SPE7LX-19-R-0039_-_reviewed_Redacted.pdf

FOR OFFICIAL USE ONLY

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.04

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

(May 2018)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-19-R-0039

X ORIGINAL

ADDENDUM (attach copy of original J & A for add-ons or revisions)

1. The purchasing activity for this acquisition is the Defense Logistics Agency, DLA Land and Maritime.

2. The action being approved is for the acquisition of supplies on other than full and open competition basis. This DLA Land & Maritime acquisition is for an Indefinite Quantity Contract (IQC), with firm fixed pricing for the duration of three (3) base years for a Storage Battery used to support the Chinook Helicopter. The acquisition will include 1 National Stock Number as listed below:

CLIN NSN Nomenclature

0001 6140-00-738-5914 STORAGE BATTERY

3. This acquisition is to establish a firm fixed price indefinite quantity contract for a base period of 3 years and 2 one-year option periods. The item being procured is listed below. The proposed acquisition is for DLA managed item for which MarathonNorco Aerospace. (CAGE 74025), a large business, is the only approved manufacturer for this CLIN.

The CLIN is code and part numbered items and are listed below:

CLIN NSN Part Number AMC AMSC ADQ CAGE Company Name 0001 6140-00-738-5914 25503-010 3 D 6,192 74025 MarathonNorco

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.04

Identification of end item, weapon system, or class of the items is provided in the table below:

CLIN

NSN

Item Name

Weapon Item Name

Weapon System Code

0001 6140007385914 STORAGE BATTERY CHINOOK HELICOPTER. CH-47 05A

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 three-year base period and two separately priced option periods. The contract values are listed below.

ANNUAL DEMAND VALUE (ADV):

3-YEAR BASE PERIOD:

MINIMUM CONTRACT VALUE: which is 1% of ADV MAXIMUM CONTRACT VALUE: $ which is ADV x 6

4. The statutory authority permitting other than full and open competition is 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) name and CAGE code:

MarathonNorco Aerospace (74025) is the only approved manufacturer for this CLIN. This item has an AMSC of D. The approved source is the only known source with the ability, knowledge, and rights to manufacture these items.

The manufacturing source is the only known source approved by the military customer's design control activity with the comprehensive knowledge and expertise necessary to manufacture this item. In addition, they are the only known source with the data or rights to manufacture this item.

The Government does not currently possess or have access to detailed technical data sufficient to provide a description of required form, fit, and function characteristics of these parts.

The Acquisition Method Code (AMC) and Acquisition Method Suffix Code (AMSC) are also listed below. The AMC and AMSC code was verified by Product Specialist on January 10, 2019. 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 use of the authority cited is based on the information provided in the table below:

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.04

AMC AMSC

3 – Acquire, for the second or subsequent time, directly from the manufacturer.

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.

A description of the Federal Supply Group (FSG) and the Federal Supply Class (FSC) for the 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.

FSC 6140: Batteries Rechargeable

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

(X) The acquisition will be synopsized on or about: 11/30/2018. The synopsis period will remain on the internet for 15 days, via the DLA Internet Bid Board System

(DIBBS).

(X) All companies who expressed an interest in the project during the market survey period will be sent a copy of the solicitation as soon as it has opened on DIBBS.

( ) Manufacturers of similar products identified in the market research will be solicited.

(X) Dealers of the manufacturer will be solicited.

(X) Alternate items will be evaluated for this procurement if they are offered.

( ) A synopsis exception cited in FAR 5.202 applies.

(X) Other. Any sources from Market Surveys and/or previous procurements. 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 and the DLA Industry Forum, bringing in industry leaders for particular commodities or weapon systems.

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.04

7. Price/cost considerations (10 U.S.C. 2304(f)(3)(C))

a. Cost or Pricing data is not required I/A/W FAR 15.403-1(b)(3), as this acquisition will be below the threshold of $2m. This item will be solicited as Unrestricted Other Than Full and Open Competition. The buyer only intends to award the NSNs if fair and reasonable price determinations can be made.

b. Competition is not expected. Therefore, I hereby determine that the anticipated cost to the

Government will be fair and reasonable based on comparison to past prices, conducting a Price analysis, "should cost" negotiations, Producer Price Index (PPI), learning curve analysis, and/or informal cost breakdown.

8. Market Research/Efforts to Obtain Competition:

A Sources Sought notice was posted to FBO on December 5, 2017 and closed on December 12, 2017. No responses were received.

Total Number of Vendors Contacted: 2

Names of Vendors Contacted:

o MarathonNorco Aerospace (CAGE 74025) o Maven Engineering (CAGE 46YF5)

Names of Vendors that responded in writing to the Market Survey and expressed interest in proposing on requirement:

o MarathonNorco Aerospace (CAGE 74025) o Maven Engineering (CAGE 46YF5)

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.04

Types of information requested: The following includes some of the information requested on the Market Survey: Interest in Long Term Contract and number of years preferred, commerciality per FAR 2.101(b), business type (large, small, SDVOSB, WOSB), would an offeror be willing to provide Cost and Pricing Data, estimated delivery, whether an item is quantity sensitive, among other questions.

Summary of information received: A detailed response was received from the approved source and a dealer, see synopsis below:

1. MarathonNorco Aerospace (CAGE 74025) responded on February 9, 2018. She indicated that MarathonNorco is a Large Business Manufacturer. They have 115 employees but they indicated they are owned by a Large parent company.

They stated that this item is a commercial item however they did not provide any supporting documentation after requested. responded to the Contracting Officer’s request for updated market research on November 15, 2018 stating that all previous information submitted was still valid and applicable.

2. Maven Engineering (CAGE 46YF5) responded on December 5, 2017 and again on November 14, 2018.

Maven is a small business dealer with 26 employees.

. She stated that this is not a commercial item.

MarathonNorco stated that this is a commercial item but did not provide any supporting documents. An internet search was conducted and there is no evidence this part is available to the general public. Thus, this part is being solicited as a non-commercial item.

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.

Forecast information is available to all potential sources. 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 se 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-prices, low reliability, and hard to buy items to improve their value and support posture. The DLA Land & Maritime internet website contains information for all

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.04

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. In additional to the specific actions being taken by Technical Support personnel to overcome barriers to competition before any subsequent acquisitions or recertification of class determination are made, this item is subject to the following methods of locating additional sources:

(X) The solicitation contains DLAD Procurement Note L04, Offers for Part Numbered Items.

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.

Aric Allen, Contracting Officer Date

APPROVAL/CERTIFICATION

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

Competition Advocate Phone Date Signature

APPROVAL REQUIREMENTS

(X) Up to $700,000 Contracting Officer

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

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

1/24/2019

ALLEN.ARIC.J.12

42832562

Digitally signed by

ALLEN.ARIC.J.1242832562

Date: 2019.01.11 12:59:59 -05'00'

SHEARER.MARY.

E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.01.24 11:53:08 -05'00'