J&A_SPE7LX18R0133_-_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-18-R-0133

DLA Land & Maritime Justification for Other Than Full & Open Competition (May | 2018)

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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:

BRIEF

DESCRIPTION

NSN/P/N

ANNUAL

DEMAND

QUANTITY

EST.

ANNUAL

AMC

AMSC

Parts Kit, Gun 1005014660412 93 1 C Parts Kit, Gun 1005014660419 101 1 C Parts Kit, Gun 1005014660423 101 1 C Parts Kit, Gun 1005014660424 99 1 C Parts Kit, Gun 1005014660425 108 1 C Parts Kit, Gun 1005014660427 106 1 C

Total 1 C 3Year Base Estimated Value

= 5 Year Total Estimated Value

Estimated value and contract duration: The proposed action is for the solicitation and award of a three-year base, plus two, one-year options, Firm-Fixed-Price, Indefinite Delivery Indefinite Quantity Contract (IDIQ).

Identify end item, weapon system, or class of item: M61A1/2 Gatling gun

4. The statutory authority permitting other than full and open competition is: 10 U.S.C.

2304(c)( l )- Available from only one or a limited number of sources.

5. Acquisition is restricted only to the following source(s) of supply for all items:

Brighton Cromwell LLC (3NNX8), Part Number 8305862 Sey Tec Inc. (0FGC4), Part Number 8305862 Pattonair USA, Inc. (046U2), Part Number 8305862 Balance Enterprise Solutions LLC (8A2B1), Part Number 8305862

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 below is based on:

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[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.

Per the Product Specialist of Record (PSOR) on January 16, 2019, all of the NSNs on this solicitation are repair kits for the M61A1, 20mm Gun and Ammunition handling system for the PHALANX Close-In Weapon System. NAVSEA System Command controls all of these NSNs.

Sourcing is limited to the approved sources evaluated and approved by NAVSEA. The technical data package (TDP) possessed by the Government only contains part lists and the approved sources. This TDP is not sufficient to procure the kits competitively. Brighton Cromwell (3NNX8), Sey Tec Inc. (0FGC4), Pattonair USA, Inc. (046U2), and Balance Enterprise Solutions LLC (8A2B1) are the only sources currently approved by NAVSEA and the only sources known to possess the necessary technical data to manufacture/assemble the kits. The PSOR certified that the current TDP, the AMC/AMSC coding, list of approved sources, and justification for limiting competition are current and accurate.

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

[X] The acquisition will be synopsized on or about 12/24/2018.

[X] Dealers of the manufacturers will be solicited.

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 delivery contract subject to FAR Part 15.

The five-year period is inclusive of a 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. Based on the results of market research, the buyer anticipates receiving more than one offer, and expects adequate price competition between manufacturers at time of evaluation of offers. The buyer will request other than certified cost/price data from offerors if deemed necessary at time of offer evaluation.

8. Market Research/Efforts to Obtain Competition: DLA Land and Maritime conducted market research, consisting of a market survey that was issued to five different approved sources: Sey Tec, Inc. (0FGC4) (Women Owned Small Business), Brighton Cromwell, LLC (3NNX8) (Small Business), Patton Air USA, Inc. (046U2) (Large Business), Srey Logistics

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Corp., (4GGZ2) (Not in SAM-size unknown), and Balance Enterprises Solutions, LLC (8A2B1) (Not in SAM-size unknown). Only two of the sources responded to the survey, indicating interest, Sey Tec and Brighton Cromwell. Two sources, Balance Enterprises Solutions and Patton Air USA declined to respond. Patton Air stated that, because these NSNs historically are set-aside for small business, they did not wish to participate. Balance Enterprises stated they no longer supply these items. Since the beginning market research, it was determined that Srey Logisics is no longer in business and has been removed as an approved source.

The survey consists of approximately 20 general questions. Majority of questions involved check boxes and (yes or no) answers, miscellaneous questions and final comment section at the very end of the questionnaire. The market survey sought and gathered information regarding shipping costs, zone pricing, and option periods (pricing and desirability).

Information sought on the market survey also included business size, quantity sensitivity of the item, if the items are carried in the inventory, if a dealer/distributor network exists, the anticipated unit price and delivery of the item, if the items are commercial, which FOB & I/A is acceptable, if the OEM, recognized part numbers, and if the contractor is EDI & MIL-STD- 129 markings capable.

Brighton Cromwell replied to the survey and indicated the following:

Brighton Cromwell claims it is a small manufacturer with a preference to do business with the government. They expressed interest in a long-term contract (LTC). Brighton commented,”

Brighton stated that this item is not commercial.

Sey Tec replied to the survey and indicated the following:

Sey Tec is a women-owned small manufacturer with a preference to do business with the government. They expressed interest in a long-term contract (LTC). Sey Tec commented, “Sey Tec has supplied these kits to the government in the past. We have competed against the other approved suppliers for these kits and have won many of these.

Sey Tec stated that this item is not commercial.

Both companies stated that this item is not on any GSI schedule. A search of the internet for the kit met with negative results.

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A Sources Sought Notice was posted on FedBizOps on May 11, 2017, and again on November 6, 2018, which included the market survey as an attachment. To date, no additional responses were received. Copies of both notices are included as Attachment 2. In the notice, it stated that anyone not providing an approved source would need to submit a Source Approval Request (SAR). The main purpose of the Sources Sought was to provide an opportunity to other potential sources to manufacture these NSNs in order to promote competition. Sources that are not approved for these NSNs were required to submit a Source Approval Request (SAR) to DLA Land and Maritime. While the approval of the SAR would not necessarily occur for this procurement, it could be reviewed for future procurements. For this procurement, there were no SAR packages submitted. As part of the Sources Sought, a market survey was included to allow potential offerors an opportunity to provide feedback on the current marketplace for this acquisition.

In addition to the publishing of a Sources Sought notice, the Contract Specialist also researched the procurement history for the items on the proposed solicitation. Past procurements for all six of these NSNs were set-aside for small business, with Sey Tec being the prominent awardee.

Techniques used to conduct survey: E-mail and Sources Sought notice.

Information received regarding the commerciality of the item(s): It is determined that none of these NSNs are commercial. The NSNs are kits containing parts/hardware for the M61A1/2 20mm Gatling gun.

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, a complete TDP 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) Sey Tec, Inc. (0FGC4), a woman owned, small, approved manufacturer and Brighton Cromwell LLC (3NNX8), a small, approved manufacturer.

11. The following actions are being taken to identify additional sources before any subsequent acquisitions are made: (If none, so state and explain why not.)

[X] Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items [X] Solicitation contains DLA Procurement Note, M06 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.

12. Justification and approval for previous acquisition for the NSN were not available.

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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. The estimated total value of the J&A is $4,102,758.84.

JOHN W. HUTCHESON February 8, 2019 Contracting Officer Date

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APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Digitally signed by

SHEARER.MARY.E.1250702449

.E.1250702449 Date: 2019.02.12 15:36:19 -05'00'

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

[ ] Up to $700,000 Contracting Officer

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

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

[ ] over $93,000,000 Senior Procurement Executive (AQ)

Attachments:

1 – Market Survey Summary 2 – Copy of Sources Sought Notice

SHEARER.MARY