J&A6.302-1cSPE7LX19D0161_-_19R0005.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SPE7LX-19-R-0005

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. This DLA

Land and Maritime acquisition is for an Indefinite Quantity Contract (IQC) with firm fixed price for the duration of a three (3) year base periods with two (2) one-year option periods for a potential total of five (5) years. This procurement is for NSN (1005015971170) and supports end item (Small Arms, Ordnance, and Ordnance Accessories Manufacturing) that cross-references to the National Stock Number (NSN) identified below and in Section B of the solicitation. This acquisition is being pursued to provide continued or improved supply availability to preclude backorders, reduce administrative and production lead time (ALT and PLT), decrease potential contract administration actions and obtain reduced and stable unit pricing.

3. The supplies required to meet the using activity's needs are described as follows:

This initiative is to provide support for Weapon System C7N (Navy Expeditionary Programs) for use by the

Department of Defense. This item being procured is listed below and include the Reference Number Category Code (RNCC), which is a code that designates the relationship of the part number to an item of supply. The Reference Number Variation Code (RNVC) which indicates that a cited part number is or is not item identifying, or is for information only. The proposed acquisition is for DLA-managed item for which small businesses Daniel Defense, Inc.

(3E3E2) and Coronet Machinery Corp (9K646) are the manufacturers. The CLIN on this project is a code and part numbered item and is listed below:

CLIN NSN BRIEF DESCRIPTION CAGE COMPANY P/N RNCC RNVC AMC AMSC

0001 1005015971170 CYLINDER, GAS, GUN 3E3E2 DANIEL DEFENSE, INC. 408JXN00024 5 2 3 D

9K646 CORONET MACHINERY CORP 408JXN00024 5 2 3 D

*If too numerous, attach list of NSNs and AMSC codes

RNCC CODE:

3 - Design Control Reference. The primary number used to identify an item of production or a range of items of production, by the manufacturer (individual, company, firm, corporation, or Government activity) which controls the design, characteristics, and production of the item by means of its engineering drawings, specifications and inspection requirements.

5 - Secondary Reference. Any additional number, other than a primary number (codes 1,2,3,4) informative reference (code 6) or vendor item drawing reference (code 7) assigned to an item of production or supply by a commercial or Government organization, which represents the same item of production or supply to which the National Stock Number (NSN) was assigned. The reference number may have had an RNCC of 1, 2, 3, 4 or 7 but has since been replaced in the item-of-supply concept of the NSN by another primary number.

RNVC CODE:

2 - A design control or other reference number that is an item-identifying number for an item of production, or a source control reference or a specification or standard part, type, or similar reference number that is an item-identifying number for an item of supply.

Identify end item, weapon system, or class of item(s):

NAICS CODE NAICS INDUSTRY DESCRIPTION BUSINESS SIZE

332994 Small Arms, Ordnance, and Ordnance Accessories Manufacturing 1,000

Weapon system(s) being supported with this project:

CLIN NSN WEAPON SYSTEM WSDC

0001 1005015971170 NAVY EXPEDITIONARY PROGRAMS C7N

ESTIMATED BASE VALUE:

ESTIMATED TOTAL VALUE (BASE + OPTIONS):

MAXIMUM CONTRACT VALUE:

FOR ADD-ONS, PROVIDE VALUE OF OPTION YRS REMAINING: N/A

Estimated Total Award Value and Cost Goals:

CLIN NSN

ESTIMATED BASIC

ANNUAL DEMAND

VALUE (ADV)

ESTIMATED

THREE YEAR

BASE TOTAL

ESTIMATED TOTAL

CONTRACT VALUE

INCLUDING OPTION YEARS

CONTRACT

MINIMUM

CONTRACT

MAXIMUM

(ADV * 1%) (ADV * 6)

0001 1005015971170

TOTALS

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 source(s) of supply; include source(s) and CAGE code:

Daniel Defense, Inc. (3E3E2) and Coronet Machinery Corp (9K646) are the manufacturers approved by the military customer’s design control activity with the comprehensive knowledge and expertise necessary to manufacture this item. Daniel and Coronet owns the data rights to manufacture this item. The Government does not currently possess or have access to detailed technical data sufficient to provide a description of all required form, fit, and function characteristics of this part.

The use of the authority cited is based on:

The Acquisition Method Code (AMC) and Acquisition Method Suffix Code (AMSC) are 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 Contract Specialist verified with SAPD Tech on 12/19/18 that the AMC/AMSC code is correct for this procurement. Reference table below:

AMC AMSC

AMC 3: Acquire, for the second or subsequent time, directly from the actual manufacturer.

