J&A6.302-1cSPE7LX18D0006_-_17R0060.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SPE7LX 17 R 0060

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 supplies on other than a full and open competition basis. This DLA

Land and Maritime acquisition is for an Indefinite Quantity Contract (IQC) with firm fixed price for the duration of three (3) year base periods with two (2) 1-year option periods for a potential total of five (5) years for Carrier Ships Parts. The proposed acquisition is for the procurement of certain part numbered item that cross-reference to the National Stock Number (NSN) identified below and in Section B of the solicitation. The acquisition will include a population of 1 NSN. This acquisition is being pursued to provide continued or improved supply availability to preclude backorders, reduce administrative and production lead time (ALT and PLT), decrease potential contract administration actions and obtain reduced and stable unit pricing.

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

This requirement is for the acquisition of a single item used on various aircrafts (F-16 and B-1B) for use by the

Department of Defense. This item being procured is 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 DLA-managed item for which large businesses Herley Industries, Inc. (24469) and Northrop Grumman Systems (18323) are the sole source manufacturers. This CLIN on this project is code and part numbered item and is listed below:

CLIN NSN BRIEF DESCRIPTION COMPANY CAGE P/N RNCC RNVC AMC AMSC

0001 5998012077149

ELECTRONIC ASSEMBLY

COMPONENT NORTHROP GRUMMAN SYSTEMS 18323 586R577H01 3 2 1 B

HERLEY INDUSTRIES, INC. 24469 7188B 5 2 1 B

*If too numerous, attach list of NSNs and AMSC codes

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 (individual, company, firm, corporation, or Government activity) which controls the design, characteristics, and production of the item by means of its engineering drawings, specifications and inspection requirements.

5 - Secondary Reference. Any additional number, other than a primary number (codes 1,2,3,4) informative reference (code 6) or vendor item drawing reference (code 7) assigned to an item of production or supply by a commercial or Government organization, which represents the same item of production or supply to which the National Stock Number (NSN) was assigned. The reference number may have had an RNCC of 1, 2, 3, 4 or 7 but has since been replaced in the item-of-supply concept of the NSN by another primary number.

RNVC CODE:

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

Identify end item, weapon system, or class of item(s):

334418 (Printed Circuit Assembly (Electronic Assembly) Manufacturing)

Weapon system(s) being supported with this project:

CLIN NSN WEAPON SYSTEM WSDC

0001 5998012077149 AIRCRAFT, F-16 26F

AIRCRAFT, B-1B 56F

ESTIMATED BASE VALUE:

ESTIMATED TOTAL VALUE (BASE + OPTIONS):

MAXIMUM CONTRACT VALUE:

FOR ADD ONS, PROVIDE VALUE OF OPTION YRS REMAINING: N/A

Estimated Total Award Value and Cost Goals:

CLIN NSN

ESTIMATED BASIC

ANNUAL DEMAND

VALUE (ADV)

ESTIMATED

THREE YEAR

BASE TOTAL

ESTIMATED TOTAL

CONTRACT VALUE

INCLUDING OPTION YEARS

CONTRACT

MINIMUM

CONTRACT

MAXIMUM

(ADV * 1%) (ADV * 6)

0001 5998012077149

TOTALS

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 CAGE code:

Herley Industries, Inc. (24469) and Northrop Grumman Systems (18323) are the sole source manufacturers approved by the military customer’s design control activity with the comprehensive knowledge and expertise necessary to manufacture this item. Herley and Northrop 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 all required form, fit, and function characteristics of this part.

The use of the authority cited is based on:

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 Contract Specialist verified with SAPD Tech on 04/27/17 that the AMC/AMSC codes are correct for this procurement. Reference table below:

AMC AMSC

AMC 1: Suitable for competitive acquisition for the second or subsequent time.

AMSC B: This pertains to CLIN 0001, and Northrop Grumman Systems and Cobham Advanced Electronic are the only known sources that has the data necessary to manufacture this item.

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.

A description of the Federal Supply Groups (FSG) and the Federal Supply Class (FSC) for each 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 items included therein are such as are usually requisitioned or issued together, or constitute a related grouping for supply management purposes. Reference table below:

FSG: 59 ELECTRICAL AND ELECTRONIC EQUIPMENT COMPONENTS

FSC 5998: Electrical, Electronic Assemblies; Boards, Cards, Assoc Hardware

Includes: Excludes items for which more suitable classes are specifically prescribed by the indexes and structure of the FSC. Includes Substrate Preparation Equipment; Circuit Pattern Forming Equipment; Interconnecting and Packaging Equipment. Excludes Assembly Machines for Mounting Discrete Components on Printed Wiring Boards.

