SPE7M121R0026 JA Redacted.pdf

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Attached to
PUMP, HYDRAULIC Federal contract opportunity
Solicitation number
SPE7M122C0007
Issued by
Defense Logistics Agency Land and Maritime

About this file

This document is a justification for other than full and open competition for a federal contract solicitation. The solicitation seeks a hydraulic pump part number H330025G01 from Meggitt Defense Systems, Inc. Market research found this part requires engineering source approval and technical data is not available to permit full and open competition. The government conducted a sources sought notice on September 17, 2021 and market survey contacting three potential vendors, with only Meggitt confirming they manufacture the part and would submit a bid. Prior contracts for this national stock number dating back to 2008 have only been awarded on a sole source basis to Meggitt. The Defense Logistics Agency Land and Maritime plans to award contract SPE7M122C0007 for an unknown quantity of the hydraulic pump to an unknown vendor on September 28, 2022 on other than full and open competition due to lack of available technical data.

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION

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.

The Contract Specialist verified the AMC/AMSC for this procurement with Product Specialist on September 13, 2021. The Product Specialist stated that the AMC/AMSC coding of 1/C is correct. The government does not own the technical data to procure this NSN as 1/G, the material is procured by part and CAGE buy. All means to obtain a technical data package adequate for manufacture of the item have been exhausted. Meggitt (North Hollywood) Inc., Meggitt Defense Systems, Inc., and Lockheed Martin Corporation are currently the only sources known to possess the requisite data to manufacture this item. This part requires engineering source approval by the design control activity in order to maintain the quality of the part. Any alternate source must qualify in accordance with the design control activity’s procedures, as approved by the cognizant government engineering activity.

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

[X] The acquisition will be synopsized on or about 11/04/2021 and will run for 15 days. At the completion of the synopsis period the solicitation will be available via DIBBS for 30 days.

[X] Other. A Sources Sought was published on Sam.Gov 9/17/2021 for 10 days. No direct responses were received.

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

Formal C/P Data will not be requested 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 acquisition specialist only intends to award this NSN when a fair and reasonable price determination can be made. The acquisition specialist 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:

A market survey was conducted on September 17, 2021 to include a Sources Sought notice posted to Sam.gov, as well as the survey sent via email to Meggitt (North Hollywood), Inc. (58163) and Meggitt Defense Systems, Inc.

(62228) (same contact information listed for both CAGEs). No responses received on initial attempt. A market survey was sent via email to additional source Lockheed Martin Corporation (81755) on November 10, 2021, as well as a follow up email sent to Meggitt. from Meggitt Defense Systems, Inc. responded that the survey request had been forwarded to the appropriate department for review. An additional follow up request was sent via email November 16, 2021 to Meggitt and Lockheed Martin. A call was made to Lockheed Martin on November 23, 2021, with no answer or return call received. A call was made to at Meggitt on November 23, 2021; she was able to confirm no changes to the requested part have been made, that the part is still valid and procurable, and that they would submit a bid for the proposal request. A completed Market Survey was provided by Meggitt the evening of November 23,2021, confirming them to be a large manufacturer who sells this item 100% to the government.

DLA Land & Maritime Justification for Other Than Full & Open Competition (October 2020)

DLA Land & Maritime Justification for Other Than Full & Open Competition (October 2020)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION

Additional market research was conducted via an internet search, which did not provide any additional sources or dealers of the requested item. This item is not available for purchase through GSA.gov.

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

[X] A market survey was conducted on: September 17, 2021. A Sources Sought notice was posted to Sam.gov on September 17, 2021. The Sources Sought notice had a response date of September 27, 2021.

Total number of vendors contacted: 3. The vendors contacted were approved sources Meggitt (North Hollywood), Inc. (58163), Meggitt Defense Systems, Inc. (62228) and Lockheed Martin Corporation (81755).

Names of vendors contacted and responding:

Amanda Reeves, Meggitt Defense Systems, Inc. (62228) Techniques used to conduct survey:

1. The market survey was sent via email.

2. Follow up conducted via telephone.

3. Sources Sought- DAG 10.002-102(C)(vii) : Published a “sources sought” synopsis on SAM.gov on

September 17, 2021. A copy of the market survey was also attached to the sources sought notice.

Types of information requested: Business size, manufacturer or dealer, are these commercial items, are these catalog/price listed items, inventory availability, willingness to quote, economical production quantities available delivery schedule, and willingness to accept quantity option.

Summary of information received:

from Meggitt Defense Systems, Inc. (62228) was able to confirm requested part (H330025G01) is still valid and procurable, and that they would submit a bid for the proposal request. A completed market survey was later received from Meggitt, confirming them to be a large manufacturer who sells this non-commercial item 100% to the government. Their estimated delivery schedule is 12 months ARO with no current inventory.

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

Market research analysis IAW FAR 12.1 was conducted and it has been determined that the items contained in this initiative are not commercial off-the-shelf (non-developmental items). There is no information available at this time showing that this is a commercial item. Also, the COTS tab in the Material Master is blank; non-commerciality was confirmed by the product specialist. IAW FAR 12.205, a review of the item population shows that for the items being procured under this initiative there is not generally product literature available and that requirements are Government in nature. Additionally, in the commercial context, contracting officers should allow offerors to propose more than one product that will meet the Government’s need. The acquisition is not compatible to that approach. Per FAR 12.208, contracts for commercial items shall rely on contractors’ existing quality assurance systems as substitutes for Government inspection and testing before tender for acceptance. The quality requirements and inspections spelled out for this initiative are not compatible, nor feasible, for the items in this acquisition. Meggitt Defense Systems confirmed in their returned market survey response that the item is not commercial. For the above reasons, the Contracting Officer has determined this item to be non-commercial.

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.

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION

DLA Land & Maritime Justification for Other Than Full & Open Competition (October 2020)

10. A listing of sources, if any, indicating an interest in the acquisition is:

Meggitt Defense Systems, Inc. (62228) part number H330025G01

11. The following actions are being taken to identify additional sources:

[X] Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items [X] Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items

12. Procurement history reflects awards dating from 5/8/2008-12/16/2020. The most recent procurement for this NSN SPE7M1-21-P-1610 had a total value over the Simplified Acquisition Threshold, but was issues under the Special Emergency Procurement Authority, therefore no J&A was completed. See attachment for the most recent RFP unredacted J&A issued under solicitation SPM7MX-13-R-0008.

Attachments: Prior J&A SPM7MX-13-R-0008

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 $750,000, this signature serves as the approval.

Contracting Officer Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

[ ] Up to $750,000 Contracting Officer

[X] $750,000 to $15,000,000 Competition Advocate

MAXWELL.BRIAN.ST

EPHEN.1230183828

Digitally signed by

MAXWELL.BRIAN.STEPHEN.12301

83828

Date: 2021.12.01 09:55:40 -05'00'

SHEARER.MARY.E.1

250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2021.12.03 12:59:48 -05'00'

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