AMSC D: This pertains to CLIN 0001, and Daniel and Coronet are the only known sources that has the data necessary to manufacture this item.

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.

A description of the Federal Supply Groups (FSG) and the Federal Supply Class (FSC) for this 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. Reference table below:

FSG: 25 - Vehicular Equipment Components

FSC 1005: Guns, through 30mm

Includes: Machine Guns; Brushes, Machine Gun and Pistol.

Excludes: Turrets, Aircraft

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

(X) The acquisition will be synopsized on or about: 02/01/19

(X) Other: Any sources received from Market Surveys and/or previous procurements will be solicited. 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 bringing in industry leaders for particular commodities or weapon systems. DLA depending on budget allowance also holds supplier conferences.

The previous contract for this project is SPE7L417P2050. There is no record in Record Management of a previous J&A as the previous contract was a simplified acquisition.

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

Price analysis, “should cost” negotiations, Producer Price Index (PPI), learning curve analysis, establish market prices, informal cost breakdown and other avenues, if necessary, will be explored to ascertain price reasonableness. Based upon the acquisition value, the estimated value of the contract does not exceeds the Certified Cost and Pricing threshold of $2M.

8. Market Research/Efforts to Obtain Competition:

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

(X) A Market Survey was conducted on/during: 05/10/17

Total number of vendors contacted: 3

Names of vendors responding: Coronet Machinery Corp (9K646)

Techniques used to conduct survey: Email to include a Market Survey questionnaire, an excel spreadsheet and posting a Sources Sought.

Type of information requested: Inquired about the interest of pursuing a Long Term Contract (LTC) for 5-year period to include the First Destination Transportation Program Initiative (FDTPI) and commercial packaging requirements.

Summary of information received: For this project, the Market Research was conducted by the Sourcing Strategy Branch ZAA, Three contractors were contacted: Daniel Defense, Inc. (3E3E2), Coronet Machinery Corp (9K646), and Hoppe Technologies, Inc. (27855) with Coronet Machinery responding with the survey. Coronet stated on the market survey that they prefer to deal directly with the Government and not utilize dealers or distributors, and this item is not commercial.

For this project, the Sources Sought was conducted by the Sourcing Strategy Branch ZAA, . A Sources Sought was issued on FedBizOpps on 05/12/17 and closed on 05/19/17, with zero responses to the sources sought.

NOTE: Due to the age of the original Sources Sought Notice; the May 2017 posting does not satisfy the requirements set forth in 10 U.S.C. 2304(c)(1) and DFARS PGI 206.302-1. Another Sources Sought Notice was posted for five days on FedBizOpps. This notice was issued on 10/10/18 by the Contracting Specialist, . A market survey, an excel spreadsheet, and an alternate offer and source approval request guidance (AO- SAR) package were provided for contractors to fill out for this posting. No vendors responded on the posting.

NOTE: The Market Research Summary from has some missing info. A third vendor was contacted, but did not respond, which was Hoppe Technologies, Inc. (27855).

Information received regarding the commerciality of the item(s): The requirement will be solicited based on FAR Part 15 procedures. The commerciality code on the Data Refresh Spreadsheet received from the Sourcing Strategy Branch ZAA stated “N” and “No” in MM03. Coronet Machinery Corp (9K646) responded to the market survey and checked “No” when asked if this item was commercial. A search online did not conclude commerciality as well. A separate memorandum detailing this determination has been prepared and is included in the solicitation file.

9. 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.

(X) Other: This NSN included on this solicitation was reviewed by the Strategic Acquisition Programs Directorate (SAPD) Product Specialist during the project development phase. No additional sources were identified during that review.

Forecast information is available to the potential sources for the sole source item. 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:

Coronet Machinery Corp (9K646)

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

(X) The solicitation contains Procurement Notes L04 “Offers for Part Numbered Items” and M06 “Evaluation of Offers for Part Numbered Items.”

ATTACHMENTS:

1. Market Research Summary

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 Date

APPROVAL REQUIREMENTS

(X) Up to $700,000 Contracting Officer

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

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

( ) Over $93,000,000 Senior Procurement Executive (AQ)

SANDERS.GERAL

DINE.1230151896

Digitally signed by

SANDERS.GERALDINE.12301518

Date: 2019.01.30 15:03:30 -05'00'

1/30/19