J&A_-_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION: SPE7MX-16-R-0113

ORIGINAL

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

2. The action being approved is the acquisition of an item of supply on other than a full and open competition basis. This DLA Land and Maritime acquisition is for an Indefinite Quantity type contract for a spare part used on an aircraft, stratofortress B-52 used by the United States Air Force. The proposed acquisition is for a DLA-managed item with a single source of supply (Hydraulics International, Inc.). The acquisition will include one National Stock Number (NSN) with the weapon system information delineated in the next paragraph. This acquisition is being pursued to provide continued or improved supply availability to preclude backorders, reduce administrative and production lead-time (ALT and PLT), decrease potential contract administration actions, and obtain reduced and stable unit pricing.

DLA Land and Maritime intends to enter into a fixed unit price, long-term contract (LTC) consisting of a three-year base period and two option years.

3. The item of supply required to meet the using activity's needs is described as follows:

NSN ITEM NAME AD AMSC

Cylinder Assembly, 3040009537958 Actuatin , Linear 109 C

This item is used on the Boeing B-52 stratofortress aircraft that can perform strategic attack, close-air support, air interdiction, offensive counter-air and maritime operations.

Hydraulic cylinders get their power from pressurized hydraulic fluid, which is typically oil. The hydraulic cylinder consists of a cylinder barrel, in which a piston connected to a piston rod moves back and forth. There are many component parts that make up the internal portion of a hydraulic cylinder. Generally speaking, Elastomer seals made from nitrite rubber, Polyurethane or other materials are best in lower temperature environments, while seals made of Fluorocarbon Viton are better for higher temperatures. Metallic seals are also available and commonly use cast iron for the seal material. Rod seals are dynamic seals and generally are single acting. The compounds of rod seals are nitrile rubber, Polyurethane, or Fluorocarbon Viton. Wipers I scrapers are used to eliminate contaminants such as moisture, dirt, and dust, which can cause extensive damage to cylinder walls, rods, seals and other components. The common compound for wipers is polyurethane. Metallic scrapers are used for subzero temperature applications, and applications where foreign materials can deposit on the rod. All of these pieces combine to create a fully functioning component.

Identify end item, weapon system, or class of item: The highest weapon system being supported by the NSN 04F.

WSDC: Aircraft, Stratofortress B-52

DPACS pdpl27 (JUNE 12)

SOLICITATION: SPE7MX-16-R-0113

ESTIMATED BASE VALUE

ESTIMATED TOTAL VAL~ IONS):

MAXIMUM CONTRACT VALUE :

FOR ADD-ONS, PROVIDE VALUE 0

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

10 U.S.C. 2304(c)(l) -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: The only company who has gone through the approval process to get its part number approved is Hydraulics International, Inc. (CAGE 56529).

The use of the authority cited is based on:

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

(The following are the AMSC descriptions. The full text is available in DF ARS PGI 217. 7506 Part 2).

[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.

The Value Engineering Office confirmed on 6/30/1 6 that they had no current projects on the NSN. Coordination was made with the SAPD Product Specialist on 7/5/16 who confirmed that AMSC ofC was correct. On 9/26/ 16 SAPD product specialist verified that Hydraul ics International, Inc. is the only approved source for this item.

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

(X) The acquisition will be synopsized on or about October 7, 2016.

( ) Manufacturers of similar products identified in the market research will be solicited.

7. Other (Explain) A sources sought was posted on FEDBIZOPPS on 4/25/ 16 with a return response of 5/2/1 6. No responses were received as a result of rhe sources sought that was posted.

7. It is anticipated that cost or pricing data in accordance with FAR 15.403-4 will not be required as the dollar value is expected to be under the $750,000 threshold. A price analysis will be conducted using historical pricing, the Producer Price Index (PPI) and learning curve analysis.

By using the above techruques, the Contracting Officer anticipates that the cost to the Government will be fair and reasonable. Requirement is being solicited with a three-year base period and two option years.

8. Market Research/Efforts to Obtain Competition:

Describe the market research conducted and the results. Initial market research was conducted from the timeframe of Apr 22, 2016 through May 2, 2016. Market research questionnaire was

. emailed to the coded source and 3 small business dealers. A sources sought was posted on FEDBIZOPPS on 4/25/1 6 with a response date of 51211 6. The sources sought resulted in no companies showing interest in proposing on the requirement.

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

A market survey was conducted on/during Apr 22, 2016 through May 2, 2016. Total number of companies contacted: 4

Names of vendors contacted and responding: The companies contacted were: American Industrial, Inc, Hydraulics International, Inc, JGB Enterprises, Inc, and Talon Air. One company, Hydraulics International, responded with interest in proposing on subject solicitation.

American Industrial no longer manufactures the product, JGB Enterprises and Talon Air both declined to complete the survey.

Techniques used to conduct survey: Email and posting a sources sought on FEDBIZOPPS. No response was received to the sources sought that was posted.

Types of information requested: Companies were asked to respond to areas regarding their independence from the manufacturer if they were a dealer/distributor, inventory capability, their opinions as to quantity sensitivity of the item, their willingness to propose option years, questions to assist Contracting Officer in determining/not determining whether the item is commercial, preference to FOB point and its impact on price, if inspection and acceptance at origin was acceptable, preference as to zone pricing, packaging capability and EDI capability.

Summary of information received:

Hydraulics International Inc (56529): Company responded with market research information on 4/25/1 6. Company is a small business manufacturer and is interested in ro osin on the NSN

DPACS pdp127 (JUNE 12)

SOLICITATION: SPE7MX-16-R-0113

American Industrial, Inc ( l B7X2): Company indicated by emailed on 4/25/1 6 they no longer manufacture the product.

JOB Enterprises (61125): Market research summation indicates they declined as the part number is a Hydraulics International part and they sell direct to DLA.

Talon Air (58CEO): They did not complete the survey.

Information received regarding the commerciality of the item(s): The single company responding to the market research questionnaire indicated that the item is not commercial. The commercial field is blank for NSN. The part number could not be found on the web in a Google Parts search.

9. Additional facts supporting other than full and open competition are:

Based upon the technical certification on file in DLA Land and Maritime-YEP 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.

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 (DlBBS). 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 and 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 information for both the DLA Value Engineering program and the DoD Value Engineering Program.

There is no previous J&A available to review as all prior history is under the Simplified Acquisition Threshold.

10. A listing of sources, if any, indicating an interest in 1he acquisition is: (lfnone, so state)

Hydraulics International. Inc. (56529).

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

DPACS pdpl27 (JUNE 121

jg) The solicitation contains the provision entitled Conditions for Evaluation and Acceptance of Offers for Part Numbered Items

D VE Bailment Program D Source Development Review D Reverse Engineering D Other --------------------

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

Esther A Hayden Typed name of Contracting Officer

2-8029 Phone

This ·ustification has been reviewed for legal sufficiency:

DLA Land and Maritime Counsel Datb

DPACS pdpl27 (JUNE 12)

9/27/1 6 Date

(X) Up to $700,000

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

( ) $13,500,000 - $93,000,000

() over $93,000,000

APPROVAL REQUIREMENTS

Contracting Officer

Competition Advocate

Head of the Contracting Activity (HCA)

Senior Procurement Executive (AQ)