J&A.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX-17-X-0002

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

(AUG 2016)

[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/services on other than a full and open competition basis.

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

BRIEF DESCRIPTION NSN/P/N QUANTITY EST. VALUE AMC/AMSC

Hose, Air Duct 4720-01-435-0282 450 3C

Identify end item, weapon system, or class of item: Missile, Air Launch Cruise (ALCM) AGM-86B; Drone, QF- 16 Air Superiority Target Program; Aircraft, Airlifter C-17A; Support Equipment, C-17 Aircraft; and Support Equipment, B-2 Bomber.

ESTIMATED BASE VALUE:

ESTIMATED TOTAL VALUE (BASE + OPTIONS):

MAXIMUM CONTRACT VALUE:

FOR ADD-ONS, PROVIDE VALUE OF OPTION YRS REMAINING: NA

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.

The Government requires parts that are interchangeable in form, fit and function with those currently used on the supported weapons systems listed in paragraph 3 above. The only manufacturing source approved by the design control activity, with the comprehensive knowledge and expertise needed to manufacture these items, is listed in paragraph 5 below. The product specialist reviewed this NSN on 19 Jan 17 and found no issues. There are no known pending source approval requests with the ESA.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code: HDB Industries Inc. DBA Chanute, CAGE code 98891, part number 10H09-30

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 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

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

(AUG 2016)

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. If one source is approved, AMCs 3, 4, or 5 are valid. If at least two sources are approved or if data is adequate for an alternate source to qualify in accordance with the design control activity's procedures, AMCs 1 or 2 are valid.

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

[X] The Presolicitation Notice/Synopsis for this acquisition was posted on the Federal Business Opportunities (FBO) website on 21 Mar 17. The Presolicitation Notice/Synopsis will remain on FBO until the solicitation is issued and posted on DIBBS.

[X] Dealers of the manufacturer will be solicited.

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

This will be a five (5) year firm fixed price indefinite quantity contract. The base term will be for 3 years with two options of one (1) year each for a total contract term of five (5) years.

Certified cost or pricing data will not be required. Prices will be determined fair and reasonable price based on commercial market prices and previous Government procurements.

8. Market Research/Efforts to Obtain Competition:

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

[X] Market research was completed on 18 Jan 17.

Total number of vendors contacted: Ten.

Names of vendors contacted and responding: Eight vendors responded

HDB Industries US Airmotive GSE Aerospace Products Sky Geek Jaco Aerospace Aerobase Group WB Parts Lane Aviation

Techniques used to conduct survey: Internet inquiries, email, telephone and face-to-face conversations.

Types of information requested: The standard market research questionnaire and spreadsheet was sent to HBD Industries only. The buyer contacted the other vendors to obtain information or documentation to support the manufacturer’s assertion that the hose is a commercial item.

Summary of information received:

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

(AUG 2016)

A sources sought notice was posted on the FBO website with no responses received. The SAPD market research team sent the market research questionnaire and spreadsheet to HDB Industries on 23 Apr 14 and received the completed market research documents on 14 Aug 14. In an attempt to prove that this hose is a commercial item, the SAPD market research team requested prices via the internet for this hose from three different vendors (US Airmotive, Aerospace Products and Sky Geek). The buyer also conducted an internet search for this hose using the part number. The buyer contacted seven vendors (Sky Geek, US Airmotive GSE, Jaco Aerospace, Aerobase Group, Part Target, WB Parts and Buy Aircraft Parts) and requested prices; US Airmotive GSE, Aerobase Group, WB Parts and Jaco Aerospace all provided a price for this item. The buyer requested unredacted invoices showing commercial sales of the hose from US Airmotive GSE, Jaco Aerospace, Aerobase Group, Part Target and WB Parts. One vendor (US Airmotive GSE) supplied unredacted invoices showing commercial sales the three companies. One invoice showed sales to Sky West, a US regional airline; another to an international airline, Alitalia; and the third to Air Spray LTD, a Canadian provider of aviation services. US Airmotive GSE also provided a letter from HDB Industries stating that this hose is a commercial item. The unredacted invoices and additional documentation is available in Tab 3 of the first stack of the project file.

The buyer posted a sources sought notice on FBO from 10-20 Mar 17 and received no responses.

HDB Industries was the only company to respond to the market research questionnaire and spreadsheet. On 17 Apr 17 the buyer sent HDB Industries the market research questionnaire they had originally completed and returned on 14 Aug 14. HDB Industries returned the questionnaire with minor changed on 20 Apr 17. HDB now prefers a The information they provided is summarized in the following table:

HDB Industries Business Size Large business EDI Capability Interested in LTC Yes Preferred Base Period s Preferred Contract Type CCPD Will not provide; this is a commercial item Commercial Item Yes GSA Schedule Phased Delivery No response received to this question Minimum Quantity No response received to this question

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

The contracting officer (KO) has determined that this is a commercial item based on market research (information above) and the use and purpose of the hose. The buyer spoke with contacts in the aviation industry (employees of Delta Air Lines and Lane Aviation) and learned that this hose provides a high volume of air at low pressure. Certain types of engines require an initial flow of air over the blades for the engine to start and begin providing their own airflow, and this hose provides that initial airflow. The buyer also obtained proof of commercial sales from US Airmotive GSE.

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

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

(AUG 2016)

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. The buyer emailed DLA Land and Maritime Value Engineering on 12 Jan 17 asking if there was an open project for this NSN. Joe Belill responded that same day that there is no open project on this

NSN.

There are no previous J&As to review as all past buys in SRM, going back to 16 Jul 97, were under the simplified acquisition threshold.

10. A listing of sources, if any, indicating an interest in the acquisition is: HDB Industries, US Airmotive GSE, Aerospace Products, Sky Geek, Jaco Aerospace, Aerobase Group, WB Parts and Lane Aviation. During the information gathering conversation with Lane Aviation, the company indicated that they would be interested in bidding on this acquisition when the solicitation is posted. To maintain the integrity of the procurement, the buyer ceased all information gathering activities with Lane Aviation at that point and informed them that a Presolicitation Notice/Synopsis would be posted on FBO prior to the posting of the solicitation on DIBBS.

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

[X] The solicitation contains the DLAD Procurement Notes L04, Offers for Part Numbered Items, and M06, Evaluation of Offers for Part Numbered Items.

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.

G. Douglas Peterson

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature

APPROVAL REQUIREMENTS

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

PETERSON

.GEORGE.D

.124283174

Digitally signed by

PETERSON.GEO

RGE.D.12428317

Date: 2017.04.27 15:38:57 -04'00'

COUTURE

.MARY.E.1

230253613

Digitally signed by

COUTURE.MAR

Y.E.1230253613 Date: 2017.05.04 08:57:30 -04'00'