SPE7M119R0027 - JA_Redacted.pdf

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Attached to
PUMPING UNIT, SEWAGE Federal contract opportunity
Solicitation number
SPE7M1-19-R-0027
Issued by
Defense Logistics Agency Land and Maritime

About this file

This justification and approval document seeks to award a sole source contract to acquire 149 pumping units at an estimated value below $2 million. The Defense Logistics Agency Land and Maritime requires the pumping units, described as National Stock Number 4630-01-674-4414, to support weapon systems X2M, X3M, and X4M. Technical data for the item is owned by the Naval Sea Systems Command, with manufacturing data rights held only by Crane Pumps Systems. A market survey found the item to be non-commercial and not offered by other sources. The solicitation will be synopsized in August 2019 with intent to make award to Crane Pumps Systems as the only known qualified source. Previous procurement was below the simplified acquisition threshold.

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7M1-19-R-0027

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 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/PN QUANTITY EST.VALUE AMSC

Pumping Unit, Sewage 4630-01-674-4414 149 EA B

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

Subject NSN 4630-01-674-4414 is described as a Pumping Unit, Sewage and is part of weapon system X2M, X3M, and X4M.

ESTIMATED BASE VALUE

MAXIMUM CONTRACT VALUE W/ quantity ranges up to 195 EA

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:

Crane Pumps Systems (96046) P/N 1ZDCL-M0056-111

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 B. This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-100.

Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. Although, by DoD-STD-100 definition, altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

Per the Government approved source list available for this NSN in SAP, only Crane Pumps Systems (96046) 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 4630-01-674-4414 is designated as a critical application item, and its weapon system essentiality code is 1 (failure will render the end item inoperable). As such, acquisition from the currently approved sources is required to maintain the quality of the part.

This NSN has three source controlled drawings, 2600908, 2589142, and 2584542, all of which are owned by the Naval Sea Systems. The main drawing is 2600908. This is a Source Controlled Drawing, with the drawing being owned by the Naval Sea Systems Command (80064), but with Crane Pumps (96046) owning the data for manufacturing this item. As such, currently the only approved source known to possess the manufacturing capability, technical data, expertise, and permit to produce this item is: Crane Pumps and Systems (96046).

Last technical review of this item was conducted on 01/11/19 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 August 2019 ( ) 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 $2,000,000 (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:

Describe the market research conducted and the results.

Market Research consisted of review of past procurements, internet research, and market surveys. A sources sought notices was posted to FedBizOpps on 5/16/19 and closed on 5/23/19 with no responses received. A review of purchase history shows that DLA has purchased this item one time. RPM Supply Corporation (4T598), a WOSB, was the awardee. They are an authorized distributor of Crane Pumps Systems (96046). Subject NSN 4630-01-674-4414, described as Pumping Unit, Sewage, is used on weapon systems X2, X3, X4, Assault Amphibious Vehicle. The pump shall be capable of delivering a minimum of 100 gpm of water at 13 feet of static head, current shall not exceed 55 amps at 27 vdc with 0 to 20 ft static head; unit to operate minimum of 20 hours without pumping water.

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

A market survey was conducted on/during May 16, 2019 to May 23, 2019

Total number of vendors contacted: Two

Names of vendors contacted and responding:

Crane Pumps Systems (96046) – No response RPM Supply Corporation (4T958) – Responded on 6/26/19

Techniques used to conduct survey:

Emailed survey to Crane Pumps Systems (96046) and RPM Supply Corporation (4T958).

Posted Sources Sought notice with attached market survey to FBO.

Types of information requested:

Size of business, type of business, commerciality, willingness to offer proposal, ability to provide certified cost and pricing data.

Summary of information received:

No response received from Crane Pumps Systems regarding the market survey.

On June 26, 2019 RPM Supply Corporation replied to the market survey. They are a Woman Owned Small Business (WOSB), they are an independent dealer, the requested item is not commercial, they are interested in submitting a proposal, and they are not able to provide certified cost and pricing data.

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

RPM Supply Corporation states that this item is not commercial. They state that this item isn’t part of a published catalog/price list. They also state that this item isn’t a modified version from a commercial type of this item. The Product Specialist could not verify this is a commercial item.

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) RPM Supply Corporation (4T958)

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 determination are made, this item is subject to the following methods of locating additional sources:

(X) Other The solicitation contains DLA Land & Maritime Procurement Note L22, Restriction of Alternate Offers for Source Controlled Items.

12. The only prior purchase of this item was below the simplified acquisition threshold, so a J&A was not required.

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.

__________________________________________ 614-692-7996____________ Contracting Officer Phone Date

Elizabeth Beechey___________________________ 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

BEECHEY.ELIZABETH.E.123020

Digitally signed by

BEECHEY.ELIZABETH.E.1230201656

Date: 2019.09.06 12:33:46 -04'00'

SHEARER.MARY.E.1250702449 Digitally signed by SHEARER.MARY.E.1250702449

Date: 2019.09.11 09:25:25 -04'00'

APPROVAL REQUIREMENTS

(X) Up to $700,000 Contracting Officer

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

( ) $13,500,00 –$93,000,000 Head of the Contracting Activity (HCA)

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

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