SPE7MX18RX043_-_reviewed_Redacted_1.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX-18-R-X043

DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018)

[ 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.

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

BRIEF DESCRIPTION NSN/P/N QUANTITY MAX VALUE AMC AMSC

PUMP, HYDRAULIC RAM 4320-00-303-1088 679 3 C

RAM, HYDRAULIC 4320-00-804-5257 84 3 D

PUMPING UNIT, HYDRAULIC 4320-01-072-4918 110 3 C

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

These items are assigned to various weapons systems, such as:

NSN 4320-00-303-1088 is used on the F/A-18 Aircraft and Minuteman Missile, III, is (1F).

NSN 4320-00-804-5257 is used on the T-37 Aircraft is (1T).

NSN 4320-01-072-4918 is used on the TI Conderoga Class Destroyer - a guided missile is (1F).

The SAPD Product Specialist provided the above information on 05/21/2018. Product

Specialist for NSN 4320-01-072-4918 provide the weapon codes by Email on 05/24/2018.

Also, the Integrated Data Sheet (IDS) was checked on 05/21/2018.

All three NSNs are critical application items with the Weapon System Indicator Codes (WSIC) ‘F’ and ‘T’ and the Weapon System Essentiality Code (WSEC) ‘1’. The meaning for these codes are as follows:

WSEC ‘1’ Failure to this part will render the end item inoperable.

WSIC ‘F’ Level A, failure will render the end item inoperable.

WSIC ‘T’ Failure will render end item inoperable

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.

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

NSN ITEM NAME SUPPLIER CAGE PART NUMBER

4320-00-303-1088 PUMP, HYDRAULIC RAM ACTUANT CORP DBA ENERPAC 26952 P307-2

4320-00-804-5257 RAM, HYDRAULIC ACTUANT CORP DBA ENERPAC 26952 A9410900SR

4320-01-072-4918 PUMPING UNIT, HYDRAULIC ACTUANT CORP DBA ENERPAC 26952 P-50

6. 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 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 ] 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.

Actuant Corporation dba Enerpac is the only source currently approved by the design control activity to supply these items because this supplier is the only source known to possess the technical data needed to manufacture these items to the required quality standards. The acquisition will be solicited with other than full and open competition under the authority of 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302.

The Product Specialist verified the AMC/AMSC and list of approved sources for this NSN was completed by on 3/20/18.

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

a. The acquisition shall be synopsized on about 06/25/2018 for a period of 15 days.

b. At the conclusion of the synopsis period, the solicitation will be posted to the DLA Internet Bid Board System (DIBBS) for a period of 30 days.

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

Although this acquisition meets the threshold requirement for Certified Cost or Pricing Data, the contracting officer has determined that this item is commercial. In accordance with FAR 15.403- 1(b)(3), the applicable clauses were not incorporated into the solicitation. A price analysis will be conducted using commercial market pricing, historical government pricing, the Producer Price Index (PPI) and learning curve analysis. Other than cost or pricing data will be requested if needed. Both the OEM, DCMA, and the Product Specialist confirmed these three NSNs are commercial.

9. Market Research/Efforts to Obtain Competition: The results of the market surveys are detailed below. A

Sources Sought notice was posted to the FedBizOpps website on 10/11/2017 with a response date of

10/18/2017. No additional responses were received. In addition, the product specialist reviewed the NSN during project creation, and no additional sources were found.

Market Research/Efforts to Obtain Competition:

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

A market survey was conducted during 10/06/2017 to 05/29/2018.

Techniques used to conduct survey: Initially a Market Survey Package was emailed to everyone and later these suppliers were contacted directly by a telephone call.

Types of information requested:

Is there a Published Catalogs/Price Listed?

Is the company willing to do a Long Term Contract?

Can the company hold their prices for the Base Period?

Does the company prefer Economic Price Adjustment (EPA based on the Producer Price Index

(PPI)?

What are the components/raw materials primary drivers in pricing the items?

What is the industry standard contract term for long-term agreements/contracts for these items and/or the raw material?

