SPE7LX21RX083 - reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-21-R-X083

DLA Land & Maritime Justification for Other Than Full & Open Competition (October 2020)

[X] 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/services on other than a full and open competition basis.

3. The supplies/services required to meet the using activity’s needs are described as follows:

BRIEF DESCRIPTION NSN/P/N AMC /

AMSC

Annual Demand Quantity

(ADQ)

Annual Demand Value

(ADV)

BATTERY, NONRECHARGEABLE 6135-013901841 3 / C 2,420 Units CELL, BATTERY 6135-014660192 3 / D 1,235 Units CELL, BATTERY 6135-015368333 3 / D 4,490 Units CELL, BATTERY 6135-015729340 3 / D 12,577 Units

Total:

Identify end item, weapon system, or class of item: The project with the listed NSNs is in support of batteries for tracking and radar devices on various aircraft in the military, including, Z9N, the F/A -18 Aircraft, CXN, the Osprey V-22A, and 04F, the Stratofortress Aircraft. These high-rate lithium batteries are made to provide power during demanding conditions.

The item is being procured as a firm-fixed price, long-term, Indefinite Delivery Contract (IDC) to include a base period of three (3) years under FAR Part 13.5 procedures in accordance with 41 U.S.C 1901. Options will not be included.

ESTIMATED ANNUAL DEMAND VALUE:

ESTIMATED BASE PERIOD VALUE: _

MAXIMUM CONTRACT VALUE: _

MINIMUM CONTRACT VALUE: _

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.

Brief narrative supporting the situation and weapon system:

This is a DLA stock procurement of the NSNs listed going to DLA CONUS Depot locations. These batteries support radar and tracking devices for various military aircraft.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code: Approved source is GreatBatch, LTD, (ElectroChem Solutions, Inc.), CAGE: 62713, with the part numbers for each item:

CAGE: 62713 - P/N: 3B0064FF-MIL (NSN: 6135-013901841)

CAGE: 62713 - P/N: 3B0035-TC-MIL (NSN: 6135-014660192)

CAGE: 62713 - P/N: 3B0035-XR-MIL (NSN: 6135-015368333)

CAGE: 62713 - P/N: 3B0070-TC-MIL (NSN: 6135-015729340)

GreatBatch, LTD is the original equipment manufacturer and the only approved source for these items.

Although the items are commercial, the lithium sulfuryl chloride cells are used for tracking and radar systems in aircraft and oceanographic applications. These uses require performance in extreme conditions and Greatbatch is the only company that possesses the technical data to make these items. A Date of Manufacture (DOM) is included on these labels with a slight manufacturing part number change from the commercial batteries, which can ensure the items meet the shelf-life requirement for procurement.

The use of the authority cited below:

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

The use of the authority cited is based on:

[X] 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.

[X] 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.

Based on the AMC/AMSC of 3/C, the part requires engineering source approval by the design control activity in order to maintain the quality of the parts and GreatBatch, LTD CAGE: 62713, is the only current source approved by the design control activity and that possesses the technical data necessary to manufacturer this item for DLA and military service.

Based on the AMC/AMSC of 3/D, the data needed to acquire these parts competitively are not physically available, 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 and GreatBatch, LTD CAGE:

62713, is the only current source that possesses the technical data necessary to manufacturer these items for DLA and military service.

On December 16, 2021 the product specialist certified that the technical information, including the AMCs/AMSCs of these NSNs and approved source, is complete and accurate, as noted in the attached technical certification (Attachment 1).

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

[X] The acquisition was synopsized on or about November 10, 2021, for 15 days. The synopsis will be updated with a current solicitation date and reposted prior to the solicitation posting which will be available on the DLA Internet Bid Board Site (DIBBS) for 30 days.

[ ] Manufacturers of similar products identified in the market research will be solicited.

[X] Dealers of the manufacturers will be solicited.

[ ] A synopsis exception cited in FAR 5.202 applies. (explain)

[X] Other. (Explain) A Sources Sought notice was posted on August 5, to August 13, 2021 to the Contractor Opportunities page on the sam.gov website. No responses were received to this notice.

