JA6.302-1cSPE7M219C0009.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7M218R0053

DLA Land & Maritime Justification for Other Than Full & Open Competition

(FEB 2017)

[ 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 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/P/N QUANTITY EST. VALUE AMSC

Nut, Self-Locking, Barrel 5310-01-322-8047 19,622 EA C

Identify end item, weapon system, or class of item: NSN 5310-01-322-8047 is a Nut, Self-Locking, Barrel coded as an ALRE Critical Application Item to be manufactured for the (82N) Aircraft Launch and Recovery Equipment, catapult and arresting gear system used on the U.S. Aircraft Carrier.

ESTIMATED BASE VALUE: 19,622 EA

Past procurements were written using Simplified Acquisition Procedures, therefore, a previous J&A is not available.

Product Specialist confirmed on September 25, 2018 that the AMSC/AMC code is 1 C. Item is made to NAVAIR drawings and available for download, however, NSN is coded 1 C due to source approval by NAVAIR and NAVSUP. This is a flight critical application item/critical aircraft item, with a special procedures code of (01).

The material will be used in a crucial shipboard system supporting the launch and/or recovery of aircraft.

The use of incorrect or defective material would create a high probability of failure resulting in serious personnel injury, loss of life, loss of vital shipboard systems, or loss of aircraft. Therefore, the material has been designated as Critical Application Item (CAI) material and special control procedures are invoked to ensure receipt of correct material. An alternate source must qualify in accordance with the design control activity’s procedures, as approved by the cognizant Government engineering activity (NAVAIR). The qualification procedures must be approved by the Government engineering activity having jurisdiction over the part in the intended application. To facilitate limited competition as required per NAVAIR 4200.56, approved sources are given. Other sources may be used if evaluated successfully by NAVSUP WSS and or NAVAIR prior to contract award. NAVAIR has the right to do surveillance during production.

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 item is an ALRE Critical Application Item, specially coded 01. NAVAIR is the design activity for the critical safety and critical application items purchased for the U.S. Aircraft Carriers, catapult system/arresting gear. The manufacturers listed in paragraph 5 are the only sources who have demonstrated the unique and proven capabilities to establish and maintain the process controls to manufacture the item.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code: (56878) SPS Technologies Inc., and (0M6Y0) Ingram Industries, DBA COLOC. This item requires special testing and Quality conformance, and manufacturing procedures. These sources have the experience and specialized capabilities required to manufacture the item to NAVAIR quality requirements.

DLA Land & Maritime Justification for Other Than Full & Open Competition

(FEB 2017)

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:

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

6. [x] The acquisition will be synopsized on or about November 1, 2018.

[ x ] Other. (Explain) A solicitation synopsis will be posted to FedBizOpps and on the DLA DIBBS website for interested parties to submit a proposal.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable. Price analysis will consist of performing a PPI and Learning Curve Analysis using past prices, which were determined to be fair and reasonable. The DLA EDW Pricing Tool will also be used. In addition, there is the expectation of receiving offers from at least 2 manufacturers creating competition. However, if a sole offer is received, Other than Certified Cost and Pricing Data may be obtained to determine fair and reasonable pricing. Contractor FAT and additional line items for a Production Test and Inspection Report and a Certificate of Quality Compliance Report will impact price.

8. Market Research/Efforts to Obtain Competition:

Describe the market research conducted and the results.

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

[ X ] A market survey was conducted on/during September 24. 2018 to October 5, 2018.

A Sources Sought Notice was posted on September 24, 2018 with a market survey attached for 9 business days.

Total number of vendors contacted: 3 via email. 2 responded to request for completion of a market survey. No responses were received for the Sources Sought Notice.

Names of vendors contacted and responding: (56878) SPS Technologies Inc, (0M6Y0) Ingram Industries, DBA COLOC and (1V757) Wesco Aircraft Hardware Corporation were contacted, however, Wesco Aircraft did not complete the market survey, and would provide the part of approved source (56878) SPS Technologies Inc.

DLA Land & Maritime Justification for Other Than Full & Open Competition

(FEB 2017)

Techniques used to conduct survey: Emailed market surveys to approved sources listed in paragraph 5. Emailed a survey to an SPS distributor, Wesco Aircraft Hardware Corporation. Posted a Sources Sought Notice in FedBizOpps, in which no responses were received.

Types of information requested: Business size, estimated price and delivery, economical quantities, purpose and function of the item.

Summary of information received:

(0M6Y0) COLOC responded on September 24, 2018 to the buyer’s market survey. COLOC is a small domestic manufacturer. The survey indicates that the item is not commercial, (56878) SPS Technologies is a large business manufacturer, with 800 employees. Parent company is Cage 7E879, Berkshire Hathaway. Item is not commercial

(1V757) Wesco Aircraft is a large business dealer. Wesco Aircraft did not complete the market survey but did indicate that they would provide the part of SPS Technologies.

Information received regarding the commerciality of the item(s): In the material master the Commercial Off The Shelf is blank. An internet search indicates that this NSN is not 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. The Nut, Self-Locking, Barrel has an AMC/AMSC rating of 1 C. The item is made to NAVAIR drawings for the catapult and arresting gear used on the U.S. Aircraft Carrier. The item serves no other purpose.

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

[ x ] Other: (Explain) VEP technical data is available. However, the drawings and (Contractor Data Requirements List) CDRLs are Navy controlled and because of the criticality, NAVAIR provides approved sources based on manufacturer’s capabilities. If an alternate source were to submit an offer, they will be asked to provide a Source Approval Request (SAR) package to send to NAVAIR.

DLA Land & Maritime Justification for Other Than Full & Open Competition

(FEB 2017)

NAVAIR INST 4200.56 states the following with regard to sources. Per references (a) and (g), a CSI shall be purchased or repaired and/or overhauled only from sources approved by the TA. Unless withheld by the TA, NAVSUP WSS Engineering approves sources of supply or repair and/or purchase for CAIs per reference (p).

References are (a) Public Law 108-136, Sec. 802, Quality Control in Procurement of Aviation Critical Safety Items and Related Services, (g) SECNAVINST 4140.02, and (p) NAVICPINST 4200.27D. Critical Application Item under ALRE is an item that is essential to weapon system performance or operation, or the preservation of life or safety of operating personnel, as determined by the military Services. For the purpose of this instruction, replenishment items shall be designated “Critical Application Item” when failure of the item results in failure or malfunction of an aviation system, subsystem, or equipment, and the item is not a Critical Safety Item.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) (56878) SPS Technologies Inc., (0M6Y0) Ingram Industries, DBA COLOC and (1V757) Wesco Aircraft Hardware Corporation.

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

[ X ] Other: The solicitation will include DLAD Procurement Notes L04 and M06.

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.

James E. Duffala/Contracting Officer Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Mary Shearer/ Competition Advocate Signature Date

APPROVAL REQUIREMENTS

[ ] Up to $700,000 Contracting Officer

[ x ] $700,000 to $13,500,000 Competition Advocate

SHEARER.MARY.E.1

250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2018.11.13 11:19:31 -05'00'

DUFFALA.JAMES.E.12

30229100

Digitally signed by

DUFFALA.JAMES.E.1230229100

Date: 2018.11.06 11:16:07 -05'00'