J&A_SPE7M518R0031_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7M518R0031

PR 72441431

[ 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

Headset-Microphone 5965-01-390-9240 40,000 $ Q

Estimated Base Value: $ Estimated Maximum Value;

End Item Description, Weapon System, or class of item: Item is a headset, over the head, with microphone. It is used on the flight line and is the source of communication between pilots and technicians who wear the headsets and plug into the aircraft in order to talk with the pilot. There is no end item, this is a standalone piece of equipment designed to work with multiple aircraft used by the Air Force and Navy.

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:

David Clark (71483)

The use of the authority cited is based on 10 U.S.C. 2304(c)(1):

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

[X] AMSC Q. 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 12 or more months. Breakout to competition has not been achieved, but current, continuing actions to obtain necessary rights to data or adequate, reprocurement technical data indicate breakout to competition is expected to be achieved. This part may be a candidate for reverse engineering or other techniques to obtain technical data. All AMSC Q items are required to be reviewed within the timeframes cited in 2-203(b). If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

PR 72441431

Brief narrative supporting the situation

On 2/1/2018, the buyer received confirmation from the Product Specialist of Record that the AMC/AMSC code was reviewed by the Air Force and Navy (339 responses to DSCC-FM- 17079065), and that the AMC/AMSC of 3Q is accurate. David Clark is the sole approved source for this NSN. DLA nor the ESA possess data for this item, which limits the source to David Clark.

The AMS/AMSC 3/Q is temporary. DLA is working with various head set manufacturers and the respective ESAs to develop and put in place a standard for minimum requirements for headset manufacture, microphone and speaker clarity requirements, and comfort.

Value Engineering (V) is heading up the project with the headset manufacturers, which include Roanwell, Sonetronics, Astrocom, Accusonic Technologies, Misco Speakers, Hiltronics Corp, David Clark, and L-3 com. This meeting will begin the process of working with headset manufacturers, the customers and DLA to establish a set of specifications that all manufactured headsets must meet or exceed in the future. This process was started mid-year 2017, and is expected to take up to 2 years before specifications can be written and put into place.

The PR quantity of 40,000 is expected to provide a consistent flow of supply until breakout to completion is achieved.

P/N 12510G-21 (NSN 5965-01-390-9240) is a commercial item.

Per the Product Specialist Supervisor, the David Clark headset, P/N 12510G-21 is constructed with a patented Undercut Gel Ear Seals (Patent No. 5,911,314). This patent for Ear Seals contribute to customer safety in two ways. First, when a technician is required to wear headsets for several hours at a time on a flight line, a comfortable ear seal allows the user to keep the headset on longer, without having to remove the headset to give the ears relief. From a safety perspective, the technician would be less likely to miss communication between themselves and the pilot or other technicians at a possible critical time when testing aircraft engines or subsystems. Second, a comfortable ear seal not only blocks out noise that can affect the ear after long periods of exposure to heightened decibels on the flight line, but it also allows the technician to hear more clearly when receiving communication from the pilot or other technicians during maintenance and problem investigation with the aircraft.

During the market research stage, Roanwell (82872) stated that NSN 5965-01-390-9241 is the exact same headset as NSN 5965-01-390-9240. Per ESA, DSCC-FM-17-79065 (August 2017), there are differences between all the commercial-off-the- shelf headsets due to lack of adequate data and the headsets are not built in accordance to a common drawing or specification.

The ESA went on to state that the Government currently lacks means to adequately evaluate/compare these commercial-off-the-shelf headsets.

Twelve to fifteen years ago, DLA assigned several NSNs, one to each headset manufacturer.

However, despite assigning NSNs to different manufacturers twelve to fifteen years ago, at this time DLA is taking steps to develop and put in place a standard for minimum requirements for headsets as discussed in this narrative.

Based on ESA, Case# DSCC-VE-16-70503 (Jan 2017), David Clark (71473) is the only company that should be approved for NSN 5965-01-390-9240 and, per the Product Specialist Supervisor, the David Clark headset has a trademarked/patented ear seal that provides comfort

PR 72441431

when in use, resulting in increased user awareness and a reduction in user fatigue; therefore increasing user safety when is use. This trademarked/patented part of the headset makes David Clark uniquely qualified, as they are the only known source (per the ESA Case# DSCC-VE-16- 70503), that owns or possesses the necessary technical data/drawings and manufacturing knowledge capable of manufacturing this headset. According to the Product Specialist, there are no other approved sources at this time.

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

[X] The acquisition will be synopsized on or about March 2018 and will be solicited on the DLA Internet Bid Board (DIBBS).

[X] 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.

Feb 2018 was the last purchase for this NSN: SPE7M518P6504, 600 @ $242.60 each.

Based on the solicitation quantity, the Buyer expects a fair and reasonable price.

This is a commercial item. The David Clark headset is available to the public via Amazon.com.

This solicitation will be issued as a 100% Small Business Set Aside IAW FAR Part 12.

