J&A_REDACTED_SPE7M216R0049_-_STACK_1.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7M216R0049

DLA Land & Maritime Justification for Other Than Full & Open Competition (April 2014)

[ X ] 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:

This will be a firm fixed price contract for CAI ALRE material. This will be a onetime buy with a 100% option evaluated at time of award.

BRIEF DESCRIPTION NSN/P/N QUANTITY Total EST.

VALUE

AMSC

Guide, Aircraft, Mate 1710-01-483-0702 19 each C

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

• This material is for the 82N weapon system is ALRE, aircraft launch and recovery, CAI, critical application item. Naics, North American Index Classification System, 488190.

ESTIMATED BASE VALUE

ESTIMATED TOTAL VALUE (BASE + OPTIONS

MAXIMUM CONTRACT VALUE

4. The statutory authority permitting other than full and open competition is:

[ X ] 10 U.S.C. 2304(C)(1).

• The design control activity is the Naval Air Warfare Center Aircraft Division Lakehurst (NAVAIR). This activity establishes the quality assurance requirements to be used by the manufacturers. To ensure quality, NAVAIR requires that sources seek source approval. At this time, only Triumph, Entwistle, Johnson Brass and Wellman are approved because they possess the data and have demonstrated the engineering skills and manufacturing knowledge necessary to manufacture this CAI item.

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

• The current 4 approved sources are cages: L08M9 Triumph, 20722- Entwistle, 8L525-Johnson Brass, and 6JRD9- Wellman.

The use of the authority cited below:

[ X ] AMC 1. Suitable for competitive acquisition for the second or subsequent time.

The use of the authority cited is based on:

DLA Land & Maritime Justification for Other Than Full & Open Competition (April 2014)

[ X ] AMSC C. This part requires engineering source approval by the design control activity in order to maintain the quality of the part. Existing unique design capability, engineering skills, and manufacturing knowledge by the qualified source(s) require acquisition of the part from the approved source(s). The approved source(s) retain data rights, manufacturing knowledge, or technical data that are not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the part. An alternate source must qualify in 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.

[ X ] Other:

• This item is coded as a critical application item by NAVAIR, who provides DLA with a Technical Data

Requirements (TDR) document. Any deviations from these quality requirements will require NAVAIR approval. It is also noted that any manufacturers who have not provided a Source Approval Request (SAR) package to the Navy and have not been approved by NAVAIR, will not be eligible for award.

6. Efforts to ensure that offers are solicited from as many sources as practicable are: [ X ] The acquisition will be synopsized on or about 6/24/2016.

[ X ] Other:

• A sources sought notice will be posted to increase competition.

7. I hereby determine that the anticipated cost to the Government on a firm fixed price one time buy contract will be fair and reasonable based on a review of past buy history. Competition is expected as there are four approved sources; however, only one offer was received on the last buy. The contract quantity is 19 units for the base amount and up to another 19 units with a 100% option. Totaling a maximum of 38 each. The last buy was for 30 each at approximately per unit.

8. Market Research/Efforts to Obtain Competition:

• A sources sought noticed was published for 15 days on FBO.gov. A current market research survey was available from the last procurement on contract SPE7M216C0018 awarded on 2/2016. One survey was completed and returned on the last buy. The sole responder was Johnson Brass. The market research shows this material to be considered not commercial by the manufacturer. Johnson Brass will request a waiver for any special testing. The results of the sources sought noticed returned the same information from Johnson Centrifugal Technology aka Johnson Brass and also shows that Entwistle is not interested in making this material. Entwistle stated that Johnson Brass has a monopoly of this material because they are the only operation with the military die kit that is no longer GFM or GFP but is necessary to enter production. The military sold the die kit to the public. The military no longer produces the die kit to make this part.

• Market research was conducted with a current sources sought notice, however, the market research survey used on the last buy was also used to develop the current subject requirement. The last buy was determined fair and reasonable based on a PRC, price reasonableness code, of BI- buyer justification.

Only one offer was received on the last buy. A J&A was completed for the prior buy, which was also restricted to small business through a 100% small business set aside per form 2579.

