J&A6.302-1cSPE7M117R0038-Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

NON Long Term Contract

SOLICITATION NUMBER: SPE7M117R0038

For Official Use Only Source Selection Information-- See FAR 2.101 and 3.104

[X] ORIGINAL

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

PROPELLER, MARINE 2010-01-431-4203 4 EA C

Item: A PROPELLER, MARINE for use on PC CLASS/COASTAL PATROL BOATS. A propeller with two or more radial blades, designed to rotate and provide thrust for waterborne vessel or self-propelled underwater devices. It may be of solid or built-up construction; controllable, adjustable or fixed pitch design. Weapon System: ZON (PC

CLASS/COASTAL PATROL BOATS)

LARGE PROCUREMENT- Request for Proposal (RFP):

ESTIMATED TOTAL RFP VALUE: the estimated value of this procurement is for qty of 4 each, based on the est. u/p of EA, provided on market survey for this procurement. Solicitation will be solicitation will be a partial small business set-aside. The non-set-aside portion (qty of 2 each, est. total of is the only portion that will be solicited and competed. Section B will contain only the non-set-aside quantity. A partial set-aside may allow the small business to secure 50% of this procurement. The 100% option for partial (qty of 2 each) set-aside quantity will be included.

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

[X] 10 U.S.C. 2304(c)(1) - This item is considered a sole source or available from a limited number of sources because adequate data for the evaluation of alternate offers is not available at the procurement agency. Any alternate source offers must be approved by the Engineering Support Activity (ESA), via DLA Form 339. The offeror must provide a complete data package including data for the approved part(s) and alternate part for evaluation. According to the product specialist there are no other concerns seeking source approval at this time.

Approved sources are:

ROLLS-ROYCE MARINE NORTH AMERICA 07309 P/N 100054010 FIND 1 and P/N 100054010-1 ARGONAUT ENTERPRISES VB LLC DBA 6HT62 P/N 100054010-1 as the only known source that owns or has rights to the technical data necessary to manufacturer this NSN item. Therefore, a complete data package of drawings/specs will not be available at the time of solicitation.

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

ROLLS-ROYCE MARINE NORTH AMERICA, 07309–large business manufacturer ARGONAUT ENTERPRISES VB LLC DBA, 6HT62- small business manufacturer

Note: This is a first time buy for the DLA. The only one non-DLA large contract N0010498CDA23 was issued by the US Navy almost 20 years ago in August 1998. Due to the age of that procurement, no data is available to the buyer, including the US Navy’s J & A document.

5. The use of the authority cited below:

[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

Source Selection Information-- See FAR 2.101 and 3.104 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."

Note: Current AMC/AMSC requirement and the list of approved sources were validated by product specialist on 3/2/2017.

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

[X] The acquisition will be synopsized for 15 days.

[X] Dealers of the manufacturer will be solicited.

[X] Other:

Solicitation will be posted to DIBBS for 30 days.

I/A/W DFARS PGI 206.302-1(d) a sources sought notice was posted to FedBizOps from 3/7/2017-

3/14/2017 as part of market research to make sure that offers will be received “from as many potential sources as is practicable under the circumstances” (FAR 6.302-1), see market research paragraph 8 (eight) below.

7. The Contracting Officer is affirmatively determining that the anticipated price/cost of /EA will be fair and reasonable in accordance with FAR 6.303-2(b)(7). In accordance with FAR 15.403, cost and pricing data is not required under this acquisition threshold, however, other than cost and pricing data may be obtained from the contractor to provide additional support for price reasonableness determination.

Negotiations may be required and will be continued until suitable for both parties and a determination that the anticipated cost is fair and reasonable to the government will be made by the Contracting Officer in accordance with FAR 15.402.

8. Market Research/Efforts to Obtain Competition:

Market research for this procurement was conducted from 2/26/2017 to 3/14/2017 Techniques used to conduct market research:

Past procurement review of the requested item NSN;

Data classification (SAP) industrial supply values / characteristics review;

Web search for commercial use of the NSN item P/N requested;

FLIS and GSA databases were queried to identify other potential sources for this item. No other manufacturing sources were identified.

A sources sought notice was posted on FedBizOps from 3/7/2017-3/14/2017. One response was received from Warsila Defense (0EYA6).

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

Total number of vendors contacted: Market surveys were sent to the approved source OEMs: Rolls Royce Marine N. America (07309) and Argonaut Enterprises (6HT62) via e-mail.

Types of information requested: delivery, quantity sensitivity, price break availability, commerciality, business size, business type, FOB information, etc.

Response: Two responses were received.

1. Rolls Royce (07309), POC Large business manufacturer

Source Selection Information-- See FAR 2.101 and 3.104

Willing to submit proposal

Rolls Royce states that the item is not commercial.

2. Argonaut Enterprises VB LLC (6HT62), POC Darryl Doerr:

Small business manufacturer

Willing to submit proposal

Argonaut Enterprise states that the item is not commercial.

Warsila Defense (0EYA6) did not submit a market survey, but considered their interest thru the sources sought.

Non-commerciality determination:

PROPELLER, MARINE for use on PC CLASS/COASTAL PATROL BOATS. A propeller with two or more radial blades, designed to rotate and provide thrust for waterborne vessel or self-propelled underwater devices. It may be of solid or built-up construction; controllable, adjustable or fixed pitch design. Weapons System: ZON (PC CLASS/COASTAL PATROL BOATS). To further substantiate non-commerciality, the buyer reviewed the part number and nomenclature on the Internet to see if it was available for sale to the General public. I/A/W FAR 7.102(a)(4) the item is not GSA listed from sources other than DLA. The Internet, Haystack, and GSA website searches indicated that it is not sold commercially. There was no commercial sales history, catalogs/brochures, established price list or announcements to the general public provided for any of these items. Market research indicates that this item is not commercial. Data classification (SAP) industrial supply values/characteristics review indicates the item is not commercial. It is highly unlikely this item would ever be used in the commercial world. COTS field in SAP is blank. I/A/W FAR 2.101 the Contracting Officer determines that the item does not meet the definition of commerciality.

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:

ROLLS-ROYCE MARINE NORTH AMERICA 07309

ARGONAUT ENTERPRISES VB LLC 6HT62

WARSILA DEFENSE 0EYA6

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

I/A/W DLAD prescription 11.391(b) Procurement Notes L04 “Offers for Part Numbered Items” and M06 “Evaluation of Offers for Part Numbered Items” will be included in the solicitation.

Source Selection Information-- See FAR 2.101 and 3.104

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.

________ ____________________ __2-2621_____ 7/5/2017______ Contracting Officer/ Helen B. Davis Phone Date

APPROVAL REQUIREMENTS

[X] Up to $700,000 Contracting Officer