SPE7LX19RX101 reviewed FOIA_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX19RX101

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

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. Other than full and open competition basis per FAR 6.302-1 and 10 U.S.C.

2304 (c) (1) will be utilized since after market research (FAR 10) was conducted and the DLA Land and Maritime technical data that was presented/reviewed indicates the NSNs are sourced to L-3 Technologies, Inc. DBA Insight (L3) / 0B107. L3 is the only known provider of these items.

We are limiting competition to the manufacturer’s items; not who can participate in solicitation, dealers and distributors of L3 are welcome to participate in the acquisition.

3. The supplies required to meet the using activity's needs are described on below. There is a current long-term contract, SPE7MX15D0147 that was completed as a FAR part 13.5 that expires on 23 Sep 2020. This contract will serve as the successor to that contract for that single National Stock Number (NSN) and include an additional NSN that is sole source to L3.

CLIN NSN Item ADQ ADV AMC AMSC

0001 1240015456071 PATTERN GENERAT KIT 11,166 3 D

0002 6130016132616 BATTERY POWER

SUPPLY 2,768 3 D

ADV

5-Yr

CLIN = Contract Line Item Number ADQ=Annual Demand Quantity (also Estimated Annual Quantity) ADV=Annual Demand Value

The approved part numbers are included below.

CLIN NSN Approved Source CAGE Part Number

0001 1240015456071 L3 TECHNOLOGIES, INC. DBA INSIGHT 0B107 ATP-610

0002 6130016132616 L3 TECHNOLOGIES, INC. DBA INSIGHT 0B107 LFG-094-A3

Identify end item, weapon system, or class of item: Illuminator, Integra, illuminator, infrared (CLIN 0001), CLIN 0002’s end item are night vision goggles.

ESTIMATED 3-YEAR BASE PERIOD VALUE:

MAXIMUM CONTRACT VALUE:

Procurement History is available – Attachment II

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.

Based on the technical certification that was provided by SAPD Technicians, the Government does not own the drawings for these items to allow for full open and competition. Based on technical review and certification, these items are to be procured from the sole source manufacturer, L3. The technical certificate from SAPD Technician is attached to this document (Attachment III). L3 is the only company known by the Government to possess the technical data necessary to manufacture this item.

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:

As stated above, the first item is used on fire control equipment (CLIN 0001) and the second item on night vision goggles (CLIN 0002). The items are being deemed commercial as they are available to the public through various website. This determination will be further explained below. When the military provisioned the items, it was determined that the technical data would not be purchased or made available for anyone to produce these items, hence the limiting of competition when it comes to the manufacturer of the items. There is no limit as to who can participate in the solicitation so any dealers/distributors of L3 are able to participate in the solicitation.

The product specialist reviewed the technical information and “has been reviewed and is recommended for LTC” on 06 Mar 19.

The procurement item descriptions (PIDs) for each NSN are included as Attachment 1.

The use of the authority cited is based on:

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

AMSC D. NSNs: 1005014488513, 1005015287843, and 1005015616181 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.

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

A sources sought notification was completed and posted on the FBO website and was posted for 15 days. There were no responses to the sources sought notification. FAR 12 policies and procedures will be utilized; a synopsis will be issued for 15 days. The solicitation will be available for a period of 30 days and issued after the synopsis closes.

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

Certified cost and/or pricing data will not be required for these items. These items are being deemed commercial and are available to purchase by the public through various internet websites such as: www.opticsplanet.com and www.armsunlimited.com for CLIN 0001. On CLIN 0002 the item is currently on contract with the Department of the Navy under contract http://www.opticsplanet.com/ http://www.armsunlimited.com/

N0016413DJQ04. The proposed pricing will be evaluated by using a price analysis technique where the proposed unit price is compared to the historical price that is inflated by using the producer price index (PPI) to ensure the price is adjusted to the current market and then two learning curves will be applied. Those learning curves will be . In addition to the price analysis, a comparison will be conducted between the proposed price and the commercially available unit price for each item. The Government will use a combination of the commercial marketplace pricing and the price analysis to determine its low and high target objectives. If the targets and proposed pricing have a significant gap between them, then the Government may seek to ask for an informal cost breakdown from the offers to ensure that price is fair and reasonable. Based on the above techniques, it is anticipated that the prices will be deemed fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

As mentioned above, a sources sought was posted on FBO prior to the project being assigned.

That sources sought notice was available for 15 days and included a market survey attachment along with the proposed NSNs. According to the file documentation, there were no responses received from the sources sought notice.

When the project was assigned, additional market research was conducted which included internet searches to validate the L3 part numbers. Attachment IV includes the commercial internet searches and their pricing available as of Jul 2019.

The market survey was also sent to L3 that was dated from September 2018. L3 validated the information in Jun/Jul 2019 as to the information on the market survey that was provided over 6 months ago. L3 indicated that all part numbers were valid. L3 is a large business with +/- 900 employees. They stated that they could participate in a long-term contract.

L3 said the items are commercial but would not be able to provide any commercial documentation until a solicitation was provided to them. L3 did not provide any information about quantity price breaks or estimated deliveries despite being asked for that information.

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 for these items. 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, Inc. DBA Insight / 0B107

11. Actions being taken to overcome barriers to competition:

Procurement Note, M06 Evaluation of Offers for Part Numbered Items, will be included in the solicitation. The provision explains how offerors can submit technical documentation to have their item reviewed as an alternate part number.

12. There was a J&A in the e-contract file for contract SPE7MX15D0147 (Attachment V).

Attachments:

I PID-PKG

II Procurement History III Technical Certificate from SAPD – Technician IV Commercial Determination V SPE7MX15D0147 J&A for CLIN 0001

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.

JULIE M. MILLER Date Phone Contracting Officer

Approval/Certification

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

MARY E. SHEARER Date Phone Competition Advocate

APPROVAL REQUIREMENTS

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

20 Sep 19 614 692 4841