SPE7MX17R0146_J&A_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION: SPE7MX-17-R-0146

DLA Land & Maritime Justification for Other Than Full & Open Competition

(FEB 2017)

[X] 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 supplies on other than full and open competition basis.

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

BRIEF

DESCRIPTION

NSN/P/N ANNUAL DEMAND

QUANTITY

EST. VALUE AMSC

Impeller, Bilge Pump 2590-00-148-1561 31 L

Pump, Centrifugal 4320-01-111-6807 156 B Impeller Pump, Centr 4320-01-548-5289 3 D

Flange Pipe 4730-01-535-5218 14 R

DLA Land and Maritime proposes to enter into a firm-fixed price, Long Term Indefinite Quantity Contract (IQC), with a three year base period and two one-year options.

Identify end item, weapon system, or class of item: Assault Amphibious Vehicle Command (X2M), Littoral Combat Ship (B2N) and Tank, Liquid, Storage LIN Model XM105 (TBA

ESTIMATED BASE VALUE:

ESTIMATED TOTAL VALUE (BASE + OPTIONS):

MAXIMUM CONTRACT VALUE:

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. Other than full and open competition is authorized as this item is available from only one or a limited number of responsible sources and no other material will satisfy DLA Land & Maritime’s requirement.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code: M.P. Pumps (76122)

The Government has limited competition to M.P. Pumps as the only approved source because M.P. Pumps owns all of the data for 3 of the 4 NSNs, with the exception of 4320011116807 (Pump, Centrifugal). The Centrifugal Pump is a Navy source controlled drawing, which restricts the source to M.P. Pumps. M. P. Pumps calibrated all instruments to meet MIL –STD-45662 and MIL-I-45208 inspection system standards. They also hold ISO 9000- 2000 certification, which is a technical requirement of these NSNs.

The use of the authority cited below:

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

The use of the authority cited is based on:

[X] AMSC B. This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-100. Suitable technical data, Government data rights, DLA Land & Maritime Justification for Other Than Full & Open Competition

(FEB 2017)

or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. Although, by DoD-STD-100 definition, altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

[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.

[X] 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 O for parts under the established screening threshold. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

[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. This code is used when the Government did not initially purchase the data and/or rights. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid.

*APPLIES TO LTCs - An Item identified by AMSC A, H, or L has been subjected to limited screening. The Government does not physically have in its possession sufficient, accurate, or legible data to purchase this item from other than the identified source. Items identified by AMSC A, H, or L on Long Term Contracts, are subject to annual review for possible assignment of a different or permanent AMSC. DLA Land and Maritime agrees to maintain a continual review of these items to ensure that an annual review at a minimum, in part to determine if new technical data is available to allow for assignment of a more permanent AMSC. Any item determined to be competitively available during the solicitation evaluation phase will be removed from the acquisition requirement.

Any item determined after contract award to be competitively available may be deleted from the contract and resolicited.

The Product Specialist, , verified the technical information was complete and accurate on August 9, 2017.

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

[X] The acquisition will be synopsized on or about 08/01/2017.

[X] The acquisition will be solicited on DIBBs for a minimum of 30 days.

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

IAW FAR 15.403-3(c) Certified Cost or Pricing Data will not be required as the acquisition is commercial.

Through market research, the Government anticipates competition amongst distributors to assist in determining the cost fair and reasonable. The buyer will utilize price analysis as well as previous price history, PPI and learning curve analysis to establish Government Targets. By using the above techniques, the Contracting Officer

DLA Land & Maritime Justification for Other Than Full & Open Competition

(FEB 2017)

anticipates that the costs to the Government will be fair and reasonable. This requirement is being solicited for an Indefinite Quantity contract with a three-year base and two option years. The buyer will request separate pricing in the solicitation to determine unit pricing for all out-years. Pricing of the contract will be priced and not a percent escalation rate.

8. Market Research/Efforts to Obtain Competition:

Formal market surveys IAW 10 U.S.C 2304(f)(3)(D) were sent out to seven vendors and two vendors responded.

