SPE7M817R0026_JA_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7M8-17-R-0026

PR: 0067426532

NSN: 4320-01-314-9660

DPACS pdp127 (JUNE 12)

ORIGINAL

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/PN QUANTITY EST.VALUE AMSC

Reservoir, Hydraulic 4320-01-314-9660 5 B

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

41N - Helicopter, CH-53 D/E CFN – Helicopter, MH-53E

This item is a Hydraulic Reservoir. However, the specific function of this particular item on the weapon system is unknown. The review indicated that this NSN is a Critical Application Item, but not a Critical Safety Item.

ESTIMATED BASE VALUE: (no options)

ESTIMATED TOTAL VALUE (BASE + OPTIONS): N/A

MAXIMUM CONTRACT VALUE:

FOR ADD-ONS, PROVIDE VALUE OF OPTION YRS REMAINING: N/A

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:

Eaton Corporation (99643) part number 68360-1

The use of the authority cited in 10. U.S.C. 2304(c)(1) above:

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

PR: 0067426532

NSN: 4320-01-314-9660

DPACS pdp127 (JUNE 12)

The use of the authority cited is based on:

[X] AMSC B. This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-100. Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. Although, by DoD-STD-100 definition, altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

The Contract Specialist verified the AMC/AMSC for this procurement with Product Specialist on March 14, 2017. The Product Specialist stated that the AMC/AMSC coding of 3/B is correct, and was last reviewed on 3/22/2016. This is a Source Controlled Drawing, with the technical data being owned by Sikorsky Aircraft Corporation (78286), with Eaton Corporation (99643) having the rights to the data for manufacturing this item. Eaton Corporation is currently the only source known to possess the requisite data to manufacture this item. Even though sources and approved part numbers are provided, the items furnished must meet the requirements of the cited drawing. This part requires engineering source approval by the design control activity in order to maintain the quality of the part. Any alternate source must qualify in accordance with the design control activity’s procedures, as approved by the cognizant government engineering activity.

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

(X) The acquisition was synopsized on 3/17/2017.

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

Formal C/P Data will not be required because the current estimated contract price is below the price threshold of $750,000 (FAR 15.403-4 and 10 U.S.C. 2306(a)). Offerors may be required to provide additional information for determining reasonableness of price. The buyer only intends to award this NSN when a fair and reasonable price determination can be made. The Contracting Officer will conduct price analysis by reviewing historical pricing, usage of the Producer Price Index (PPI), and learning curve analysis. The acquisition specialist may ask for assistance from the DLA Land and Maritime pricing office if necessary. Negotiations may take place in an effort to comply with DoD Material Cost Reduction Initiative. An option quantity will not be used for this procurement.

PR: 0067426532

NSN: 4320-01-314-9660

DPACS pdp127 (JUNE 12)

8. Market Research/Efforts to Obtain Competition:

Market Survey [10 U.S.C. 2304(f)(3)(D)]: A market survey was conducted on/during: March 8, 2017. A Sources Sought notice was also posted to the FBO on March 8th, with a requested response date of March 15, 2017.

Total number of vendors contacted: 3. The vendors contacted were: Eaton Corporation (99643), Jamaica Bearings (04836) and SARCO (0ABX5).

Eaton Corporation was contacted as they are the approved source for this NSN. Jamaica Bearings and SARCO were contacted as they have both received recent orders for this part.

Names of vendors contacted and responding: from Eaton Corporation (99643) was contacted on March 8, 2017. responded back to the market survey on March 14th. from Jamaica Bearings (04836) was contacted on March 8, 2017. responded back to the market survey on March 13, 2017. from SARCO (0ABX5) was contacted on March 8, 2017. As of March 24, no response has been received back from SARCO.

Techniques used to conduct survey:

1. The market survey was sent via email.

2. Sources Sought- DAG 10.002-102(C)(vii) : Published a “sources sought” synopsis in the

FedBizOpps on March 8, 2017. A copy of the market survey was also attached to the sources sought notice.

Types of information requested: Business size, manufacturer or dealer, are these commercial items, are these catalog/price listed items, inventory availability, willingness to quote, economical production quantities available delivery schedule, and willingness to accept quantity option.

Summary of information received:

from Eaton Corporation responded on March 14, 2017. She stated that this part is handled by their distributor, Jamaica Bearings and that she has forwarded my request to them for review.

from Jamaica Bearings responded on March 13, 2017. She stated that Jamaica Bearings is a small business, and that t

They are an authorized distributor for Eaton Aerospace. They do not supply these items commercially, PR: 0067426532

NSN: 4320-01-314-9660

DPACS pdp127 (JUNE 12)

Sources Sought Notice results:

from Jamaica Bearings responded to the Sources Sought notice on March 10, 2017, providing a copy of their distributor letter from Eaton, and asking to be included on future mailings of this item. I responded back on March 10th, stating that we did have a past buy history with them and that they would be notified when the solicitation has been issued.

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: Jamaica Bearings (04836).

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

(X) The solicitation will be posted for 30 days.

(X) The solicitation contains Procurement Notes M06, Evaluation of Offers for Part

Numbered Items (Aug 2016), and L04, Offers for Part Numbered Items (Sep 2016) which provides the process for offering an item other than those identified in the item description.

12. The prior J&A for contract SPE7M4-15-C-0001, solicitation number SPE7M4-14-R-0040 is attached for review.

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. If not exceeding $700,000.00 this signature serves as the approval.

__________________________________________ 2-1067 3/28/2017 Contracting Officer

Phone Date ____ Brian S. Maxwell_______ Typed name of Contracting Officer

MAXWELL.BRIAN.

STEPHEN.1230183

Digitally signed by

MAXWELL.BRIAN.STEPHEN.123

0183828

Date: 2017.03.28 09:28:37

-04'00'

PR: 0067426532

NSN: 4320-01-314-9660

DPACS pdp127 (JUNE 12)

Approval/Certification

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

Competition Advocate Phone Date Signature

Head of the Contracting Activity (HCA) Date Signature

Senior Procurement Executive (AQ) Date Signature

APPROVAL REQUIREMENTS

(X) Up to $700,000 Contracting Officer

( ) $700,000 to $13,500,000 Competition Advocate

( ) $13,500,00 –$93,000,000 Head of the Contracting Activity (HCA)

( ) over $93,000,000 Senior Procurement Executive (AQ)