SPE7MC-17-R-0016_-_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MC-17-R-0016

Justification for Other Than Full & Open Competition (December 2011)

[ X ] ORIGINAL

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

The Defense Logistics Agency, DLA Land and Maritime, is the contracting activity.

The action being approved is the acquisition of supplies on other than a full and open competition basis.

The supplies required to meet the using activity’s needs are described as follows:

BRIEF DESCRIPTION NSN/P/N QUANTITY EST. VALUE AMSC

MANIFOLD 4810-010553406 91 R

Identify end item, weapon system, or class of item: NSN: 4810-010553406 is a manifold used on a fluid pressure regulating valve on the F-16 Aircraft; 26F weapon system. The F-16 Fighting Falcon Aircraft is a single-engine multirole fighter aircraft.

ESTIMATED BASE VALUE _

ESTIMATED TOTAL VALUE (BASE + QTY RANGES)

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

[ X ] 10 U.S.C. 2304(c)(1) – Only available from one responsible source or a limited number of sources

a. Brief narrative supporting the situation and weapon system:

This is a DLA stock procurement of 91 each of NSN: 4810-010553406 going to DLA Depot SW3211. DPC shows a monthly forecast quantity of 5.22 with a current backorder of 12 units on a total of eight (8) requests. Quantity has been confirmed for 91 units with price breaks to be requested from 60 units to up to 190 units.

If restricted to the only source(s) of supply, include source(s) and CAGE code: Meggitt (North Hollywood), Inc.

(79318) and Lockheed Martin Corporation (81755).

The use of the authority cited is based on:

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

[ X ] AMSC R. The Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid.

The data presently available reflects the minimum needs of the Government. The Material Master in SAP shows the last technical review date for this item was on 011/09/16. Based on the AMC/AMSC 1/R, the Government does not own the data or the rights to the data needed to purchase this part from additional sources. The current approved manufacturers part list available for this NSN show Meggitt, Inc. (79318) and Lockheed Martin Corporation (81755) as the only current sources that possess the technical data necessary to manufacturer this item for DLA and military service. NSN 4810-010553406 is designated as a critical application item.

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

[ X ] The acquisition will be synopsized on or about January 23, 2017 and will be posted to Federal Business Opportunities (FBO) for 15 days. At the completion of the synopsis period, the solicitation will be available on the DLA Internet Bid Board Site (DIBBS) for 30 days.

Justification for Other Than Full & Open Competition (December 2011)

I hereby determine that the anticipated cost to the Government will be fair and reasonable. The buyer will utilize price analysis techniques such as comparison to past purchases of same item and cost and price data as obtainable on items similar to NSN 4810-010553406. Certified cost/price data will be requested from the approved source. Based on the mentioned techniques, the contracting officer anticipates the costs to the Government to be determined fair and reasonable.

Market Research: Market Research was conducted on/during: November 17, 2016 – December 7, 2016. Previous procurements although no previous large purchase nor previous J & A was located. Market research consisted of review of the item and NSN’s technical data where available, a review of previous procurements, (although there was been many purchases of this item is recent years, there were no previous large purchases located), A sources sought notice was posted to Federal Business Opportunities (FBO), Market survey were sent to the approved sources and previous awardees of this NSN and Internet research was conducted.

This manifold is a critical application item used on a fluid pressure regulating valve for the Eagle F-16 Aircraft.

This NSN lists two approved sources; Meggitt (North Hollywood), Inc. (79318) and Lockheed Martin Corporation (81755). History shows buys to Meggitt (North Hollywood) Inc., Integrated Procurement Technologies, (4K0V2), a dealer for Meggitt (North Hollywood), Inc., and Pioneer Industries (66200), also a dealer for Meggitt (North Hollywood) Inc. Prices from these procurements in 2015 to 2016 ranged from $3,600.00 each to $5,189.19 each, depending on year, quantity and contractor. Although Lockheed Martin Corporation is an approved source, they do not quote this NSN and previous buys have been that of the Meggitt item either from meggitt or a dealer. The last award was in December 2016 to Meggitt (North Hollywood), Inc.

for a unit price of $3,600.00 each with a quantity of 38 units. This is the unit price to be used for the estimated price for this procurement.

