J A_R0025_-_FOIA_.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7M4-15-R0025

Source Selection Information. See FAR 2.101 & FAR 3.104 1

ORIGINAL

1. The Defense Logistics Agency, DLA Land and Maritime, is the contracting activity.

2. The action being approved is the acquisition of TUBE ASSEMBLY, METAL using other than full and open competition by restricting to the only source(s) approved to manufacture the item, see below.

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

BRIEF DESCRIPTION: TUBE ASSEMBLY, METAL

NSN: 4710-01-357-0701

QUANTITY: 96 EACH

EST. PR VALUE: $486,831.36

AMSC: C

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

Item TUBE ASSEMBLY, METAL is an item used on the F15/16 aircraft engine. This is a restricted source item and requires engineering source approval by the Government Design Control Activity. Contract history shows that this item is primarily purchased by the military, specifically Department of the Air Force. It is specifically designed and used only on the F15/16 fighter aircraft. According to the approved source manufacturer, item is only sold to the

Government, not commercially. Weapon system is BTF = F100PW220/ILC ENG, F15/16 AIRCRAFT.

LARGE PROCUREMENT – Request for Proposal (RFP):

ESTIMATED PR BASE VALUE: $486,831.36

ESTIMATED TOTAL VALUE (BASE + OPTION) No option will be solicited.

ESTIMATED SOLICITATION VALUE: $486,831.36

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. Sole source quoted by OEM or authorized dealers.

This item is considered a sole source or available from a limited number of sources because adequate data for the evaluation of alternate offers is not available at the procurement agency. Any alternate source offers must be approved by the Engineering Support Activity (ESA), via DLA form 339. Offerors who are interested in qualifying their product for purpose of future acquisition must contact the cognizant design activity specified on the drawing. The offeror must provide a complete data package including data for the approved part(s) and alternate part for evaluation.

According to the product specialist there are no other concerns seeking source approval at this time.

APPROVED SOURCES are:

KREISLER INDUSTRIAL CORPORATION (56529) and P/N 4077623-01

UNITED TECHNOLOGIES CORPORATION (52661) and P/N 4077623-01

UNITED TECHNOLOGIES CORPORATION (77445) and P/N 4077623-01

They are the only known source that own or have rights to the technical data necessary to manufacture this item for the

Government. Therefore, complete data package of drawings/specs will not be available at the time of solicitation.

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

KREISLER INDUSTRIAL CORPORATION (56529)

UNITED TECHNOLOGIES CORPORATION (52661)

UNITED TECHNOLOGIES CORPORATION (77445)

According to the Government’s past procurement history, UNITED TECHNOLOGIES CORPORATION has been the single direct supplier of this item from years 2011-14. The first DLA contract was issued to the original equipment manufacturer United Technologies (52661) in 2011. It was coded PRC=BA which indicates there was an adequate competition between manufacturers, but the most recent contract N0038312G001MU315, issued on

12/4/14, was coded (PRC) as BG = the price was determined fair and reasonable based on comparison to prices paid on past purchases.

Source Selection Information. See FAR 2.101 & FAR 3.104 2

Last procurement was a large purchase buy and solicited as other than full and open competition10 U.S.C.

2304(c)(1). J & A document was prepared prior to that solicitation. Please see copy of previos J&A attached.

According to the past buy history no offers were received from KREISLER INDUSTRIAL CORPORATION in a last three (3) years. Therefore, based on all above an adequate competition between manufacturers is not expected for this procurement

KREISLER INDUSTRIAL CORPORATION is a small business concern and UNITED TECHNOLOGIES

CORPORATION is a large business concern. Unrestricted procurement has been approved by the Small

Business Administration IAW FAR 19.502-2: "There is no expectation offers will be received from at least two small business concerns offering the product of different domestic small business concerns" and applies to procurements that are exceeding the simplified acquisition threshold.

The use of the authority cited is based on (The full text is available in DFARS PGI 217.7506 Part 2):

( X ) AMC = 1. Acquire, for the second or subsequent time, directly from the manufacturer.

( X ) AMSC = C. Part requires engineering source approval by the design control activity in order to maintain the quality of the part. The Government does not have adequate data, lacks rights to data, or both needed to purchase this part from additional sources. The Government has been unable to economically buy the data or rights to the data, although the part has been undergoing full screening for twelve (12) or more months.

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

(X) The acquisition will be synopsized for 14 days.

(X) Other:

Solicitation will be posted to DIBBS for 30 days.