DLA Land & Maritime Justification for Other Than Full & Open Competition (April 2014)

• For the reasons stated below, the item covered by this procurement for NSN 1710-014830702, Guide, Aircraft,Mate, will be non-commercial based on the definition of commercial items located in FAR 2.101 and will be procured under FAR part 15. The following non-commerciality determinations have been made:

• Review of the material master in SAP indicates that this NSN has an AMC/AMSC of 1C, and not 1/Z which would indicate a commercial item. The industrial specialist tab under classification is blank, showing this is not considered a commercial off the shelf item. Review of the material number does not show evidence that this NSN is available on the commercial market nor is it of a type customarily used by the general public or by non-governmental entities for purposes other than government or military purposes as defined in FAR 2.101.

• Market research via internet resources for commercial sale offerings yielded no results to show that this item has been offered for sale, lease or license to the general public as defined in FAR 2.101, “commercial item.” A search of the Guide, Aircraft,Mate indicates that the only use for Guide, Aircraft,Mate is on 82N ALRE which are military and not commercial applications. This material is coded as ALRE CAI- Critical Application Item. IAW FAR 12.205, a review of the item population shows that for the items being procured under this initiative there is generally no available product literature and that the requirements are Governmental in nature. 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 with that approach. Per FAR 12.207, contracts for commercial items shall rely on the contactor’s existing quality assurance systems as substitutes for Government inspection and testing before tender for acceptance. The quality requirements and inspections spelled out for this National Stock Number are not compatible, nor feasible, for the item in this acquisition. Therefore, it is determined to be in the best interest of the Government to procure the items under this initiative utilizing non-commercial clauses and terms and conditions.

• The “general public” is interpreted as individuals using parts in a non-governmental or non-military capacity. Market research analysis IAW FAR 12.1 was conducted and it has been determined that the item contained in the survey are not commercial and are not commercial of the shelf items. The contractors which responded to the survey checked no when asked if these items were commercial or catalog/price listed items. The research did not yield any information about the part being available to the general public for inspection nor is there any evidence of sale prices at which sales were made to a significant number of buyers constituting the general public.

• The market survey responses were as follows:

Johnson Brass responded stating this material is non-commercial.

• A review by the product specialist assigned to this NSN shows that this material is coded as noncommercial with a “N”, NO, in the COTS, commercial off the shelf, line.

• Per FAR 12.205, a review of the item shows that there is no existing product literature generally available in the industry to determine its adequacy for purposes of evaluation.

9. Additional facts supporting other than full and open competition are:

[ X ] Other:

DLA Land & Maritime Justification for Other Than Full & Open Competition (April 2014)

• This item is categorized as a part whose failure potential can cause loss of life, serious injury, loss of an aircraft and/or significant damage to aircraft or associated equipment. Only those sources listed on the TDR will be acceptable based on manufacturing capabilities and experience.

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

• (8L525) Johnson Brass

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 ] The solicitation contains the provision entitled Conditions for Evaluation and Acceptance of Offers for Part Numbered Items

[ X ] Other (Explain):

• Sources Sought with a Market Survey form, and posting of solicitation to the DLA DIBBS Website.

DLA Land & Maritime Justification for Other Than Full & Open Competition (April 2014)

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 $650,000, this signature serves as the approval.

Contracting Officer

___Date

APPROVAL/CERTIFICATION

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

_________________________________________ __________________________ Competition Advocate Signature Date

Head of the Contracting Activity (HCA) Date Signature

Senior Procurement Executive (AQ) Date Signature

APPROVAL REQUIREMENTS

[ X ] Up to $650,000 Contracting Officer

[ ] $650,000 to $12,500,000 Competition Advocate

[ ] $12,500,000 to $85,500,000 Head of Contracting Activity (HCA)

[ ] over $85,500,000 Senior Procurement Executive (AQ)

BEECHEY.ELIZABETH.E.1230201

Digitally signed by

BEECHEY.ELIZABETH.E.1230201656

Date: 2016.08.31 14:02:35 -04'00'