J&A_-_Redacted_(SPE7M416R0057)_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7M4-16-R0057

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: 122 EACH

EST. VALUE:

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 TOTAL RFP VALUE: No option will be solicited.

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 (05813) 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 (05813)

UNITED TECHNOLOGIES CORPORATION (52661)

UNITED TECHNOLOGIES CORPORATION (77445)

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 previous J&A attached.

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

( X ) AMC = 1. Suitable for competitive acquisition for the second or subsequent time.

Source Selection Information. See FAR 2.101 & FAR 3.104 2

( 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.

• Note: I/A/W FAR 6.303 (c)), to meet the requirement that the J&A include that 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 September 16, 2016 to September 23, 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] Dealers of the manufacturers will be solicited.

[X] Other: I/A/W DFARS PGI 206.302-1(d) a sources sought notice was posted to FedBizOps for 5 (five) days from 9/16/2016-9/23/2016 as part of market research to make sure that offers will be received “from as many potential sources as is practicable under the circumstances” (FAR 6.302-1), see market research paragraph 8 (eight) 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 September 16, 2016 to September 23, 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 and concur with the product specialist at the time of this market research on September 16, 2016;

• 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 September 16, 2016 to September 23, 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, 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:

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

2. KREISLER INDUSTRIAL CORPORATION (05813) – approved source OEM

Source Selection Information. See FAR 2.101 & FAR 3.104 3

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)

Summary of information received:

• United Technologies (52661) replied that they do no complete market surveys, but will be interested in solicitation.

• KREISLER INDUSTRIAL CORPORATION (05813) did not respond to market survey this time, followed up and still no response.

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.

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:

UNITED TECHNOLOGIES CORPORATION (52661)

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

(X) I/A/W DLAD prescription 11.391(b) Procurement Notes L04 and M06 “Conditions for Evaluation and Acceptance of Offers for Part Numbered Items” will be included in this 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 1/11/17_______________ Helen B Davis / Contracting Officer Phone Date

Source Selection Information. See FAR 2.101 & FAR 3.104 4

APPROVAL REQUIREMENTS

(X) Up to $700,000

Contracting Officer

2-2621 1/11/17_______________