Add_1_J&A_FLAT_Redacted.pdf

[ ] ORIGINAL

[X] ADDENDUM (attach copy of original J&A for add-ons or revisions)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION ADDENDUM

ADD – ON TO SOLICITATION/CONTRACT SPE7MX-17-R-0134/SPE7MX-18-D-0012

1. Contracting Activity: Defense Logistics Agency (DLA) Land and Maritime

2. Description of Action: Justification for Other Than Full and Open Competition for items available from only one or a limited number or sources under the authority of 10 U.S.C.

2304(c)(1).

3. Description of Supplies Required: The Government intends to add 69 NSNs to IQC SPE7MX-18-D-0012, in accordance with DLAD 52.216-9006. The scope of the contract includes all DLA and DoD managed NSNs for which Aviation Devices and Electronic Components LLC (DBA Av-DEC) (1NPE1) is an approved source. Av-DEC is currently the sole approved source for all 69 NSNs. By utilizing an existing multiple NSN contract to add additional NSNs, DLA will reduce time and administrative costs, while effectively meeting customer needs through this contracting vehicle. This add-on is being procured as unrestricted with other than full and open competition. The total contract maximum value increases from to .

4. Authority Cited: The statutory authority permitting other than full and open competition is 10.U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, “Only One Responsible Source and no other supplier or services will satisfy requirements.”

5. Reason for Authority Cited: All 69 NSNs are manufactured by Aviation Devices and Electronic Components LLC (DBA Av-DEC) (1NPE1). The Acquisition Method Code (AMC) is identified in column G of attachment 1. The Acquisition Method Suffix Code (AMSC) is identified in column H of attachment 1. The add-on initiative contains items with an AMC of 3, which means acquire for the second or subsequent time, directly from the manufacturer, and AMC 5, which means acquire, directly from the sole source contractor, which is not the actual manufacturer. The items have one of the following AMSC’s:

For items with AMSC of C: Part requires engineering source approval by the design control activity in order to maintain the quality of the part. For these, Av-DEC has the technical data, manufacturing knowledge, and or/or engineering skills essential to maintaining the quality of the part, and is the only source currently approved by the design control activity.

For items with AMSC of D: The Government does not have rights to the technical data necessary to manufacture these items, and it is not economical for the Government to obtain

DEFENSE LOGISTICS AGENCY

DLA LAND and MARITIME

POST OFFICE BOX 3990

COLUMBUS, OH 43218-5000

Addendum to J & A- Round 1 Add-Ons

SPE7MX-17-R-0134/SPE7MX-18-D-0012

or otherwise develop the data. Av-DEC is the only source known to own or possess the technical data necessary to manufacture these items.

For items with AMSC of L: The annual buy value is below screening level. Av-Dec is the only source currently approved by the design control activity. No other sources have been identified.

The DLA Product Specialist has certified that the technical data represented in this document as complete and accurate as of the time of reviews, November 30, 2017 and December 15, 2017.

6. Market Research/Efforts to Obtain Competition (10 U.S. C. 2304(f)(3)(D) & (E): A market survey was conducted with the approved source, Av-DEC, who has supplied these items in the past. They were asked questions regarding commerciality, Freight on Board (FOB), interest in pricing option periods, method of pricing option years and Electronic Database Interchange (EDI) capability. The requirement will be solicited using FAR Part 12, with a Firm Fixed Price (FFP) Base year and 2 separately priced option years, FOB Origin and Inspection/Acceptance at Destination. A Sources Sought was posted to FedBizOps on December 22, 2017; however, no responses were received. The Sources Sought will suffice as market research. All 69 NSNs are currently on contract SPM7MX-13-D-0052, which is held by Av-DEC. In addition a majority of the Government’s past purchases dating back to 2012 have been from Av-DEC. History has shown that suppliers have not been able to compete with the pricing offered by Av-DEC, the sole approved manufacturing source. The Contracting Officer has determined that additional market research was not value added

The Add-On NSNs will be synopsized on FedBizOps.

7. Actions Being Taken to Overcome Barriers to Competition (10 U.S.C. 2304(f)(3)(F)): The following actions are being taken to overcome barriers to competition:

a. The addition/deletion clause was included in the solicitation/contract and promoted competition in two ways. It allows DLA to remove those NSNs that become competitive and allows the items to be re-competed, should another approved source become available.

. b. The Add-On NSNs will be synopsized in the FedBizOpps.

c. DLA Land and Maritime Supply Chain hosts an annual supplier conference designed to encourage manufacturers like Contractor to participate in the acquisition process and to hear concerns regarding impediments to becoming viable sources of supply.

d. Prospective suppliers seeking source approval on any of the items may submit a SAR package requesting evaluation of its product’s technical acceptability for future procurements.

SPE7MX-17-R-0134/SPE7MX-18-D-0012

8. Fair and Reasonable Cost Determination: The required items will be added to the established Firm Fixed Price contract SPE7MX-18-D-0012. These NSNs will be incorporated by modification, as allowed by the terms and conditions of the contract.

Cost or pricing data IAW FAR 15.403-4 will not be requested as the acquisition falls under the exception of 15.403-1(b)(3) and a commercial determination has been made. Proposed prices will be reviewed for fair, reasonable and realistic pricing in accordance with FAR15.404-1(b)(2)(iv), comparison with competitive published price lists, published market prices of commodities, similar indexes and discount or rebate arrangements. Price analysis will also be conducted on comparison of the offer received with the past buy history, movement of the producer’s price index and comparisons to similar items. If needed, other than cost and pricing data may be requested to provide additional pricing support to the contracting officer. Based upon the above techniques to be used, I hereby determine that the anticipated costs to the Government will be fair and reasonable. The NSNs in this initiative have been determined to be commercial as defined by FAR 2.101 and DFARs 2.101. The NSNs are Commercial-Off-the-Shelf items, “COTS,” no modification are done.

9. Interested Sources: , a representative for Av-DEC expressed interest in adding the 69 NSNs to contract SPE7MX-18-D-0012 via email on December 14, 2017.

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

ARCHIBALD.LORI.

A.1230193190

Digitally signed by

ARCHIBALD.LORI.A.1230193190

Date: 2018.01.31 14:33:25 -05'00'

COUTURE.MARY.E.123

0253613

Digitally signed by

COUTURE.MARY.E.1230253613

Date: 2018.02.08 16:46:09 -05'00'

BANKS.ROXANNE.JAR

AMILLO.1156004908

Digitally signed by

BANKS.ROXANNE.JARAMILLO.11560

04908 Date: 2018.02.15 17:12:08 -05'00'

SPE7MX-17-R-0134/SPE7MX-18-D-0012

[ ] Up to $700,000 Contracting Officer

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

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

[ ] over $93,000,000 Senior Procurement Executive (AQ)

Attachments:

1 – NSN Listing 2 – Approved Source Listing 3 – Previous J&A