J&A_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MC19R0001

ORIGINAL

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

2. The action being approved is the acquisition of supplies for an Indefinite Quantity Contract (IQC) on other than a full and open competition basis. This is necessary because the Government either lacks complete technical data required to manufacture the supplies or must restrict sources due to the criticality of the part. The rationale specific to this item is detailed by its Acquisition Method Suffix Code (AMSC) as stated below in paragraph 4.

3. The supplies required to meet the using activity's needs are described as follows:

NSN ITEM

UNIT ADQ UNIT

PRICE ADV AMC/AMSC

4810010126462

DIAPHRAGM,

ACTUATOR

VALVE

EA 669 1C

ESTIMATED BASE (3 YEAR) VALUE:

ESTIMATED TOTAL (5 YEAR) VALUE (BASE + 2 ONE YEAR OPTIONS):

MAXIMUM CONTRACT VALUE:

The item is used on the following weapon system(s): HELICOPTER, ELECTRONIC COUNTERMEASURES, EH-60A and HELICOPTER OBSERVATION (AHIP), OH-58D.

4. 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. Currently, there are only 2 approved manufacturing sources: Service & Sales (59915) sm. business and Honeywell International Inc.

(59364) lg. business.

The use of the authority cited above is supported by the following Acquisition Method Code (AMC) and Acquisition Method Suffix Code (AMSC) of the NSN were confirmed as complete and accurate by the Product Specialist of record during the technical review of the NSN for placement on this long term contract on February 21, 2018 .

(X) AMC 1. Suitable for competitive acquisition for the second or subsequent time

(X) AMSC C. 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.

5. The sources listed in the table below, confirmed by the SAPD Product Specialist on February 21, 2018, are currently the only sources with the necessary qualifications, ability, and approval to manufacture the item. This is due to one or more of the following:

(X) The item is a Critical Part; therefore, manufacturing sources require ESA approval. At this time, the listed source(s) are the only sources approved by the ESA.

(X) The listed source(s) are the only sources that possess the complete technical data, rights to the data, and capability necessary to manufacture the item for the required form, fit, function, and quality.

(X) The Government either has no data, inadequate data, and/or lacks rights to the data needed to acquire this part from additional manufacturing sources. At this time, only the sources listed possess the complete data and rights to the data.

(X) The above is also supported by the information stated in the item’s applicable AMSC of C.

Sources:

NSN Description Approved

CAGE

Company Name Approved Part Number

4810010126462 DIAPHRAGM, ACTUATOR VALVE 59915 Service & Sales 858886-14

4810010126462 DIAPHRAGM, ACTUATOR VALVE 59364 Honeywell International Inc. 858886-14

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

A Sources Sought Notice was posted to www.fbo.gov on February 20, 2018, yielding no results.

The acquisition will be synopsized in Federal Business Opportunities at least 15 days prior to issuance of solicitation.

The solicitation will be posted to DIBBS.

Dealers of the approved manufacturing sources will be solicited.

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. A price analysis will be conducted using historical pricing, the Producer’s Price Index (PPI), and a learning curve analysis. Offerors may also be required to submit information other than certified cost or pricing data if deemed necessary by the Contracting Officer in order to determine prices fair and reasonable. Based on the above techniques, the Contracting Officer anticipates the costs to the Government will be fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

A market survey/research was conducted with the manufacturers whose part numbers are currently the only approved sources of supply for the item: 59915 - Service & Sales and 59364 - Honeywell International Inc. In addition, market survey/research was conducted with dealers of the manufacturer to include 2N935 - M&M Aerospace DBA KLX Aerospace Solutions, 563J1 - Lockheed Martin Corporation, 1GX03 - Linmarr Associates Inc, and 3WGD1 - Statz Corporation.

Market survey/research consisted of:

Researching items on-line via the internet for availability, commerciality, and features.

Pulling previous procurements of items and determining previous acquisition methods.

Determining vendor interest in long term contracting for the items.

Researching/gathering info regarding commerciality of the items.

Vendor size and business status information.

Delivery and shipping cost questions.

Possibility for Economic Price Adjustment of Option Years.

Base year and option years: optimal lengths, possible price/cost advantages.

Distributor involvement.

Market survey/research results:

Market research indicates the item is not commercial. Internet and catalog searches confirm that this item is not commercially available. Of the two market surveys received back from vendors, one indicated the item was commercial. However, no evidence or proof was submitted when requested.

Previous acquisition was unrestricted using other than full and open competition.

Three of six vendors surveyed are interested in participating in a long-term contract.

a. Service & Sales (59915), a small business manufacturer indicated interest in participating in a long-term contract and intends to offer its own approved item. For

b. M&M Aerospace DBA KLX Aerospace Solutions (2N935), a large business dealer indicated interest in participating in a long-term contract. They intend to offer the item manufactured by the approved source Honeywell International Inc.

c. Lockheed Martin Corporation (563J1) expressed interest, but declined to participate in the market survey.

d. Neither Honeywell International Inc (59364), Linmarr Associates Inc (1GX03) nor

Statz Corporation (3WGD1) responded to the market survey.

History indicates the item is available from both manufacturer and dealers.

9. 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. The data presently available reflects the minimum needs of the Government.

During the project development stage, the NSN included on this solicitation was provided to the DLA Land & Maritime Value Management (VM) Unit and the Strategic Acquisition Programs Directorate (SAPD) Product Specialist for review; no additional sources were identified during those reviews.

10. A listing of sources, if any, indicating an interest in the acquisition is:

Service & Sales (59915) M&M Aerospace DBA KLX Aerospace Solutions (2N935) Lockheed Martin Corporation (563J1)

11. This item is subject to the following methods of locating additional sources in an effort to overcome barriers to competition:

A Sources Sought Notice was posted to www.fbo.gov on February 20, 2018 for this specific item. The posting remained open until February 27, 2018. Vendors were requested to provide the name, location, and points of contact for any sources able to manufacture the item to the contracting officer listed in the announcement. In addition, a market survey was attached to the Sources Sought Notice for interested vendors to complete and return. Potential sources would be added to the solicitation mailing list. No responses were received from the notice.

The solicitation will contain DLAD Procurement Notes: L04-Offers for Part Numbered Items and M06-Evaluation of Offers for Part Numbered Items as both applicable to NSN 4810-01- 012-6462.

Forecast information is available to all potential sources for both sole source and competitive items. The DLA Supplier Requirements Visibility Application (SRVA) is a database that is available via the DLA internet Bid Board System (DIBBS.) SRVA provides potential sources the opportunity to search for information on DLA’s anticipated requirements based on updated monthly forecasts. Essentially it provides 24 months of sole source and competitive projected purchase order quantities. Potential alternate sources for current sole source items can easily see DLA’s forecasted procurements and can contact the Value Management Unit to become approved sources for sole source and code and part number items. The DLA Land & Maritime Value Management Unit continually seeks out sole source, limited competition, over-priced, low reliability and hard to buy items to improve their value and support posture. The DLA Land & Maritime internet website contains information for all potential sources on how to challenge prices, how to submit a Value Engineering Change proposal, a link to DoD’s Value Engineering program and the necessary contact info for both the DLA Value Engineering program and the DoD Value Engineering program.

12. Recent Procurements were small purchase and did not require a J&A.

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, this signature serves as the approval.

Contracting Officer Date

APPROVAL REQUIREMENTS

(X) Up to $700,000 Contracting Officer

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

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

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

SECRIST.JULIAN

A.M.1230216297

Digitally signed by

SECRIST.JULIANA.M.1230216297

Date: 2018.12.14 15:33:55 -05'00'