JA6.302-1SPE7LX24RX025.pdf

CUI

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-24-R-X025

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104 / CUI

[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 full and open competition basis. The subject solicitation is to establish an Indefinite Delivery Contract (IDC) for one (1) NSN listed below using FAR Subpart

13.5 (Simplified Procedures for Certain Commercial Items) procedures pursuant to 41 U.S.C. 1901, see FAR 13.501(a)(1)(ii). The contract term shall consist of a 3-year Base Period and two 1-year Option Periods

3. The supplies required to meet the using activity's needs are described as follows: The subject solicitation is for a successor project to the following DLA contract(s):

CLIN NSN IDC Active AIDC Expiration

0001 6135-01-493-8794 SPE7LX23D5017 Y 12/2024

NSN 6135-01-493-8794 is a Battery Assembly utilized in the IFF Systems on various military fixed and rotary wing aircraft and maritime weapon systems and are of a type found in commercial applications including oceanographic buoys, tracking systems, pipeline inspection gages, beacons, transponders, and seismic surveying birds. The chart below reflects the project NSN along with its ADQ, AMC/AMSC, and estimated values.

ICP NSN DESCRIPTION

EST.

YEARLY

QUANTIT

Y (ADQ)

EST. ANNUAL

VALUE

(ADV)

EST. TOTAL

CONTRACT VALUE

(3 YR Base+2 Options)

CONTRACT

MAXIMUM

VALUE

AMC

AMSC

DSCC 6135-01-493-8794 Battery Assembly 5477 $ $ $ 1/C

4. The statutory authority permitting other than full and open competition is:

(x) 10 U.S.C. 3204(a)(1) - Available from only one or a limited number of sources.

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

NSN Approved Source / CAGE Approved Part#

6135-01-493-8794 GREATBATCH LTD (62713) 3PD1677

BAE SYSTEMS (80249) 1024327G-4

The use of the authority cited below:

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

Controlled by: DLA Land and Maritime Controlled by: SAPD-ZBB

CUI Category: Source Selection Distribution/Dissemination Control: FED ONLY

POC: Scott.Knowles@dla.mil

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. The approved manufacturer parts list for NSN 6135-01-493-8794 in SAP (as received from the Defense Logistics Information Service), Greatbatch (62713) and BAE Systems (80249) are the only sources that have been identified as having the proper and complete technical data/drawings and manufacturing expertise to supply this item to DLA and the using military services.

This battery assembly has been determined to be commercial “of a type” with minor modifications customarily available in the commercial marketplace and met subparagraph (3)(ii) of the commercial item definition in FAR 2.101.

DLA Land and Maritime SAPD Product Specialist reviewed the initial project and NSN on 12/27/2023 confirming the accuracy of the PID, AMC/AMSC, approved sources, and associated NSN data prior to solicitation. On 09/24/2024 DLA Land & Maritime SAPD Product Specialist confirmed the data and advised that the data needed to acquire these parts 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 materials for a competitive solicitation enabling a “Brand Name or Equal” full and open solicitation per FAR 52.211-6. The Product Specialist updated the item description and confirmed the Contracting Officer’s determination that this item fall under the definition commercial “of a type” provided in subparagraph (3)(ii) of the commercial item definition in FAR 2.101 and is not COTS. The SAPD Technical Certification was updated 10/01/2024 and is included as J&A Attachment #1.

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

(x) The acquisition will be synopsized on sam.gov for fifteen (15) days prior to solicitation opening on or about 10/02/2024. At the completion of the synopsis period, this Request for Quote will be solicited on the internet for 30 days via the DLA Internet Bid Board System (DIBBS). All vendors may submit a quote, which shall be considered by the agency.

(x) The item contained in this procurement is limited to approved code and part numbered items, award is not limited to the manufacturer, and dealers can also receive the award.

(x) The acquisition will be posted for 30 days to www.dibbs.bsm.dla.mil on or about 10/18/2024.

