquisition Method

Code

(AMC)

Acquisition Method

Suffix Code

(AMSC)

0001 4820012919232 VALVE,BALL 12 3 B

0002 4820012919233 VALVE,BALL 3 3 B

0003 4820012919791 VALVE,BALL 4 3 B

0004 4820012978033 VALVE,BALL 35 3 B

0005 4820013340687 PISTON,VALVE 124 3 C

0006 4820013340688 PISTON,VALVE 144 3 C

0007 5930002314960 SWITCH,PRESSURE 66 3 B

0008 5930009359584 SWITCH,PRESSURE 78 3 B

5930011350096

SWITCH,PRESSURE-

THE 452 3 B

0010 5930011550744 SWITCH,PRESSURE 274 3 C

0011 5930014545079 SWITCH,PRESSURE 36 3 D

0012 5930014545087 SWITCH,PRESSURE 30 3 C

Contract Minimum = ADV * .02 $

Annual Demand Value $

5 Year Value = ADV *5 $

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Contract Maximum = ADV *9 $

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 4820012919232 VALVE,BALL 55723 SPECTRUM ASSOCIATES, INC. DBA 14248-3 3 B

0002 4820012919233 VALVE,BALL 55723 SPECTRUM ASSOCIATES, INC. DBA 14244-3 3 B

0003 4820012919791 VALVE,BALL 55723 SPECTRUM ASSOCIATES, INC. DBA 14241-3 3 B

0004 4820012978033 VALVE,BALL 55723 SPECTRUM ASSOCIATES, INC. DBA 14250-4 3 B

0005 4820013340687 PISTON,VALVE 55723 SPECTRUM ASSOCIATES, INC. DBA 20-053 3 C

0006 4820013340688 PISTON,VALVE 55723 SPECTRUM ASSOCIATES, INC. DBA 20-051-03 3 C

0007 5930002314960 SWITCH,PRESSURE 55723 SPECTRUM ASSOCIATES, INC. DBA 4305-12 3 B

0008 5930009359584 SWITCH,PRESSURE 55723 SPECTRUM ASSOCIATES, INC. DBA 2212-1 3 B

0009 5930011350096 SWITCH,PRESSURE-THE 55723 SPECTRUM ASSOCIATES, INC. DBA 2335-8 3 B

0010 5930011550744 SWITCH,PRESSURE 55723 SPECTRUM ASSOCIATES, INC. DBA 2335-24 3 C

0011 5930014545079 SWITCH,PRESSURE 55723 SPECTRUM ASSOCIATES, INC. DBA 2299-25 3 D

0011 5930014545079 SWITCH,PRESSURE 0PXV4 BOEING COMPANY, THE DBA BOEING 2299-25 3 D

0011 5930014545079 SWITCH,PRESSURE 76301 BOEING COMPANY, THE DBA BOEING 2299-25 3 D

0012 5930014545087 SWITCH,PRESSURE 55723 SPECTRUM ASSOCIATES, INC. DBA 2299-23 3 C

The use of the authority cited is based on:

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

(X) AMSC B. This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-100. Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. Although, by DoD-STD-100 definition, altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

(X) 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 requires acquisition of the part from the approved source. The approved source 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

SPE7LX-17-R-0050

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.

(X) 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 AMC/AMSC codes for these NSNs were reviewed by the Product Specialist on April 05, 2017.

Spectrum Associates, Inc. (55723) and Boeing Company (0PXV4 and 76301), retain the 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.

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

(X) The acquisition will be synopsized on or about 08/23/2017.

( ) 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)

(X) SOURCES SOUGHT NOTICE: A Sources Sought Notice was posted to the Federal Business Opportunities website (FedBizOps) for the required NSNs on February 6, 2017 and requested responses by close of business (COB) February 16, 2017. 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 April 4, 2017, 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 these NSNs, researching the Abstracts in Record Management (RM) for recent spot buys. Two of these NSNs (5930-01-356- 0096 and 5930-01-550-0744 items have been on a long term contracts SPM7MX-12-D-0055 and SPM7MX-13-D-0055 respectively with Spectrum Associates, Inc. (55723). The remaining nine NSNs were purchased thru spot buys, either from the manufacturer Spectrum Associates, Inc.

(55723) or thru dealers, Heli-Sysco (7V208), and WKF Friedman Enterprise (6KB87) since 2010.

All manufacturers and dealers will be added to the Bidders List.