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

Officer’s determination that this item falls under the commercial item definition at FAR 2.101 (1)(i)- Any item, other than real property, that is of-a- type customarily used by the general public or by non-governmental entities for purposes other than governmental purposes and has been sold, leased, or licensed to the general public. Cost and Pricing Data is not required per FAR 15.402-1 (b) (3) as this item will be solicited in accordance with FAR 12—Acquisition of Commercial Items. The Contracting Officer will use historical prices, market prices (i.e. comparison based on marketplace or offers/pricing to other customers), market research, and/or pricing information provided by offerors. The buyer will also use commercially available prices (i.e. Internet pricing and/or sales invoices) as applicable to aide in fair and reasonable determination.

8. Market Research/Efforts to Obtain Competition: Market Research was conducted on/during: March 19, 2021, to December 8, 2021. A previous J & A from RFP: SPE7LX15R0106 (Attachment 3) was reviewed. These batteries are used on various military aircraft, including, the F/A-18, V-22A Osprey, and B-52 Stratofortress.

The buyer reviewed the long-term contracts on these items and several small purchase buys. While earlier buys did show offers from more than one small business concerns, the recent LTCs only reflected an offer from the small business distributor, ECI Defense, Inc. (4BJ65) for the large business OEM, Greatbatch, LTD (62713).

The buyer reviewed procurement history for these NSNs (Attachment 4). Previous spot buys which were solicited under the Simplified Acquisition Threshold were posted as Small Business set-asides or unrestricted, depending on the year and value of the solicitation. The recent LTC did not meet set-aside conditions and was issued as an unrestricted acquisition.

A Sources Sought Notice was posted to Contractor Opportunities page on the sam.gov website on August 5, 2021, until August 13, 2021. No responses were received. Additionally, market survey requests were sent to the approved source and two small business dealers as previously awardees of procurements for this NSN. A summary of the market survey information is listed below.

Market Surveys sent: Surveys were sent to approved source Greatbatch, LTD, CAGE: 62713, and past awardees: ECI Defense, Inc., CAGE: 4BJ65, and Battery Specialties, Inc., CAGE: 6W468.

Type of information requested: contractor size and status, willingness to enter a long-term contract (LTC), commerciality of the item, and willingness of the contractor to provide certified cost or price data.

Battery Specialties, Inc. (6W468), did not respond to the initial 03/19/21 request for information. The buyer followed up to this request on 11/15/21. The vendor initially responded they would provide a completed survey. However, after multiple follow up emails and phone calls, Battery Specialties advised on 12/08/21 that the OEM was unwilling to provide pricing for a long-term contract due to market volatility but would quote on single orders. Nevertheless, Batteries Specialties will be included on the bidders list for any potential LTC solicitation.

Greatbatch, LTD (62713) (ElectroChem Solutions Division), declined to complete the market survey and referred the buyer to their distribution partner, ECI Defense, Inc. (4BJ65), indicating they would be providing an offer to the Government through them. Greatbatch, LTD, does not sell direct to the Government.

ECI Defense, Inc. (4BJ65), provided a market survey. They are a small business dealer, and they are interested to submit an offer for a potential long-term contract.

The buyer sought to clarify if the items are commercial and that they intended to cite different part numbers.

The contractor confirmed that these items are commercial items. However, they intend to offer the part number with “-MIL” added on the part number for each item. This “-MIL” version of each item is the same as the commercial product, but the manufacture adds a Date of Manufacture (DOM) on the label. These are the same commercially available batteries that will include a DOM on the label for each part.

The buyer referred the update in part numbers to the SAPD Product Specialist. The Product Specialist confirmed these items will have their part numbers updated to reflect the “-MIL.”