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

The basis for the Government’s fair and reasonable price determination is anticipated to be PPI based price analysis and/or the analysis of other than cost or price data such as informal cost break-downs and/or material invoices with final negotiated pricing reviewed in comparison with recent past reasonable purchases (adjusted for passage of time and quantity sensitivity), in addition to comparison to commercial market prices for potentially similar items, to support a reasonableness determination.

8. Market Research/Efforts to Obtain Competition:

Sources Sought Notice: A Sources Sought Notice was posted to www.sam.gov on 06/18/2024 and closed 06/25/2024 with responses from BHPE Inc (9SWS7) and Lithium Battery (73P65). Both firms limited their response to being “interested” but failed to provide survey or additional information when prompted and vendor BHPE has been sending the same email message of interest on every Sources Sought Notice issued by the Contracting Officer and never provides quotes.

Value Engineering: On 06/24/2024 the Contracting Officer was advised by of DLA Land & Maritime Value Management (VE) that they have no open projects for this NSN currently and there are no additional approved sources.

Market Survey Summary: Initial market survey and research was conducted prior to solicitation: Formal market surveys were sent by the Sourcing Specialist of DLA Land & Maritime ZAA Branch on 11/27/2023 to ECI Defense (4BJ65) and Now Electronics (4T888). A sole survey response was received from Now Electronics. The Contracting Officer followed-up with ECI Defense on 06/18/2024 who advised the Government that they wouldn’t be able to participate due to an exclusive contract for this material present between Electrochem Solutions and Now Electronics for this material. Below is a summary of survey information received:

Now Electronics (4T888) – Small Business Distributor / Manufacturer

- Now Electronics has no parent company and is the exclusive Government Sales distributor for their Electrochem Solutions, a subsidiary of Greatbatch LTD. (62713).

- Now Electronics located in Huntington, New York has 2 employees.

- Initial survey responses received from Now Electronics who indicated Interested in participating in the

DLA LTC project.

- Now Electronics does not sell this battery assembly to the public as it is configured for use on military aircraft and ships

IFF Systems, however they indicated that the 3.9 V lithium cells in the 3PD1677 assembly are available from Greatbatch’s Electrochem Solutions division, under part# 3B0064 as individual 3.9-volt AA sized high-rate power cells without restriction of sale to the public. When individual cells are “packed” into multi-cell assemblies Electrochem updates the part# to 3B0064-PA which adds a part number to the label. The other assembly components are commercially available wraps, molex connectors, and diodes. The list price for individual lithium cell 3B0064 is $50.99 each per Now Electronics.

- Now Electronics has provided this NSN to DLA since 2013 and have held past IDC contract SPE7LX23D5017

(expiring 12/2024) and IDIQ contract SPE7LX19D0189.

- Previous market research held by the Contracting Officer for past IDIQ SPE7LX19D0189 indicated Now Electronics response that BAE Systems (80249) previously provided DLA the Electrochem Solutions battery assembly (3PD1677) under BAE part# 1024327G-4. BAE Systems has not responded on past LTC solicitations.

Other market research efforts included Contracting Officer’s review of the purchase history, coordination with DLA Land and Maritime Small Business Office, and internet market research. A review of the GSA Schedule website (GSAadvantage.gov) showed that neither approved part numbers or NSN were listed with current GSA contracts. As of the time of this document, the Government anticipates a response only from Now Electronics (4T888).

Commercial Determination: The battery assembly contained on this project is a Class IX spare multi-cell Battery Assembly used on US Military aircraft and maritime IFF (Identify Friend or Foe) Systems for backup power to their CXP transponder. The IFF System provides identification via coded signal as a “friendly” aircraft or ship to radar sites to prevent them from being engaged. NSN 6135-01-493-8794 is a multi-cell battery assembly containing two (2) linked 3.9-volt lithium dry cell batteries, like “AA” styled commercial batteries, in a wrap connected with molex connector and diodes. All the components of the assembly are commercially available. The battery assembly contained on this procurement is used on various military fixed and rotary wing aircraft in addition to various maritime applications. Multi-cell power pack assemblies are common in the commercial and military markets as they are used for backup power for electronic systems. The basic function of these units is to convert the battery cell’s chemical charge into electrical energy to power and this conversion is not a military specific function and these types of battery packs can be found in numerous variations / configurations throughout the commercial marketplace where long shelf-life -and multi-cell low voltage power is required.

