SPE7M119R0023_-FOIA_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION: SPE7M119R0023

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 PR

QUANTITY

PR EST.

VALUE

AMS AMSC

SHOP EQUIPMENT,UTIL 4940-016300734 13 3 D

Item: This is no weapons system code assigned to NSN: 4940-016300734, which is described as General Purpose Ship Equipment. Per Haystack, the part name assigned by the controlling agency is Booster Station. Per previous procurements, the booster station works on a 220/120 volt and will make 99.9% pure nitrogen. Internet research on Nitrogen Generators indicate that they reduce the risks associated with the handling of gas cylinders and are more cost effective. Nitrogen gas is used for various application including to help preserve the freshness of bulk or preserved foods. The gas can aid in the production of electronic components and can improve the safety of explosives. Haystack identifies the US Army as the primary customer. The approved source is Sanitz Enterprises, Inc. DBA 57AD8 P/N AP100055. Weapon System: N/A, (General Purpose Ship Equipment)

LARGE PROCUREMENT- Request for Proposal (RFP):

ESTIMATED TOTAL RFP VALUE (based on the quantity of up to 13 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) - Available from only one or a limited number of sources.

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 source Sanitz Enterprises, Inc. DBA 57AD8 P/N AP100055 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 and CAGE code:

Sanitz Enterprises, Inc. DBA 57AD8 P/N AP100055

Note: The last procurement was issued as simplified acquisition therefore, a J&A was not required.

The use of the authority cited below:

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

[X] 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.

Note: Basis for the justification have been concurred as complete and accurate by the product specialist on 5/6/2019 I/A/W FAR 6.303 (c).

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

Source Selection Information-- See FAR 2.101 and 3.104

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 5/13/2019-

5/17/2019 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 hereby determining 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 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 cost is fair and reasonable to the government is made by the Contracting Officer.

8. Market Research/Efforts to Obtain Competition:

Market research for this procurement was conducted from 4/24/2019-5/17/2019.

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; however no other sources were identified.

A sources sought notice was posted on FedBizOps from 5/13/2019-5/17/2019. No responses were received.

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

Total number of vendors contacted: Market survey was sent to two (2) contractors via e-mail:

R M Government Services, Inc - 6FN58 (Dealer) Sanitz Enterprises, Inc. - 57AD8 (OEM) Types of information requested: delivery, quantity sensitivity, price break availability, commerciality, business size, business type, FOB information, etc.

Name of vendors contacted and responded and summary(s) of information received:

Total of one (1) vendor responded to market survey.

R & M Government Services (6FN58) POC: Ralph Archetti

SDVOSB business dealer Will be offering part of Sanitz Enterprises, Inc. CAGE 57AD8

Willing to submit proposal

Stated that the item is not commercial.

Sanitz Enterprises, Inc. (57AD8) did not respond to their market surveys.

Non-commerciality determination:

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.

Source Selection Information-- See FAR 2.101 and 3.104

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 source(s), if any, indicating an interest in the acquisition is:

1. R & M Government Services (6FN58) - dealer.

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.

2-2621 6/28/2019 Contracting Officer Phone Date

APPROVAL REQUIREMENTS

[X] Up to $700,000 Contracting Officer