SPE7MX16R0079__-_J&A.pdf

Justification for Other Than Full and Open Competition SPE7MX-16-R-0079

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

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.

The buyer was not able to locate these items under www.GSAAdvantage.com. The buyer searched by NSN, name, and part numbers.

A Partial Set-Aside solicitation may result in a Multiple Awards during negotiations. The award/awards will be three-year base with two one year options not to exceed five years.

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

BRIEF DESCRIPTION NSN/P/N ADQ QUANTITY ADV EST. VALUE

Pipes & Tubing 4710-01-254-0452 115 each Flexible Hose & Tubing 4720-00-594-5014 203 each Flexible Hose & Tubing 4720-00-631-5727 79 each

NSN 4720-00-631-5727 is a critical safety item, and in accordance with DFARS 209.270, DLA must procure this item only from those sources approved by the design control activity. At this time, only [Magna James LTD (0XK36), ICON Polymer LTD (U0619) and Sargent Fletcher INC (72429)] has been approved by the design control activity to supply this CSI".

Photos of the items came from Magna James one of the potential sources for this procurement.

Identify end item, weapon system, or class of item:

These items are used in both the F-16 Aircraft and QF-16 Air Superiority Target Drone

ESTIMATED BASE VALUE

ESTIMATED TOTAL VALUE (BASE + OPTIONS)

MAXIMUM CONTRACT VALUE

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

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

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

(AUG 2016)

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

A review with the product specialist on January 18, 2017 shows that NSN 4710-01-254-0452 has one primary OEM and three secondary OEMs; NSN 4720-594-5014 has one primary source and one secondary OEM; and NSN has one primary source and two secondary sources. Sargent Fletcher INC is the primary OEM for all three NSNs. See the potential sources listed in the table below:

NSN Item Name CAGEs Part Numbers 4710-01-254-0452 Magna James LTD DBA Northstar 0XK36 2-300-01717 4710-01-254-0452 Sargent Fletcher INC.* 72429 2-300-01717 4710-01-254-0452 Wainwright Enterprises, LLC dba 51150 2-300-01717 4710-01-254-0452 GKN Aerospace Bandy Machining 22176 2-300-01717 4720-00-594-5014 Magna James LTD DBA Northstar 0XK36 218-5000 4720-00-594-5014 Sargent Fletcher INC.* 72429 218-5000 4720-00-631-5727 Magna James LTD DBA Northstar 0XK36 152-5076 4720-00-631-5727 ICON Polymer LTD dba U0619 DEC567 4720-00-631-5727 Sargent Fletcher INC.* 72429 152-5076

6. Certified Cost or Pricing Data may not be required if adequate price competition is received.

The use of the authority cited below:

The Quality Assurance Specialist addressed an email to dated August 27, 2014. email states the “all items have been reviewed and are found to be acceptable for LT C inclusion. On January 10, 2017 Produce Specialist updated the AMC codes for NSNs 4710-01-254-0452 and 4720-00-594-5014. The buyer is relying on the following information below:

NSN AMC AMSC

4710-01-254-0452 1 C 4720-00-594-5014 1 P 1720-00-631-5727 1 C

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

The use of the authority cited is based on:

[ 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.

[X] AMSC P. The rights to use the data needed to purchase this part from additional source(s) are not owned by the Government and cannot be purchased, developed, or otherwise obtained. It is uneconomical to reverse engineer this part. This code is used in situations where the Government has the data but does not own the rights to the data. 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.

For NSN 4710-01-254-0452 Magna James LTD dab Northstar, Wainwright Enterprises, LLC, GKN Aerospace Bandy Machining, and Sargent Fletcher Inc., possess the complete technical data. For NSN 4720-00-594-5014 Magna James LTD dab Northstar, and Sargent Fletcher Inc., possess the complete technical data. For NSN 4720-00-631-5727 Magna James LTD dab Northstar, ICON Polymer LTD, and Sargent Fletcher Inc., possess the complete technical data. These OEMs all are the only known sources with the manufacturing knowledge and capability to produce these items in the quantity and to the quality needed by the government. 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.

7. Efforts to ensure that offers are solicited from as many sources as practicable are: The acquisition will be synopsized on or about 01/05/2017.

