J&A_(SPE7M417R0004)_FOIA_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATIONSPE7M4-17-R0004

SOURCE SELECTION INFORMATION;SEE FAR 2.101 & 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, TORQUE 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, TORQUE

NSN: 4710-01-219-5480

PR QUANTITY: 87 AY

EST. PVALUE:

AMSC: D

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

NSN item TUBE ASSEMBLY, TORQUE is an item used on a Landing Craft Air Cushion (LCAC). Contract history shows that this item is primarily purchased by the military, specifically Department of the Navy. Weapon system is EDN.

NAICS code is 332996.

LARGE PROCUREMENT – Request for Proposal (RFP):

ESTIMATED PR BASE VALUE:

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

ESTIMATED SOLICITATION VALUE: (based on the latest procurement unit price)

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. The offeror must provide a complete data package including data for the approved parts and alternate part for evaluation. According to the product specialist there are no other concerns seeking source approval at this time.

APPROVED SOURCE:

FLUIDYNE CORP (9Y957) P/N 5749597-005

This is 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 sources of supply, include sources and CAGE code:

FLUIDYNE CORP (9Y957)

Fluidyne Corp (9Y957) is a small business concern manufacturer. According to the Government’s past procurement history review conducted by the buyer, this item was purchased from approved source, Fluidyne Corp the last seven (7) occasions between 2014-2016. They were the only valid offer received on the most recent award (SPE7M417P0873) in 2016. Therefore, based on all above competition between manufacturers/dealers is not expected for this procurement.

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.

Last procurement was a simplified acquisition purchase; therefore, J & A does not apply.

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

(X) AMC = 3. Acquire, for the second or subsequent time, directly from the actual manufacturer.

SOURCE SELECTION INFORMATION;SEE FAR 2.101 & 3.104 2

(X) AMSC = D. The data needed to acquire this part is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation.

• Note: I/A/W FAR 6.303 (c)), to meet the requirement that the J&A include any supporting data that is the responsibility of technical or requirements personnel, a basis for the justification have been concurred as complete and accurate by the product specialist at the time of market research that was conducted October 20, 2016 to October 27, 2016, see paragraph 8 below.

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

(X) The acquisition will be synopsized for 15 days.

(X) Solicitation will be posted to DIBBS for 30 days.

(X) Other:

I/A/W DFARS PGI 206.302-1(d) sources sought notice was posted to FedBizOps for five (5) business 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.

7. By comparing past procurement history prices and current estimated unit price of 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.

8. Market Research/Efforts to Obtain Competition:

Market research was conducted from October 20, 2016 to October 27, 2016.

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;

• Sources sought notice was posted to FedBizOps from October 20, 2016 to October 27, 2016 - no responses from additional interested parties were received.

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

Total number of vendors contacted with market survey:

Based on the past buy history review and current sources of supply, one (1) contractor was contacted.

1. FLUIDYNE CORP (9Y957) – approved source OEM Types of information requested: The vendor was 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, etc.

Name of vendor responded:

FLUIDYNE CORP (9Y957)

Summary of information received:

FLUIDYNE CORP (9Y957) responded to market survey indicating an interest in submitting an offer for this item as they have previously supplied item 16 times to the Government. They stated this is not a commercial item per FAR

2.101 (b) They verified they are a small business manufacturer.

Non-commerciality determination:

Item TUBE ASSEMBLY, TORQUE is an item used on a Landing Craft Air Cushion (LCAC). This is a restricted source

SOURCE SELECTION INFORMATION;SEE FAR 2.101 & 3.104 3

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 Navy. According to an approved source manufacturer, item is only sold to the Government, not commercially. Weapon system is EDN.

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 and there is a pair of approved OEM’s, which are large business manufacturers. 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.

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, indicating an interest in the acquisition is:

FLUIDYNE CORP (9Y957)

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

(X) I/A/W DLAD prescription 11.391(b) Procurement Notes L04 “Offers for Part Numbered Items” and M06 “Evaluation of Offers for Part Numbered Items” will be included in the solicitation.

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 3/1/2017

Contracting Officer’s Signature Phone Date Helen B. Davis

APPROVAL REQUIREMENTS:

(X) Up to $700,000 - Contracting Officer