SPE7MC-16-R-0114_-_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MC16R0114

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/P/N QUANTITY EST. VALUE AMSC

Valve, Regulating, Fluid Pressure

4820009910785 40 C

ESTIMATED TOTAL VALUE (AT HIGHEST QUANTITY PRICE BREAK OF 60):

This Valve, Regulating, Fluid Pressure supports the Aircraft, Stratolifter, C/KC-135 (05F) weapons system. A Valve, Regulating, Fluid Pressure is a valve designed to automatically maintain within close limits a predetermined outlet pressure which may be adjustable within a specified range regardless of the higher fluctuating or constant inlet pressure. It is designed for use with compressed gas(es) and various liquids and may include gauges. It may be inline or cartridge (manifold) design.

The statutory authority permitting other than full and open competition is:

10 U.S.C. 2304(c)(1) - Available from only one or a limited number of sources.

4. The approved source for this NSN is Arkwin Industries, Inc. (98391). Per the Product Specialist, It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part.

Arkwin Industries, Inc. is the only source that possesses the unique design capability, engineering skills, and manufacturing knowledge to produce this part to the required quality standards.

AMC 3. Acquire, for the second or subsequent time, directly from the actual manufacturer.

The use of the authority cited is based on:

(The following AMSC descriptions are available in DFARS PGI 217.7506 Part 2.)

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.

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

The acquisition will be synopsized on Fed Biz Ops on or about 3 AUG 2016 and will be posted for 15 days. At the completion of the synopsis period, the requirement will be solicited on the DLA Internet Bid Board System for 30 days.

6. I hereby determine that the anticipated cost to the Government will be fair and reasonable. Price analysis using past contract history will also be performed, and negotiations will be conducted to address price as well as delivery. Other than cost or pricing data may be requested if necessary in order to determine the price fair and reasonable. It is anticipated that the price will be determined fair and reasonable based on competition, price analysis and negotiations. A one time, firm fixed price award will be made for the quantity of 40 each.

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MC16R0114

7. A market survey was conducted during 30 JUN 2016 to 11 JUL 2016.

Total number of vendors contacted: one.

Names of vendors contacted: Arkwin Industries, Inc. (98391).

Techniques used to conduct survey:

The NSN was reviewed in Haystack and manufacturers of similar items were researched using the Thomas

Register. The Acquisition Specialist verified that the part is not on the GSA schedule. Past buys were reviewed in Records Management.

A Sources Sought Notice with a market survey attached was also posted to Fed Biz Ops from 30 JUN 2016 to 11 JUL 2016. No responses were received.

A short form market survey was emailed to the approved manufacture.

Types of information requested: The market survey requested information on company size and type, commerciality, lead time, economic production quantities, FOB and inspection preferences.

A short form market survey was emailed to the approved manufacturer, Arkwin Industries, Inc. on 30 JUN 2016.

Arkwin Industries, Inc. did not respond to the market survey.

In accordance with DFARS PGI 206.303-2(B), the buyer has reviewed the item’s procurement history for the last procurement over the simplified acquisition threshold to locate a copy of the previous justification to assist the approval authority in determining whether the planned actions to remove any barriers to competition cited on the previous justification were completed. The last procurement of this item that was over the simplified Acquisition Threshold (SAT) was SPE7M316C0004 in MAR 2016. In accordance with DFARS PGI 206.303-2(B), the buyer has included a copy of the previous justification to assist the approval authority in determining whether the planned actions to remove any barriers to competition cited on the previous justification were completed.

Information received regarding the commerciality of the item: Based on buyers’ market research, item is not commercial.

8. Additional facts supporting other than full and open competition are:

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. Date of the last technical certification is 19 JUN 2015.

The data presently available reflects the minimum needs of the Government. The Government does not own the data or the rights to the data needed to purchase this part from additional sources. The Department of the Navy and Department of the Air Force Engineering Support Activities have determined that Arkwin Industries, Inc. is the only known source with the technical data and manufacturing capability to produce this NSN in the quantity and quality needed.

9. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) None.

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

The solicitation contains the provision entitled Conditions for Evaluation and Acceptance of Offers for Part Numbered Items.