SPE7M118R0033_-_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION: SPE7M118R0033

DLA Land & Maritime Justification for Other Than Full & Open Competition

(FEB 2017)

[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

MODIFICATION

KIT,MISCELLANEOUS SHIP AND

MARINE EQUIPMENT

2090-016668753 531 $ Q

Item: A modification kit is a set parts used to make upgrades to the M80 Water Heater.

Weapon System: 9YM: BATH UNIT, PORTABLE

LARGE PROCUREMENT- Request for Proposal (RFP):

ESTIMATED TOTAL RFP VALUE (based on the additional quantity up to 1,062 each) = $ No option will be included.

4. 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 completedata 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 source:

HIGHLAND ENGINEERING, INC. 0AK83 P/N 701-M80-UK is 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.

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

HIGHLAND ENGINEERING, INC. (0AK83) - small business manufacturer

Last award was issued under the simplified acquisition; therefore, a J&A was not required.

The use of the authority cited below:

[X] AMC 3.

[X] AMSC Q. The Government does not have adequate data, lacks rights to data, or both needed to purchase this part from additional sources. The Government has been unable to economically buy the data or rights to the data, although the part has been undergoing full screening for 12 or more months. Breakout to competition has not been achieved, but current, continuing actions to obtain necessary rights to data or adequate, reprocurement technical data indicate breakout to competition is expected to be achieved. This part may be a candidate for reverse engineering or other techniques to obtain technical data. All AMSC Q items are required to be reviewed within the timeframes cited in 2-203(b). If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

Current AMC/AMSC requirement and the list of approved sources were validated by product specialist on 2/12/18.

DLA Land & Maritime Justification for Other Than Full & Open Competition

(FEB 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 2/15/18-2/22/18 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 Officers hereby determines that the anticipated price/cost 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 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 cost is fair and reasonable to the government is 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 1/26/18-2/22/18 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 reviewed to identify other potential sources for this item. No additional sourceswere found A sources sought notice was posted on FedBizOps from 2/15/18-2/22/18. No responses were received.

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

Total number of vendors contacted: Market survey was sent to three (3) contractors via e-mail:

HIGHLAND ENGINEERING, INC. (0AK83) (OEM) and PIONEER INDUSTRIES (66200) and JGILS, LLC (1N8T8).

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

Name of vendor contacted and responded and summary of information received:

Highland Engineering (0AK83) POC:

Small business manufacturer

Was willing to submit proposal

JGILS LLC. (0AK83) POC:

Survey response stated Not Interested

Non-commerciality determination:

A valve having two or more ports with valve stem or pilot needle in a normally open or closed position. It is specifically designed to stop or start or change the flow of fluid by means of the magnetic action of an electric coil on a moveable core or plunger. The valve may be equipped with a manual opening or closing device. Weapon System: 9YM: BATH UNIT, PORTABLE. 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

DLA Land & Maritime Justification for Other Than Full & Open Competition

(FEB 2017)

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:

Highland Engineering (0AK83)

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.

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.

SECRIST.JULIANA.M.123021

Digitally signed by

SECRIST.JULIANA.M.1230216297

Date: 2018.03.30 14:16:23 -04'00'

Juliana M. Secrist Date Date Contracting Officer

APPROVAL/CERTIFICATION

Competition Advocate Signature Date Date

APPROVAL REQUIREMENTS

[ ] Up to $700,000 Contracting Officer

[ X ] $700,000 to $13,500,000 Competition Advocate

ATTACHMENT:

1. Procurement History

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