SPE7LX-18-R-0095_-_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX-18-R-0095

DLA Land & Maritime Justification for Other than Full & Open Competition (April 2014)

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[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 for a device (handset) that supports the Ticonderoga class of guided missile cruisers utilized by the U.S. Navy. The single National Stock Number (NSN) of record is 5965-01-521-9946.

This project will be restricted with other than full & open competition citing Federal Acquisition Regulation (FAR) 6.302-5(b)(5). This item is not found to be commercial and will therefore be solicited using FAR Part 15 - Contracting by Negotiation. Source tech data determined Roanwell Corporation (CAGE 82872) and L3 Technologies (CAGE 11447) are the two approved sources of supply for this NSN.

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

Brief Description

NSN

CAGE/ Part Number

Annual Demand Quantity

(ADQ)

AMC

AMSC

HANDSET

5965015219946 82872

11447

SK-7967

K10048968-2

R

Estimated

Basic Annual Demand Value

Estimated 3-Year

Base Value

Estimated Total Contract Value Including Option

Years

Contract

Maximum

Estimated value and contract duration:

The proposed action is for the solicitation and award of a five-year, Firm-Fixed-Price, Indefinite Quantity Contract (IQC). The five-year period is inclusive of one three-year base period and two separately priced one-year option periods. The estimated 3-year base period value is The 3-year base period plus two option years’ estimated value is The contract maximum is

Identify end item, weapon system, or class of item: The following table identifies the highest priority weapon systems supported by the above NSN

CLIN

NSN

Highest Priority Weapon System

Code

Weapon System

WSIC

5965015219946

EZN

TICONDEROGA

CLASS CG (47)

J

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

[X] 10 U.S.C. 2304(c)(5) - Specified source

a. Sole source awards under the HUBZone Act of 1997 - 15 U.S.C. 657a (see FAR 19.1306).

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

ROANWELL CORPORATION DBA PARAMOUNT, CAGE 82872

L3 TECHNOLOGIES, INC., CAGE 11447

The use of the authority cited below:

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

The use of the authority cited is based on:

[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.

Roanwell Corporation (CAGE 82872) and L3 Technologies (CAGE 11447) have been identified as the only sources having the proper complete technical data and manufacturing expertise to supply this item to DLA, as evinced by the approved manufacturer parts list for this NSN in SAP (as received from the Defense Logistics Information Service). During the project development stages a review of the NSN’s technical data package was conducted by the Product Specialist, which included the AMC/AMSC and approved source list. The Product Specialist of record, , stated on December 4th, 2017 that the NSN of record was suitable for LTC procurement.

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

(X) The acquisition will be synopsized on or about 12/13/2018 ( ) Dealers of the manufacturer will be solicited

(X) Sources sought was conducted on FedBizOpps from November 7, 2018 through November 12, 2018

No additional sources showed interest. Sources interested in becoming approved for this NSN must submit the appropriate information as outlined in DLAD procurement notes L04 (Offers for Part Numbered Items) & M06 (Evaluation of Offers for Part Numbered Items). There are only two approved sources of supply for this item: Roanwell Corporation (CAGE 82872) and L3 Technologies (CAGE 11447).

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

This will be a five-year, Firm-Fixed-Price, IQC. 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. Base-year period pricing will be compared to reasonable past purchases of the same items using PPI analysis to adjust for quantity sensitivity and passage of time for a fairness and reasonableness determination. Certified cost and pricing data is not required due to contract maximum being less than $2,000,000. An award will not be made unless the prices are acceptable and can be determined fair and reasonable.

In addition, a Buyer’s price analysis will be conducted for this acquisition to deem the prices fair and reasonable. The price analysis will consist of utilizing the historical prices of the NSN from June of 2015 to April 2018 on Indefinite Quantity Contract SPE7MX-15-D-0086 and adjusting prices based on the current NSN’s PPI index. The prices will be adjusted utilizing learning curves to determine the Government’s low

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P a g e 3 and high targets for this acquisition. Additional data may also be requested such as contractor’s informal cost break down and material cost data to determine price reasonableness. By using the above techniques, the Contracting Officer anticipates that the costs to the Government will be fair and reasonable.

8. 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, the Sourcing Strategy Team’s Contract Specialist researched the procurement history for the item on the proposed solicitation and emailed each of the suppliers.

Sources Sought Notice:

On 11/7/2018, 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 11/12/2018.

Market Research Conclusion:

A market survey conducted on: 10/17/2017 4/28/2018. Total number of vendors contacted: 2 Names of vendors contacted and responding: 2

- CAGE 82872, ROANWELL CORPORATION DBA PARAMOUNT

- CAGE 11447, L3 TECHNOLOGIES, INC.

Techniques used to conduct survey: E-mail.

Types of information requested: Commerciality, length of contract, FOB, delivery and general information.

Summary of information received:

1. Roanwell Corporation, CAGE 82872, indicated their business is a HUBZone/ Woman-Owned/ Veteran- Owned Small Business concern and an approved manufacturer for this NSN. Roanwell indicated they would accept a long-term contract and that this item is not commercial. Roanwell is capable

2. L3 Technologies, CAGE 11447- A Large Business manufacturer and an approved source for this NSN.

L3 stated an ideal base

L3 indicated that this item is not commercial.

A review of recent procurement history shows the last awardee on LTC was Roanwell Corporation, on contract SPE7MX-15-D-0086 (awarded April of 2015). Roanwell Corporation was the only HUBZone manufacturer to submit an offer on solicitation SPE7MX-14-R-0191, which resulted on award SPE7MX-15- D-0086. All purchases since this award have been from delivery orders on contract SPE7MX-15-D-0086.

No other HUBZone manufacturer has shown interest on previous awards or current sources sought posting.

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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. Technical review on 12/4/2017 by the Product Specialist of record, James R. Brown, confirmed that the AMC/AMSC is “1/R” in association with the sources listed in the AMPLE and TIR.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state)

- CAGE 82872, ROANWELL CORPORATION DBA PARAMOUNT

- CAGE 11447, L3 TECHNOLOGIES, INC.

11. Previous Justifications for Other than Full and Open Competition:

There was one previous Justifications for Other than Full and Open Competition (on solicitation SPE7MX-14-R-0191) for the NSN on this procurement. See attachment #3.

12. This item is subject to the following methods of locating additional sources:

[X] The solicitation contains Procurement Note L04 OFFERS FOR PART NUMBERED ITEMS (SEP 2016) & Procurement Note M06 EVALUATION OF OFFERS FOR PART NUMBERED ITEMS (SEP 2016) [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.

Attachment:

I. NSN Data II. Procurement History

III. Previous J&A

DLA Land & Maritime Justification for Other than Full & Open Competition (April 2014)

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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.

ELIZABETH HANLON Date Contracting Officer

APPROVAL/CERTIFICATION

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

COMPETITION ADVOCATE Date Signature

1/24/2019

HANLON.ELIZABETH.EA

STON.1378372107

Digitally signed by

HANLON.ELIZABETH.EASTON.1378372107

Date: 2019.01.15 12:39:56 -05'00'

SHEARER.MARY.E.125

0702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.01.24 11:39:26 -05'00'