J&A_-_R0135_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX17R0135

ORIGINAL

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

2. The action being approved is the acquisition of supplies for an Indefinite Quantity Contract (IQC) on other than a full and open competition basis. This is necessary because the Government either lacks complete technical data required to manufacture the supplies or must restrict sources due to the criticality of the part. The rationale specific to this item is detailed by its Acquisition Method Suffix Code (AMSC) as stated below in paragraph 4.

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

ESTIMATED BASE (3 YEAR) VALUE:

MAXIMUM CONTRACT VALUE:

The item is used on the following weapon system(s): ENGINE, AIRCRAFT, J85-GE-5/13 (F- 5A/B, T-38A).

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. At this time, there is only 1 approved manufacturing source: B.W. Elliott Manufacturing (72166).

The use of the authority cited above is supported by the following Acquisition Method Code (AMC) and Acquisition Method Suffix Code (AMSC) of the NSN; which were confirmed as complete and accurate on August 9, 2017 by the Strategic Acquisitions Program Directorate (SAPD) Product Specialist during the technical review of the NSN for placement on this long term contract initiative:

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

(X) 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.

5. The source listed in the table below, confirmed by the SAPD Product Specialist on August 9, 2017, is currently the only source with the necessary qualifications, ability, and approval to manufacture the item. This is due to one or more of the following:

NSN ITEM UNIT ADQ UNIT

PRICE ADV AMC/AMSC

3040-01-271-9205

CASING,

FLEXIBLE

SHAFT

ASSEMBLY

EA 207 3R

(X) The item is a Critical Part; therefore, manufacturing sources require ESA approval. At this time, the listed source(s) are the only sources approved by the ESA.

(X) The listed source(s) are the only sources that possess the complete technical data, rights to the data, and capability necessary to manufacture the item for the required form, fit, function, and quality.

(X) The Government either has no data, inadequate data, and/or lacks rights to the data needed to acquire this part from additional manufacturing sources. At this time, only the sources listed possess the complete data and rights to the data.

(X) The above is also supported by the information stated in the item’s applicable AMSC of 3R.

SOURCES:

NSN Description Approved

CAGE

Company Name

Approved Part Number

3040-01-271-9205 CASING, FLEXIBLE

SHAFT ASSEMBLY 72166 B.W. Elliott

Manufacturing 9133-301 & B-419-9133-301

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

A Sources Sought Notice was posted to www.fbo.gov on May 7, 2015 and again on August 1, 2017.

The acquisition will be synopsized in Federal Business Opportunities at least 15 days prior to issuance of solicitation.

The solicitation will be posted to DIBBS.

Dealers of the approved manufacturing source will be solicited.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable. A price analysis will be conducted using historical pricing, the Producer’s Price Index (PPI), and a learning curve analysis. Offerors may also be required to submit information other than certified cost or pricing data if deemed necessary by the Contracting Officer in order to determine prices fair and reasonable. Based on the above techniques, the Contracting Officer anticipates the costs to the Government will be fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

A Sources Sought Notice was posted to www.fbo.gov on May 7, 2015 and again on August 1, 2017 for this specific item. Each posting remained open for 5 days and vendors were requested to provide the name, location, and points of contact for any sources able to manufacture the item to the sourcing or contracting specialist listed in the announcement. In addition, a market survey was attached to the Sources Sought Notice for interested vendors to complete and return. No responses were received on either notice.

A market survey/research was conducted with the manufacturer whose part numbers are currently the only approved source of supply for the item: 72166 - B.W. Elliott Manufacturing. In addition, market survey/research was conducted with dealers of the manufacturer(s) to include 7Z016 - Kampi Components, 5U072 - Motion Industries, 61KM5 - JIT Industries, 61125 - JGB Enterprises, 66200 - Pioneer Industries, 6DNG3 - IBP Consulting, Inc., 22819 - Aviall Services and 3BEH6 - Calport Aviation.

Market survey/research consisted of:

Researching items on-line via the internet for availability, commerciality, and features.

Pulling previous procurements of items and determining previous acquisition methods.

Determining vendor interest in long term contracting for the items.

Researching/gathering info regarding commerciality of the items.

Vendor size and business status information.

Delivery and shipping cost questions.

Distributor involvement.

Market survey/research results:

Market research and survey feedback from one vendor indicate the item is commercial;

however, no evidence or proof was submitted or found to prove item is commercial.

Previous acquisition unrestricted using other than full and open competition.

5 of the 9 vendors surveyed responded to the survey:

a) Motion Industries, a large business dealer indicated interest in participating in a long term contract

b) JGB Enterprises, a small business dealer also indicated interest in participating in a long term contract

c) Pioneer Industries, IBP Consulting and B.W. Elliott Manufacturing did respond to the survey, stating they were not interested.

History indicates the item is available from dealers.

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.

During the project development stage, the NSN included on this solicitation was provided to the DLA Land & Maritime Value Management (VM) Unit and the Strategic Acquisition Programs Directorate (SAPD) Product Specialist for review; no additional sources were identified during those reviews.

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

5U072 - Motion Industries 61125 - JGB Enterprises

11. This item is subject to the following methods of locating additional sources in an effort to overcome barriers to competition:

The solicitation will contain DLAD Procurement Notes: L04-Offers for Part Numbered Items and M06-Evaluation of Offers for Part Numbered Items.

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 & 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 info for both the DLA Value Engineering program and the DoD Value Engineering program.

12. Recent Procurements were small purchase and did not require a J&A.

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

Approval/Certification

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

ROBERTS.TRAC

Y.S.1230171781

Digitally signed by

ROBERTS.TRACY.S.123017178

Date: 2017.08.21 09:35:16 -04'00'

Mary Couture, Competition Advocate Signature

APPROVAL REQUIREMENTS

(X) Up to $700,000 Contracting Officer

(X) $700,000 to $13,500,000 Competition Advocate

COUTURE.MAR

Y.E.1230253613

Digitally signed by

COUTURE.MARY.E.1230253613

Date: 2017.08.28 10:04:32 -04'00'