SPE7M2-16-R-0050_-_reviewed_(002)_Redacted-stack_3.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7M216R0050

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/services on other than a full and open competition basis.

3. The supplies/services required to meet the using activity's needs are described as follows:

BRIEF DESCRIPTION NSN/P/N QUANTITY EST. VALUE AMSC

Motor, direct current 6105-008225163 902 C

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

04F-MOTORS

ESTIMATED BASE VALUE=

ESTIMATED TOTAL VALUE (BASE + OPTIONS)=

MAXIMUM CONTRACT VALUE =

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.

a. Brief narrative supporting use of the exception:

This will be an unrestricted acquisition per the form 2579. There is only one approved source of supply, ITT Aerospace, cage 73760. The required part number is 106537A100. This material is not commercial per the COTS line in SRM. This sole source is uniquely qualified because the AMC/AMSC codes of 3/C definitions as listed below and controlled by the product technical engineering activity, Navy, and the DLA Land and Maritime product specialist. Additionally, the contractor is the only company that is uniquely qualified to provide this item because they are the only source that possesses the data and experience necessary to manufacture the item.

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

ITT Aerospace cage code 73760 for part 106537A100.

The use of the authority cited is based on:

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

[ 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

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

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

[ X ] The acquisition will be synopsized on or about 6-24-16.

[ X ] Manufacturers of similar products identified in the market research will be solicited.

[ X ] Dealers of the manufacturer will be solicited.

[ X ] Other:

Market Research was conducted with the approved source, recent suppliers, and posted on FBO.gov.

The procurement will be posted on the DLA Internet Bid Board System (DIBBS).

The solicitation will be sent to ITT Aerospace and dealers in the competitive range of the prior purchases.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable based on a review of the available procurement history in SRM and any received competition that falls within the contracting officers determined competitive range. Risk is minimized for the Government as this will be a firm fixed price contract. Certified Cost and Pricing Data will be required for this solicitation. A subcontracting plan may be required upon evaluation of offers.

8. Market Research/Efforts to Obtain Competition:

There is only one approved source of supply, ITT AEROSPACE (large business). Market research was solicited in May 2016. Two companies, Mercer and HOWE, returned the request for information.

Mercer is a small business offering their suppliers.

HOWE is an approved dealer of the approved source.

HOWE is a small business experienced in the NSN. Neither company provided pricing data.

Historical buy data shows that the last buy was from a women owned small business, cage 65777,- Howe(WOSB), on contract spe7m916m2472 for 50 units at $2,909.49 each. The PRC was BB, dealer competition. The last buy was unrestricted per the 2579form. A search for SDB, SDVOB, and 8(a)-hubzone, was performed and offered no additional source(s) of supply. The one level above signature will be with Mr. Herman Poe.

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

[ x ] A market survey was conducted on/during the date of 5/9/2016.

Total number of vendors contact: A survey was sent to the one approved source and the last awardee; in addition to being published through a sources sought notice posted of Fed Biz Ops.

Names of vendors contacted: ITT Aerospace, Mercer and Howe.

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

Techniques used to conduct survey: Market Survey Questionnaire, Internet Search

A sources sought notice was posted in Fed Biz Ops in May, 2016 for 15 days.

Market research was conducted through a market survey sent to the identified approved source(s) as listed in the PID- purchase item description and other potential suppliers.

Types of information requested:

Is the vendor a large or small business, a manufacturer or dealer or distributor, is the item a commercial item, is the item a catalog or price listed item and is it carried in the vendor’s inventory? Has this vendor supplied the item to the government or to a commercial customer previously, does the vendor manufacturer similar items to this item? What are the quantity breaks?

Would the vendor be interested in Customer Direct (DVD) orders? Does the vendor have electronic data interchange (EDI) capability and if not would the vendor be willing to obtain the capability? Is FOB/inspection/Acceptance at Origin/Destination/Acceptable?

Summary of information received:

A new source of supply responded to the request for a market survey. Mercer will need to complete a SAR package to be considered on future procurements. Mercer would be using their supply chain and not providing the part of ITT Aerospace. Mercer is a potential source of supply on future procurements if they submit a SAR package that’s approved by the engineering activity, any offer from Mercer will not be consider for award on the subject procurement unless they are offering an approved part. HOWE responded with an estimated delivery time of 40 weeks for a minimum quantity of 50 each. No quantity range pricing or delivery was provided. HOWE is a small business.

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

For the reasons stated below, the item covered by this procurement for NSN 6105-008225163, Motor, Direct Current, 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 3C, 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 “Motor, Direct Current” indicates that the only use for the Motor, Direct Current with part number 106537A100 is a part of the 04F weapon system program which are for military and not commercial applications. 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

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

MercerRPM – cage 43PW7.

ITT-cage 73760- the market survey was sent to their sales team fax as they provide no email on their web site. ITT has not responded.

Howe- cage 65777.

A review by the product specialist assigned to this NSN shows that this material is not COTS, commercial off the shelf, material.

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 ] 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:

Mercer, cage code 43PW7. HOWE, cage 65777.

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 :

The solicitation will be made available to the public on DIBBS and in Fed Biz Ops.

The AMC/AMSC code is verified by Tech on all material prior to release as an RFQ or RFP.

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

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.

Contracting Officer Phone 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

( ) 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)

Stephanie J. McCormick 614-692-2036 7-12-16

MCCORMICK.STEPHANIE.J.123026116

Digitally signed by MCCORMICK.STEPHANIE.J.1230261160 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DLA, cn=MCCORMICK.STEPHANIE.J.1230261160 Date: 2016.07.12 13:44:56 -04'00'

Phone

8/10/2016