I/A/W DFARS PGI 206.302-1(d) sources sought notice was posted to FedBizOps for 10 (ten) days as a part of market research, per FAR 6.302-1 to make sure that offers will be received “from as many potential sources as is practicable under the circumstances,” see market research paragraph eight (8) below.

By comparing past procurement history prices and current estimated unit price of $5,071.39 the Contracting Officer is affirmatively determining that the anticipated price/cost will be fair and reasonable in accordance with the FAR

6.303-2(b)(7). In accordance with 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 price reasonableness determination. Negotiations may be required and will be continued until suitable for both parties and a determination that the anticipated cost is fair and reasonable to the government will be made by the Contracting Officer in accordance with FAR 15.402.

7. Market Research/Efforts to Obtain Competition:

Market research was conducted from August 12, 2015 to August 25, 2015.

Techniques used to conduct market research:

Past procurement review of the requested item NSN;

Similar NSN items past procurement review;

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

Web search for commercial use of the NSN item P/N requested;

FLIS, EMALL, GSA databases were queried to identify other potential sources for this item;

Market Survey [10 U.S.C. 2304(f)(3)(D)]: was conducted August 12, 2015 with a response date of August 18, 2015.

Source sought notice was posted to FedBizOps - no responses from additional interested parties were received.

Total number of vendors contacted with market survey: Based on the past buy history review and current sources of supply, two contractors were contacted. CAGEs 52661 and 77445 are the same company, United Technologies, with different divisions. Therefore, two surveys were prepared and sent by the buyer, see below:

Source Selection Information. See FAR 2.101 & FAR 3.104 3

1. UNITED TECHNOLOGIES CORPORATION (52661) – approved source OEM

2. KREISLER INDUSTRIAL CORPORATION (56529) – – approved source OEM

Types of information requested: The vendors were asked business size, to provide their delivery time, if the item is quantity sensitive, if the item is commercial, if item is on catalog, availability of inventory of the item, and production capacity.

Name(s) of vendors responded:

1. UNITED TECHNOLOGIES CORPORATION (52661)

2. KREISLER INDUSTRIAL CORPORATION (56529)

Summary of information received:

Both contractors replied that they do no complete market surveys, but will be interested in solicitation.

Non-commerciality determination:

Item TUBE ASSEMBLY, METAL is an item used on the F15/16 aircraft engine. This is a restricted source item and requires engineering source approval by the Government Design Control Activity. Contract history shows that this item is primarily purchased by the military, specifically Department of the Air Force. It is specifically designed and used only on the F15/16 fighter aircraft. According to the approved source manufacturer, item is only sold to the Government, not commercially. Weapon system is BTF = F100PW220/ILC ENG, F15/16 AIRCRAFT.

To further substantiate non-commerciality, the buyer reviewed the part number and nomenclature on the Internet to see if it was available for sale to the General public. I/A/W FAR 7.102(a)(4) item is not GSA listed from sources other than

DLA. The Internet, EMALL, Haystack, and GSA websites search indicated that it is not sold commercially. There was no commercial sales history, catalogs /brochures, established price list or announcements to the general public provided for any of these items. Market research indicates that this item is not commercial, the OEM is a large business, and they are the manufacturer. A technical review indicates it is highly unlikely this item would ever be used in the commercial world

Data classification (SAP) industrial supply values / characteristics review, item is not commercial. It is highly unlikely this item would ever be used in the commercial world. COTS field in SAP is blank.

I/A/W FAR 2.101 the Contracting Officer determines that the item does not meet the definition of commerciality.

Therefore, based on all above, this solicitation will be solicited under the FAR Part 15.

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.

9. A listing of sources, indicating an interest in the acquisition is:

1. UNITED TECHNOLOGIES CORPORATION (52661)

2. KREISLER INDUSTRIAL CORPORATION (56529)

10. 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 will contain the provision DLAD 52.217-9002 entitled Conditions for Evaluation and

Acceptance of Offers for Part Numbered Items.

Source Selection Information. See FAR 2.101 & FAR 3.104 4

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.

2-2621 09/04/2015

Contracting Officer’s Signature Phone Date

Helen B. Davis

Approval/Certification:

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

Competition Advocate Signature Phone Date

Head of the Contracting Activity (HCA) Signature Phone Date

Senior Procurement Executive (AQ) Signature Phone Date

APPROVAL REQUIREMENTS

(X) Up to $700,000 Contracting Officer

( ) $700,000 to $12,500,000 Competition Advocate – Mary Couture

( ) $12,500,000 –$85,500,000 Head of the Contracting Activity (HCA) – Milton K. Lewis

( ) Over $85,500,000 Senior Procurement Executive (AQ) – Juanita McKee