J&A-_SPE7mX16R0107.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX16R0107

[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/services on other than full and open competition basis. The

NSNs are for Federal Stock Class (FSC) 6140 – Batteries, Rechargeable.

NSN WSDC WEAPON SYSTEM

6140-01-507-3448 DTF Aircraft, Airlifter C-17A 6140-01-521-8584 DTF Aircraft, Airlifter C-17A

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

NSN Item Name UI AMC AMSC ADQ ADV 6140-01-507-3448 Battery, Storage EA 3 D 57 6140-01-521-8584 Cell, Battery EA 3 D 4113

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.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code: MarathonNorco Aerospace, Inc. (74025).

The use of the authority cited is based on:

[X] AMC 3. Acquire, for the second or subsequent time, directly from the actual manufacturer.

6. [X] 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. The Government does not have the data or rights to the data and it is not economical for the Government to obtain or otherwise develop the data. MarathonNorco Aerospace, Inc. is the only source known to own or possess the technical data necessary to manufacture these items.

They are the only approved source listed for these NSNs. Because only the approved source possess the complete technical data for the items listed, they are the only source uniquely qualified to manufacture these items; 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:

[X] The acquisition will be synopsized on or about 6/29/16 [X] Dealers of the manufacturers will be solicited [X] Other: The solicitation will be posted and available on the DLA Internet Bid Board System (DIBBS), a web-based application that allows vendors to search and review RFPs. A Sources Sought notice was previously published 4/15/15 via the internet (at https://www.fbo.gov/) closing on 4/21/15. The purpose of sources sought was to provide an opportunity to other potential sources to manufacture these NSN’s in order to promote competition. As part of the sources sought, the market survey was included to allow potential offerors an opportunity to provide feedback on the current marketplace for this acquisition. No additional sources were received

SOLICITATION SPE7MX-16-R-0107

8. I hereby determine that the anticipated cost to the Government will be fair and reasonable. Cost and Pricing Data is not required per FAR 15.402-1(b)(3). The items will be solicited in accordance with FAR 12—Acquisition of Commercial Items. In accordance with FAR Part 12.209, while the Contracting Officer must establish price reasonableness in accordance with 13.106-3, 14.408-2, or Subpart 15.4, as applicable, the Contracting Officer should be aware of customary commercial terms and conditions when pricing commercial items. Commercial item prices are affected by factors that include, but are not limited to, speed of delivery, length and extent of warranty, limitations of seller’s liability, quantities ordered, length of the performance period, and specific performance requirements. The Contracting Officer must ensure that contract terms, conditions, and prices are commensurate with the Government’s need. The Contracting Officer will determine that the contract award prices are fair and reasonable in accordance with FAR Subpart 15.4. The buyer may request information other than cost or price data to support price reasonableness if necessary.

9. Market Research:

PREVIOUS SOLICITATION:

For this previous solicitation, a market survey was conducted by the sourcing Strategy Branch, ZAA. The survey was sent to the following contractors: MarathonNorco Aerospace, Inc. (74025), Aviall Services, Inc. (22819), Kampi Components (7Z016), Satair USA, Inc. (63Y25), and ECI Defense Group, Inc. (3SDB5) on 2/25/15. Past history show mainly dealers as awardees. The companies were asked, among other things, to provide their stock delivery, state if the item is quantity sensitive, state if the item is commercial, indicate if they would be willing to quote a three year base period and two one-year option periods, if they would be willing to quote one destination zone, FOB Origin/Destination preference, if inspection/acceptance at origin would be acceptable if required and if they agreed that consolidating NSNs would be an advantage or disadvantage. The following responses were received as follows:

Marathonnorco Aerospace, Inc. (74025) – MarathonNorco stated to contact a distributor for the Market Research information.

Aviall Services, Inc. (22819) - Received a response on 3/6/15 from , Sr. Government Contracts Administrator. Aviall Services showed an interest in pursuing a long term contract for all NSNs. stated that Aviall Service is a large business distributor with 1400 employees. Boeing Company is their parent company with 163,000 employees.

Kampi Components (7Z016) – Received a response on 2/26/15 from Government Sales Rep., stating that Kampi respectfully declines to participate.

Satair USA, Inc. (63Y25) – Satair stated that they had sent a request to the OEM and

. No other information or response was received.

ECI Defense Group, Inc. (3SDB5) – No response was received.

SOLICITATION SPE7MX-16-R-0107

RESPONSE TO PREVIOUS SOLICITATION:

There were five responses to the previous solicitation and all were from distributors. For these specific NSNs there were three offers received. One was determined out of the competitive range before negotiations. After negotiations, one withdrew their offer after negotiations and one was determined non-responsive. The company determined out of the competitive range wanted to submit revised pricing however they had been determined out of the competitive range and was not permitted to submit lower pricing. So based on responses to this solicitation, the buyer believes there will be several distributors interested in the new solicitation.

CURRENT MARKET RESEARCH:

MarathonNorco Aerospace, Inc. (74025) – the buyer contacted MarathonNorco in ask if they would respond directly to the Government for these NSNs. They responded they would be interested in quoting NSN 6140015218584 directly to the Government but said NSN 6140015073448 currently set up with distribution meaning they only sell it through their distributors.

10. 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 complete and cannot be developed to permit full and open competition. However, the item provided must meet the requirements of the cited technical data in addition to the requirements of the part numbered item listed on the solicitation.

[X] A standard technical data review was completed by the SAPD product specialist group and strategic sourcing specialist. Confirmation of sources for the NSN was also completed and determined to be acceptable. No other sources or adequate technical data could be identified.

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

MarathonNorco (74025), Aviall Services, Inc. (22819)

12. These items are subject to the following methods of locating additional sources:

[ X ] The solicitation contains the provision 52.217-9002 entitled Conditions for Evaluation and Acceptance 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.

ARCHIBALD.LORI.

A.1230193190

Digitally signed by

ARCHIBALD.LORI.A.1230193190

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DLA, cn=ARCHIBALD.LORI.A.1230193190 Date: 2016.06.07 13:26:44 -04'00'

LORI A. ARCHIBALD, Contracting Officer & Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification. The estimated total value of the J&A is

Head of Contracting Activity (HCA) Signature & Date

LEWIS.MILTON.K

ING.1064624357

Digitally signed by

LEWIS.MILTON.KING.1064624357

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DLA, cn=LEWIS.MILTON.KING.1064624357 Date: 2016.06.24 13:13:53 -04'00'