J_and_A_Reviewed_SPE7MX-17-R-0120.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION __SPE7MX-17-R-0120_____

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

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 items 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 Power Supplies which are non-weapon system coded items. The proposed acquisition is for DLA-managed items with one approved source: Perkins Technical Services (PTS). The acquisition includes three (3) National Stock Numbers (NSNs).

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 supplies required to meet the using activity's needs is described as follows:

CLIN ITEM NSN ADQ ADV AMSC

0001 POWER SUPPLY 6130015777393 288 D

0002 POWER SUPPLY 6130015784483 504 D

0003 POWER SUPPLY 6130016189824 44 D

Identify end item, weapon system, or class of item: NSNs are not coded as supporting any particular weapon system. The end item for all of the NSNs is the SINCGARS Radio (RT-1523), which is a military radio.

ESTIMATED BASE YEAR ONE VALUE_

ESTIMATED TOTAL VALUE (BASE + OPTIONS)_

MAXIMUM CONTRACT VALUE _$

FOR ADD-ONS, PROVIDE VALUE OF OPTION YRS REMAINING ___________________

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:

PTS (CAGE 06AE7).

The use of the authority cited is based on:

(X) 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 DFARS PGI 217.7506 Part 2).

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

[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.

PTS is the only known source that has the data necessary to manufacture these items.

The AMSC and approved source validation was received from SAPD Product Specialist for

NSNs for CLINs 0001 & 0002 on 5/5/17 and NSN for CLIN 0003 on 5/24/17.

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

(X) The acquisition will be synopsized on or about August 10, 2017.

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

( ) Dealers of the manufacturer will be solicited.

( ) A synopsis exception cited in FAR 5.202 applies. (explain)

(X) Other (Explain) A sources sought was posted on FEDBIZOPPS on 3/27/17 with a return response of 3/31/17. Due to the addition of NSN 6130-01-618-9824, an additional sources sought was posted to include all three NSNs on 5/15/17 with a response date of 5/23/17. No responses were received as a result of the sources soughts that were posted.

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

Cost or pricing data in accordance with FAR 15.403-4 will be required as NSNs are not determined commercial. Audit will be conducted and negotiations will address the individual cost elements. A price analysis will also be conducted using historical pricing, the Producer Price Index (PPI) and learning curve analysis. By using the above techniques, 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 started on March 16, 2017. Market research questionnaire was emailed to the coded source. A sources sought was posted on FEDBIZOPPS on 3/27/17 with a response date of 3/31/17. The sources sought resulted in no companies showing interest in proposing on the requirement. Buyer supplemented market research on 4/28/17 with company being asked to provide more information to support commerciality for CLINs 0001 & 0003 and further information regarding its item showing on GSA schedule. Part number designation/clarification was also requested and an explanation of the differences between the three items was also obtained. Buyer on June 8 and 9 emailed market research questionnaires to eight additional small business dealers to gage their interest in possibly proposing on this requirement.

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

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

A market survey was conducted on/during March 16, 2017 through June 13, 2017 Total number of vendors contacted: 9

Names of vendors contacted and responding: Vendors contacted were: Atlantic Diving Supply (ADS) (CAGE 1CAY9), CF Motion (CAGE 1JK47), Federal Resources Supply (CAGE 1Q3Z9), Indus General (CAGE 74NB9), PTI (CAGE 06AE7), Quantico Tactical (CAGE 3E4Q7), Unifire (CAGE 3RJT9), USA TSSI (no CAGE found) and W.S. Darley (CAGE 00299). PTS was the only company responding with interest in proposing on subject solicitation. Federal Resources indicated they would be no bidding on these items.

Techniques used to conduct survey: Email and posting a sources sought on FEDBIZOPPS.

Types of information requested: Company was 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 was 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:

PTS (06AE7): Company responded with market research questionnaire on 3/24/17. Company is a woman-owned small business manufacturer and is interested in pursuing a Long Term Contract for these items.

Company indicated the items were commercial.

Information received regarding the commerciality of the item(s): PTS indicated the items were commercial and provided copies of invoices supporting sales to commercial entities. The basic Power Supply unit is on the GSA schedule and its price list is on the company website for interested companies to review. In looking at these invoices however, a majority showed reference to a Government contract, purchase order or a ship to address being a military installation. Therefore, while invoices are showing commercial entities the items are for

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

Governmental usage and cannot be used as a basis to support commerciality. Part numbers could not be found on the web using a Google parts search.

9. 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 available and cannot be developed to permit full and open competition. The data presently available reflects the minimum needs of the Government.

CLIN 0001 and 0002 NSNs were on contract SPE7M1-14-D-0013. A copy of previous J&A is included as attachment #1. The acquisition was synopsized. The solicitation contained the provision entitled Conditions for Evaluation and Acceptance of Part Numbered Items.

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

PTS (CAGE 06AE7). _____________________________________

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

(X) The solicitation contains DLA Procurement Notes L04, Offers for Part Numbered Items and M06, Evaluation of Offers for Part Numbered Items.

( ) VE Bailment Program ( ) Source Development Review ( ) Reverse Engineering

(X) Other: 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 (DIBBS). 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.

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

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

Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature Date

Head of the Contracting Activity (HCA) Date Signature

APPROVAL REQUIREMENTS

[X] Up to $700,000 Contracting Officer

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

[X] $13,500,000 to $93,000,000 Head of Contracting Activity (HCA)

ROBERTS.TRAC

Y.S.1230171781

Digitally signed by

ROBERTS.TRACY.S.123017178

Date: 2017.08.03 08:49:19 -04'00'

COUTURE.MAR

Y.E.1230253613

Digitally signed by

COUTURE.MARY.E.1230253613

Date: 2017.08.11 18:37:56 -04'00'

BANKS.ROXANNE.

JARAMILLO.11560

04908

Digitally signed by

BANKS.ROXANNE.JARAMILLO.

1156004908 Date: 2017.08.21 16:41:58 -04'00'