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

(X) The acquisition will be synopsized on or about: 06/06/17

(X) Other: Any sources received from Market Surveys and/or previous procurements will be solicited. 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 bringing in industry leaders for particular commodities or weapon systems. DLA depending on budget allowance also holds supplier conferences.

The previous contract for this project is SPM7MX12D0083. A J&A was not found in Record Management for the previous contract and a request was sent to the buyer for a copy and was received (Reference Attachment #1).

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

Based upon the acquisition value and competition not being anticipated; Certified Cost and Pricing Data and Cost Analysis are anticipated and will be utilized in order to make a price reasonableness determination. Vendor(s) will have to sign off stating their cost data is current, accurate, and complete. In addition to an analysis of cost data, the following price analysis may be utilized: Past procurements stating and/or showing possible competition; price analysis, “should cost” negotiations, Producer Price Index (PPI), learning curve analysis, establish market prices, informal cost breakdown and other avenues, if necessary, will be explored to ascertain price reasonableness.

8. Market Research/Efforts to Obtain Competition:

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

(X) A Market Survey was conducted on/during: 04/03/17

Total number of vendors contacted: 3

Names of vendors responding: 0

Techniques used to conduct survey: Email to include a Market Survey questionnaire, an excel spreadsheet and posting a Sources Sought.

Type of information requested: Inquired about the interest of pursuing a Long Term Contract (LTC) for 5-year period to include the First Destination Transportation Program Initiative (FDTPI) and commercial packaging requirements.

Summary of information received: Reference Attachment #2.

Information received regarding the commerciality of the item(s): The requirement will be solicited based on FAR Part 15 procedures. The commerciality code on the Data Refresh Spreadsheet received from the Sourcing Strategy Branch ZAA are blank. A search online did not conclude commerciality as well. A separate memorandum detailing this determination has been prepared and is included in the solicitation file.

9. 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.

(X) Other: This NSN included on this solicitation was reviewed by the Strategic Acquisition Programs Directorate

(SAPD) Product Specialist during the project development phase. No additional sources were identified during that review.

Forecast information is available to the potential sources for the sole source item. 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-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 DoD’s Value Engineering program and the necessary contact info 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:

• None

11. The following actions are being taken to identify additional sources:

(X) The solicitation contains Procurement Notes M06 “Evaluation of Offers for Part Numbered Items” and L04 “Offers for Part Numbered Items.”

(X) Other: One Sources Sought Notice was posted to www.fbo.gov on 01/13/17 by Sourcing Strategy Branch ZAA, Mike Hart for this specific item. Sources interested in becoming approved sources for this NSN was asked to submit the appropriate information to become approved.

a. The market survey and an excel spreadsheet were provided for contractors to fill out for this posting. No vendors responded on the posting.

NOTE: Due to this project being a successor and the renewal is expiring in FY17, it was completed at the development stage (accelerated) and submitted to the buyer to complete the market survey, as it was not fully completed. The Contract Specialist emailed three vendors: Cobham Advanced Electronic (96341), Herley Industries, Inc. (24469), and Northrop Grumman Systems (18323). Cobham responded to the survey.

NOTE: Cobham Advanced Electronic (96341) was originally an approved source, and a negative response to the market survey was received. Cobham stated that they will not bid on this requirement; that the Cobham Lowell, MA site CAGE (96341) where this part was previously manufactured (in the mid '90's) closed in October of 2015, and manufacturing of that site's product lines transitioned to Cobham in Lansdale, PA CAGE (93346); that since this product has not been built in many years, and it is unlikely that all of the documentation/test equipment, etc. still exists, and that Cobham does not believe that it is expedient/cost effective to bid on any solicitation for this part.

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

The solicitation contains the provision entitled Restriction of Alternate Offers for Source Controlled Items.

ATTACHMENTS:

1. Previous J&A

2. Market Research Summary

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.

Contracting Officer Date

APPROVAL/CERTIFICATION

I have reviewed and approved this justification:

Competition Advocate Date

APPROVAL REQUIREMENTS

(X) Up to $700,000 Contracting Officer

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

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

( ) Over $93,000,000 Senior Procurement Executive (AQ)

SANDERS.GERAL

DINE.1230151896

Digitally signed by

SANDERS.GERALDINE.12301518

Date: 2017.05.15 14:44:59 -04'00'

05/15/2017

COUTURE.MARY

.E.1230253613

Digitally signed by

COUTURE.MARY.E.1230253613

Date: 2017.05.26 09:41:21 -04'00'

05/26/2017