J&A_Redacted_SPE7LX-18-R-0175.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-18-R-0175

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

AMC AMSC KID WSIC

CASE,OPTICAL INSTRU 1240-01-452-7822 667 3 C 3 T

ADAPTER,CONNECTOR 5935-01-465-0339 587 3 C 3 F

BATTERY CAP

ASSEMBL 5999-01-454-0048 370 3 D 3 F

BATTERY BOX 6160-01-609-6580 901 3 D 1 T

BINOCULAR SUBASSY 6650-01-604-6195 89 3 D 3 T

1-year Base Estimated Value = 5-year Total Estimated Value = Contract Maximum =

Estimated value and contract duration:

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 (1) one-year base period and four (4) one-year option periods. The one-year base period estimated value is . The contract maximum is

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

The items are used on the following weapon systems across the US Navy, US Army and US Air Force:

NSN WSDC LONG_NAME

1240014527822 DBN MISSILE, AIR-TO-AIR, AMRAAM

1240014527822 VVN AVIATION LIFE SUPPORT SYSTEMS

5935014650339 04F AIRCRAFT, STRATOFORTRESS B-52

5935014650339 ATF AIRCRAFT, SOF (AC-130H, AC-130J, AC-130U, EC-130E, EC-130H, HC

5935014650339 BHF ENGINE, AIRCRAFT, T56-A-7/15 (C-130B/E/H/N/P)

5935014650339 VVN AVIATION LIFE SUPPORT SYSTEMS

5999014540048 EHN AVIATION LIFE SUPPORT SYSTEM (ALSS)

5999014540048 VVN AVIATION LIFE SUPPORT SYSTEMS

6160016096580 ENA AN/PSQ-20 ENHANCED NIGHT VISION GOGGLES (ENVG)

6650016046195 MBN CONSOLIDATED GROUND SUPPORT EQUIPMENT

6650016046195 VUN AIRCRAFT, HORNET F/A-18 (E/F)

6650016046195 Z9N AIRCRAFT, F/A-18, A - D, E/F, G (GROWLER)

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 source(s) of supply for the item:

CAGE 13567 / Harris Corporation DBA Exelis.

The use of the authority cited below:

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

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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.

[X] AMSC D. The data needed to acquire this part competitively is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation. AMCS 3, 4, or 5 are valid.

[X] Other: (Explain) Due to the criticality of the items, the Government has reserved the right to approve sources and only CAGE 13567 has been approved. In addition, per the approved manufacturer parts list for these NSNs in SAP (as received from the Defense Logistics Information Service), only CAGE 13567 has been identified as having the proper complete technical data and manufacturing expertise to supply the items to DLA and the using military services. The items have a WSIC code of F or 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 13567. Most recent technical reviews were conducted 02/06/2018 for the NSNs (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 February 2018. The NSNs were determined to be suitable for an LTC at that time.

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

[X] The acquisition will be synopsized on or about 09/11/2018.

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 indefinite quantity type contract. The five-year period is inclusive of one one-year base period and four 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 offers of a sole manufacturer’s parts from the manufacturer and small dealers. Adequate price competition is expected to exist at time of evaluation of proposals. The buyer anticipates using competition between the manufacturer and independent dealers, in addition to price analysis, to support a reasonableness determination.

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 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:

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

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On 02/01/2018, 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 02/01/2018. A second Sources Sought Notice was posted to www.fbo.gov on 08/15/2018 to reflect the smaller group of NSNs on the project, and its close date is 08/24/2018. As of 08/27/2018, no additional sources have responded to either notice.

Market Research Conclusion:

A market survey was conducted on: 02/01/2018 – 08/24/2018.

Total number of vendors contacted: 8 Names of vendors contacted and responding:

CAGE 27541 / Transaero, Inc. – did not respond;

CAGE 3DJF9 / Valipharm, Inc. – did not respond;

CAGE 1XLG2 / T&L Sales, Inc. – did not respond;

CAGE 13567 / Harris Corp. DBA Exelis – responded;

CAGE 7Z016 / Kampi Components – responded;

CAGE 1N8T8 / JGILS, Inc. – responded;

CAGE 66200 / Pioneer Industries – responded;

CAGE 02JL5 / Maxavision Technologies – 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. CAGE 13567 Harris Corp. Night Vision DBA Exelis i.

ii. Manufacturer

iii. Large Business

iv. Employees 400

v. Parent Company is Harris Corp. with 21,000 employees

vi. Comm’l distr network is not exclusive, not linked to each other and can’t access other dealer inventory levels vii.

viii. Willing to quote on a long term contract ix.

xix. Considers items to be commercial in nature, can provide supporting proof via invoices xx.

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

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2. CAGE 7Z016 Kampi Components, Inc.

i.

ii. Dealer

iii. Small Business

iv. Employees 60

v. No parent company

vi. Offering product of 13567

vii. Independent of OEM, authorized distributor, no existing inventory viii.

xxii. Unknown if items are commercial in nature, can provide supporting proof via invoices xxiii.

3. CAGE 1N8T8 indicated they were not interested in the acquisition.

4. CAGE 66200 also indicated they were not interested in the acquisition.

5. CAGE 13567 Maxabeam Searchlights DBA Maxavision Technologies i.

ii. Dealer

iii. Small Business

iv. Employees 2

v. No parent company

vi. Offering product of 13567 vii.

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

(FEB 2017)

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xxii. Does not consider items to be commercial in nature, can provide supporting proof via invoices xxiii.

Information received regarding the commerciality of the item(s): MM03 COTS field has an entry of ‘No’ for all of the NSNs, indicating the technical community has made the recommendation to determine the items non-commercial. The manufacturer considers these items to be commercial in nature, but all Internet results for these NSNs were tied to Government information sources. None of the NSNs are not listed on any GSA Federal Supply Schedules. Therefore, items are determined to not be commercial and acquisition will be conducted under FAR Part 15.

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) Harris Corp. DBA Exelis; Kampi Components Inc.; Maxavision Technologies

11. 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.

12. Previous contract SPE7L7-17-D-5002 for NSN 6160-01-609-6580 was issued as an indefinite delivery contract under SAT and had a contract maximum of $150,000. Therefore it did not have a justification and approval. The remaining NSNs all had buys estimated under SAT as well and as such do not have justification and approvals available for further review.

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

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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.

Carol M. Bucher 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

Digitally signed by

BUCHER.CAROL.M.1267565690

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DLA, cn=BUCHER.CAROL.M.1267565690

09/10/2018

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2018.09.17 13:26:12 -04'00' 09/17/2018