Market surveys were sent to Cages: 79318, 81755, 4K0V2, and 66200 as approved manufacturers or dealers having recently supplied this item to the Government. Cage: 81755 did not respond to this request. Results of the surveys returned are listed below:

Total number of vendors contacted: Four (4):

Names of vendors contacted and responding: Contacted and responded: Meggitt, Inc. (79318), Integrated Procurement Technologies (4K0V2), and Pioneer Industries, (66200); Contacted and no response: Lockheed Martin Company (81755).

Techniques used to conduct survey: Market surveys were e-mailed to contractors.

Types of information requested: Type of business, size of business, commerciality, FOB location, inspection and acceptance location, and willingness to offer proposal.

Summary of information:

CAGE 79318 indicated the following on the survey submitted:

- They are a large business manufacturer;

- They do not consider the NSN to be commercial nor is it a catalog or price-listed item;

CAGE 4K0V2 indicated the following on the survey submitted:

- They are a small business dealer for Meggitt, Inc.;

Justification for Other Than Full & Open Competition (December 2011)

CAGE 66200 indicated the following on the survey submitted:

- They are a small business dealer for Meggitt, Inc.;

Additionally, a sources sought notice was posted to FBO on November 17, 2016 with a requested response date of November 28, 2016. A market survey was included with this posting. A market survey was received from PTF German Precision Technology Inc. (78UC7). This survey indicated they are a small business manufacturer and they would require the drawing in order to provide this item. They buyer will include this company in the bidders list but did advise the contractor that as noted in the sources sought notice, the government does not possess the drawings to this item.

Information regarding the commerciality of the item(s): Based on Internet research that did not reveal any commercial sales history or catalogs/brochures, AMC/AMSC of 1/R, blank SAP COTS status, and 0 results found on GSA Advantage site, NSN 4810-01053406, in accordance with FAR 2.101, is considered to be non-commercial. Previous procurements of this NSN have found this item to be non-commercial.

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. The Material Master in SAP shows the last technical review date for this item was on 011/09/16. Based on the AMC/AMSC 1/R, the Government does not own the data or the rights to the data needed to make this item. The current approved manufacturers part list available for this NSN show Meggitt, Inc. (79318) and Lockheed Martin Corporation (81755) as the only current sources that possess the technical data necessary to manufacturer this item for DLA and military service. NSN 4810-010553406 is designated as a critical application item.

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

Meggitt, Inc. (79318) Integrated Procurement Technologies (4K0V2) Pioneer Industries (66200) PTF German Precision Technologies, Inc. (78UC7)

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

Efforts to Qualify Additional Suppliers for future procurements include the following: Any new vendor who decides to pursue source approval will be directed to the Competition Advocate's Source Approval Program.

The Competition Management Office (CMO) would encourage interested parties to submit Source Approval Request (SAR) for this item if it should later be determined that future buys of subject NSN are in the best interest of the Government.

[ X ] The solicitation contains the DLAD Procurement Notes L04 and M06; Offers for Part Numbered Items and Evaluation of Offers for Part Numbered Items.

Justification for Other Than Full & Open Competition (December 2011)

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.

Trevor P. Horn Date Contracting Officer

This justification has been reviewed for legal sufficiency:

DLA Land and Maritime Counsel Date

APPROVAL REQUIREMENTS

[ X ] Up to $700,000 Contracting Officer

[ ] $700,000 to $13,500,000 Competition Advocate

ATTACHMENT:

1. Procurement History

HORN.TREVOR.P.1

365139403

Digitally signed by

HORN.TREVOR.P.1365139403

Date: 2017.01.14 09:25:20 -05'00'

Date: 2017.01.18 11:39:25 -05'00'