SPE7LX19R0069_-_J&A_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX19R0069

DLA Land & Maritime Justification for Other Than Full & Open Competition

(DEC 2016)

[ X ] ORIGINAL

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

BRIEF

DESCRIPTION

ADQ

EST ANNUAL

DEMAND

VALUE (ADV)

EST 3 YEAR

Total

CONTRACT

MAXIMUM

AMC/AMSC

2940016063155 Filter Element, Inta 1244 1R

This item is source controlled by the Government and the approved sources are as follows:

CONTRACTOR (CAGE) NSN PART

NUMBER

Tekgard, Inc. (3C0M7) 2940016063155 024T115 American Metal Filter Co. (053X0)

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

WSDC WSDC Name PUA Power Plant, Utility (TMSS) Med/Large-Lin

Past history shows no J&A was previously done.

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:

This item is a part numbered item with 2 approved sources Tekgard, Inc. (3C0M7) and Amercian Metal Filter Co. (053X0). Both sources part number is 024T115. Per market research, this is a proprietary part that American Metal Filter Co. manufactures under contract with Tekgard.

The use of the authority cited below:

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

The use of the authority cited is based on:

(The following AMSC descriptions are available in DFARS PGI 217.7506 Part 2.)

[ X ] AMSC R. The Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid.

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

[ X ] The acquisition will be synopsized on or about 1/16/2019 [ X ] Dealers of the manufacturers will be solicited.

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

This acquisition does not meet the threshold requirement for Certified Cost or Pricing Data of $2M in accordance with FAR Part 15.403-3(a) Deviation Number: 2018-O0015. Therefore, the applicable clauses were not incorporated into the solicitation. A price analysis will be conducted using historical government pricing, the Producer Price Index (PPI) and learning curve analysis.

Other than cost or pricing data will be requested if needed.

8. Market Research/Efforts to Obtain Competition:

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

A market research concluded April 2018 and then an updated research was performed again recently in January 2019.

The product specialist reviewed this NSN for the project during project creation, and no new sources were found.

Sources Sought was done by the Market Research team. It was posted to FedBizOpps on 5/14/2018. There were no responses to the FEDBIZOPPS posting.

This item, Filter Element, Inta, AMC/AMSC – 1R, QCC- DAA, is a part numbered item and the approved sources are Tekgard, Inc. (3C0M7) and American Metal Filter Co. (053X0), part number for both is 024T115.

Market Research: A market survey was sent to 11 companies by the Market Research team on 3/30/2018 with a response date of 4/6/2018– Cage Codes, 1MQB3, 1WZZ2, 3C0M7, 6PZL1, 7A013, 7MBP0, 7Z016, 053X0, 19151, 33968, and 66200. On 4/3/2018 2 market surveys were received from Pioneer Industries, Inc. (66200) and American Metal Filter Co. (053X0)/AMFCO.

Pioneer stated “The factories won’t support long term pricing for this request.” AMFCO stated “The item number you are requesting information on (024T115) is a proprietary part that we manufacture under contract with Tekgard. Any requests for quote and/or information should be directed to Tekgard.” On 1/10/2019 the buyer called Tekgard and they stated that Pioneer is their distributor for this part and they will follow-up with them. On 1/11/2019 the buyer sent an email to Pioneer requesting market research information. On 1/16/2019 Pioneer responded as follows.

DUNS: 043175926

Company Name: Pioneer Industries

Are you a large or small Business? Small Business Are you interested in pursuing a LTC for this item? Yes Will you agree to a five year base?

Would you require phased delivery? If so, what would it look like?

Is there a maximum quantity that you could deliver for the item? If so, please provide it.

Would a minimum delivery order quantity and/or dollar value apply to this NSN?

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.

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

Tekgard, Inc. (3C0M7) and their distributor Pioneer Industries, Inc. (62200). Per Tekgard, Pioneer will be submitting an offer.

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

[ X ] The solicitation contains Proc Notes L04 Offers for Part Numbered Items and M06 Evaluation of Offers for Part Numbered Items.

CLETUS M. SCHAFRATH

Contracting Officer

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.

APPROVAL REQUIREMENTS

[X] Up to $700,000 Contracting Officer

SCHAFRATH.CLETUS.M.108102460

Digitally signed by

SCHAFRATH.CLETUS.M.1081024606

Date: 2019.02.02 16:05:34 -05'00'