J&A6.3021CSPE7LX18D0096.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-18-R-0050

FOR OFFICIAL USE ONLY

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.04

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

X ORIGINAL

ADDENDUM (attach copy of original J & A for add-ons or revisions)

1. The contracting activity for this acquisition is the Defense Logistics Agency, DLA Land and Maritime.

2. The action being approved is for the acquisition of supplies on other than full and open competition basis. This DLA Land & Maritime acquisition is for an Indefinite Quantity Contract (IQC), with firm fixed pricing for the duration of three (3) base years plus two (2) – 1-year option periods for a Storage Battery used to support Aircraft, F-16. The acquisition will include NSN 6140-01-060-6855 (Storage Battery).

3. The proposed acquisition is for a DLA managed item for which Saft America, Inc. (CAGE 7X634) and MarathonNorco Aerospace (CAGE 74025), both large businesses, are the only approved manufacturers for this CLIN.

This CLIN is a code and part numbered item and is listed below:

CLIN NSN AMC AMSC Part Number CAGE Company Name 0001 6140010606855 1 C 40091-001 74025 MarathonNorco Aerospace

406773-000 7X634 Saft America, Inc.

Identification of end item, weapon system, or class of the item is provided in the table below:

CLIN NSN Item Name Weapon Item Name Weapon

System Code

0001 6140010606855 STORAGE BATTERY AIRCRAFT, F-16 26F

The proposed action is for the solicitation and award of a five-year, Firm, Fixed-Price, Indefinite Delivery Indefinite Quantity type contract. The five-year period is inclusive of one three-year base period and two separately priced option periods. The contract values are listed below.

ANNUAL DEMAND VALUE (ADV):

3-YEAR BASE PERIOD:

MINIMUM CONTRACT VALUE: which is 1% of ADV MAXIMUM CONTRACT VALUE: , which is ADV x 6 per NSN

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.

FOR OFFICIAL USE ONLY

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.04

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

5. If restricted to the only source of supply include source name and CAGE code: Saft America, Inc. (CAGE 7X634) and MarathonNorco Aerospace (CAGE 74025) are the only approved manufacturers for this CLIN. This item has an AMSC of C. This item requires engineering source approval by the design control activity in order to maintain the quality of the part. 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. Per the Product Specialist, Saft America, Inc. and MarathonNorco Aerospace are the approved OEMs and are the only sources provided by the services.

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 use of the authority cited is based on the information provided in the table below:

AMC AMSC

1 – Suitable for competitive acquisition for the second or subsequent time

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.

The Product Specialist reviewed and verified the AMC/AMSC codes on January 23, 2018.

FOR OFFICIAL USE ONLY

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.04

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

A description of the Federal Supply Group (FSG) and the Federal Supply Class (FSC) for the 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 item included therein is such as are usually requisitioned or issued together, or constitute a related grouping for supply management purposes.

FSG 61: Electric Wire, Power, and Distribution Equipment FSC 6140: Batteries, Rechargeable Includes Rechargeable Cells and Batteries

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

(X) The acquisition will be synopsized concurrently with the solicitation on or about:

April 30, 2018. The synopsis period will remain on the internet for 15 days, via the DLA Internet Bid Board System (DIBBS).

(X) All companies who expressed an interest in the project during the market survey period will be sent a copy of the solicitation as soon as it has opened on DIBBS.

( ) Manufacturers of similar products identified in the market research will be solicited.

(X) Dealers of the manufacturer will be solicited.

(X) Alternate items will be evaluated for this procurement if they are offered.

( ) A synopsis exception cited in FAR 5.202 applies.

( ) Other. Any sources from Market Surveys and/or previous procurements. 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 and the DLA Industry Forum, bringing in industry leaders for particular commodities or weapon systems.

The buyer made several attempts to locate the J&A for the previous LTC (SPM7LX13D0090). The buyer was unable to obtain a copy of the previous J&A.

7. Price/cost considerations (10 U.S.C. 2304(f)(3)(C))

a. Cost or Pricing data is not required I/A/W FAR 15.403-1(b)(1), prices agreed upon are based on adequate price competition. This item will be solicited as Other Than Full and Open Competition. Offerors may be required to provide additional information for determining reasonableness of price. This data may consist of material cost or an explanation of their pricing approach. The buyer only intends to award the NSN if fair and reasonable price determinations can be made.

