SPE7MX-22-R-0035 1-25-2022.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX-22-R-0035

DLA Land & Maritime Justification for Other Than Full & Open Competition

(AUG 2016)

ORIGINAL J & A

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 Full and Open Competition basis. The resulting contract(s) will be Firm Fixed-Price with Annual Price Adjustments, Indefinite Quantity Contract(s) issued under FAR

Part 15 for a 3-year base period with the option to extend the contract for two additional years in one-year increments.

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

CLIN NSN Brief Description AMC/

AMSC

ADQ Estimated ADV

0001 4720016480955 Hose Assembly, Nonmetallic

3/D 46 $89,357.76

0002 4820016484183 Valve Gate 3/D 105 $88,316.55

End Item Description and Weapon System (s):

Per the SAPD Product Specialist Group, “These NSNs do not have a Weapon System Designator Code attached to them. They are non-weapon system coded.”

ESTIMATED TOTAL VALUE (BASE + OPTIONS): $888,371.55

MAXIMUM CONTRACT VALUE: $1,332,557.33

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.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code:

FSC NIIN CAGE PRT_NUM NAME

4720 016480955 66618 4000044 Avon Engineered Fabrications

4820 016484183 66618 4000047 Avon Engineered Fabrications

The use of the authority cited below:

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

The use of the authority cited is based on:

AMSC D. The data needed to acquire this part competitively is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation. AMCS 3, 4, or 5 are valid.

On September 15, 2021, Kurtis Starin Product Specialist DLA Land and Maritime-FLD certified that the technical information, including the AMS/AMSC code and approved source, was completed and accurate. The subject NSN has been identified as sole/limited source item. No other sources or adequate technical data could be identified or located for competitive procurement. If new sources are approved prior to award, the solicitation will be reissued allowing for the new source(s) a chance to compete for this acquisition.

Therefore, this acquisition will be solicited with Other than Full and Open Competition under the authority of 10 U.S.C.

2304(c) (1), as implemented by FAR 6.302.

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

a. The acquisition was synopsized on January 20,2022 for a period of 15 days.

b. At the completion of the synopsis period, the solicitation will be posted to the DLA Internet Bid Board System (DIBBS) for a period of 30 days.

c. Alternate items will not be accepted for this procurement, and all alternate offers will be required to submit a complete data package for evaluation for future procurements.

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

Price analysis will be conducted for this acquisition to deem the prices fair and reasonable as required by FAR 15.403-

4. The price analysis will consist of utilizing the historical prices and adjusting them based on the PPI Index. The price will be adjusted utilizing learning curves to determine the Government low and high targets for this acquisition. The offeror(s) may be requested to submit information other than cost and pricing data to determine price reasonableness.

Based upon the above techniques, the Contracting Officer hereby determines that the anticipated cost to the Government will be fair and reasonable.”

8. Market Research/Efforts to Obtain Competition: The results of the market surveys are detailed below. A Sources

Sought notice was posted to the Beta Sam website on November 04, 2021 for 10 calendar days to find potential sources for this NSN, with a response date of November 18, 2021. No responses were received.

Market Survey [10 U.S.C. 2304(f)(3)(D)]:

A market survey was conducted on January 03,2022. Techniques used to conduct survey:

Market Survey Package was emailed to the source supplier.

Total Number of vendors contacted: 2

Name of vendor contacted: Avon Engineered Fabrications (66618) and Atlantic Diving Supply (1CAY9).

Techniques used to conduct survey: emails, Beta.Sam, Market survey questionnaire and attachments.

Types of information requested: # of base years, # of option years, priced option years versus EPA, FOB origin or destination, quantity breaks, commerciality, commercial sales invoices, Understanding of cost/price data.

Summary of information received:

Avon Engineered Fabrications (66618) POC Dewan Watts

On September 15, 2021, Dewan Watts responded to the market research. Avon Engineered Fabrications is a small business hubzone manufacturer. This supplier is not interested in pursuing a Long-Term Contract (LTC) stating “. There are no mechanisms in place to make predictable price estimates for the outlying years, specifically on the quantity specified. In order to offer long term pricing, a larger minimum quantity would be required in order to leverage pricing and mitigate risks.” Avon Engineered Fabrications stated the items are not commercial.

Atlantic Diving Supply (1CAY9) POC Kevin Pallugna.

On January 03, 2021, Mr. Pallugna responded to the market research. Atlantic Diving Supply is a small business distributor. This supplier is interested in pursuing a Long-Term Contract (LTC). Atlantic Diving Supply agrees with 3 base years plus 2 options. As a distributor they will not be able to obtain certified cost and pricing data from the manufacture.

Atlantic Diving Supply states the items are not commercial. No minimum delivery order quantity applies.

