J&A_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION – SPE7LX-18-R-0190

X ORIGINAL

ADDENDUM

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. This DLA Land and Maritime acquisition is for an Indefinite Delivery Firm-Fixed Price type contract for spare parts. The proposed acquisition is for DLA managed items for which Lockheed Martin (Commercial and Government Entity (CAGE) (81755), Ducommun Labarge Technologies, Inc (08719) and RLC Electronics (12598) are the only approved sources. The acquisition is for National Stock Number (NSN) 5985-01-302-2792-Switch, Radio Frequency. Item is used on various weapons with the highest rated weapon system being the F-16 Fighting Falcon Aircraft Weapon System (26F). Solicitation will be issued utilizing FAR 15 procedures.

3. The supplies required are to meet the using activity's needs are described in the table below:

Acronym Definitions -U/I – Unit of Issue -ADQ - Annual Demand Quantity -AMC/AMSC – Acquisition Method Code/Acquisition Method Suffix Code -PIC – Place of Inspection -QCC – Quality Control Code -DPAS – Defense Priorities and Allocation System -PLT – Procurement Lead Tim NAIC – North American Industry Classification System Identify end item, weapon system, or class of item.

Item is used on the following weapon systems: Item is used on F-16- Fighting Falcon (pictured below). The Weapon System Designator Code (WSDC) is 26F:

Contract length will consist of one-three year base period with two, one-year options.

Option years will be exercised at the discretion of the Government. Solicitation will be issued as a 50% Partial Small Business Set-Aside.

ITEM U/I

Est.

ADQ

AMC/

AMSC PIC QCC

DPAS

Priority Rating PLT NAICS

Federal Supply Class

Highest Weapon System

Switch, Radio Frequency

EA 46 1C 2 EAA DOC9 90

336390

Antennas, Waveguides & Related Equipment

26F

ESTIMATED BASE VALUE:

Estimated Base Value represents the first three years (Base Period) of the contract. The estimated base value is calculated by multiplying the estimated annual demand quantity (ADQ) for the NSN by the estimated unit price to establish an estimated Annual Demand Value (ADV). The total ADV is multiplied by three (Base Period) to determine the estimated based value.

ESTIMATED TOTAL VALUE (BASE + OPTIONS):

The Estimated Total Value is calculated by multiplying the total ADV by 5

(maximum number of contract years).

MAXIMUM CONTRACT VALUE:

The contract maximum is calculated in order to provide adequate coverage of this item should demands increase; the contract maximum will be ten times the estimated ADV.

Since solicitation will be issued as a 50% set-aside, should the buy result in a split award based on the 50% partial set-aside, contract values will be split evenly between the non-set-aside portion and set-aside portion.

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.

Items are available from a limited number of responsible sources and no other type of supplies will satisfy the needs of the agency.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code:

As of October 25, 2018 per the Approved Materials and Parts List (AMPL) the only approved sources are listed below:

Lockheed Martin (81755) – Large Manufacturer Ducommun Labarge Technologies, Inc (08719) – Large Manufacturer RLC Electronics (12598) – Small Manufacturer

This information was confirmed by Robert Wray, Product Specialist, DLA L&M-FMTE.

The use of the authority cited is based on:

- AMC 1. Suitable for competitive acquisition for the second or subsequent time.

(The following is the AMSC descriptions. The full text is available in DFARS PGI

217.7506 Part 2).

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.

For items coded with an AMC/AMSC of 3C, the Government has retained the right to approve manufacturing sources for this item due to their weapon systems criticality. Lockheed Martin (81755), Ducommun Labarge Technologies, Inc (08719), and RLC Electronics (12598) are the only sources approved to manufacture this item. The identified approved source retains the data rights, manufacturing knowledge, and technical data and this information is not economically available to the Government.

The process of developing a long-term contracting (LTC) project requires a review and determination by the Product Specialist that the technical data is correct, including the AMC and AMSC codes, and that the technical data reflects the minimum requirements for the item.

Because of the amount of time between project development (February, 2018) and solicitation, Buyer referred to the Material Master to verify the AMC/AMSC did not change.

As of October 2018, the item AMC/AMSC was unchanged.

