J&A_SPE7M117R0097_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7M117R0097

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A)

(April 2014)

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/PN QUANTITY EST.VALUE AMSC

Modification Kit, EN 2910-01-017-8324 5 EA C

Identify end item, weapon system, or class of item:

Subject NSN 2910-01-017-8324 is described as a Modification Kit, Engine Accessory and is part of weapon system KLN, Tactical Sattelite Comm System.

ESTIMATED BASE VALUE

ESTIMATED TOTAL VALUE (BASE + OPTIONS) with quantity ranges up to 9 units

MAXIMUM CONTRACT VALUE N/A

FOR ADD-ONS, PROVIDE VALUE OF OPTION YRS REMAINING N/A

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:

IMO Industries Inc. (59180) P/N 3325/675RR

The use of the authority cited is based on:

(X ) AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

(The following are the AMSC descriptions. The full text is available in DFARS PGI 217.7506 Part 2).

[ 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.

Per the Government approved source list available for this NSN in SAP, only IMO Industries Inc. (59180) has been identified by the Government as having the complete technical dataset and appropriate manufacturing expertise to supply this NSN to DLA and the using military service. NSN 2910-01-017-8324 is designated as a critical item, and its weapon system indicator code is Z (failure will not render end item inoperable). As such, acquisition from the currently approved sources is required to maintain the quality of the part. Last technical review of this item was conducted in August of 2016 and no additional sources beyond those listed in the AMPL were identified. Based upon the technical review, only the approved source currently listed in the AMPL has the complete technical data and manufacturing expertise to successfully manufacture this item for the Government and the using military service.

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

(X) The acquisition will be synopsized on or about October 15, 2017 ( ) Manufacturers of similar products identified in the market research will be solicited.

(X) Dealers of the manufacturer will be solicited.

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

( ) Other (Explain) _______________________________________________________.

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

Formal C/P Data will not be required because the current estimated contract price is below the price threshold of $750,000 (FAR 15.403-4 and 10 U.S.C. 2306(a)). Offerors may be required to provide additional information for determining reasonableness of price. The buyer only intends to award this NSN when a fair and reasonable price determination can be made. The Contracting Officer will conduct price analysis by reviewing historical pricing, usage of the Producer Price Index (PPI), and learning curve analysis. The acquisition specialist may ask for assistance from the DLA Land and Maritime pricing office if necessary. Negotiations may take place in an effort to comply with DoD Material Cost Reduction Initiative. An option quantity will not be used for this procurement.

8. Market Research/Efforts to Obtain Competition:

Market research consisted of review of past procurements, cancelled solicitation SPE7M117Q0879, and Internet research. Subject NSN 2910-01-017-8324 is described as a Modification Kit, Engine Accessory for use on the KLN Tactical Satelitte Comm System.

The primary customer of the KLN Tactical Satelitte Comm is the United States Navy.

Subject requirement was initially issued on 4/2/17 as unrestricted RFQ SPE7M117Q0879 for a quantity of 5 EA. Ten offers were received, but nine of these offers were considered technically unacceptable. Pioneer Industries (66200) submitted the only technically acceptable quote.

the simplified acquisition threshold. On 7/14/17, IMO Industries Inc. (59180), the manufacturer, via email. As a result of the quoted pricing, solicitation SPE7M117Q0879 was cancelled and re-issued as an RFP. Because of the recent RFQ, market surveys were not requested and a Sources Sought notice was not posted to FBO. This is the first time subject NSN is being solicited as an RFP therefore no previous J&A is available.

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

A market survey was conducted on/during _______________.

Total number of vendors contacted: __________.

Names of vendors contacted and responding: ______________________________________.

Techniques used to conduct survey: _____________________________________________.

Types of information requested: ________________________________________________.

Summary of information received: ______________________________________________.

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

( ) was not conducted due to the unusual and compelling urgency of the requirement.

(X) was not conducted due to:

Solicitation SPE7M117Q0879 was created as a simplified acquisition purchase for this item. Quotes revealed that pricing would exceed the simplified acquisition threshold.

The results of this solicitation will be used in lieu of a market survey.

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: (If none, so state) IMO Industries Inc. (59180) Pioneer Industries, Inc. (66200)

11. In addition to the specific actions being taken by Technical Support personnel to overcome barriers to competition before any subsequent acquisitions or recertification of class

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014) determination are made, this item is subject to the following methods of locating additional sources:

(X) DLAD Procurement Note L04 Offers for part Numbered Items and M06 Evaluation of Offers for Part Numbered Items

( ) VE Bailment Program ( ) Source Development Review ( ) Reverse Engineering ( ) Other _________________________________________________.

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 $700,000, this signature serves as the approval.

Contracting Officer

Phone Date

______ John E. Krutko____________________ Typed name of Contracting Officer

Approval/Certification

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

Competition Advocate Phone Date Signature

Head of the Contracting Activity (HCA) Date Signature

Senior Procurement Executive (AQ) Date Signature

APPROVAL REQUIREMENTS

x 3312 21 NOV 2017

(X) Up to $700,000 Contracting Officer

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

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

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