Commerciality Determination: The response to the market survey from Avon Engineered Fabrications and Atlantic Diving

Supply indicated that these items are not commercial. Per FAR 2.101 (b) the item in this solicitation has been determined to be non- commercial. The following factors that have led to these conclusions are:

• A search of the internet was done and there is no evidence that these items can be sold to other than the military.

• Items are not commercially price listed.

• NSNs are not coded with an AMSC code of “Z”.

• The Agency’s need for the acquisition of these items is to sustain numerous critical weapon system platforms and their supporting equipment. As such, these items have strict configurations and standardization requirements for which a Non-

Commercial acquisition is more appropriate.

• The Acquisition Specialist checked the GSA Schedule for both NSNs, and no information was found.

Therefore, it is the determination of the contracting officer that these items are not commercial and FAR Part 15 will be applied to the solicitation.

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.

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

Atlantic Diving Supply (1CAY9) responded to the market survey and expressed an interest in the acquisition. The vendor will be added to the solicitation mailing list.

11. The following actions are being taken to identify additional sources:

a. The solicitation will contain note L04- Offers for Part Numbered Items (SEP 2016) and M06- Evaluation of Offers for Part Numbered Items (SEP 2016).

b. The buyer was not able to locate a copy of a previous J & A statement in the SRM Records Management because all previous buys were under the simplified acquisition threshold where a J&A are not required.

c. Planned actions for the future to overcome any barriers to competitions will be periodic market research and sources sought.

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 $750,000, this signature serves as the approval.

Richard Matz Contracting Officer Date

APPROVAL REQUIREMENTS

I have reviewed and approve this justification:

Competition Advocate Signature Date

[x] $750,000 to $15,000,000 Competition Advocate

DEFENSE LOGISTICS AGENCY

LAND AND MARITIME

P.O. BOX 3990

COLUMBUS, OHIO 43218-3990

September 15, 2021

MEMORANDUM FOR RECORD

SUBJECT: Justification for Restricting Competition for CM21258002

1. Justification for restricting competition for: 016480955, 016484183

2.

A. The Government’s rights to use data in its possession are questionable.

B. Acquisition of this part is restricted to source(s) specified on A Source Control @, Altered Item @ or A Selected Item @ drawings/documents.

C. This part requires engineering source approval by the design control activity in order to maintain 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.

D. The Government physically does not have in its possession sufficient, accurate or legible data to purchase this part from other than current source(s).

L. The Government physically does not have in its possession sufficient, accurate or legible data to purchase this part from other than current source(s).

K. This part must be produced from class 1A castings (e.g., class 1 of MIL-C-6021) and similar type forging(s). The part must be procured only from sources which use castings or forging(s) obtained from approved (controlled) source(s).

M. Master or coordinated tooling is required to produce this part. This tooling is not owned by the Government or, where owned, cannot be made available to other sources.

N. This part requires special test and/or inspection facilities to determine and maintain ultra-precision quality for its function or system integrity. Substantiation and inspection of the precision or quality cannot be accomplished without such specialized test or inspection facilities.

P. The rights to use the data needed to purchase this part from additional sources are not owned by the Government and cannot be purchased.

Q. The Government does not have adequate data, lacks rights to data, or both, needed to purchase this part from additional sources.

R. The data or the rights to use the data needed to purchase this part from additional sources are not owned by the Government and it has been determined that it is uneconomical to purchase them.

SUBJECT: Justification for Restricting Competition

U. The cost to the Government to breakout this part and acquire it competitively has been determined to exceed the projected savings over the life span of the part.

V. This part has been designated a high reliability part under a formal reliability program. Probability of failure would be unacceptable from the standpoint of safety of personnel and/or equipment. The cognizant engineering activity has determined that data to define and control reliability limits cannot be obtained nor is it possible to draft adequate specifications for this purpose.

Y. The design of this part is unstable. Engineering, manufacturing, or performance characteristics indicate that the required design objectives have not been achieved. Major changes are contemplated because the part has a low process yield or has demonstrated marginal performance during tests or service use. These changes will render the present part obsolete and unusable in its present configuration. Limited acquisition from the present source is anticipated pending configuration changes.

Z. This is a Commercial/non-developmental (off-the-shelf item). When one or a limited number of sources are available, then a J&A is required. When an item is coded with

AMSC “Z” and is listed on an interchange catalog or appears on a commercial cross reference list, this constitutes full and open competition and a J&A is not necessary.

2. I certify that we do not have a complete, unrestricted data package at this date.

We are pursuing all means to obtain a technical data package adequate for manufacture of the item.

All means to obtain a technical data package adequate for manufacture of the item has been exhausted.

I certify the accuracy of these NSN(s), the AMC/AMSC’s and approved source(s) as identified in the J&A (if applicable) are valid and have no pending 339’s.

Kurtis Starin

Product Specialist DLA Land & Maritime/ FLD

Phone Contact Com.614-692-8557 DSN 850-8557

2021-09-15T13:33:14-0400

STARIN.KURTIS.JOHN.1272382154