SPE7M1-18-R-X014_-_reviewed-_redacted_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7M1-18-R-X014

FOR OFFICIAL USE ONLY

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.04

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

X ORIGINAL

ADDENDUM (attach copy of original J & A for add-ons or revisions)

1. The contracting activity for this acquisition is the Defense Logistics Agency, DLA Land and Maritime.

2. The action being approved is for the acquisition of supplies on other than full and open competition basis. This DLA Land & Maritime acquisition is for an Indefinite Quantity Contract (IQC), with firm fixed pricing for the duration of one (1) base year plus two (2) – 1-year option periods for various parts used to support the HDU-43 heater system. The acquisition will include 13 National Stock Numbers as listed below:

CLIN NSN Nomenclature

0001 5930015500289 SWITCH, TOGGLE

0002 5930015500293 SWITCH, TOGGLE

0003 5930015500693 SWITCH, THERMOSTATIC

0004 6625015501281 PANEL, TEST, ELECTRIC

6105015503003

MOTOR, ALTERNATING

CURRENT

0006 6110015503011 CONTROLLER, MOTOR

0007 6110015503019 CONTROLLER, MOTOR

0008 6110015503280 CONTACTOR, MAGNETIC

6110015503299

CONTROL, VOLTAGE

REGULATOR

0010 4330015503433 FILTERING DISK, FLUID

0011 4330015503452 FILTER, FLUID

0012 4330015503740 FILTERING DISK, FLUID

0013 5930015540809 SWITCH, THERMOSTATIC

3. The items being procured are listed below. The proposed acquisition is for DLA managed items for which NGH Retail (CAGE 3FZJ9), a service disabled veteran owned small business, is the only approved manufacturer for these CLINs.

The CLINs are code and part numbered items and are listed below:

CLIN NSN Part Number AMC AMSC CAGE Company Name 0001 5930015500289 2035-26920 5 L 3FZJ9 NGH Retail 0002 5930015500293 2035-26910 3 D 3FZJ9 NGH Retail 0003 5930015500693 2035-1012 3 D 3FZJ9 NGH Retail 0004 6625015501281 2035-18160 3 D 3FZJ9 NGH Retail 0005 6105015503003 2035-98022 3 D 3FZJ9 NGH Retail 0006 6110015503011 2035-1020 3 D 3FZJ9 NGH Retail 0007 6110015503019 2035-20566 3 D 3FZJ9 NGH Retail 0008 6110015503280 2035-22665 3 D 3FZJ9 NGH Retail 0009 6110015503299 2035-1000 3 D 3FZJ9 NGH Retail 0010 4330015503433 2035-2020 3 D 3FZJ9 NGH Retail 0011 4330015503452 2035-18540 3 L 3FZJ9 NGH Retail 0012 4330015503740 2035-27813 3 D 3FZJ9 NGH Retail 0013 5930015540809 2035-21203 5 D 3FZJ9 NGH Retail

FOR OFFICIAL USE ONLY

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.04

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

Identification of end item, weapon system, or class of the items is provided in the table below:

CLIN NSN Item Name Weapon Item Name Weapon

System Code 0001 5930015500289 SWITCH, TOGGLE Heater HDU-43 F 0002 5930015500293 SWITCH, TOGGLE Heater HDU-43 N 0003 5930015500693 SWITCH, THERMOSTATIC Heater HDU-43 N 0004 6625015501281 PANEL, TEST, ELECTRIC Heater HDU-43 N 0005 6105015503003 MOTOR, ALTERNATING CURRENT Heater HDU-43 N 0006 6110015503011 CONTROLLER, MOTOR Heater HDU-43 N 0007 6110015503019 CONTROLLER, MOTOR Heater HDU-43 N 0008 6110015503280 CONTACTOR, MAGNETIC Heater HDU-43 N 0009 6110015503299 CONTROL, VOLTAGE REGULATOR Heater HDU-43 N 0010 4330015503433 FILTERING DISK, FLUID Heater HDU-43 F 0011 4330015503452 FILTER, FLUID Heater HDU-43 F 0012 4330015503740 FILTERING DISK, FLUID Heater HDU-43 N 0013 5930015540809 SWITCH, THERMOSTATIC Heater HDU-43 N

The proposed action is for the solicitation and award of a three-year, Firm, Fixed-Price, Indefinite Delivery Indefinite Quantity type contract. The three-year period is inclusive of one one-year base period and two separately priced option periods. The contract values are listed below.

ANNUAL DEMAND VALUE (ADV):

3-YEAR ESTIMATED VALUE:

MINIMUM CONTRACT VALUE:

MAXIMUM CONTRACT VALUE:

4. The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1)

- Available from only one or a limited number of sources.

