JA.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX18R0092

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 determined non-commercial, 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:

NSN ITEM UNIT ADQ UNIT

PRICE ADV AMSC

3040016189588 CONNECTING LINK,

RIGID EA 668 C

ESTIMATED BASE (3 YEAR) VALUE:

ESTIMATED TOTAL (5 YEAR) VALUE (BASE + 2 ONE YEAR OPTIONS):

MAXIMUM CONTRACT VALUE:

The item is used on the following weapon system(s): AIRCRAFT, STRATOLIFTER C/KC-135

The item is used in mechanical power transmission equipment and is designed for attachment to a lever(s) and/or control(s) to actuate various remote mechanisms. Form, fit, function, and quality of the part are critical to operating systems of the aircraft.

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 are only 4 approved manufacturing sources: Beta Engineering, Inc., Boeing Co., Camnetics Manufacturing, and Precision Metals Corp.

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 by the Strategic Acquisitions Program Directorate (SAPD) Product Specialist on 3/7/18 during the technical review of the NSN for placement on this long-term contract initiative.

AMC 1: Suitable for competitive acquisition for the second or subsequent time.

AMSC C: 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.

5. The sources listed in the table below, confirmed by the SAPD Product Specialist 3/7/18 during the technical review of the NSN for placement on this long-term contract initiative, are currently the only sources with the necessary qualifications, ability, and approval to manufacture the item. This is due to the following:

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

The listed sources 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.

The information stated in the item’s applicable AMSC of C.

Sources:

NSN Description Approved CAGE Company Name

Approved Part

Number

3040016189588 CONNECTING LINK, RIGID 33436 BETA ENGINEERING, INC. 65C18552-

3040016189588 CONNECTING LINK, RIGID 81205 THE BOEING COMPANY DBA

BOEING

65C18552-

3040016189588 CONNECTING LINK, RIGID 05RU8 PRECISION METALS CORP. 65C18552-

3040016189588 CONNECTING LINK, RIGID 0P657 CAMNETICS

MANUFACTURING

65C18552-

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

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.

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

There is an expectation of receiving adequate competition and in addition, 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:

NOTE: Sources were confirmed again by the Product Specialist in an email dated 9/27/18. T.R.

A Sources Sought Notice was posted for seven days to www.fbo.gov on October 17, 2017.

Vendors were requested to provide the name, location, and points of contact for any sources able to manufacture the item to the acquisition specialist listed in the announcement. In addition, a market survey was attached to the Sources Sought Notice for interested vendors to complete and return.

Potential sources would be added to the solicitation mailing list. No responses were received from the notice. A sources sought posting within one year of solicitation issuance is considered adequate for locating possible sources prior to solicitation. Solicitations not expected to be issued within one year of a sources sought notice should post an additional sources sought notice. Efforts to obtain additional competition will still be provided by synopsizing the acquisition at least 15 days prior to the solicitation issue date and allowing for submission of alternate offers by inclusion of DLAD Procurement Notes: L04-Offers for Part Numbered Items and M06-Evaluation of Offers for Part Numbered Items.

A market survey was sent 2/28/18 to two manufacturers (33436-BETA ENGINEERING, INC. and 0P657-CAMNETICS MANUFACTURING) and three dealers listed below who have received awards for this NSN in the past five years:

COMPANY CAGE

STATZ CORPORATION 3WGD1

BAKER AND ASSOCIATES TECHNOLOGIES, 6ZU62

SIGMA MANUFACTURING INDUSTRIES 0CXJ6

Additional research was also conducted by the acquisition specialist as indicated in the bullets below. The market survey and acquisition specialist research consisted of:

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

Pulling previous procurements of item and determining previous acquisition methods.

Determining vendor interest in long term contracting for the item.

Vendor size and business status information.

Delivery and shipping cost questions.

Possibility for Economic Price Adjustment of Option Years.

Base year and option years; optimal lengths, possible price/cost advantages.

Distributor involvement.

Only the two manufacturers surveyed responded to the market survey. Beta Engineering responded on 2/28/18 and Camnetics Manufacturing responded on 3/5/18. Market survey and acquisition specialist’s research results:

The item was not found to be available for sale on the internet. The item was not listed on GSA Advantage. Beta Engineering stated the item is not commercial. Camnetics Manufacturing stated the item is commercial but that it would not provide invoices or any information to substantiate its claim.

Previous acquisition was procured under FAR Part 15 procedures and was a competitive set-aside for SDVOSB. Review of the Material Master does not indicate the item is commercial.

Two vendors surveyed are interested in an LTC. Both are manufacturers whose parts are approved and appear in the item description: Beta Engineering, Inc. is a Veteran Owned Small Business (VOSB) and Camnetics Manufacturing Corp. is a Service Disabled Veteran Owned Small Business (SDVOSB).

Procurement history and research indicates the item is also available from one or more SDVOSB dealers.

Based on the above research, there is not sufficient information or data to indicate the NSN is a commercial item per FAR 2.101; therefore, the item will be procured under FAR Part 15 procedures.

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:

33436 - BETA ENGINEERING, INC.

0P657 CAMNETICS MANUFACTURING

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. There are no prior J&As available.

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 Signature & Date

APPROVAL/CERTIFICATION:

I have reviewed and approve this justification:

Competition Advocate Signature & Date

APPROVAL REQUIREMENTS:

( X) Up to $700,000 Contracting Officer

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

ROBERTS.TRAC

Y.S.1230171781

Digitally signed by

ROBERTS.TRACY.S.123017178

Date: 2018.09.21 15:58:17 -04'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2018.09.27 14:03:02 -04'00'