SPE7M316R0010_-_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION: SPE7M316R0010

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 AMC/AMSC

Strainer, sediment 4730-01-474-7702 35 EA 3/C

Identify end item, weapon system, or class of item: Ticonderoga Class CG (47)

Large Purchase Requirement Estimated Base Value Estimated Total Value (Base + Options): No option will be included.

RFP Value Based on quantity 52 EA in price breaks.

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

10 U.S.C. 2304(c)(1) - Available from only one or a limited number of sources.

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

The Hellan Strainer Co. (1QZK3)

The Hellan Strainer Co. was reviewed by the Engineering Support Activity (ESA) and was determined to be the only source capable of manufacturing this item. The determination was made after the ESA found them to be the only source capable of maintaining the quality of the part and have the existing unique design capability, engineering skill and manufacturing knowledge. Hellan Strainer owns the data rights, manufacturing knowledge and technical data that is not available to the Government and that data under sole ownership is essential to maintaining the quality of the part.

Therefore, the determination is made by the ESA to require acquisition of this material from the approved source, The Hellan Strainer Co.

The use of the authority cited below:

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

The use of the authority cited is based on:

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

Source Selection Information-- See FAR 2.101 and 3.104 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:

1. A sources sought synopsis will be posted for five days on FedBizOps.

2. A pre-solicitation synopsis will be posted for 15 day on FedBizOps.

3. A solicitation will be posted for 30 days on DIBBS.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable. By comparing past procurement history pricing and the current estimated unit price of EA the Contracting Officer is affirmatively determining that the anticipated price and cost will be fair and reasonable in accordance with FAR 6.303-2(b)(7). Per FAR 15.403 cost and pricing data is not required under this acquisition threshold however other than cost and pricing data may be obtained from the contractor to provide additional support for a price reasonableness determination. Negotiations may be required and will be conducted in accordance with FAR 15.402 until a suitable agreement can be reached by both parties that will allow for a fair and reasonable determination for the Government.

8. Market Research/Efforts to Obtain Competition:

Market research was conducted from 12/07/2015 to 12/11/2015.

1. Techniques used to conduct market research:

- Past procurement review of the requested NSN

- Data classification (SAP) industrial supply values/ characteristics review

- Web search for commercial use of the NSN requested

- ILSmart and GSA databases were queried to identify other potential sources

- A sources sought notice was posted on FedBizOps from 12/07/2015 to 12/11/2015. One response was received.

- A market survey was sent to contractors from 12/07/2015 to 12/11/2015. [10 U.S.C.

2304(f)(3)(D)]

2. Market Surveys

a) Total number of vendors contacted: two (2) via email

- The Hellan Strainer Co. (1QZK3)

- Federal Resources Supply (1Q3Z9)

b) Types of information requested: delivery, quantity sensitivity, price break availability, commerciality, business size, business type, FOB information, etc.

c) Names of vendors contacted and responded and summary of information received:

One (1) vendor responded to the sources sought.

Federal Resources Supply Co. (1Q3Z9), POC: Sean Cummings

- Deals direct with the Government

- Provided conflicting information regarding commerciality

d) Information received regarding the commerciality of the item:

Source Selection Information-- See FAR 2.101 and 3.104

The market survey received provided conflicting information regarding commerciality.

Further information was requested and the Pricing Office assisted in a non-commercial determination and this solicitation will be solicited under FAR 15.

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

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 previous procurement was under the Simplified Acquisition Threshold and a J&A was not required.

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

Federal Resources Supply Co. (1Q3Z9), sole approved distributor to OEM

11. This item is subject to the following methods of locating additional sources:

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

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 Date

APPROVAL REQUIREMENTS

[X] Up to $700,000 Contracting Officer

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

[ ] $13,500,000 to $93,000,000 Head of Contracting Activity (HCA)

[ ] over $93,000,000 Senior Procurement Executive (AQ)

Source Selection Information-- See FAR 2.101 and 3.104

DAVIS.HELEN

.B.1283040395

Digitally signed by

DAVIS.HELEN.B.1283040395

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DLA, cn=DAVIS.HELEN.B.1283040395 Date: 2016.06.02 15:46:12 -04'00'

06/02/2016