J&A6.302-1C-SPE7MX-17-R-0018_.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION: SPE7MX-17-R-0018

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 a full and open competition basis.

3. The supplies required to meet the using activity’s needs are described in attachment# 1.

Identify end item, weapon system, or class of item: See attachment# 2

The estimated base value is with an estimated total value (Base + Option) of and a maximum contract value of

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: Only one manufacturer is currently approved by the design control activity to supply these items: Hydro Engineering (64030).

Procurement history shows that Hydro Engineering (64030) is the actual manufacturer of the items and that various dealers have provided Hydro Engineering parts. See attachment# 4. The Government lacks the technical data needed to acquire these items competitively. Hydro Engineering (64030) is the only source known to possess the complete technical data for 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. See attachment# 3."

The use of the authority cited is based on:

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

AMC 4 - Acquire, for the first time, directly from the manufacturer.

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.

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

AMSC L: The annual buy value of this part falls below the screening threshold established by DoD components and field activities. However, this part has been screened for additional known sources, resulting in either confirmation that the initial source exists or that other sources may supply the part. No additional screening was performed to identify the competitive or noncompetitive conditions that would result in assignment of a different

AMSC. This code shall not be used when screening parts entering the inventory. This code shall be used only to replace AMSC or for parts under the established screening threshold.

AMSC R: The Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights.

AMSC Z: This part is a commercial/nondevelopmental/off-the-shelf item. Commercial item descriptions, commercial vendor catalog or price lists or commercial manuals assigned a technical manual number apply.

Each one of the Product Specialist of record for each NSN indicated that the AMC/AMCS code are correct and that Hydro Engineering (64030) is the only approved source for each NSN.

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

a. The acquisition will be synopsize on or about May 30, 2017, and will run for 15 days. At the completion of the synopsis period, the RFP will be solicit on the internet for 30 days, via the DLA Internet Bid Board System

(DIBBS).

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

a. Past procurement, history will be reviewed and a price analysis will be performed using the producer price indexes from the Bureau of Labor Statistics. The basis for determining the reasonableness of this procurement will be price analysis; analysis of the prices in the commercial market place plus other than cost or pricing data will be request if needed.

8. Market Research/Efforts to Obtain Competition: Market Survey [10 U.S.C. 2304(f) (3) (D)]:

a. The product specialist reviewed these NSNs for the project during project creation, and no new sources was found. A Sources Sought notice was posted in FedBizOpps for 10 calendar days to find potential sources for theses NSNs and no company responded. A second Sources Sought was issued on FedBizOpps on December 20, 2016 and with a closing date of January 4, 2017 due to the longevity of the first source sought and to find potential sources for these NSNs. No responses were received.

A market survey was concluded on January 4, 2017.

Total number of vendors contacted: 5

Names of vendors contacted:

1. Hydro Engineering (Cage 64030)

2. Dreamfind Inc. (Cage 1V4T7)

3. Phoenix Trading (Cage 4LF36)

4. Stealth Supply (Cage 6RVM4)

5. Lynn Electric (Cage 19151)

Techniques used to conduct survey: emails, FedBizOpps, Market survey questionnaire, attachment, and follow-up phone calls.

Types of information requested: # of option years, priced option years versus EPA, FOB origin or destination, quantity breaks, commerciality, commercial sales invoices.

Information received regarding the commerciality of the item(s): Hydro Engineering indicated that the items are commercial because it is sold to manufacturers and repair/services facilities that are not defense contractors. Hydro Engineering provided commercial invoices.

Summary of information received: See below.

The Strategic Sourcing Specialists attempted to conduct market research with the following companies to assess their interest and capability to perform: Hydro Engineering (CAGE 64030), Dreamfind Inc. (CAGE 1V4T7), Phoenix Trading Inc. (CAGE 4LF36), Stealth Supply Inc. (CAGE 6RVM4), and Lynn Electric Corp (CAGE 19151)

Hydro Engineering (CAGE 64030) was the only company responsive to the market survey and interested in a Long Term Contract. See below:

Company indicated an interest in pursuing a Long Term Contract.

Company stated that these items are commercial.

Company Name Responded Business Size Interested on a LTC Base Year

Option Years EPA

Priced Option

FOB

Origin

Cost/P rice Data

Hydro Engineering. Yes Small Business

Dreadfind Inc No Small Business - - - - - Phoenix Trading No Small Business - - - - - - - Stealth Supply No Small Business - - - - - - - Lynn Electric No Small Business - - - - - -

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

a. 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.

b. A technical review was completed by the SAPD product specialist group for the solicitation NSN. The subject NSNs have been identified as sole source items. No other sources or adequate technical data could be identified or located for competitive procurement.

10. A listing of sources, if any, indicating an interest in the acquisition is: Hydro Engineering (64030) responded to the market survey and expressed an interest in the acquisition.

11. This item is subject to the following methods of locating additional sources:

b. The solicitation contains the DLAD Procurement Notes entitled L04 Offers for Part Numbered Items (SEP 2016) and M06 Evaluation of Offers for Part Numbered Items (SEP 2016).

c. The buyer was able to locate a copy of a previous J&A statement in the SRM Records Management database. See attachment# 5.

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

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature

APPROVAL REQUIREMENTS

$700,000 to $13,500,000 Competition Advocate

PETERSON.GEORG

E.D.1242831744

Digitally signed by

PETERSON.GEORGE.D.1242831744

Date: 2017.06.15 13:46:31 -04'00'

COUTURE.MARY.E.

1230253613

Digitally signed by

COUTURE.MARY.E.1230253613

Date: 2017.06.20 10:16:02 -04'00'