REDACTED_SPE7LX-18-R-0045_-_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-18-R-0045

DLA Land & Maritime Justification for Other Than Full & Open Competition (April 2014) P a g e | 1

[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 for devices (VALVE, GLOBE) that supports the Navy’s Ohio Class SSBN (TRIDENT). This acquisition is assigned a NAICS code of 333911, (Industrial Valve Manufacturing) for NSN 4820-01-218-1904.

This project will be unrestricted with other than full and open competition citing FAR 6.302-1(a). This item is not found to be commercial and will therefore be solicited using Federal Acquisition Regulation (FAR) Part 15. Source tech data determined that this NSN is sole source to two (2) sources of supply, which are Derbyshire Marine Products LLC. CAGE 0ASY6 & Air Dry Company of America CAGE 01496.

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

Brief Description NSN

CAGE/

Part Number

Annual Demand Quantity

(ADQ)

AMC AMSC

VALVE, GLOBE 4820-01-218-1904

01496/ 1106-320

01496/ 10101-11 ITEM 51

01496/ 10101-7-2 PC 51

0ASY6/ M4382-2938

163 1 C

Estimated Basic Annual

Demand Value Estimated 3-Year

Base Value

Estimated Total Contract Value

Including Option Years

Contract Maximum

Estimated value and contract duration:

The proposed action is for the solicitation and award of a five-year, Firm-Fixed-Price, Indefinite Quantity Contract (IQC). The five-year period is inclusive of one three-year base period and two separately priced one-year option periods. The 3-year base period estimated value is and the base period plus two option years’ estimated value is $ The contract maximum is

DLA Land & Maritime Justification for Other Than Full & Open Competition (April 2014) P a g e | 2

Identify end item, weapon system, or class of item: The following table identifies the highest priority weapon systems supported by the referenced NSN.

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. Acquisition is restricted only to the following sources of supply for this item:

Derbyshire Marine Products LLC. (CAGE 0ASY6) & Air Dry Company of America (CAGE 01496)

The use of the authority cited below:

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

The use of the authority cited is based on:

[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(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.

CAGE 0ASY6 & CAGE 01496 have been identified as the only sources having the proper complete technical data and manufacturing expertise to supply this item to DLA and the using military services, as evidenced by the approved manufacturer parts list for this NSN in SAP (as received from the Defense Logistics Information Service). The Product Specialist of record, Danny Carroll, stated on September 17th, 2017 that the NSN of record is suitable for LTC procurement.

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

(X) The acquisition will be synopsized on or about 8/1/2018

(X) Dealers of the manufacturer will be solicited

(X) Sources sought was conducted on FedBizOp s from July 7th, 2017 through July 14th, 2017. No additional sources showed interest. Sources interested in becoming approved sources for each NSN must submit the appropriate information as outlined STO M02, Conditions for Evaluation and Acceptance of

CLIN NSN WSDC End Item Description

0001 4820012181904 23N OHIO CLASS SSBN (TRIDENT)

0001 4820012181904 A8N AIR COMPRESSORS, HIGH PRESSURE (HIPACS)

0001 4820012181904 AGN L.OW PRESSURE AIR COMPRESSORS (LOPACS)

0001 4820012181904 EXN LOS ANGELES CLASS SSN (688)

0001 4820012181904 KBN USNS HENRY J. KAISER CLASS TAO

0001 4820012181904 KKN

KNOLLS ATOMIC POWER LAB - SPECIAL PROJECT

MANAGEMENT SYSTEM

0001 4820012181904 SQN SUBMARINE HULL STRUCTURE

0001 4820012181904 WAN MOORED TRAINING SHIP

0001 4820012181904 WCN

SUBMARINE ATMOSPHERE CONTROL AND COMPRESSED

AIR/GAS

0001 4820012181904 WFN SUBMARINE AUXILLARY AND MISCELLANEOUS SYSTEMS

0001 4820012181904 WMN SUBMARINE HIGH PRESSURE AIR SYSTEM

DLA Land & Maritime Justification for Other Than Full & Open Competition (April 2014) P a g e | 3

Offers for Part Numbered Items. There are only two approved sources for this item; Derbyshire Marine Products LLC. (CAGE 0ASY6) & Air Dry Company of America (CAGE 01496)

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

This will be a five-year, firm fixed price, indefinite quantity type contract. The five-year period is inclusive of one three-year base period, and two separately priced one-year option periods. 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. Base period pricing will be compared to reasonable past purchases of the same item using PPI analysis to adjust for quantity sensitivity and passage of time for a fairness and reasonableness determination. Certified cost and pricing data is not required due to contract maximum being less than $2,000,000. An award will not be made unless the prices are acceptable and can be determined fair and reasonable.

In addition, a Buyer’s price analysis will be conducted for this acquisition to determine if the prices are fair and reasonable. The price analysis will consist of utilizing the historical prices of the NSN from January of 2018 on contract number SPE7M0-18-V-3533 and adjusting prices based on the current NSN’s PPI index. The price will be adjusted utilizing learning curves to determine the Government’s low and high targets for this acquisition.

Additional data may also be requested such as contractor’s informal cost break down and material cost data to determine price reasonableness. By using the above techniques, the Contracting Officer anticipates that the costs to the Government will be fair and reasonable.

8. 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, the Sourcing Strategy Team’s Contract Specialist researched the procurement history for the item on the proposed solicitation and emailed each of the sources that still have a valid registered CAGE.

Sources Sought Notice:

On 7/7/2017, 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 7/14/2017. The posted notice did not receive interest from any additional sources.

Market Research Conclusion:

A market survey was conducted on: 6/20/2017- 8/21/2017 Total number of vendors contacted: 7 Total number that replied: 1

COMPANY NAME CAGE

Derbyshire Marine Products 0ASY6

WKF Friedman 6KB87 AF & AA Corp. 7MD02

Parto, Inc. 7TN32 Parts1045 LLC 7UPV7

Megabites Electronics 045V4 Air Dry Company of America 01496

DLA Land & Maritime Justification for Other Than Full & Open Competition (April 2014) P a g e | 4

Techniques used to conduct survey: E-mail and phone.

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

Summary of information received:

1. Derbyshire Marine Products LLC., CAGE 0ASY6 - , Sales, stated that Derbyshire is a small business manufacturer that has approximately 8 people. Derbyshire does not have a parent company and prefers to deal directly with the Government. Derbyshire is interested in pursuing a long-term contract for this item

Derbyshire noted that this item is not 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) Derbyshire Marine Products LLC. CAGE 0ASY6

11. Previous Justifications for Other than Full and Open Competition:

There were no previous justifications for other than full and open competition located for the NSN on this procurement.

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

[X] The solicitation contains Procurement Note L04 OFFERS FOR PART NUMBERED ITEMS (SEP 2016) & Procurement Note M06 EVALUATION OF OFFERS FOR PART NUMBERED ITEMS (SEP 2016) the provision entitled Conditions for Evaluation and Acceptance 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.

Attachment:

I. NSN Data II. Procurement history

DLA Land & Maritime Justification for Other Than Full & Open Competition (April 2014) P a g e | 5

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.

ELIZABETH HANLON

Contracting Officer Phone Date

APPROVAL/CERTIFICATION

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

COMPETITION ADVOCATE Date Signature

HANLON.ELIZABE

TH.EASTON.13783

72107

Digitally signed by

HANLON.ELIZABETH.EASTON.

1378372107 Date: 2018.08.09 15:31:33 -04'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2018.08.09 15:41:16 -04'00'