JA_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX18R0091

DLA Land & Maritime Justification forOther Than Full & Open Competition (March | 2014) P a g e | 1

(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 a full and open competition basis. This DLA Land and Maritime acquisition is an Indefinite Delivery/Indefinite Quantity type contract for this rotor, seal assembly. The proposed acquisition is for DLA-managed items for which SERVICE SALES (59915) and HONEYWELL INTERNATIONAL INC. DBA, (99193) P/N 367555-1, and BOEING COMPANY (76301) P/N 28420 are the only approved source of supply for this NSN. This acquisition is being pursued to provide continued or improved supply availability to preclude backorders, reduce administrative and production lead-time (ALT and PLT), decrease potential contract administration action and obtain reduced and stable unit pricing.

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

BRIEF DESCRIPTION NSN/P/N

ANNUAL

DEMAND

QUANTITY

EST.

ANNUAL

DEMAND AMC AMSC

ROTOR,SEAL,ASSY 4320 - 010982766 123 1 C

3 Year Base Estimated Value = 5 Year Total Estimated Value Contract Maximum =

The proposed action is for the solicitation and award of a five-year, Firm-Fixed-Price, Indefinite Delivery Purchase Order.

Identify end item, weapon system, or class of item:

This NSN is tied to the F-15 ACFT TURBINE ENGINE. ACCESSORY GEARBOX. NSN is a Critical Application Item (CAI) to be procured from the sources approved to supply it to maintain weapon system functionality.

4. The statutory authority permitting other than full and open competition is:

(X) 10 U.S.C. 2304(c)( l ) - Available from only one or a limited number of sources.

The use of the authority cited below:

5. Acquisition is restricted only to the following source(s) of supply for all items:

SERVICE SALES (59915) and HONEYWELL INTERNATIONAL INC. DBA, (99193) P/N 367555-1, and BOEING COMPANY (76301) P/N 28420.

The use of the authority cited is based on:

[X] AMC 1. Suitable for competitive acquisition for the second or subsequent time.

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The following are the AMSC descriptions. The full text is available in DFARS PGI 217.7506 [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 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.

[X] Other: Per the approved manufacturer part list available for this NSN in SAP, SERVICE SALES (59915) and HONEYWELL INTERNATIONAL INC. DBA, (99193), and BOEING COMPANY (76301) has been identified by the Government as having the complete technical dataset and appropriate manufacturing expertise to supply this NSN to DLA and the using military service. Last technical review of this item by SAPD Product Specialist was conducted in 1/18 and no additional sources beyond the sources in the AMPL were identified at that time, and did not disclose any additional sources.

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

[X] The acquisition was synopsized on 7/30/18.

[X] OEM and dealers of the manufacturer will be solicited.

[ ] Manufacturers of similar products identified in the market research will be solicited.

[X] Other: In an effort to encourage participation by manufacturers in the acquisition process and to help decrease barriers for companies looking to become sources of supply, DLA Land and Maritime hosts Captains of Industries bringing in industry leaders for particular commodities or weapon systems. DLA depending on budget allowance also hold supplier conferences.

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

This will be a five-year, firm fixed price, indefinite delivery indefinite quantity type contract. The five-year period is inclusive of one three-year base period, and two separately priced one-year option periods. As such, the price analysis for future years will be based on the Global Insights Producer Price Index (PPI) forecasts. The Global Insights PPI forecast provides timely, accurate price and cost analysis, and historical records for thousands of commodity prices and wages around the globe, allowing procurement professionals to understand supplier cost structure and better negotiate supplier quotes.

7. Market Research/Efforts to Obtain Competition:

DLA Land and Maritime conducted various forms of market research including the publishing of a formal Sources Sought notice and market survey to www.fbo.gov. In addition to the publishing of a Sources Sought notice, the Sourcing Strategy team's Contract Specialist also researched the procurement history for the item on the proposed solicitation and emailed each of the suppliers that still had a valid registered CAGE.

Sources Sought Notice:

On 6/25/18, a Sources Sought notice was posted to www.fbo.gov, which also contained an attached market survey.

The date of return referenced on the sources sought notice was 7/9/18. As of 7/19/18, no additional sources responded to the notice.

DLA Land & Maritime Justification forOther Than Full & Open Competition (March | 2014) P a g e | 3

Market Research Conclusion:

A market survey was conducted on: 6/25/18—7/13/18

Total number of vendors contacted: 3 (59915) SERVICE SALES, (99193) HONEYWELL, and (76301) BOEING.

Names of vendors contacted and responding: 1

(59915) SERVICE SALES

Techniques used to conduct survey: E-mail, Sources Sought notice, and market surveys.

Types of information requested: Commerciality, Length of Contract, FOB, Delivery & General information questions.

Summary of information received:

a) A summary of market research was provided along with the project package on August 10,2017 by the Sourcing Strategy Branch ZAA. Three approved sources were contacted: SERVICE SALES (59915) and HONEYWELL INTERNATIONAL INC. DBA, (99193) P/N 367555-1, and BOEING COMPANY (76301) P/N 28420. SERVICE SALES (59915) completed market survey with complete information.

(59915) SERVICE SALES

Women Owned Small business manufacturer They have an exclusive license agreement with OEM.

Service Sales responded that this NSN is not commercial

On 6/26/18, Buyer requested commerciality assistance from DLA Land and Maritime Contracting Pricing Support Office, based on the recommendations received from , Pricing Analyst in the commerciality recommendation report 18-377, KO has determined 4320 – 010982766 to be non-commercial and will be procured using FAR Part 15. See Attachment #1-Commerciality Report

Information received regarding the commerciality of the item(s): The technical community has recommended we determine the item non-commercial. The source providing completed market surveys considered the item non-commercial. This particular NSN is not listed on any GSA Federal Supply Schedules. Lastly, all Google results for this NSN were tied to Government information sources. Item is therefore determined non-commercial.

8. 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.

DLA Land & Maritime Justification forOther Than Full & Open Competition (March | 2014) P a g e | 4

9. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) (59915) SERVICE & SALES. No additional sources indicated interest.

The following actions are being taken to identify additional sources before any subsequent acquisitions are made: (If none, so state and explain why not.)

[x] The Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions for this item to be competitive. Procurement Note L04, Offers for Part Numbered Items will be included in solicitation.

10. The previous acquisition for NSN 4320 - 010982766, SPE7M1-18-P-2315 was procured on a small buy, no justification and approval was required.

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.

Elizabeth E. Hanlon, Contracting Officer Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification.

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

[x] $700,000 to $12,500,000 Competition Advocate

Attachments:

1. Commerciality Report

HANLON.ELIZABE

TH.EASTON.13783

72107

Digitally signed by

HANLON.ELIZABETH.EASTON.

1378372107 Date: 2018.08.10 09:54:14 -04'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2018.08.15 11:27:18 -04'00'