J&A.FOIA.Redacted.SPE7M117R0024_Redacted_.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7M117R0024 / PR 67272676

[ 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 QUANTITY EST. VALUE AMSC

Microcircuit Hybrid 5962-01-482-1678 350 C

Estimated Base Value:

Estimated Maximum Value for a quantity of 450 units:

End Item Description, Weapon System, or class of item: Item is a custom hybrid microcircuit used in the B-1B aircraft.

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.

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

Honeywell International (07187)

The use of the authority cited is based on 10 U.S.C. 2304(c)(1):

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

[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.

On 2/10/2017, the buyer received information from the product specialist of record that the AMC/AMSC of 3/L was inaccurate and therefore changed to AMC/AMSC 3/C. There is one approved source listed for this NSN; Honeywell International (07187). Per the product specialist, Honeywell is uniquely qualified as they are the only known source that possesses the necessary technical data for the manufacturing of this item, thus, demonstrating unique design capability, engineering skills, and manufacturing knowledge for this NSN. There are no other sources.

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

[X] The acquisition will be synopsized on or about April 2017 and will be solicited on the DLA Internet Bid Board (DIBBS).

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

The estimated maximum value of this PR is Therefore, Certified Cost or Price Data, and a Subcontracting Plan will be required. There is no reason to believe that Honeywell will not enter a fair and reasonable price.

8. Market Research/Efforts to Obtain Competition:

A Market Survey was sent to Honeywell (07187) and a Sources Sought was posted to FedBizOpps.

Honeywell did not respond to the market survey sent on 2/8/2017.

A Sources Sought was posted to FedBizOpps on 2/8/2017 with a respond by date of 2/15/2017 o No responses or inquiries were received from any interested party as of 2/15/2017.

The buyer researched the trailer, history and simi notes for the following information:

Honeywell was persuaded by the Air Force to re-start production of this item (339 Sept 2016).

Honeywell is willing to enter a proposal with a 350 MOQ; any quantity lower is a non-starter (Jan 2017).

The Government Procuring Activity has determined that Surplus is not acceptable for this NSN.

Pricing history shows no procurements were over TINA ($750K).

Honeywell is a large business manufacturer and provides numerous parts to the Government. There is no reason to believe that Honeywell will not provide certified cost/price data if necessary.

Commercial Determination: The COTS Field is blank in MM03, and research in GSA advantage yielded no results. Honeywell did not provide a market survey. The last procurement which was issued against a delivery order (SPM74005D97280, May 2009) ) and commerciality information could not be located. Due to these findings, this item has been determined to be non-commercial and solicitation will be conducted under FAR 15.

A recent J&A could not be located against the last procurement which was a delivery order in May 2009 (SPM74005D97280).

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.

[ X ] Solicitation will include Procurement Note M01; Qualified Suppliers for Federal Supply Class (FSC) 5961 Semiconductors and Hardware Devices and 5962 Electronics Microcircuits.

10. A listing of sources, if any, indicating an interest in the acquisition is:

Honeywell International (07187)

11. This item is subject to the following methods of locating additional sources:

• The solicitation contains Procurement Notes L04/M06;

L04- Offers for Part Numbered Items M06- Evaluation of Offers for Part Numbered Items

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.

Contracting Officer Date

Brian Kennedy___________________________ Typed name of Contracting Officer

APPROVAL/CERTIFICATION

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

_______ __________ at the top price break)_________________

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

( ) Up to $700,000 Contracting Officer

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

( ) $13,500,00 –$93,000,000 Head of the Contracting Activity (HCA)

( ) over $93,000,000 Senior Procurement Executive (AQ)

KENNEDY.BRIA

N.J.1264859014

Digitally signed by

KENNEDY.BRIAN.J.1264859014

Date: 2017.04.07 08:52:36 -04'00'

COUTURE.MAR

Y.E.1230253613

Digitally signed by

COUTURE.MARY.E.1230253613

Date: 2017.04.14 11:41:14 -04'00'