The previous solicitations for the two NSNs that had been on Long Term contracts were SPM7MX-10-R-0079 and SPM7MX-12-R-0116. A J&A was completed for SPM7MX-12-R-0116 but not for SPM7MX-10-R-0079. The previous J&A for SPM7MX-12-R-0116 is included in attachment 1. The Actions Being Taken to Overcome Barriers to Competition listed were:

“Conditions for Evaluation and Acceptance of Offers for Part Numbered Items” was included in

SPE7LX-17-R-0050

the solicitation. The item listed in this previous J&A was completed during and after time of solicitation.

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 15, IQC with a fixed price 3-year BASE period and two potential option years and contains twelve NSNs. The items needed for this acquisition is available from only one responsible source or a limited number of responsible sources and no other type of items will satisfy the Agency's needs. The approved sources for these NSNs will be solicited. The Government will solicit these NSNs on an All or None basis, pursuant to “UCF Section B, All or None.”

Cost or pricing data in accordance with (IAW) FAR 15.403-4 will be requested as the contract value exceeds the $750,000 Truth in Negotiations Act (TINA) threshold. There is a not a reasonable expectation that two or more responsible offerors, competing independently, will submit priced offers in response to the solicitation requirements. The contracting officer hereby anticipates that costs to the Government will be determined fair and reasonable after reviewing and evaluation of the cost and pricing data.

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, on November 9, 2015 thru May 4, 2016. That response was verified as accurate again on January 25, 2017. Market Surveys, including a market research questionnaire and spreadsheet, were sent to manufacturers and dealers: Spectrum Associates, Inc. (55723), Sikorsky (8P601) and Boeing (0PXV4). As a result, one response was received indicating a desire and ability to propose: Spectrum Associates, Inc. Spectrum Associates, Inc. indicated that they are a small Business manufacturer and

Spectrum Associates, Inc. indicated the items were not commercial, and

A Sources Sought Notice was posted on FedBizOps (for 10 days) on February 6, 2017. No responses were received. The solicitation will be synopsized and posted on the DLA Internet Bid Board System (DIBBS) website for interested offerors.

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

A market survey was conducted on/during: November 2015 and was verified again in January 2017.

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

SPE7LX-17-R-0050

(pricing and desirability), cost or pricing data, commerciality, Freight on Board (F.O.B.) preferences, packaging, and delivery questions.

Summary of information received: See the paragraph above for market research results from Spectrum Associates, Inc.

Based on the Market Research received, this requirement will be solicited utilizing FAR Part 15 “Contracting by Negotiation," as a Fixed-Price with Annual Price Adjustments, Indefinite Quantity Contract with a 3-year BASE period. These 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 Origin for three NSNs in this initiative and Destination for the remaining nine NSNs. The vendors(s) are to be EDI or electronic mail capable.

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

These NSNs will be solicited using FAR Part 15 “Contracting by Negotiation” as it may be necessary to conduct discussions with the offeror about their proposal. The solicitation will contain provision FAR 52.215-01 - Instructions to Offerors – Competitive Acquisition, which allows an award to be made without discussions, as well as the ability to hold discussions if the Government determines discussions are necessary. The contracting officer has made the determination that the NSNs being solicited are not commercial for the following reasons:

1. In the market survey, the potential offeror was asked if they considered the items to be commercial, and they provided a negative response.

2. A technical/quality review was completed for the NSNs, and no internal comments state the items are commercial.

3. Commercial invoices, price lists, and brochures, are not available. The item is for military specific use only.

4. The synopsis will be issued stating, “Based upon Market Research, the Government is not using the policies contained in FAR Part 12, Acquisition of Commercial items, in its solicitation for the described supplies and services. However, interested persons may identify to the contracting officer their interest and capability to satisfy the Government’s requirement with a commercial item within 15 days of this notice.”

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

SPE7LX-17-R-0050

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) (55723) Spectrum Associates, Inc.

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

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

(X) Source Development Review ( ) Reverse Engineering

(X) Actions under the previous solicitation SPM7MX-12-R-0116 were accomplished during the term of the LTC contract SPM7LX-13-D-0055. See Attachment 1

12. Attachments:

1 – Historical J&A (Solicitation SPM7MX-12-R-0116).

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 Date Contracting Officer

Approval/Certification

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

MARY E. COUTURE Date DLA Land and Maritime Competition Advocate

08/18/2017

KRAFFT

SPAYDE.CARRIE.L.12993720

Digitally signed by KRAFFT

SPAYDE.CARRIE.L.1299372029

Date: 2017.08.18 09:52:24 -04'00'

COUTURE.MARY.

E.1230253613

Digitally signed by

COUTURE.MARY.E.1230253613

Date: 2017.08.25 14:55:18 -04'00'

SPE7LX-17-R-0050

APPROVAL REQUIREMENTS

(X) Up to $700,000 Contracting Officer

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