SPE7LX19R0023_--FOIA_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX19R0023

DLA Land & Maritime Justification for Other Than Full & Open Competition (March | 2014) P a g e | 1

(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. This DLA Land and Maritime acquisition is an Indefinite Delivery/Indefinite Quantity type contract for this rotor, seal assembly. The proposed acquisition is for DLA-managed items for which RD DYNAMICS CORPORATION (02TL6) P/N 651115 is the only approved source of supply for this NSN. 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 action and obtain reduced and stable unit pricing.

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

JAW, STARTER 2990-013069257 198 3 C

3 Year Base Estimated Value = 5 Year Total Estimated Value = Contract Maximum =

The proposed action is for the solicitation and award of a five-year, Firm-Fixed-Price, Indefinite Delivery Contract.

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

This NSN is tied to an engine component used by the U.S. Air Force on various aircraft including the KC135. NSN is a Critical Application Item (CAI) to be procured from the sources approved to supply it to maintain weapon system functionality.

4. The statutory authority permitting other than full and open competition is:

(X) 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 item:

RD DYNAMICS CORPORATION (02TL6) P/N 651115

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 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] Other: Per the approved manufacturer part list available for this NSN in SAP, only RD DYNAMICS CORPORATION (02TL6) has been identified by the Government as having the complete technical dataset and appropriate manufacturing expertise to supply this NSN to DLA and the using military service. Last technical review of this item by

DLA Land & Maritime Justification for Other Than Full & Open Competition (March | 2014) P a g e | 2

SAPD Product Specialist was conducted in 12/2017; no additional sources beyond the sources in the AMPL were identified at that time, and did not disclose any additional sources.

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

[X] The acquisition was synopsized on 10/31/18.

[X] OEM and dealers of the manufacturer will be solicited.

[ ] Manufacturers of similar products identified in the market research will be solicited.

[X] Other: Sources Sought notice posted to FedBizOps on 10/22/18. 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 and Maritime hosts Captains of Industries bringing in industry leaders for particular commodities or weapon systems. DLA, depending on budget allowance, also holds supplier conferences.

6. 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 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.

7. 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:

On 10/22/18, 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 11/6/18. As of 11/7/18, no additional sources responded to the notice.

Market Research Conclusion:

A market survey was conducted on: 10/3/18—11/19/18

Total number of vendors contacted: 2 RD DYNAMICS CORPORATION (02TL6), and (6T459) PARKER HANNIFIN.

Names of vendors responding: RD DYNAMICS CORPORATION (02TL6)

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

Types of information requested: Commerciality, Length of Contract, FOB, Delivery & General information questions.

A summary of market research was provided along with the project package on November 21, 2017 by the Sourcing Strategy Branch ZAA. Two sources were contacted: RD DYNAMICS CORPORATION (02TL6) and (6T459) PARKER HANNIFIN. On 11/16/18, RD DYNAMICS CORPORATION (02TL6) returned market survey.

DLA Land & Maritime Justification for Other Than Full & Open Competition (March | 2014) P a g e | 3

Summary of information received:

Small Disadvantaged Business Manufacturer with a preference to do business directly with the government Number of company employees: 65

Is willing to pursue an LTC with DLA L&M

Information received regarding the commerciality of the item(s): The technical community has recommended the contracting officer determine the item non-commercial. The approved source provided completed market survey considering the item non-commercial. This particular NSN is not listed on any GSA Federal Supply Schedules. Lastly, all Google results for this NSN were tied to Government information sources. Item is therefore determined non-commercial.

8. 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.

9. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) RD DYNAMICS

CORPORATION (02TL6).

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] 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. DLAD Procurement Notes L04, Offers for Part Numbered Items, and M06, Evaluation of Part Numbered Items, will be included in solicitation.

10. The previous acquisition for NSN 2990-01-306-9257 was Long Term Contract (LTC) SPE7MX-14-R-0167; a justification and approval was required. See attached J&A.

DLA Land & Maritime Justification for Other Than Full & Open Competition (March | 2014) P a g e | 4

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, Contracting Officer Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification.

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

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

Attachments:

1. J&A SPE7MX-14-R-0167

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

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2018.12.03 16:27:09 -05'00'

11/20/2018

12/03/2018