5. If restricted to the only source of supply include source name and CAGE code: NGH Retail, LLC (CAGE 3FZJ9) is the only approved manufacturer for all CLINs. These items have AMSC’s of L and D, but some were located for sale online. Although these items are not coded as commercial, the approved source is the only known source with the ability, knowledge, and rights to manufacture these items. Per the Product Specialist, NGH Retail is the approved OEM and are the only source provided by the services for each NIIN.

The Acquisition Method Code (AMC) and Acquisition Method Suffix Code (AMSC) are also listed below. The AMC code describes to the Contracting Officer and other Government personnel the results of a technical review of a part and its suitability for breakout, and the AMSC code provides the Contracting Officer and other Government personnel with engineering, manufacturing, and technical information.

FOR OFFICIAL USE ONLY

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.04

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

The use of the authority cited is based on the information provided in the table below:

AMC AMSC

3 – Acquire, for the second or subsequent time, directly from the manufacturer.

AMSC D - The data needed to acquire this part 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 material for a competitive solicitation. AMCS 3, 4, or 5 are valid.

AMC 5 - Acquire directly from a sole source contractor which is not the actual manufacturer.

AMSC L - The annual buy value of this part falls below the screening threshold established by DoD components and field activities.

However, this part has been screened for additional known sources, resulting in either confirmation that the initial source exists or that other sources may supply the part. No additional screening was performed to identify the competitive or noncompetitive conditions that would result in assignment of a different AMSC. This code shall not be used when screening parts entering the inventory. This code shall be used only to replace AMSC O for parts under the established screening threshold. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

3 – Acquire, for the second or subsequent time, directly from the manufacturer.

AMSC L - The annual buy value of this part falls below the screening threshold established by DoD components and field activities.

However, this part has been screened for additional known sources, resulting in either confirmation that the initial source exists or that other sources may supply the part. No additional screening was performed to identify the competitive or noncompetitive conditions that would result in assignment of a different AMSC. This code shall not be used when screening parts entering the inventory. This code shall be used only to replace AMSC O for parts under the established screening threshold. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

The Product Specialists reviewed and verified the AMC/AMSC codes on July 17, 2018.

A description of the Federal Supply Class (FSC) for the items are listed below. The FSC is represented by the first four digits of the NSN and the code covers a relatively homogeneous area of commodities, in respect to their physical or performance characteristics, or in the respect that the item included therein is such as are usually requisitioned or issued together, or constitute a related grouping for supply management purposes.

FSG 61: Electric Wire, Power, and Distribution Equipment FSC 5930: Switches Includes Rotary, Knife, Toggle, Push Button, Mercury, Thermostatic, and

Differential Pressure Switches.

Excludes Switchgear

FSC 6625: Electrical and Electronic Properties Measuring and Testing Instruments

Includes Test Leads and Test Lead Attachments; Test instruments designed for communication equipment; Test instruments designed for use with electronic equipment classified in two or more FSC groups.

FSC 6105: Motors, Electrical Excludes Starting Motors for Engines.

FOR OFFICIAL USE ONLY

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.04

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

FSC 4330: Centrifuges, Separators, and Pressure and Vacuum Filters

Excludes Laboratory Centrifuges (FSG 65 and 66); Water Purification Filters (FSC 4610).

FSC 6110: Electrical Control Equipment Includes Contactors; Motor Controllers; Power Servomechanisms;

Switchgear; Voltage Regulators.

Excludes Automatic Pilot Mechanisms; Relays; Resistors.

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

(X) The acquisition will be synopsized concurrently with the solicitation on or about:

July 13, 2018. The synopsis period will remain on the internet for 15 days, via the DLA Internet Bid Board System (DIBBS).

(X) All companies who expressed an interest in the project during the market survey period will be sent a copy of the solicitation as soon as it has opened on DIBBS.

( ) Manufacturers of similar products identified in the market research will be solicited.

( ) Dealers of the manufacturer will be solicited.

(X) Alternate items will be evaluated for this procurement if they are offered.

( ) A synopsis exception cited in FAR 5.202 applies.

( ) Other. Any sources from Market Surveys and/or previous procurements. In an effort to encourage participation by manufacturers in the acquisition process and to help decrease barriers for companies looking to become sources of supply, DLA Land & Maritime hosts Captains of Industries and the DLA Industry Forum, bringing in industry leaders for particular commodities or weapon systems.

A previous J&A for these items was not located.

7. Price/cost considerations (10 U.S.C. 2304(f)(3)(C))

a. Cost or Pricing data is not required I/A/W FAR 15.403-1(b)(3), as this acquisition will be procured utilizing FAR Part 13.5 procedures. These items will be solicited as Other Than Full and Open Competition. Offerors may be required to provide additional information for determining reasonableness of price. This data may consist of material cost or an explanation of their pricing approach. The buyer only intends to award the NSNs if fair and reasonable price determinations can be made.

b. I hereby determine that the anticipated cost to the Government will be fair and reasonable based on comparison to commercially available pricing, conducting a Price analysis, "should cost" negotiations, Producer Price Index (PPI), learning curve analysis, and/or informal cost breakdown.