Therefore, IAW 15.403-1(b)(3), it is prohibited to request Certified Cost/Price Data.

Other Than Cost or Pricing Data will be used to determine a fair and reasonable price.

This data includes the commercial market value of similar items and their difference to the government required configuration, price analysis, negotiation procedures, traceability, and the use of resources available through the Pricing Office.

8. Market Research/Efforts to Obtain Competition:

David Clark (71483) replied on 2/2/2018 to a market survey that was sent on 1/26/2018. ).

In addition, the buyer requested and received clarification pertaining to the market survey on (3/7/2018).

o David Clark is registered in SAM and is a small business manufacturer.

o o Item is a commercial item; 25% Public, 75% Government. David Clark provided a catalog that is also available to the public.

PR 72441431

o David Clark is willing to submit an offer for this procurement.

A Sources Sought was posted to FedBizOpps on 1/26/2018 with a respond by date of 2/5/2018. Four responses were received. The Buyer responded to all four response on 2/6/2018 with information on the Alternate Offer and Source Approval Request (SAR) Program Guidance.

o Roanwell (82872) responded on 1/31/2018.

Roanwell is a small business manufacturer and is registered in SAM.

Item is a commercial item; 40% Public, 60% Government. No catalog list was provided.

Roanwell is interested in this procurement.

The Buyer checked on the status of the “Pending SAR Package” from Roanwell. Roanwell submitted a SAR package on 10/3/2016. The SAR package was determined unacceptable in Jan 2017: “P/N 495-216-005-648 is not an acceptable source of supply because the same headset is listed under another NSN 5965-01-390-9241 with a part number difference only. Separate NSN’s were established 15-20 years ago to allow for user preference to a specific company’s headset over another based on form, fit and comfort. Under NSN 5965-01-390-9240 the only company that should be approved is David Clark (71483) P/N H10-76.”

PR 72441431

In addition, the Buyer checked with the Competition Advocate’s Office to confirm the SAR package results. On 4/4/2018, the Buyer received confirmation that Roanwell’s SAR package was determined unacceptable. “The Roanwell Corp technical data package has been rejected by the Service ESA. Roanwell Corp (82872) PN 495-216-005-648 is not an acceptable source of supply for the subject NSN. This office had been endeavoring to persuade the ESA evaluation team to reconsider their determination through Value Engineering and was not successful.

Confirm Roanwell Corp has been notified of this determination.”

o Bronstein Engineering (54QX5) responded on 1/31/2018.

Bronstein Engineering is a Women Owned Small Disadvantaged Business and is registered in SAM.

No market survey was returned.

A Statement of Capabilities was provided.

Bronstein Engineering is interested in this procurement.

o Astrocom Electronics (18068) responded on 2/2/2018.

Astrocom Electronics is a small business and is registered in SAM.

No market survey was received.

Astrocom Electronics is interested in this procurement.

o TechOrbits (6HM15) responded on 2/5/2018.

TechOrbits is a small business manufacturer and is resistered in SAM.

Item is not a commercial item, 100% sold to Government.

TechOrbits is interested in this procurement.

Information received regarding the commerciality of the item(s):

o The COTS field in MM03 (SRM) shows NSN 5965-01-390-9240 is a commercial item. Research in GSA Advantage yielded no results.

o This item has two different part numbers. P/N H10-76 is the commercial

P/N and P/N 12510G-21 is the Government P/N. David Clark provided a catalog that lists both of these part numbers as the same and they both corresponded to NSN 5965-01-390-9240.

PR 72441431

o A Google search of the Amazon website shows the public can buy H10-76 for a price range of $180.99 - $359.99 (with shipping). Since the lowest price of $180.99 is from a company that is new to the Amazon Selling Website, the Buyer considers this price an “outlier”. Therefore, the price range considered is $240.99 - $ 359.99 each.

o Based on the above, this NSN is determined to be a commercial item.

History shows delivery orders in May 2013 that are over SAT. However, the J&A’s could not be located in Records Management.

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 has not been developed at this time 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:

David Clark (71483) Roanwell (82872) Bronstein Engineering (54QX5) Astrocom Electronics (18068) TechOrbits (6HM15)

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

[X] The solicitation contains Procurement Notes L04/M06;

L04- Offers for Part Numbered Items

M06- Evaluation of Offers for Part Numbered Items

[X] Other; Value Engineering (V) working on breakout to competition within 1-2 years

PR 72441431

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.

Brian Kennedy Contracting Officer Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification. The estimated total value of the J&A is ___ ________________ at the top Price break)_____________

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

[ ] Up to $700,000 Contracting Officer

[X ] $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)

KENNEDY.BRIA

N.J.1264859014

Digitally signed by

KENNEDY.BRIAN.J.126485901

Date: 2018.04.18 08:00:21 -04'00'

COUTURE.MAR

Y.E.1230253613

Digitally signed by

COUTURE.MARY.E.1230253613

Date: 2018.05.09 15:21:53 -04'00'