SPE7LX20R0136 - reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX20R0136

DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018)

1. The Defense Logistics Agency, DLA Land and Maritime, is the contracting activity. This indefinite quantity contract (IQC) solicitation shall be a firm fixed price (FFP) long-term contract (LTC), solicited using FAR Part 15 procedures, for NSN 6140-01-578-1226 (BATTERY, STORAGE). The solicitation is for a period of three base years, and two, one year options.

2. The action being approved is the acquisition of supplies on other than a full and open competition basis.

J&A Required CLIN NSN Item Description AMC AMSC Estimated ADQ ADV

0001 6140015781226 BATTERY,STORAGE 5 C 121

Identify end item, weapon system, or class of item: this item is used on a variety of US Navy ships, including the Arleigh Burke and Ticonderoga classes.

ESTIMATED ANNUAL VALUE:

ESTIMATED TOTAL VALUE (3 YEAR BASE, 2 ONE YEAR OPTIONS):

MAXIMUM CONTRACT VALUE:

3. 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.

4. If restricted to the only source(s) of supply, include source(s) and CAGE code:

CLARY CORPORATION, CAGE: 71503 Part Number: 223-15176-2

The use of the authority cited below:

[X] AMC 5. Acquire only from the prime contractor although the engineering data identifies the CAGE and part number of a source other than the prime contractor.

The use of the authority cited is based on:

[X] AMSC C. The part requires engineering source approval by the design control activity in order to maintain 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. AMCs 1, 2, 3, 4, and 5 are valid.

For NSN 6140-01-578-1226, the Government does not have the data or rights to the data and it is not economical for the Government to obtain or otherwise develop the data. CLARY CORPORATION, CAGE: 71503 is the only known source to possess the complete technical data and rights for this item. They are the only vendor listed as an approved source by the design control activity. Therefore, they are the only source uniquely qualified to manufacture this item and the only approved source listed for this item. As stated previously, NSN 6140-01-578- 1226 is used on Navy ships such as the Arleigh Burke class and Ticonderoga class. The use of the specifically designed battery from the sole approved source within its intended application will minimize the risk of damage to the critical electronics systems it supports, as well as the weapon system on which it will be utilized. On April 3, 2020, the DLA Land and Maritime SAPD Product Specialist confirmed that the AMC of 5 and AMSC of C for this NSN is correct and validated the manufacturer and part number. The Government does not have a complete, unrestricted data package at this date and it was noted that all means to obtain a technical data package adequate for manufacture of this item have been exhausted. The Government does not possess the technical data or data rights to facilitate full and open competition; therefore, it is essential that the Government procure only the Clary Corporation item, in order to maintain the quality of the part.

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

[X] A sources sought was posted to FBO on 5/1/2020 for a period of seven days. No responses were received.

[X] The acquisition was synopsized on May 12, 2020 for 15 days prior to the solicitation opening. At the completion of the synopsis period, this PR will be solicited on the internet for 30 days via the DLA Internet Bid Board System (DIBBS).”

[X] Market research was conducted to obtain interest in the acquisition.

[X] Dealers of the manufacturer will be solicited.

6. This acquisition will include a 3-year base period with two, one-year option periods. Quantity ranges will be included for the NSN, to allow offerors the opportunity to provide quantity price breaks. The contract maximum value falls under the Truth in Negotiations Act (TINA) threshold of $2M; therefore, cost or pricing data is not required. Price analysis and buy history will be used to determine contract award prices fair and reasonable. Based on the above techniques, the Contracting Officer hereby determines that the anticipated cost to the Government will be fair and reasonable.

7. Market Research/Efforts to Obtain Competition:

Item is sole-source to Clary Corporation, but has been procured only through dealers in the available procurement history. A Sources Sought was posted from 5/1/2020 through 5/8/2020; no responses were received. Procurement has been primarily through two customer direct contracts (SPE7L018D5003 and SPE7LX14D0058), both awarded to Nova Power Solutions (1BCN7), as well as many spot-buys awarded to Nova Power. Other providers that supplied item via spot buys were MDF Technologies (1P0H6) and All American Contractors (6MK49). When contacted regarding market research and interest in the acquisition, MDF Technologies and Nova Power responded. MDF Technologies indicated interest in a 5 year LTC and stated that the item is not commercial.

Nova Power indicated that they would propose when the solicitation was issued, but did not otherwise respond to requests for information during market research. Clary Corporation (manufacturer), Nova Power, and MDF Technologies are all small businesses, and the procurement will be 100% small business set aside.

Regarding commerciality, MDF Technologies indicated that the item is not commercial. Research for the prior LTC acquisitions noted above found the items to be non-commercial, with the procurement solicited per FAR Part 15 procedures. The local product specialists was contacted, and indicated that the item could be considered “commercial of a type” but did not suggest a strong rationale for commerciality. Searches in the commercial marketplace did not return any available, in stock, items for sale. The items were not available for sale through GSA. After further discussions with the DLA Land and Maritime Price Analyst, regarding commerciality and the lack of available commercial data, the contracting officer determined the item to be non-commercial.

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

[X] Based upon the technical certification on file, 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. A tech review confirmed subject NSN as a sole source item.

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

- MDF Technologies (1P0H6)

- Nova Power Solutions (1BCN7)

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

These items are subject to the following methods of locating additional sources: The solicitation will contain Procurement Notes L04, Offers for Part Numbered Items and M06, Evaluation of Offers for Part Numbered Items.

11. The buyer searched the previous awards listed in the contract history in Records Management in EProcurement for previous J&A’s, as required by DFARS PGI 206.304. The J&A for prior contract SPE7LX14D0058 is attached.

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.

Brandy Warner, Contracting Officer

APPROVAL/CERTIFICATION

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

Competition Advocate Signature

WARNER.BRANDY

.DANIELLE.125189

Digitally signed by

WARNER.BRANDY.DANIELLE.1

251897880 Date: 2020.05.29 15:54:22 -04'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2020.06.01 16:06:26 -04'00'