SPE7M517R0073_-_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

PR # 69115166, SOLICITATION SPE7M5-17-R-0073

[X] ORIGINAL

[ ] ADDENDUM (attach copy of original J&A for add-ons or revisions)

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

Circuit Card Assembly 5998-00-618-4757 29 C

Estimated Base Value: $ Estimated Maximum Value (at 40 each):

Quantity price breaks from 25-40 each.

Identify end item, weapon system, or class of item: This part is used on the RT-1063/APX-101(V), IFF Transponder. Platforms include: F-18; P-3; E-2C; F-14; UH60; L-159, LCAC, OH-58, AH-1, MH-53, CH- 47, C-130, C-5, C-17, C-41, C-21, MiG fighters, AH-64, AND Mi helicopters, as well as several Unmanned Aerial Vehicles (UAVs), such as the Hunter, Darkstar, Predator, and Global Hawk.

IAW DFARS PGI 6.3, the previous J&A must be attached. The last purchase for this NSN over the Simplified Acquisition Threshold was on 6/24/16. Therefore, the J&A from contract SPE7M516C0037 is attached. (See attachment #1)

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.

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

Northrop Grumman Systems 06481 P/N 166890 Associated Aircraft Manufacturing 56540 P/N 166890

The use of the authority cited below:

[X] AMC 1. Suitable for competitive acquisition for the second or subsequent time

[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.

On 6/7/17, the buyer received confirmation from the Product Specialist of record that the AMC/AMSC of 1/C is accurate. There are two approved sources listed: Northrop Grumman Systems 06481 P/N 166890 and Associated Aircraft Manufacturing 56540 P/N 166890. Per the Product Specialist, these are the only known sources that possess the technical data for the manufacturing of this item, thus, demonstrating that Northrop Grumman (06481) and Associated Aircraft Manufacturing (56540) have unique design capability, engineering skills, and manufacturing knowledge for this NSN. There are no other sources.

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

A Source Sought was posted on FBO on 6/13/17 with a response date of 6/20/17. One response was received from AbelConn Electronics (66886).

The acquisition will be synopsized on or about August 2017 and will be solicited on the DLA Internet Bid Board (DIBBS).

Manufacturers of similar products identified in the market research will be solicited.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable.

The most recent purchase for this NSN was on 12/16/16.

. This price was determined fair and reasonable based off historical pricing and was coded BG.

This NSN has been purchased 10 times since 2001 with the most recent 4 buys going to Associated Aircraft Manufacturing (56540).

This will be a stocked item. The estimated price of the solicited maximum quantity of 40 each will not exceed $750,000, requiring certified cost or pricing data. The estimated price of the solicited maximum quantity of 40 each will not exceed $700,000, which requires a subcontracting plan.

In order to determine the cost as fair and reasonable, Price Analysis will be calculated using past procurement history, a Learning Curve and PPI. If additional analysis is needed for the fair and reasonable determination, support will be sought from the Pricing Office. The contract value at top price breaks is not expected to breech the threshold requiring Certified Cost or Pricing Data. Therefore, these clauses will not be included in the solicitation and Pricing Support for Certified Cost or Pricing Data will not be sought.

Negotiations procedures may be used pending price analysis results and competition.

Length of contract: A firm-fixed price contract will be issued.

Quantity: 29 each (Price breaks from 25 each to 40 each.)

8. Market Research/Efforts to Obtain Competition:

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

A market survey was sent on 06/13/17 to the approved sources Northrop Grumman Systems and Associated Aircraft Manufacturing. Northrop Grumman responded on 6/14/17 and Associated Aircraft Manufacturing responded on 6/26/17. AbelConn Electronics (66886) also returned a Market Survey on 7/5/17.

Total number of vendors contacted: 2.

Names of vendors contacted and responding:

Northrop Grumman Systems (06481) responded that they do not intend to submit an offer.

Associated Aircraft Manufacturing (56540) responded with interest to submit an offer.

AbelConn Electronics (66886) responded with interest to submit an offer.

Techniques used to conduct survey:

The market survey was sent via email

Types of information requested:

Information requested included: business size, commerciality, preference for submissions of offers through distributors/dealers or directly to the government, source of supply, catalogue price, is the item in inventory, willingness to quote the item, economical production quantities , their price break ranges, delivery, and if they are registered in SAM.

Summary of information received:

Northrop Grumman responded on 6/14/17 that the product line has been licensed to Associated Aircraft Manufacturing & Sales, Inc.(56540) and to contact them directly.

Associated Aircraft Manufacturing responded on 6/26/17 stating that they are a small business that deals directly with the government. This is not a commercial item, AbelConn Electronics (66886) returned a Market Survey in response to the Sources Sought. They stated that they are a small business manufacturer and will deal with the government directly or through dealers.

This is not a commercial item, Information received regarding the commerciality of the item(s):

The COTS field in SRM is blank. A Google search returned no listings. A search of GSA Advantage returned “no results”.

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, if any, indicating an interest in the acquisition is:

Associated Aircraft Manufacturing (56540) AbelConn Electronics (66886)

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

The data for this item is not available to attempt procurement from other manufacturers. Data is only available from Northrop Grumman Systems 06481 and Associated Aircraft Manufacturing 56540.

This solicitation will contain Conditions for Evaluation and Acceptance of Offers for Part Numbered Items, Procurement note L04, Offers for Part Numbered Items, and M06, Evaluation 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/CERTIFICATION

I have reviewed and approve this justification.

The estimated total value of the J&A is: $203,322 The estimated total value of the J&A, including top price breaks (40 each), is $280,444

APPROVAL REQUIREMENTS

[X] Up to $700,000 Contracting Officer

ATTACHMENTS:

#1: J&A from contract SPE7M5-16-C-0037 #2: Market Survey

BOYER.CHRISTIN

E.D.1249699639

Digitally signed by

BOYER.CHRISTINE.D.12496996

Date: 2017.08.01 07:24:32 -04'00' 8/1/2017