J&A_SPE7MX16R0141_(FOIA).pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX-16-R-0141

ORIGINAL

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.

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

NSN: 5985013816341

ADQ: 744

AMC: 1

AMSC: C

WSDC: VCA

Weapon System: AN/TSQ-158, Net Control Station, Enhanced PLRS Approved Source Name (CAGE):

US Tower Corporation (0BB47) The Will-Burt Company (97246)

ESTIMATED ANNUAL VALUE:

ESTIMATED TOTAL VALUE (BASE + OPTIONS):

MAXIMUM CONTRACT VALUE:

FOR ADD-ONS, PROVIDE VALUE OF OPTION YRS REMAINING: N/A

The included NSN is an antenna mast used on the AN/TSQ-158 Enhanced Position Location Reporting System (EPLRS). US Tower Corporation and The Will-Burt Company are currently the only approved sources.

The subject solicitation is for the establishment of a fixed-price Indefinite Quantity Contract (IQC) with a three-year base period and two available one-year options. This acquisition will be a total small business set-aside.

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. A demonstration that the proposed contractors’ unique qualifications or the nature of the acquisition requires use of the authority cited in paragraph 4:

US Tower Corporation and The Will-Burt Company are the only sources with part numbers approved by the design control activities and are the only sources with the unique design capabilities, engineering skills, and manufacturing knowledge for these items. These companies retain the data rights and technical data necessary to manufacture these items, which are not owned or available to the Government to purchase the parts from additional sources. 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.

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

US Tower Corporation (0BB47) The Will-Burt Company (97246)

The use of the authority cited is based on:

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

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 AMC/AMSC code was verified by , Product Specialist, DLA Land and Maritime.

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

The acquisition will be synopsized on or about September 19, 2016.

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.

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

This acquisition will include a three-year base period and two available one-year options. Quantity ranges will be included to allow offerors the opportunity to provide quantity price breaks.

Adequate manufacturer competition is anticipated and price analysis will be performed to compare proposed unit prices to those of previously awarded acquisitions as well as the prices paid in the commercial marketplace. Certified cost or pricing data will not be required; however, additional pricing support data, such as commercial sales invoices, may be required if determined necessary.

Award will only be made if prices are determined fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

Describe the market research conducted and the results.

A Sources Sought notice was posted to the FedBizOpps website on December 17, 2016. No responses were received. Market surveys were sent to The Will-Burt Company and US Tower Corporation. Internet searches were performed to gather information on additional manufacturing sources and commerciality.

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

A market survey was conducted during 10/14/2015 – 1/27/2016.

Total number of vendors contacted: 2 Names of vendors contacted and responding:

US Tower Corporation (0BB47) The Will-Burt Company (97246)

Techniques used to conduct survey: A questionnaire and item detail spreadsheet was sent to vendors via email by the Sourcing Strategy Brach (SAPD-ZAA) and posted as an attachment to the Sources Sought notice posted to the FedBizOpps website.

Types of information requested: The market survey requested detailed company information, willingness to participate in a long-term arrangement, ability to supply cost or pricing data, item commerciality, inventory maintenance, applicable quantity price breaks, minimum requirements, materials used to manufacture the items, contract term, option periods and option year pricing adjustments.

Summary of information received:

The Will-Burt Company is a small business manufacturer and an approved source on the included NSN. They indicated they are interested in pursuing a long-term contract

Will-Burt indicated the item is commercial and

US Tower Corporation is a small business manufacturer and an approved source on the included NSN. They indicated they are interested in pursuing a long-term contract and

US Tower indicated the item is not commercial

The vendor did not indicate an estimated delivery.

Information received regarding the commerciality of the item(s):

US Tower’s response to the market survey indicated the item is not commercial nor are inventories maintained for these items. A search for the approved part number on US Tower’s website returned no results. An Internet search of the approved part number on the Google search engine only returned results that indicate the item is for military specific applications.

Will-Burt’s market survey response indicated that the item is commercial and they provided an internal price list and two invoices documenting sales to a commercial customer. However, these invoices were from nearly six years ago and Will-Burt’s Director of Sales indicated, “the only more recent purchases of this exact product have been from the government contract,” and “there is nowhere online to buy the 5985-01-381-6341/Mast without requesting a quote. Will-Burt doesn't use any online sales methods to sell our products because they are very technical in nature.” Lack of current invoices and the technical nature of this item appears to be contrary to Will-Burt’s assertion that this item is commercial. Maintaining a part number on an internal price list does not in itself demonstrate the commerciality of an item. An Internet search of the approved part number on the Google search engine only returned results that indicate the item is for military specific applications.

The previous acquisition was an Indefinite Delivery Purchase Order and below the Simplified Acquisition Threshold and therefore, did not require a Justification for Other Than Full and Open Competition. The Contracting Officer searched Records Management for the Justification for Other Than Full and Open Competition related to the only other acquisition for the included NSN (W15P7T-09-D-N011); however, the Justification was not available.

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. A technical and quality review was initiated by the SAPD Strategic Sourcing Specialists during the project development stage for this acquisition. During the review the Acquisition Method and Acquisition Method Suffix Codes were reviewed and verified for the included NSNs.

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

US Tower Corporation (0BB47) The Will-Burt Company (97246)

11. In addition to the specific actions being taken by Technical Support personnel to overcome barriers to competition before any subsequent acquisitions or recertification of class determination are made, this item is subject to the following methods of locating additional sources:

The solicitation contains the provision 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.

2-8352 10/12/2016 ADAM D. SPEERT Phone Date Contracting Officer

Approval/Certification

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

Competition Advocate Phone Date

SPEERT.A

DAM.D.123

0171960

Digitally signed by

SPEERT.ADAM.D.

1230171960 Date: 2016.10.12 14:08:09 -04'00'

HOPSON.LI

LLI.A.12301

27324

Digitally signed by

HOPSON.LILLI.A.12

30127324 Date: 2016.10.17 12:54:37 -04'00'