If required, is the contractor capable of preparing certified Cost and Pricing Data?

Does the company require a Minimum Dollar Amount? and Will a higher Guaranteed Minimum percentage affect the contractor’s pricing?

The following vendors were sent market surveys: Ohio Hydraulic (1M661), Wright Tool Company (14846), Am-Mac Inc. (0VW10), JGILS (1N8T8), Metro Hydraulic Jack Company of N.J. (3BPR1), Kampi Components Co., Inc. (7Z016), Traid Technologies, LLC (53R17) and Actuant Corporation dba Enerpac (26952).

The only vendors to respond are as follows:

a) JGILS (1N8T8) responded by email - their company is not interested in doing a Long Term Contract

(LTC) at this time.

b) Kampi Components (7Z016) is a Small Business distributor willing to do a LTC

. They did not know if these items are commercial.

c) Wright Tool (14846) is a Small Business distributor. The supplier is willing to do a LTC

. Some items are commercial off the shelf and the survey did not say which items.

Wright Tool’s email response dated 03/05/2018 – was not able to identify NSN 4320-08-045-5257 as provided by their company, but did find this same NSN associated with P/N 87B1001. Both NSNs 4320- 00-303-1088 - P/N P-307 and 4320-01-072-4918 - P/N P-50 was sold to the government in 2013 and they had never sold to commercial customers.

Information regarding the commerciality of these item(s):

a) On 03/13/2018 during a telephone conversation, a representative with Actuant Corporation dba Enerpac

(26952) told the buyer that only NSN 4320-01-072-4918 – P/N P-50 is commercial.

b) Ohio Hydraulic (1M661) has a contract SPM7MX-13-D-0095 for NSN 4320-00-303-1088 – P/N P-307-2

c) The buyer requested the assistance of BPPB and DCMA to determine the commerciality of NSNs 4320- 00-303-1088 and 4320-00-804-5257. On 05/16/2018, BPPB provided a written report and copies of an un-redacted invoice for both NSNs. The unit price for NSN 2990-01-291-1276 and NSN 4320-00-303-1088 .

d) On 05/29/2018, Wright Tool’s representative confirmed by

e) GSA Advantage has:

NSN 4320-00-303-1088 by Enerpac LTD – Plunger P307-2 11/16IN C-Shape $84.07 – Appears to be a component of the P307-2 and not the entire item.

Hydraulic Pump and Ram Set NSN 5120-00-293-0077 by Eberpac LTD $568.00 Hydraulic Pump Ram by Enerpac LTD $264.40

f) Additional Internet searches:

1. Enerpac P307-2 – NSN 4320-00-303-1088:

Skygeek $2,336.89 Yingling Aviation $1,827.07

2. Enerpac P/N A9410900SR - NSN 4320-00-804-5257:

Amazon $242.25 Ohio Hydraulic Service a discounted price from $206.00 to $175.00

3. Enerpac P-50 – NSN 4320-01-072-4918:

Zoro $725.05

10. 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.

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

Kampi Components Co., Inc. (7Z016), Wright Tool Company (14846), and Ohio Hydraulic (1M661) – This supply indicated this over the phone and did not respond with a market survey.

12. The following actions are being taken to identify additional sources before any subsequent acquisitions are made:

[X] Solicitation contains DLAD Procurement Note L04, Offers for Part Numbered Items, and M06

Evaluation of Offers for Part Numbered Items

13. Previous procurement for this item is a FASI Contract with Lockheed Martin. The buyer is not able to locate a J&A for the previous contracts using Records Management.

DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018)

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, Date Contracting Officer

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

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

Attachment: #1 – NSN Data (Pages 1 to 1 )

PETERSON.GEOR

GE.D.1242831744

Digitally signed by

PETERSON.GEORGE.D.124283

Date: 2018.07.03 09:05:20 -04'00'

HOPSON.LILLI

.A.1230127324

Digitally signed by

HOPSON.LILLI.A.1230127324

Date: 2018.07.20 12:47:48 -04'00'