Coordinated Supply Systems (4DEY3) submitted their response to the market survey on 6/1/2016 and Howco Distributing (5E074) submitted their responses to the market survey on 6/27/2017. A Sources Sought was posted to FedBizOpps from 5/25/2016 through 6/1/2016, with no responses received. The acquisition will be synopsized at least 15 days prior to the issuance of the solicitation and will be solicited on DIBBS (DLA Internet Bid Board System) for 30 days.

Techniques used to conduct survey [X] Market Research was e-mailed to previous buy history providers.

Types of information requested: The market survey requested that companies provide answers to general questions regarding their company size and status, the existence of a parent company, and EDI capability. Long Term Contract related questions asked include: whether the company is interested in an LTC, if a three-year base period with two one year options is acceptable, whether Firm Fixed Price is acceptable, and whether the item is listed ona GSA Schedule. The Market Survey requested whether the offerors would be able to provide Cost and Pricing Data. Other questions asked include: whether it would be beneficial to combine NSNs, whether the product is commercial, whether prices were published, whether prices would be included for transportation charges if the item requires FOB Destination, and whether the government would see any savings. Delivery questions were asked regarding phased delivery, and maximum quantity.

Summary of Markey Survey Information Received:

On 6/1/2016, a market survey was submitted by , Coordinated Supply Systems (4DEY). The response provided the following results:

CSS is a Service Disabled Veteran Owned Small Business distributor with approximately 8 employees and no parent company. CPI has indicated an interest in participating in a long-term contract ndicated that these items are commercially available items and that he believes the grouping of the NSNs is logical and advantageous to put on the same solicitation.

On 6/27/2016, a market survey was submitted by , Howco Distributing (5E074). The response provided the following results:

DLA Land & Maritime Justification for Other Than Full & Open Competition

(FEB 2017)

Howco is a Woman Owned Small Business distributor with approximately 10 employees and no parent company. Howco has indicated an interest in participating in a long-term indicated that these items are commercially available items and that he believes the grouping of the NSNs is logical and advantageous to put on the same solicitation.

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

Both distributors above stated that the items were commercial. The DCMA Commercial Item Group was also contacted for their help in determining the commerciality of these items. Please see Attachment entitled “Final DCMA Commerciality Report” for their market research report. In short, their report states that NIIN 01481561, is a commercial item that is available on numerous internet websites as they can be found aboard almost any ship.

NIIN 11116807 is not available for sale on any website, however, similar centrifugal pumps with similar performance specifications are available for sale. The DCMA analyst verified the functional capabilities of the centrifugal pump is similar to other centrifugal pumps used throughout the marine industry, this pump is found aboard any ship and in all swimming pools for the circulation system. NIINs 15485289 and 15355218 were also determined commercial by the DCMA analyst as the items are offered for sale on the manufacture’s website as well as other vendor websites.

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.

10. A listing of sources, if any, indicating an interest in the acquisition is: Coordinated Supply Systems (4DEY) and Howco Distributing (5E074).

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

[X] Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items

12. There have been no prior J&A’s for the four NSNs.

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.

ARCHIBALD.LORI.

Digitally signed by

ARCHIBALD.LORI.A.1230193190

A_.1_2_3_0_1_9_3_1_9_0 D_ate_: 2_01_7._08_.1_0 0_9:_40_:12_-0_4'_00_'

Contracting Officer Date

APPROVAL/CERTIFICATION

DLA Land & Maritime Justification for Other Than Full & Open Competition

(FEB 2017)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION: SPE7MX-17-R-0146

I have reviewed and approve this justification:

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

[ ] Up to $700,000 Contracting Officer

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

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

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

Attachments:

Attachment 1 – Final DCMA Commerciality Report

COUTURE.MAR

Y.E.1230253613

Digitally signed by

COUTURE.MARY.E.1230253613

Date: 2017.08.15 17:48:24 -04'00'