J&A for Synopsis.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX19R0053

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 commercial, for an Indefinite Quantity Contract (IQC) on other than a full and open competition basis. This is necessary because the Government lacks complete technical data required to manufacture the supplies and must restrict sources due to the criticality of the part. See paragraph 4 below for further details.

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

NSN ITEM

UNIT ADQ UNIT

PRICE ADV AMC/AMSC

3040014494345 LEVER,GUIDE

VANE EA 10,523 1/Z

ESTIMATED BASE (3 YEAR) VALUE:

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

MAXIMUM CONTRACT VALUE:

The item is a Flight Critical Safety Item (CSI) used on the following Weapon Systems:

WEAPON SYSTEM DESIGNATOR CODE (WSDC) WSDC NAME

35N AIRCRAFT, P-8A POS

BAF F-108 ENGINE

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. The following are the only two approved manufacturing sources at the current time:

CAGE CAGE NAME

085X4 TURBINE KINETICS, INC.

58828 CFM INTERNATIONAL, INC.

The use of the authority cited above is supported by the following, which was confirmed by a Strategic Acquisitions Program Directorate (SAPD) Product Specialist on 3/19/2019:

The USAF has identified this item as a Critical Safety Item (CSI) and as such, its manufacture is restricted to approved sources by the Engineering Support Activity.

DFARS 209.270 requires DLA to procure this CSI item only from a source approved by the design control activity, and the two sources listed above are the only sources approved by the design control activity to provide this CSI

5. The two sources and part numbers listed in the table below, confirmed by the SAPD Product Specialist 3/19/19 and by the Product Specialist of Record for the NSN on the CSI Checklist DLA Form 13 provided 6/12/19, are currently the only sources with the necessary qualifications, ability, and approval to manufacture the item. This is due to the following:

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 as stated above in paragraph 4.

Sources:

NSN CAGE CAGE NAME PART NUMBER

3040014494345 085X4 TURBINE KINETICS, INC. KT 1834M58G02

3040014494345 58828 CFM INTERNATIONAL, INC. 1834M58G02

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.

Competitive offers from the two approved sources may be received. A comparison to available commercial pricing will be made. 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:

A Sources Sought Notice was posted for seven days to www.fbo.gov on 5/29/18 and again on 2/4/19. 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 either notice.

Market surveys were sent to both approved sources for the item by the SAPD Market Research Team in May 2018 when the NSN was initially being considered for inclusion on a long-term contract project. CFM International, Inc. did not respond to the market survey. Turbine Kinetics, Inc. did respond with a completed market survey form stating interest in an LTC and that the item is commercial.

February 4, 2019 the Acquisition Specialist sent a market survey to CFM International, Inc.

and requested Turbine Kinetics, Inc. to refresh its survey information and to provide sales invoices showing the item is sold commercially. CFM International did not respond to the request for market survey. Turbine Kinetics verified its market survey information is still valid and provided two commercial sales invoices showing sales of the item to for use on commercial aircraft.

The Acquisition Specialist reviewed previous procurements of the item for acquisition methods utilized and found the item was previously solicited under FAR Part 12 commercial procedures and also FAR Part 13.5 commercial procedures. The commerciality determinations were based on commercial information provided at that time by CFM International, Inc. Previous procurements also had an AMSC of C prior to it being switched to a Z after the item had been determined a commercial item.

Based on the market research the Contracting Officer has determined the item commercial in accordance with the FAR 2.101 Definitions, and will be procured under FAR Part 12 commercial 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: 085X4 TURBINE

KINETICS, INC.

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

SOLICITATION SPE7MX19R0053

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. Recent procurements were below SAT and did not require a J&A.

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:

( ) 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: 2019.06.18 15:47:05 -04'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.06.20 12:26:35 -04'00'