SPE7LX22D0118 Justification.pdf

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Service Kit LTC Project CL21218006
Solicitation number
SPE7LX22D0118
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This document is a justification for other than full and open competition for a federal contract. The Defense Logistics Agency Land and Maritime requires a service kit identified by National Stock Number 2815-016592579. The estimated annual demand is 562 units with a total 3-year base value of $XXX. Only two sources, Essex Electro Engineers and Cummins Inc., possess the technical data and are approved to produce this item. The agency conducted market research including a sources sought notice and contacting three vendors, with only Brighton Cromwell responding. The contract was awarded sole source on June 8, 2022 to an unknown vendor for an unknown amount under solicitation SPE7LX22D0118 based on the justification that only the two approved sources are able to manufacture the required service kit to meet the military's quality and technical requirements.

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX22R0003

CUI - SOURCE SELECTION INFORMATION – I/A/W FAR 2.101 and 3.104

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 on other than a full and open competition basis.

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

BRIEF DESCRIPTION NSN/P/N ANNUAL

DEMAND

QUANITY

EST. VALUE

(3-YR BASE)

5-YR EST. VALUE

(BASE + OPTIONS)

AMSC

Kit, Service 2815-016592579 562 1P

The Government intends to pursue a Firm-Fixed Price indefinite quantity contract (IQC.) The IQC is for a 3-year base with 2 one-year options.

Identify end item, weapon system, or class of item: The end items for 2815-016592579 are AIRCRAFT, STRATOLIFTER C/KC-135, AIRCRAFT, HERCULES C-130, and CONSOLIDATED GROUND SUPPORT

EQUIPMENT.

ESTIMATED TOTAL BASE VALUE: $

ESTIMATED TOTAL VALUE (BASE + OPTIONS):

MAXIMUM 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:

Product Specialist reviewed prior to acquisition and determined only 2 sources are approved to produce this item.

Only the approved sources possess the complete technical data for the items listed. They are the only sources uniquely qualified to manufacture these items; therefore, this acquisition will be solicited with other than full and open competition under the authority of 10 U.S.C 2304(c)(1), as implemented by FAR 6.302.

Controlled by: DLA Land & Maritime Controlled by: Strategic Acquisition Programs Directorate CUI Category: Source Selection Distribution/Dissemination Controls: FED ONLY POC: Krista Krauss, 614-692-9424

On August 20, 2021, , Product Specialist, certified that the item has been reviewed and the AMC/AMSC code is correct and the item is good for an LTC inclusion. The Product Specialist has also attested that all means to obtain a technical data package adequate for the manufacture of these item have been exhausted.

See Tech Cert CL21218006 in ATTACHMENT #1.

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

CAGE 21269 Essex Electro Engineers, Inc. part number C574-1091 CAGE 7SLP5 Cummins Inc. part number CV52053

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:

[ X ] AMSC P. The rights to use the data needed to purchase this part from additional source(s) are not owned by the Government and cannot be purchased, developed, or otherwise obtained. It is uneconomical to reverse engineer this part. This code is used in situations where the Government has the data but does not own the rights to the data.

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.

Any item determined after contract award to be competitively available may be deleted from the contract and resolicited.

[X] Other:

NSN 2815-016592579 (1P): Essex Electro Engineers and Cummins are the only known sources that have the rights to the data in order to manufacture the part to satisfy the military’s requirement and maintain the quality and technical integrity of the necessary item.

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

[ X ] The sources sought posting is further discussed in paragraph 8.

[ X ] The acquisition was synopsized on 12/07/2021. Response date for the posting is 12/21/2021.

[ X ] Dealers of the manufacturers will be solicited. The solicitation will be posted for 30 days.

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

Brighton Cromwell has been the only offeror on all procurements for the past several years. Based upon past contract history, offers received, and information provided in the market survey research, it is anticipated that one offer will be received. The procurement is being conducted under FAR 15 - Contracting by Negotiation. In accordance with FAR 15.403-4(a)(1), Certified Cost or Pricing Data (CCPD) will not be required as the contract maximum does not meet the $2 million threshold for CCPD. Other than Cost or Price Data may be requested. A price analysis will be conducted, utilizing the Produce Price Index (PPI) and learning curves. A comparison to past award prices will also be performed in the determination of a fair and reasonable price.

This NSN will be solicited with four quantity ranges, firm-fixed pricing and allow for escalation in prices for years 2-5 of the LTC.

8. Market Research/Efforts to Obtain Competition:

Internet & GSA searches were conducted and no exact match for the part was found to be available for commercial purchase. Buyer reviewed procurement history for contractors that offered and contracted items in the past.

Additionally, market survey and a sources sought posting were done.

Describe the market research conducted and the results.

A sources sought was issued on FedBizOpps on 9/16/21, and closing on 10/01/21, by the Acquisition Specialist. No sources responded to sources sought posting.

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

[ X ] A market survey was conducted on/during 6 August 2021 by the Demand/Supply Chain Analyst with follow-up emails on 2 September 2021 by the Acquisition Specialist.

Total number of vendors contacted: 3

Names of vendors contacted and responding:

- Brighton Cromwell (3NNX8) – RECEIVED

Names of vendors contacted but no response received:

- Cummins Inc. (7SLP5)

- Essex Electro Engineers, Inc. (21269)

Techniques used to conduct survey:

Contractors were identified using procurement history and market surveys were sent by email with follow-up phone calls and/or emails as needed to clarify information provided.

Types of information requested:

Interest in supporting potential LTC, ideal number of base and option years, quantity price breaks, commerciality, estimated delivery and any known challenges with ability to provide items for potential long-term contract.

Information received regarding the commerciality of the item(s):

The Acquisition Specialist conducted a search on the GSA website, checked the commercial determination code for the NSN in SAP and inquired about commerciality as a part of the market survey. The Acquisition Specialist did not find an exact match for the item in GSA nor elsewhere on the Internet. The item was not noted as commercial in the NSN SAP record. The product specialist recommended purchase of exact item from approved cage and part number(s) and confirmed the material data was correct and up to date. The product specialist also confirmed that the item is not commercial with the Cummins part number removed, which is in process. Contractor response to the Market Survey indicated the item is not commercial as well. The Contracting Officer considered the product specialist’s recommendation and after review of all the market research finds the item to be non-commercial.

Summary of information received:

Small business distributor Brighton Cromwell responded and provided the following information:

3-Year Base Period

Single Year Option Period(s)

Ideal Base Period

Quantity Price Breaks

Estimated Delivery

Commercial Items (Y/N)

Any current procurement challenges

N Essex & Brighton Cromwell, “small businesses…with limited resources.”

Brighton Cromwell noted that the items are not commercial on their market survey response and confirmed market survey response still valid via email.

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:

- Brighton Cromwell (3NNX8)

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

12. Previous procurements for this item have all been awarded to the small business dealer, Brighton Cromwell

(CAGE 3NNX8).

13. There are no previous J&As because the item was previously purchased below the Simplified Acquisition Threshold.

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.

Contracting Officer Signature

SAYLOR.MEGAN.M.136

4088848

Digitally signed by

SAYLOR.MEGAN.M.1364088848

Date: 2021.12.20 09:47:15 -05'00'

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature

APPROVAL REQUIREMENTS

[ X ] Up to $750,000 Contracting Officer

[ X ] $750,000 to $15,000,000 Competition Advocate

ATTACHMENT: (The attachment is located in the ATTACHMENT section of the PDF.)

1) Tech Cert CL21218006 ATTACHMENT #1

SHEARER.MARY.E.125

0702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2021.12.21 11:20:40 -05'00'

File details come from the government source that posted it. Updated .