8. A Sources Sought Notice:

(X) Was posted on Fed Biz Ops (www.fbo.gov) on: June 20, 2018, thru June 27, 2018, by the buyer.

FOR OFFICIAL USE ONLY

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.04

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

No responses were received.

Types of Information Requested: Sources interested in becoming approved sources for these NSN’s were asked to submit the notice and sources interested in offering on this solicitation were asked to complete the market survey questionnaire appropriate information to become approved outlined in Procurement Notes L04 and M06. A complete market survey questionnaire was also uploaded and attached to the sources sought.

9. Market Research/Efforts to Obtain Competition:

Market Survey was conducted between June 20 and June 27, 2018.

Total Number of Vendors Contacted: 1

Names of Vendors Contacted:

o NGH Retail (CAGE 3FZJ9)

Names of Vendors that responded in writing to the Market Survey and expressed interest in proposing on requirement:

o None

Types of information requested: The following includes some of the information requested on the Market Survey: Interest in Long Term Contract and number of years preferred, commerciality per FAR 2.101(b), business type (large, small, SDVOSB, WOSB), would an offeror be willing to provide Cost and Pricing Data, estimated delivery, whether an item is quantity sensitive, among other questions.

Summary of information received: A written response was not received from the approved source. See synopsis below for details of the telephone conversation:

1. NGH Retail (CAGE 3FZJ9):

Mr. Mark Laursen of NGH Retail, Inc. provided the following results by telephone to the Market Survey:

NGH Retail. is a Service Disabled Veteran Owned Small Business

They are interested in pursuing a Long Term Contract

They indicated that these items are commercial

Information received regarding the commerciality of the item: The Market Survey

FOR OFFICIAL USE ONLY

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.04

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014) respondent stated that these items are commercial or commercial of a type as they are made with the same components but in different configurations for commercial end items. Commercial invoices were not received, but the Air Force contract for the end item was determined, solicited and awarded as a commercial acquisition (FA853308D0007), buyer’s Internet research located parts for sale commercially and statements by NGH Retail stating the items were commercial or commercial of a type.

Per DOD Memorandum; Guidance on Commercial Item Determinations and the Determination of Price reasonableness for Commercial Items, dated 10/02/16, “Recent legislation provides that contracting officers may presume that a prior commercial item determination made by a Military Department, Defense Agency, or field activity of the Department of Defense shall serve as a determination for subsequent procurements of such item”. the Contracting Officer has determined that these items are commercial items.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) Tesla Industries (CAGE 3FZJ9).

11. Additional facts supporting other than full and open competition:

(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.

Forecast information is available to all potential sources. The DLA Supplier Requirements Visibility Application (SRVA) is a database that is available via the DLA Internet Bid Board System (DIBBS). SRVA provides potential sources the opportunity to search for information on DLA’s anticipated requirements based on updated monthly forecasts. Essentially, it provides 24 months of sole source and competitive projected purchase order quantities. Potential alternate sources for current sole source items can easily see DLA’s forecasted procurements and can contact the Value Management Unit to become approved sources for sole source and code and part number items. The DLA Land & Maritime Value Management Unit continually seeks out sole source, limited competition, over-prices, low reliability, and hard to buy items to improve their value and support posture. The DLA Land & Maritime internet website contains information for all potential sources on how to challenge prices, how to submit a Value Engineering Change proposal, a link to DoD’s Value Engineering program and the necessary contact info for both the DLA Value Engineering program and the DoD Value Engineering program.

12. In additional to the specific actions being taken by Technical Support personnel to overcome barriers to competition before any subsequent acquisitions or recertification of class determination are made, this item is subject to the following methods of locating additional sources:

FOR OFFICIAL USE ONLY

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.04

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

(X) The solicitation contains DLAD Procurement Note L04, Offers for Part Numbered Items.

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.

Stephanie McCormick, Contracting Officer Date

APPROVAL/CERTIFICATION

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

Competition Advocate Phone Date Signature

APPROVAL REQUIREMENTS

(X) Up to $700,000 Contracting Officer

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

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

MCCORMICK.STEPH

ANIE.J.1230261160

Digitally signed by

MCCORMICK.STEPHANIE.J.1230261160

Date: 2018.07.18 08:53:27 -04'00'

HOPSON.LILLI.A.123

0127324

Digitally signed by

HOPSON.LILLI.A.1230127324

Date: 2018.08.07 16:08:11 -04'00'