FOR OFFICIAL USE ONLY

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.04

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

b. I hereby determine that the anticipated cost to the Government will be fair and reasonable based on competition, conducting a Price analysis, "should cost" negotiations, Producer Price Index (PPI), learning curve analysis, and/or informal cost breakdown.

8. A Sources Sought Notice:

(X) Was posted on Fed Biz Ops (www.fbo.gov) on: February 13, 2018, thru February 18, 2018, by the Contract Specialist.

No responses were received.

Types of Information Requested: Sources interested in becoming approved sources for this NSN were asked to submit the notice and sources interested in offering on this solicitation were asked to complete the market survey questionnaire appropriate information to become approved outlined in Procurement Notes L04 and M06. A complete market survey questionnaire was also uploaded and attached to the sources sought.

9. Market Research/Efforts to Obtain Competition:

Market Survey was conducted between January 22 and February 8, 2018.

Total Number of Vendors Contacted: 3

Names of Vendors Contacted:

o Saft America, Inc. (CAGE 7X634) o MarathonNorco Aerospace (CAGE 74025) o ECI Defense Group (CAGE 3SDB5)

Names of Vendors that responded in writing to the Market Survey and expressed interest in proposing on requirement:

o Saft America, Inc. (CAGE 7X634) o MarathonNorco Aerospace (CAGE 74025)

Types of information requested: The following includes some of the information requested on the Market Survey: Interest in Long Term Contract and number of years preferred, commerciality per FAR 2.101(b), business type (large, small, SDVOSB, WOSB), would an offeror be willing to provide Cost and Pricing Data, estimated delivery, whether an item is quantity sensitive, among other questions.

FOR OFFICIAL USE ONLY

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.04

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

Summary of information received: A detailed response was received from the three Contractors that were contacted, see synopsis below:

1. Saft America, Inc. (7X634) – Large Business:

On January 29, 2018, of Saft America, Inc. provided the following results to the Market Survey:

Saft America, Inc. is a Large Business manufacturer

Interested in pursuing a Long Term Contract with a three year base period

Indicated that this item is not commercial

2. MarathonNorco Aerospace (74025) – Large Business:

On January 30, 2018, of MarathonNorco Aerospace provided the following results to the Market Survey:

MarathonNorco Aerospace is a Large Business manufacturer

Interested in pursuing a Long Term Contract with a three year base period

Indicated that this item is commercial

FOR OFFICIAL USE ONLY

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.04

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

3. ECI Defense Group (3SDB5) – Small Business:

On February 8, 2018, of ECI Defense Group provided a response stating that they will not be bidding this request or participating in the market survey.

Information received regarding the commerciality of the item: One of the Market Survey respondents stated that this item is commercial. However, after several requests, the respondent was not able to provide supporting documentation. The previous provider for this item stated that the item is not commercial. The buyer conducted additional online research for this item. Information found was not inclusive in determining this item commercial. Previous acquisition history identified the item as non-commerical.

Based on the market research responses and the buyer being unable to obtain supporting documentation, the Contracting Officer has determined that this item is not a commercial item.

10. A listing of sources, if any, indicating an interest in the acquisition are: (If none, so state) Saft America, Inc. (CAGE 7X634) MarathonNorco Aerospace (CAGE 74025)

11. 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.

Forecast information is available to all potential sources. 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-prices, 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

FOR OFFICIAL USE ONLY

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.04

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014) 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.

12. In additional 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:

(X) The solicitation contains DLAD Procurement Note L04, Offers for Part Numbered Items.

FOR OFFICIAL USE ONLY

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.04

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

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.

Caroline R. Watson, Contracting Officer Date

APPROVAL/CERTIFICATION

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

Competition Advocate Phone Date Signature

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)

WATSON.CAROLINE.

R.1299372142

Digitally signed by

WATSON.CAROLINE.R.1299372142

Date: 2018.04.17 12:53:05 -04'00'

HOPSON.LILLI.A.123

0127324

Digitally signed by

HOPSON.LILLI.A.1230127324

Date: 2018.05.05 16:52:39 -04'00'