Some commercial applications include oceanographic buoys, tracking systems, pipeline inspection gages, beacons, transponders, and seismic surveying birds. Similar commercial battery assembly costs vary with the type / number of cells required, storage capacity, and any end application specific connectors and/or packaging.

The project’s battery assembly’s individual power cells (Part# 3B0064) are manufactured by Greatbatch (62713) under their Electrochem division and sold commercially by various dealers such as BatterySpecialties.com and Battery2Battery.com. According to Greatbatch, only Now Electronics is authorized to resell the 3PD1677 assemblies to DLA. When the individual cells are combined into “assemblies” they are assigned re-assigned a part number of 3B0064-PA which doesn’t change the form-fit-function from part# 3B0064 but adds a part number to the assembly’s outer wrapper. The custom assembly is considered by Now Electronics and by DLA Product Specialists to be “of a type” and modified from commercial components to meet the military’s specific end applications for size, capacity, and fitment. The Contracting Officer worked on LTC SPE7LX19D0189 for this same material and previous market research with Now Electronics indicated that BAE Systems (80249) part#1024327G-4 is the same assembly (3PD1677) and components. BAE Systems has not quoted on recent DLA LTC efforts for this NSN and is not expected to respond on this initiative.

The current IDC SPE7LX23D5017 for NSN 6135-01-493-8794 (expiring 12/19/2024) was issued using FAR Part 13.5 commercial procedures as the Contracting Officer of record determined the material to be “of a type” commercial. The Contracting Officer for this project sees no reason to change the prior commercial determination for this item and is relying on prior commerciality determination pursuant to DFARS 212.102 (a)(ii)(A) for this item. In accordance with FAR 2.101 and DLAD 12.102 the NSN included on this project has been determined by the Contracting Officer to be commercial items or items “of a type” commercially available.

This determination is based upon the information obtained in the market survey, market research, and the NSN’s specification requirements. FAR Part 13.5, Acquisition of Certain Commercial Items, will be applied to this acquisition.

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. 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: Now Electronics (4T888), Lithium Battery (73P65), and BHPE (9SWS7).

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

(x) DLA Land and Maritime hosts Captains of Industries to bring in industry leaders for particular commodities or weapon systems to help decrease barriers for companies looking to become sources of supply.

(x) The solicitation will contain DLAD Procurement Notes L04 - Offers for Part Numbered Items and M06 – Evaluation of Offers for Part Numbered Items, which increases competition by permitting the consideration of alternate offers. If alternate offers or capability statements are provided in response to the synopsis, DLA will consider the offeror’s proposal for award after technical approval of the engineering support activity.

(x) The Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions for this item to be competitive.

12. As required by Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance, and Information (PGI) 206.304, no Justification for Approval (J&A) is available to provide the approving authority for recent award SPE7LX23D5017. The Contracting Officer of record did not complete a J&A as the IDC was issued under FAR 13.5 procedures and met the exception for preparing a J&A per DAG 6.303-1.

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. If not exceeding $750,000, this signature serves as the approval.

SCOTT D. KNOWLES

Contracting Officer, ZBB

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

DLA Land & Maritime - Competition Advocate

APPROVAL REQUIREMENTS

( x ) $750,000 to $15,000,000 Competition Advocate

ATTACHMENT:

1 – Tech Certification

KNOWLES.SCOTT.

D.1251897480

Digitally signed by

KNOWLES.SCOTT.D.1251897480

Date: 2024.10.02 07:07:55 -04'00'

WIEBUSCH.JAMIE.

