JA_SPE7LX19R0057_-_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX19R0057

DLA Land and Maritime Justification and Approval for Other than Full and Open Competition (J&A) (April 2014)

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:

NSN Nomenclature AMC AMSC Annual Demand Qty Annual Value 5-Yr Value

6130014760943 POWER SUPPLY ASSEMBLY 1 C 2,902

6160015243900 COVER,BATTERY RETAINER 1 C 4,975

The approved part numbers are:

NSN CAGE CAGE NAME PART NUMBER

6130014760943 0B107 L3 TECHNOLOGIES, INC. DBA INSIGHT 243668-100

6130014760943 13567 HARRIS CORPORATION DBA EXELIS A3279600

6160015243900 0B107 L3 TECHNOLOGIES, INC. DBA INSIGHT MND-220-A2

6160015243900 13567 HARRIS CORPORATION DBA EXELIS A3297312

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

This requirement is in support, but not limited to the AN/AVS-6(V)3, Aviator's Night Vision Imaging System, which uses Generation 3 technology.

ESTIMATED BASE VALUE:

ESTIMATED TOTAL VALUE (BASE + OPTIONS):

MAXIMUM CONTRACT VALUE:

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. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited in paragraph 4: These items are spare parts for the AN/AVS-6(V)3, Aviator's Night Vision Imaging System with Generation 3 Technology.

The AN/AVS-6 (ANVIS) is a lightweight, helmet-mounted, self-contained night vision system, which has dramatically extended the operational mission capability of helicopter crews; it can also be used on the ground. The system has been designed to be fully compatible with the SPH-4 series of U.S. Army aviator’s helmet and can be modified to fit foreign aviator helmets. ANVIS goggles mount to a single point on the pilot’s helmet visor guard. No facemask is required, allowing nearly full peripheral vision. This military system is marketed and sold commercially for covert, low-light police operations, and there are similar binocular and monocular night-vision systems in the commercial market for hunting and other recreational use. Although these items have been determined commercial, they are used on a military specific night vision system designed to satisfy the needs of the warfighter. Because there are similar items in the commercial market, these items were determined “commercial of a type” or “commercial of a type with minor modifications to meet military specific needs.”

The original equipment manufacturer for these items and the ANVIS was ITT/Exelis Corporation. ITT/Exelis Corporation was acquired by Harris Corporation (13567) several years ago, resulting in Harris Corporation being one of the approved sources for the items being procured. L3 Technologies (0B107) is the other approved source. These two sources have specifically unique design capabilities and knowledge of the manufacturing processes necessary to ensure these repair and replacement parts properly support the ANVIS.

There is no evidence that standard, similar commercial parts can support this military specific system. The parts require engineering source approval from the design control (military) activity, and no other sources are currently approved.

The procurement item descriptions (PIDs) for each NSN (see Attachment) include drawings in addition to the approved CAGEs and part numbers. However, these drawings are not adequate for manufacturing. The following note is contained in each PID: “THIS

IS A RESTRICTED SOURCE ITEM AND REQUIRES ENGINEERING SOURCE

APPROVAL BY THE GOVERNMENT DESIGN CONTROL ACTIVITY.”

The use of the authority cited is based on:

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

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.

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

The acquisition will be synopsized on or about 1/28/2019.

A manufacturer of similar products identified in the market research will be solicited-- Carson Industries (1XEP3), a woman-owned small business, who has supplied the binocular for this ANVIS.

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

Cost or pricing data will not be required as the items contained on this project have been determined commercial items in accordance with Federal Acquisition Regulations (FAR)

2.101 and, therefore, meet exception at FAR 15.403-1(b)(3). Commercial procedures will be utilized in accordance with FAR Part 12. However, per FAR 15.404-1(a)(2), a price analysis will be conducted. The price analysis will be conducted using historical pricing determined fair and reasonable for the same or similar items, the Producer Price index (PPI) and learning curve analysis. Additional information, such as other-than cost data, will be obtained from the offeror(s), as necessary. By using the above techniques, the Contracting Officer anticipates that the costs to the Government will be fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

A sources sought notice had been issued in 2016 with approved part numbers and the market survey for procuring these items on a prior solicitation. No sources responded to this notice.

Market surveys for the prior solicitation were sent by email 5/9/2016 to the two approved sources, L3 Technologies (0B107) and Harris Corporation (13567). The market survey sought and gathered information regarding i.e., commerciality, shipping costs, zone pricing, option periods, pricing and electronic data interchange (EDI) capability. L3 responded only by forwarding the information to others in the company to complete the market survey. Follow-up contact was made via email 5/11/2016, but the market survey was not completed. However, response to follow-ups indicated interest from L3. Harris Corporation completed the market survey 5/11/2016, supplying information requested. Harris’s completed market survey information was sent to them 10/2/2017 for updates; Harris replied saying the information is still valid.

The buyer for the original solicitation issued a FAR 13.5 LTC solicitation on 3/8/2018, and it closed 3/29/2018. Harris Corporation provided a sole quote for both parts. The acquisition team disbanded due to reorganization, and the buyer was not able to award the solicitation. When the project was re-assigned to the current team, increased demands necessitated the issuance of a FAR 12 solicitation, since the contract maximum is over the FAR 13.5 threshold.

A current sources sought notice was posted 2/6/2019 and closed 2/13/2019 with no responses received. The current buyer utilized information from Harris’s quote for the previous solicitation, along with recent email correspondence with Harris Corporation 12/11/2018, 12/21/2018, 1/2/2019, and 2/6/2019 to structure the current solicitation. Harris provided un-redacted invoices on 2/8/2019 to support commercial sales.

Information received regarding the commerciality of the item(s): Harris Corporation provided un-redacted invoices, showing commercial sales for other than Government use. The buyer found evidence of the ANVIS being offered on the internet for sale to the public. The buyer also found similar night vision systems commercially sold. This information supports a determination that the items being procured are “commercial of a type” or “commercial of a type with minor modifications to meet military specific needs.”

9. Additional facts supporting other than full and open competition are:

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:

L3 Technologies (0B107) and Harris Corporation (13567)

11. Actions being taken to overcome barriers to competition:

The solicitation contains the provision entitled Conditions for Evaluation and Acceptance of Offers for Part Numbered Items

12. A previous J&A is not attached, since the previous procurements since 2012 were simplified acquisitions.

Attachment:

1 - Procurement Item Descriptions

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.

614-692-9252 2/13/2019

REBECCA H. HARTGE Phone Date Contracting Officer

Approval/Certification

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

MARY E. SHEARER Phone Date Competition Advocate

APPROVAL REQUIREMENTS

( ) Up to $700,000 Contracting Officer

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

( ) $13,500,00 –$93,000,000 Head of the Contracting Activity (HCA)

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

HARTGE.REBE

CCA.H.1273657

Digitally signed by

HARTGE.REBECCA.H.127

3657475 Date: 2019.02.13 10:43:01 -05'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY E.1250702449

Date: 2019.02.25 13:46:47 -05'00' 2/25/2019