NOMENCLATURE NSN Original Part Number Updated Part Number

BATTERY, NONRECHARGEABLE 6135-013901841 3B0064FF 3B0064FF-MIL

CELL, BATTERY 6135-014660192 3B0035-TC 3B0035-TC-MIL

CELL, BATTERY 6135-015368333 3B0035-XR 3B0035-XR-MIL

CELL, BATTERY 6135-015729340 3B0070-TC 3B0070-TC-MIL

The buyer conducted internet research, including the General Services Administration (GSA) website. No beneficial information was located. The buyer reviewed the ElectroChem Solutions website for these items.

The website provides technical information and safety data on the lithium batteries.

The buyer located these batteries available for sale on the Internet. Multiple sites offered these products for sale. The previous long-term contracts on these items (SPE7LX21D0048) were procured using FAR Part 12 procedures, Acquisition of Commercial Items, and previous buys of these batteries have been with commercial procedures. As previous procurements have found these items to be commercial, and the noted update to the part numbers for these items only address a label required for military use, these batteries will be procured using FAR Part 13.5, Acquisition of Certain Commercial Items.

Given the items have previously been determined commercial and previously been procured using commercial procedures, in addition to the items being available for sale on the Internet, the contracting officer has determined these items commercial. Market research screen prints are attached (Attachment 5).

The RFP solicitation will be issued with a delivery requirement of 160 days for each item, FOB origin and inspection/acceptance at destination requirements. Although these NSNs are marked as Hazardous Material, the items are not considered hazardous by the OSHA Hazard Communication Standard 2012 (29 CFR 1910.1200) The article is a sealed battery and does not require a Safety Data Sheet unless ruptured.

Information regarding the commerciality of the item(s): Based on Internet research that found these items available for sale and previous buys that have determined these items to be commercial and conducted using Commercial procedures, in accordance with FAR 2.101, these items determined to be commercial, and the procurement will be conducted in accordance with FAR Part 13.5, Simplified Procedures for Certain Commercial Items. After review of all the market research provided, the Contracting Officer determines these items to be commercial. These items were not coded as COTS in SAP, at the beginning of this project. This information was sent to the Product Specialist of record and after concurrence, these items are now codes as commercial off the shelf.

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 (Technical Certification, attachment 2).

The data presently available reflects the minimum needs of the Government. The Product Specialist certified the technical data on these NSNs, including the AMCs/AMSCs and approved source, on December 16, 2021.

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

ECI Defense, Inc., cage: 4BJ65

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

[X] Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items [X] Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items [ ] VE Bailment Program

[ ] Source Development Review [ ] Reverse Engineering [X] Other: Efforts to Qualify Additional Suppliers for future procurements include the following: Any new vendor who decides to pursue source approval will be directed to the Competition Advocate's Source Approval Program. The Competition Management Office (CMO) would encourage interested parties to submit Source Approval Request (SAR) for this item if it should later be determined that future buys of subject NSN are in the best interest of the Government.

11. The buyer searched the previous awards listed in the contract history in Records Management in E- Procurement for previous J&A’s, as required by DFARS PGI 206.304, and the J&A for previous contract SPE7LX-15-R-0106 is included as attachment #2.

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 $750,000, this signature serves as the approval.

Brandy D. Warner Date Contracting Officer

WARNER.BRAN

DY.DANIELLE.1

251897880

Digitally signed by

WARNER.BRANDY.DANIEL

LE.1251897880

Date: 2022.02.28 08:59:01 -05'00'

DLA Land & Maritime Justification for Other Than Full & Open Competition (October 2020)

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

[ ] Up to $750,000 Contracting Officer [X] $750,000 to $15,000,000 Competition Advocate [ ] $15,000,000 to $100,000,000 Head of Contracting Activity (HCA) [ ] over $100,000,000 Senior Procurement Executive (AQ)

(DLA General Counsel signature line required when sending to AQ)

ATTACHMENT:

1. Technical Certification – CL21078001

2. Justification and Approval for SPE7LX15R0106

HOPSON.LILLI

.A.1230127324

Digitally signed by

HOPSON.LILLI.A.12301273

Date: 2022.03.02 13:27:51 -05'00'