The only two manufacturers of these products identified in the market research will be solicited.

8. Certified Cost or Pricing Data may not be required if adequate price competition is received. I hereby determine that the anticipated cost to the Government will be fair and reasonable.

Past procurement history will be reviewed in conjunction with a price analysis using the Producer Price Index from the Bureau of Labor Statistics. The basis for determining the fair and reasonable price of this procurement will be cost/price data analysis if this solicitation does not have competition.

9. A search of the Industrial Base Management System, Surge and Sustainment Evaluation

Check indicated that there are no surge requirements for this item. The surge clauses and provisions will not be included in the solicitation.

10. Market Research/Efforts to Obtain Competition:

A Sources Sought was posted in FEDBIZOPS on July 23, 2014 and closed on July 30, 2014 in which no company responded. There were two market surveys in which only the small business concern, Magna James LTD dba Northstar, responded in 2014. The buyer did a recent Sources Sought that was posted in the FEDBIZOPS on December 14, 2016 with a closing date, December 27, 2016. No additional sources responded to the Sources Sought request by December 28, 2016. Also, the buyer did conduct a more recent market survey and got the large business concern, Sargent Fletcher Inc., to respond on September 21, 2016. In November the buyer had both Magna and Sargent to provide their delivery requirements for each NSN by quantity ranges. This portion of the market survey was completed on November 30, 2016. The market survey was completed on 01/27/2016. The conclusion of the market survey is as follows:

Magna James Ltd dba Northstar (0XK38) a small business concern

Both NSNs are not commercial and

Sargent Fletcher INC (72429) a large business concern working under Cob ham PLC the parent company.

These are not commercial items.

During the initial Market Survey, only two manufacturing sources sent in their survey answers.

Upon receiving this project, the buyer made telephone calls to the other sources. Two of the sources Dasco Engineering Corp (50317) and Dulond Tool and Engineering INC (9M680) asked the buyer to remove their companies from the government’s list and Haystack as potential sources. The buyer sent an email message to the SAPD Tech Referrals mailbox on March 18, 2016. Both Dasco and Dulond makes parts for trucks and not for Aircrafts.

In November 2015, the buyer telephoned the other sources who had not sent in their Market

Survey. On November 13, 2015, for Wainwright Enterprise LLC (51150) said his company could have made these items in the past but not anymore. His company makes truck parts now. A follow-up call on January 25, 2017, telephoned to say his company will not respond to the solicitation and he would not respond to the buyer in writing because he did not want to jeopardize future relationship for his company with the government.

On May 3, 2016, with GKN Aerospace Brandy Machining (22176) telephoned to say his company always respond with a “No Bid” because currently his company does not make Airplane parts. On January 25, 2017, both telephoned to buyer to say their company does not intend on making these items at this time. followed-up his response with an email stating that his company is not making these items at this time. The buyer did not telephone the company located in the United Kingdom, ICON Polymer LTD (U0619; a company who had two contracts in 2008 for NSN 4720-00-631-5727.

All three NSNs 4710-01-254-0452, 4720-00-594-5014, and 4720-00-631-5727 are not commercial items.

The buyer was not able to locate a copy of a previous J&A statement in the SRM Records Management database.

11. 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.

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

Magna James Ltd dba Northstar (0XK38) a small business concern and Sargent Fletcher INC (72429) a large business concern both responded to the survey.

13. The following actions are being taken to identify additional sources before any subsequent acquisitions are made:

[X] Other the product specialist reviewed the NSNs on this project during project creation, and no new sources were found.

[X] The solicitation shall include procurement notes L04 Offers for Part Numbered Items and M06

Evaluation of Offers for Part Numbered Items.

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.

G. Douglas Peterson, Contracting Officer Date

This justification has been reviewed for legal sufficiency:

DLA Land and Maritime Counsel Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

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

Attachment #1 GSA Advantage

3/8/2017

PETERSON.GEORGE.

D.1242831744

Digitally signed by

PETERSON.GEORGE.D.1242831744

Date: 2017.03.08 17:18:02 -05'00'

Date: 2017.03.16 15:23:46 -04'00'