SPE7MC-18-R-0006_-_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MC-18-R-0006

[ 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

Directional Control

Linear Valve 4810-016077882 55 C

Identify end item, weapon system, or class of item: NSN: 4810-016077882 is a directional control linear valve used on the UH-60A Blackawk Helicopter; 40A weapon system. The UH-60A Blackhawk Helicopter is a four-blade, twin engine, medium-lift utility helicopter. This directional control linear valve is designated a Critical Safety Item (CSI) by the United States Navy and is used on the fire detection/extinguishing system of the Helicopter.

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 55 each of NSN: 4810-016077882 going to DLA Depot W25G1U. DPC

If restricted to the only source(s) of supply, include source(s) and CAGE code: Transdigm, Inc.; Cage: 96124, and Sikorsky Aircraft Corp.; Cage: 78286.

The use of the authority cited is based on:

[ 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.

Based on the AMC/AMSC 1/C, the Government is not in possession of complete technical data and per the approved manufacturer part list available for this NSN, Transdigm, Inc. (96124) and Sikorsky Aircraft Corp.

(78286) are currently the only sources that possess the technical data necessary to manufacturer this item for DLA and military service.

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

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

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

[ X ] The acquisition will be synopsized on or about December 27, 2017 and will be posted 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.

I hereby determine that the anticipated cost to the Government will be fair and reasonable. There are two approved sources and if more than one offer is received from contractors, competing independently, competition will be used in the price reasonableness determination. Although, market research shows that the buyer does not expect more than one offer to be received. Without competition, the buyer will utilize price analysis techniques such as comparison to past purchases of same or similar items as obtainable for NSN 4810-016077882. Additionally, the offeror may be requested to submit other than certified cost/price data to per form cost analysis for the price reasonableness determination. Based on the mentioned techniques, the contracting officer anticipates the cost to the Government to be determined fair and reasonable.

Market Research: Market Research was conducted during: July 17 and October 23, 2017. Market research consisted of reviewing the most recent large purchase procurement of this NSN, RFP SPE7M4-16-R-0072, and subsequent contract SPE7M4-17-C-0021. A sources sought notice was posted to Federal Business Opportunities (FBO) and Internet research. The material sought under NSN 4810-016077882, is described as a directional control linear valve used on the Blackhawk Helicopter (40A), which is a four-blade, twin-engine medium lift utility helicopter. This aircraft performs a wide variety of missions, including transport of troops, electronic warfare and aeromedical evacuation. The primary end user of the Blackhawk is the United States Army. This NSN is listed to have two sources, Transdigm, Inc. (96124) with part number: 512900-3 and Sikorsky Aircraft Corp (78286) with part number 70310-03104-103.

A review of recent buys was conducted. For the last several years, all buys have been to Transdigm, Inc. cage:

96124. A review of the last two small procurements in July and August 2017 show that there were many offers received from surplus and small business dealers. However, as award to Transdigm shows, the surplus offers not considered for award, and the quotes from the small business dealers, when compared to the offer from the approved source, did not represent the best value for the government. Award was made to Transdigm even though their price was higher than the small business offers received.

A review of a large purchase procurement in August 2017 found no small business concerns submitted a proposal for the buy, SPE7M4-17-C-0021.

No other market survey responses were received from the sources sought notice posted to FBO which was posted on July 27, 2017 until August 3, 2017. Additionally, no useful information was located through an Internet and GSA website search of the NSN and part number.

Total number of vendors contacted: Two (2): Sikorsky Aircraft Corp (78286) and Transdigm, Inc. (96124)

Names of vendors contacted and responding: Contacted and responded: Transdigm, Inc. (96124).

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: The market survey response was received from Transdigm, Inc. which indicated they manufacturer this item, they are a large business concern, they deal directly with the Government, and Transdigm, Inc. is a parent company of AeroControlex, Group dba Aero Fluid Products, Cage: 96124.

Sikorsky Aircraft Corp (78286) declined to complete a market survey. As an approved source, Sikorsky Aircraft Corp. will be included in the solicitation bidders list.

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

The RFP solicitation will be issued with a delivery requirement of 410 days, FOB origin (FDT) and inspection/acceptance origin requirements.

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/C, blank SAP COTS status, and 0 results found on GSA Advantage site, NSN 4810-016077882, in accordance with FAR 2.101, is determined 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 09/27/2017. Based on the AMC/AMSC 1/C, the government is not in possession of complete technical data and per the approved manufacturer part list available for this NSN, Transdigm, Inc. (96124) and Sikorsky Aircraft Corp. (78286) are currently the only sources that possess the technical data necessary to manufacturer this item for DLA and military service. NSN 4810-016077882 is designated as a critical safety item and currently requires Higher Level Quality Standard.

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

Transdigm, Inc. (96124)

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.

Juliana M. Secrist Date Contracting Officer

APPROVAL REQUIREMENTS

[ X ] Up to $700,000 Contracting Officer

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

ATTACHMENT:

1. Justification and Approval for SPE7M416R0072

2. Procurement History/Internet Research

SECRIST.JULIANA.

M.1230216297

Digitally signed by

SECRIST.JULIANA.M.1230216297

Date: 2017.12.19 11:11:22 -05'00'