J&A__REDACTED---SPE7M218R0017_-_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION LTC IQC 1000046922-SPE7M218R0017

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

[ 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/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 w/ options

AMSC

Cartridge, Water Demineralizer, Ion Exchange (Cartridge Bromine)

4610-01-022-9970 17,287

EACH

C

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

This material is 21NRP, Navy Reactor Program. This item is for a military use. Ships with nuclear power plants are the end item application. One example of the many types of ships supported by this material is the OHIO CLASS SSN (TRIDENT) as part of the 23N program.

This material supports 39 weapon systems. This item is very high demand material and due to a mission critical mandate from the Navy, DLA Land and Maritime must maintain 95% material availability on this item at all times.

ESTIMATED YEARLY BASE VALUE:

ESTIMATED 3 YR BASE VALUE:

ESTIMATED TOTAL VALUE (BASE + OPTIONS):

MAXIMUM CONTRACT VALUE :

FOR ADD-ONS, PROVIDE VALUE OF OPTION YRS REMAINING : N/A, not applicable.

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 acquisition is for a commercial of a type item that is utilized by military customers. The Navy has approved one source of supply for this material to support the 21N weapon system. The approved source of supply is the manufacturer, Bromine Systems Inc. CAGE 74YZ3. This material is commercial.

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

The sole approved source of supply is Bromine Systems Inc. CAGE 74YZ3.

The use of the authority cited below:

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

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

The use of the authority cited is based on:

[ 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.

The vendor is uniquely qualified because it is the only known source with the data necessary to manufacture the item to meet the military’s specific needs.

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

[ X ] The acquisition will be synopsized on or about 9-30-2017.

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

[ ] Dealers of the manufacturer will be solicited.

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

[ X ]The solicitation will be sent to Bromine Sys. Inc., the previous awardee for this item and the approved manufacturing source. Any additional vendors that express interest in this acquisition will be provided a copy of the solicitation.

6. 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 will be limited to the contractor as this will be a firm fixed price contract. The buyer will do a price analysis and compare pricing to commercial pricing.

7. Market Research/Efforts to Obtain Competition:

Market Research was issued for a period of 15 days on Federal Business Opportunity on April 4th, 2016 as a sources sought notice for this NSN. An additional sources sought notice was posted on 10/24/2017 and returned the same results and information as prior surveys. Additional emails were sent to recent past awardees. Bromine was the only vendor who responded to the second sources sought notice on 10/2017. The estimated unit price is based on the estimated quantity to be purchased. . Delivery was

Research shows this item has a private price list and has been sold under p/n EV954001, from Bromine in limited quantities. This part number is for the 1 piece pack. The OEM also uses part number EV9540-06, for Cartridge Bromin which is sold in 6 packs.

A similar item search through haystack revealed no similar item. There is only one characteristic, listed as “Plastic, Contains Polybromide;14.000 IN o/A LG 3.750 IN DIAM.”

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

A past history search revealed that the last buy was on FAR 13.5 IDPO, indefinite delivery purchase order, with a maximum value of $4,000,000.00. The last buy was on 12/2015 with a price reasonableness code (PRC) of BG which means that pricing was determined fair and reasonable based on comparisons to previous procurement history. The last buy was for 800 each at . Based on current market research, past buy history and the Contracting Officer, this material is considered to be commercial. The last buys between now and 2015 were all awarded for this material to Bromine Systems Inc, CAGE 74Y23. CAGEs 58837- FH Gaskins and 6M6TL-BALCO will be sent copies of the RFP for quotation. Balco inquired about the RFP via email per the sources sought notice posted in FBO.gov. Balco did not provide the market research survey. CAGE 32YK1-Pure Systems Inc. sold their line for this material to Bromine Systems.

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

[ X ] A market survey was conducted on/during October 24th, 2017.

Total number of vendors contacted: Market surveys were sent to the past sources identified in procurement history in addition to a sources sought notice posted on FedBizOps.

Names of vendors contacted and responding on either sources sought notices published by the government:

Bromine System Inc. CAGE 74YZ3 and BALCO CAGE 6M6T1.

Techniques used to conduct survey:

A sources sought notice was posted in FedBizOps in October 24th,2017 for 5 days. Market research was conducted through a market survey sent to the identified approved sources as listed in the PID-purchase item description and was attached to the source sought notice.

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?

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

Summary of information received:

Market Research was issued for a period of 5 days on Federal Business Opportunity on October 24th, 2017 as a sources sought notice. The initial source sought responses received were from Bromine and BALCO on 4/2016. Bromine responded again with a completed market research form on a sources sought notice published 10/24/17. Additional emails were sent to recent past awardees: Bromine Systems Inc, CAGE 74Y23, CAGEs 58837- FH Gaskins; and interested contractor 6M6TL-BALCO; all will be sent copies of the RFP.

8. 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. The sole approved source of supply is Bromine Systems Inc. CAGE 74YZ3.

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

Bromine Systems Inc. CAGE 74YZ3.

The sole approved source of supply is Bromine System Inc. CAGE 74YZ3 for part number 255340-401. CAGE 6M6T1- BALCO- stated they would provide a market survey. BALCO was contacted by the buyer on 10-24-17. BALCO never submitted a market survey but will be solicited for an offer. BALCO is on the bidders list and would be a distributor of the OEM part or offering an alternate part via a SAAR- source approval acquisition request.

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:

The solicitation contains the provision entitled Evaluation of “Offers for Part Numbered Items” and “Offers for Part Numbered Items;” DLAD Procurement Notes M06 and L04.

The solicitation will be made available to the public on DIBBS and in FedBizOps.

The subject material AMC/AMCSC codes were reviewed along with the Purchase Order Text, POT, on 9/29/2016 by the Product Specialist, (PS). The Material Planner (MP) reviewed and approved the Government requirement on 7/13/17.

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

1073378261

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.

KIRK.MATTHEW.M. Digitally signed by

KIRK.MATTHEW.M.1073378261

_________ D_at_e: _20_17_.11_.1_4 1_0:_34_:58_-_05_'00_'

Contracting Officer (Mathew M. Kirk) Date

APPROVAL/CERTIFICATION

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

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

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

COUTURE.MARY.E.

1230253613

Digitally signed by

COUTURE.MARY.E.1230253613

Date: 2017.11.30 17:33:31 -05'00'