Redacted_J&A-SPE7LX18R0033.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-18-R-0033

DLA Land & Maritime Justification for Other Than Full & Open Competition

(FEB 2017)

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[X] 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.

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

BRIEF DESCRIPTION NSN/P/N ANNUAL

DEMAND

QUANTITY

EST.

ANNUAL

DEMAND

VALUE

AMC AMSC

Electron Tube 5960-01-244-1591 71 3 B 3 Year Base Estimated Value = Contract Maximum =

Estimated value and contract duration:

The proposed action is for the solicitation and award of a three-year, Firm-Fixed-Price, Indefinite Delivery Indefinite Quantity type contract. The three-year period is inclusive of one three-year base period. The 3-year base period estimated value is The contract maximum is

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

The item is used on the B-1B aircraft, and the F-16 aircraft, both used by the US Air Force. The B-1B aircraft is a long range supersonic bomber, and the F-16 aircraft is a tactical air to air fighter.

3. 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.

4. Acquisition is restricted only to the following source(s) of supply for the item:

CAGE 0MH33 / Communications Power Industries; CAGE 99313 / Communications Power Industries.

The use of the authority cited below:

[X] AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

The use of the authority cited is based on:

[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] Other: (Explain) Due to the criticality of the item, the Government has reserved the right to approve sources and only CAGEs 99313 and 0MH33 have been approved. In addition, per the approved manufacturer parts list for this NSN in SAP (as received from the Defense Logistics Information Service), only CAGEs 99313 and 0MH33 have been identified as having the proper complete technical data and manufacturing expertise to supply the items to DLA and the using military services. The item has a WSIC code of L, indicating that failure of the part will render the end item inoperable, and WSIC R, indicating failure will reduce the end item’s effectiveness.

DLA Land & Maritime Justification for Other Than Full & Open Competition

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Therefore, competition must be limited to offers of the product of CAGEs 99313 and 0MH33. Most recent technical reviews were conducted 12/14/2017 for the NSN (per SAP) and no additional sources were identified at that time. In addition, a technical review in support of a potential LTC was performed in May 2017. The NSN was determined to be suitable for an LTC at that time.

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

[X] The acquisition will be synopsized on or about 12/29/2017.

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

This will be a three-year, firm fixed price, indefinite delivery indefinite quantity type contract. The three-year period is inclusive of one three-year base period. As such, the price analysis for future years will be based on the Global Insights Producer Price Index (PPI) forecasts. The Global Insights PPI forecast provides timely, accurate price and cost analysis, and historical records for thousands of commodity prices and wages around the globe, allowing procurement professionals to understand supplier cost structure and better negotiate supplier quotes. Based on the results of market research, the buyer does not anticipate receiving more than one offer, and adequate price competition is not expected to exist at time of evaluation of proposals. The buyer anticipates using analysis of certified cost/price data, in addition to price analysis, to support a reasonableness determination.

7. Market Research/Efforts to Obtain Competition:

DLA Land and Maritime conducted various forms of market research including the publishing of a formal Sources Sought notice and market survey to www.fbo.gov. In addition to the publishing of a Sources Sought notice, the Sourcing Strategy team’s Contract Specialist also researched the procurement history for the item on the proposed solicitation and emailed each of the suppliers that still had a valid registered CAGE.

Sources Sought Notice:

On 04/12/2017, 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 04/19/2017. As of 12/08/2017, no additional sources responded to the notice.

Market Research Conclusion:

A market survey was conducted on: 04/11/2017 – 04/21/2017.

Total number of vendors contacted: 1 Names of vendors contacted and responding:

CAGE 0MH33 / Communications Power Industries – responded.

Techniques used to conduct survey: E-mail.

Types of information requested: Commerciality, Length of Contract, FOB, Delivery & General information questions.

Summary of information received:

1. On the returned market survey from Communications Power Industries (0MH33), they indicated their business size was large and they are a manufacturer. They indicated they would accept a long term contract with a base period of three years b . They indicated they do not consider the NSN to be commercial.

support of the current LTC in place for this NSN.

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2. While small dealer WKF Friedman Enterprises appears in the purchase history of this item for one standalone purchase order, review of the purchase order showed it to be for a small quantity of previously Government-owned surplus material, as opposed to newly manufactured material. They therefore would not be considered a viable offeror for this acquisition due to the market conditions surrounding availability of surplus material.

3. CAGE 99313 was not contacted during market research as they are part of the same parent corporation as CAGE 0MH33 and are co-located at the same facility.

Information received regarding the commerciality of the item(s): MM03 COTS field has an entry of No, indicating the technical community has made the recommendation to determine the item non-commercial. This particular NSN is not listed on any GSA Federal Supply Schedules. Lastly, all Google results for this NSN were tied to Government information sources. Item is therefore determined to not be commercial.

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

[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.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) Communications Power Industries.

11. This / These item(s) is/are subject to the following methods of locating additional sources:

[X] The solicitation contains DLAD Procurements L04, Offers for Part Numbered Items, and M06, Conditions for Evaluation of Offers for Part Numbered Items.

[X] The Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions for this item to be competitive.

DLA Land & Maritime Justification for Other Than Full & Open Competition

(FEB 2017)

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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.

Matthew M. Kirk Date Contracting Officer

APPROVAL/CERTIFICATION

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

Competition Advocate Date Signature

APPROVAL REQUIREMENTS

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

12/21/2017

01/04/2018

KIRK.MATTHEW

.M.1073378261

Digitally signed by

KIRK.MATTHEW.M.1073378261

Date: 2017.12.21 06:43:29 -05'00'

COUTURE.MARY

.E.1230253613

Digitally signed by

COUTURE.MARY.E.1230253613

Date: 2018.01.04 09:49:25 -05'00'