SPE7LX18R0143_-_reviewed_Redacted_JA.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-18-R-0143

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

(April 2014)

ORIGNAL

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/PN QUANTITY EST.MAX VALUE AMSC

COOLER LUBRICATING 2930-01-433-2550 802 (ADQ) 3B

This requirement is for the acquisition of a COOLER LUBRICATING utilized by the United States Military on the following weapons systems; Truck Utility Expanded Capacity Armt C, Truck Utility, Patriot Missile, Guided Missile Bat, and HMMWV. The Government requires spare parts that are form, fit, and functionally interchangeable with the parts currently being used on the previous referenced weapon systems. The only manufacturing source approved by the military customer’s design control drawings is small business Adams Thermal Systems Inc. (47NR0) who manufacture components within the part.

ESTIMATED BASE VALUE

ESTIMATED TOTAL VALUE (BASE + OPTIONS)

MAXIMUM CONTRACT VALUE

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 sources of supply, include sources and CAGE code:

This procurement is for source controlled drawings and being solicited as other than full and open competition, and unrestricted. The drawing numbers are: IAW BASIC DRAWING NR 19207 12469370 and IAW REFERENCE DRAWING NR 19207 12469370.

NSN CAGE PART

NUMBER

CAGE NAME

2910-01-433-2550 47NR0 19913 Adams Thermal Systems Inc.

The use of the authority cited is based on:

(X) AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

[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

DLC0007

Sticky Note Accepted set by DLC0007

DLC0007

Sticky Note Accepted set by DLC0007

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

(April 2014) 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.

On the NSN for this requirement, Adams Thermal Systems Inc. (47NR0) is the only approved manufacturing sources listed on the applicable source control drawing(s).

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

(X) The acquisition was synopsized on 07/16/2018.

(X) Dealers of the manufacturers will be solicited.

“The item has a WSIC code of T, indicating that failure of the part will render the end item inoperable. Therefore, competition must be limited to offers of the product of CAGE 47NR0.

Most recent technical review was conducted 12/20/2017 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 on 07/16/2018. The NSN was determined to be suitable for an LTC at that time.”

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

a. Relevant pricing issues: The solicitation will utilize FAR 15 procedures with the cost and pricing clauses incorporated.

b. Basis for determining that the anticipated price/cost will be fair and reasonable: The Contracting Officer will request certified cost/price data for additional analysis in support of a reasonableness determination if adequate price competition does not exist at time of offer evaluation.

c. This is 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. 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.

8. Market Research/Efforts to Obtain Competition: See information below:

Sources Sought Notice:

On Oct. 25th, 2017, a sources sought notice was posted to FedBizOps, which also contained an attached market survey. The date of return referenced on the sources sought notice was Nov 1, 2017. No responses were received based on the sources sought notice.

Market Research Total number of vendors contacted: 4 Names of vendors contacted:

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

(April 2014)

(1) Indiana Heat Transfer Inc. (0J567A)

(2) Lynn Electronics Corp. (19151)

(3) Linmarr Associates Inc. (1GX03)

(4) Adams Thermal Systems Inc. (47NR0)

Techniques used to conduct survey: E-mail.

Types of information requested: Commerciality, Length of Contract, Delivery & General information questions. The following responses were received.

Market Research Conclusion:

(1) A Market Survey was sent on 10/25/2017 to Indiana Heat Transfer Inc. (0J567), the company responded on 11/01/2017 to the survey. On the returned survey, Indiana Heat Transfer Inc. indicated they were interested in a Long-Term Contract on this NSN. They indicated their business size was small and they were a manufacturer. Indian Heat Transfer would be willing to quote on a long-term contract

They indicated the item is not considered a commercial item. Indiana

Heat Transfer responded to a clarification email on 07/16/2018 and stated they were out of business and withdraw their interest on this procurement.

(2) A Market Survey was sent on 10/25/2017 to Lynn Electronics Corp CAGE 19151 with no answer. They were contacted by phone on 06/22/2018 and said that this NSN had a difficult packing requirement to fulfill and it wasn’t worth there time if it was part of the requirement.

Lynn would not fill out the market research paperwork because of how much time it takes.

(3) A Market Survey was sent on 10/25/2017 to Linmarr Electronics Corp CAGE 1GX03 with no answer. They were contacted by phone on 06/22/2018 and emailed with interested on this acquisition. They asked that the solicitation be extended.

(4) Adams Thermal Systems Inc. (47NR0) responded to the synopsis posted to FBO on 07/02/2018 and stated they purchased BEHR. They stated they will quote and was able to support the government for this requirement.

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:

Lynn Electronics Corp 19151; Adams Thermal Systems Inc. 47NR0; and Linmar Electronics Corp CAGE

1GX03.

11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to

DLC0007

Sticky Note Accepted set by DLC0007

DLC0007

Sticky Note Completed set by DLC0007

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

(April 2014) competition before any subsequent acquisition for the supplies or services required.

The solicitation will incorporate Procurement Note L22. This note explains that DLA will not evaluate alternate offers for source-controlled items and directs offers interested in qualifying their product for purposes of future acquisitions to contact the design control activity specified on the source control drawing.

Note: Records Management was reviewed for Contract SPE7L4-17-C-0085, which is the last large procurement for this NSN listed in procurement history. Its J&A is attached for reference (See Attachment 1).

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.

Contracting Officer Phone Date

ELIZABETH E. HANLON

Contracting Officer

Approval/Certification

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

Competition Advocate Phone Date

APPROVAL REQUIREMENTS

( ) Up to $700,000 Contracting Officer

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

Attachments:

Attachment 1 – Old J&A and Contract file

HANLON.ELIZABE

TH.EASTON.13783

72107

Digitally signed by

HANLON.ELIZABETH.EASTON.

1378372107 Date: 2018.07.24 10:22:15 -04'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2018.08.07 08:37:52 -04'00'