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

(X) The acquisition will be synopsized at least 15 days prior to solicitation opening date.

(X) Manufacturers and dealers of exact products identified in the market research will be solicited.

(X) Solicitation will be posted to the DLA Internet Bid Board System (DIBBS) for 30 days.

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

Prices will be determined fair and reasonable through price analysis based upon the application of the Producers’ Price Index (PPI) to the past acquisition. Also, competition is expected, therefore, proposed prices will be compared among all offers to determine if price competition exists. Contract is firm-fixed price with a contract length of one three-year base period and two one-year options that will be exercised at the Government’s discretion. Buyer will use all methods stated to determine all contract years and quantity range prices fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

Buyer reviewed buy history for potential sources. Previous buys were supplied by RLC Electronics (12598) with the exception of SPE7M5-15-M-1094 awarded as a one-time buy to Dura Electronic Sales (6RZ47). Information in Record Management states that Dura Electronics was supplying item as a dealer from on approved source but exact source was not stated. Most recent purchases provided by RLC Electronics were delivery orders issued off basic contract SPE7M5-16-D-5006. For this buy, RLC Electronics was the only source to submit an offer. RLC Electronics was also awarded basic contract SPM7M9-11-D-5032. For this buy, Maven Engineering (46YF5) offering the part of RLC Electronics also submitted an offer. History shows that RLC Electronics was also awarded one-time buys in between the awarded long-term contracts. For the one-time buys, in addition to RLC Electronics, offers were received from Lockheed Martin (81755) and various dealers. It is unknown the source and part numbers offered by the various dealers.

Buyer researched the availability of the Justification and Approval (J&A) memo for contracts SPE7M5-16-D-5006 and SPM7M9-11-D-5032. A J&A memo was not available in Records Management. For previous purchases not issued as delivery orders against a basic contract, a J&A was not required because all of these buys were below the simplified acquisition threshold.

Market Survey [10 U.S.C. 2304(f)(3)(D)]:

A market survey was conducted on/during: February, 2018 – November 7, 2018.

Total number of vendors contacted: 4.

-Lockheed Martin (81755), Manufacturer -Ducommun Labarge Technologies, Inc (08719), Manufacturer -RLC Electronics (12598), Manufacturer -Dura Electronic Sales (6RZ47).

Name of vendor contacted and responding: RLC Electronics (12598)

Techniques used to conduct survey: Market Survey questionnaires, review of buy history, and internet search and phone discussions with RLC Electronics. A Sources Sought notice was posted on February 6, 2018 with a response date of February 13, 2018. No sources responded.

Types of information requested: Information included business type, business size, interest in LTC and length of contract, commerciality of the item, approximate price and delivery, inspection and packaging compliance, and ability to provide Certified Cost & Price data.

Summary of questionnaire responses from RLC Electronics below:

RLC Electronics is small business, manufacturer.

RLC Electronics considers item as commercial.

Additional information:

RLC Electronics was asked to provide information supporting commerciality claim.

Sales Coordinator, responded by stating RLC Electronics’ commercial customers included the . Because all of the named sources were suppliers to Government agencies, RLC Electronics was asked to provide additional information such as quotes, invoices, purchase orders, etc.

Despite RLC Electronics’ claim that item is commercially sold, actual proof was not provided.

Internet research did not find any of the approved manufacturer’s part numbers to be commercially available to the general public. Commercial-Off-The-Shelf (COTS) was coded as “no” in the Material Master.

Item is not available on GSA Advantage Item was determined as not commercial for previous contracts.

Based on market research and lack of supporting information, Contracting Officer determines the item as a non-commercial item.

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.

Forecast information is available to all potential sources for both sole source and competitive items. 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-priced, 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 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.

10. A listing of sources, if any, indicating an interest in the acquisition is:

RLC Electronics (12598)

11. The following actions are being taken to identify additional sources:

(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

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.

Tracy L. Holmes Contracting Specialist 11-30-18

Approval/Certification

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

614-692-3760 12/3/18 Competition Advocate Phone Date Signature

APPROVAL REQUIREMENTS

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

SHEARER.MA

RY.E.12507024

Digitally signed by

SHEARER.MARY.E.12507

02449 Date: 2018.12.03 16:11:33 -05'00'