1251897324

Digitally signed by

WIEBUSCH.JAMIE.1251897324

Date: 2024.10.02 07:31:08 -04'00'

MEMORANDUM FOR RECORD

SUBJECT: Technical Data Supporting- Limited Sources for Solicitation/Project

This memorandum serves as the technical certification required by FAR 6.303-2(c) for the subject solicitation/project.

1. The approved source(s) and item of supply for NSN is/are CAGE Part number

_ Multi-NSN Evaluation (see attachment) 2 3 4 52. The item(s) has the following AMC Code(s): 1

3. The item(s) has the following AMSC(s):

62713 3PD1677CAGE

CAGE

Part number Part number

A The Government’s rights to use data in its possession are questionable.

B Acquisition of this part is restricted to source (s) specified on a Source Control and, Altered Item or A Selected Item drawings/documents.

C This 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.

D The Government physically does not have in its possession sufficient, accurate or legible data to purchase this part from other than current source(s).

L The Government physically does not have in its possession sufficient, accurate or legible data to purchase this part from other than current source(s)

K This part must be produced from class 1A castings (e.g., class 1 of MIL-C-6021) and similar type forging(s). The part must be procured only from sources which use castings or forging(s) obtained from approved (controlled) source(s).

M Master or coordinated tooling is required to produce this part. This tooling is not owned by the Government or, where owned, cannot be made available to other sources.

N This part requires special test and/or inspection facilities to determine and maintain ultra-precision quality for its function or system integrity. Substantiation and inspection of the precision or quality cannot be accomplished without such specialized test or inspection facilities.

P The rights to use the data needed to purchase this part from additional sources are not owned by the Government and cannot be purchased.

Q The Government does not have adequate data, lacks rights to data, or both, needed to purchase this part from additional sources.

R The data or the rights to use the data needed to purchase this part from additional sources are not owned by the Government and it has been determined that it is uneconomical to purchase them.

U The cost to the Government to breakout this part and acquire it competitively has been determined to exceed the projected savings over the life span of the part.

V This part has been designated a high reliability part under a formal reliability Probability of failure would be unacceptable from the standpoint of safety of personnel and/or equipment. The cognizant engineering activity has determined that data to define and control reliability limits cannot be obtained nor is it possible to draft adequate specifications for this purpose.

Y The design of this part is unstable. Engineering, manufacturing, or performance characteristics indicate that the required design objectives have not been achieved. Major changes are contemplated because the part has a low process yield or has demonstrated marginal performance during tests or service use. These changes will render the present part obsolete and unusable in its present configuration. Limited acquisition from the present source is anticipated pending configuration changes.

Z This is a Commercial/non-developmental (off-the-shelf item). When one or a limited number of sources are available, then a J&A is required. When an item is coded with AMSC “Z” and is listed on an interchange catalog or competition and a J&A is not necessary.

BATTERY ASSEMBLY

6135 80249 1024327G-4

CL23331002

single NSN

014938794 appears on a commercial cross reference list, this constitutes full and open

Technical Data Supporting - Limited Sources for Solicitation/Project _______________________

4. Availability of data packages or additional sourcing (Check all that are applicable as of the date of this certification):

I hereby certify to the best of my knowledge and belief the information contained in this memorandum for record is accurate and complete.

Product Specialist Date

A) The Government is pursuing means to obtain a technical data package(s); however, it is uncertain as to when or if the data will be available for procurement.

B) DLA does not possess adequate data, lacks rights to data, and/or has no record of an alternate Design Control Activity approved source. The data presently available reflects the minimum needs of the Government.

C) There is no outstanding DLA Form 339 request for additional sources.

D) Item(s) has been forwarded to engineering to evaluate for reverse engineering or Brand Name or Equal characteristics: however, it is uncertain when or if the data will be available for procurement.

Attachment(s):

10/1/2024

CL23331002

ROBERTS.ASHLEY.

NICOLE.1077376557

Digitally signed by

ROBERTS.ASHLEY.NICOLE.1077376557

Date: 2024.10.01 16:04:12 -04'00'