SPE7MX19R0086 - reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX19R0086

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. DLA

Land and Maritime proposes to enter into a firm-fixed price, long-term indefinite quantity contract. The solicitation will be for a total of five years, involving five base years and no option periods. By going with a five year base, this will allow reliable and steady supply of parts without risk of delay.

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

*See attached Spreadsheet containing NSN’s, item names, AMC/AMSC

Identify end item, weapon system, or class of item: *See attached Spreadsheet

ESTIMATED BASE VALUE: (ADV x 5)

ESTIMATED TOTAL VALUE (BASE + OPTIONS):

MAXIMUM CONTRACT VALUE: (ADV x 5 x 2)

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:

*See attached Spreadsheet listing each NSN and approved sources of supply, their CAGE codes and Part Numbers

Adequate data for the evaluation of alternate offers is not available at the procurement agency. The companies listed in the spreadsheet are the only companies that have gone through the source approval process. If a product different from the approved part is offered by the contractor, the contractor must get their part numbers approved by submitting a source approval package to the Engineering Support Activity (ESA). The companies listed in the spreadsheet are the only uniquely qualified sources of supply that own the technical rights for the NSNs/items. In order for competition to be present, the owners (such as the U.S. Army, Air Force, or Navy) of the weapons systems would need to buy the technical rights from the companies, who are the Original Equipment Manufacturer (OEM), then re-code all the items so that other companies could offer proposals. For this project though, the companies listed in the spreadsheet are the only sources of supply that own the technical rights to supply these parts. There is no other way to promote competition at this time.

The use of the authority cited below:

Buyers: Please delete the codes that do not apply, including this statement:

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

[ 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 B. This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-100. Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. Although, by DoD- STD-100 definition, altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained.

If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

[ 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.

[ X ] AMSC L*. The annual buy value of this part falls below the screening threshold established by DoD components and field activities. However, this part has been screened for additional known sources, resulting in either confirmation that the initial source exists or that other sources may supply the part. No additional screening was performed to identify the competitive or noncompetitive conditions that would result in assignment of a different AMSC. This code shall not be used when screening parts entering the inventory. This code shall be used only to replace AMSC O for parts under the established screening threshold. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

[ X ] AMSC Q. The Government does not have adequate data, lacks rights to data, or both needed to purchase this part from additional sources. The Government has been unable to economically buy the data or rights to the data, although the part has been undergoing full screening for 12 or more months. Breakout to competition has not been achieved, but current, continuing actions to obtain necessary rights to data or adequate, reprocurement technical data indicate breakout to competition is expected to be achieved. This part may be a candidate for reverse engineering or other techniques to obtain technical data. All AMSC Q items are required to be reviewed within the timeframes cited in 2-203(b). If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

[ 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.

[ X ] AMSC Z. This part is a commercial/nondevelopmental/off-the-shelf item. Commercial item descriptions, commercial vendor catalog or price lists or commercial manuals assigned a technical manual number apply. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources are available, AMCs 1 or 2 are valid (When one or a limited number of sources are available, then a J&A is required. When an item is coded with AMSC “Z” and is listed on an interchange catalog or appears on a commercial cross reference list, this constitutes full and open competition and a J&A is not necessary).

*APPLIES TO LTCs - An Item identified by AMSC A, H, or L has been subjected to limited screening. The Government does not physically have in its possession sufficient, accurate, or legible data to purchase this item from other than the identified source. Items identified by AMSC A, H, or L on Long Term Contracts, are subject to annual review for possible assignment of a different or permanent AMSC. DLA Land and Maritime agrees to maintain a continual review of these items to ensure that an annual review at a minimum, in part to determine if new technical data is available to allow for assignment of a more permanent AMSC. Any item determined to be competitively available during the solicitation evaluation phase will be removed from the acquisition requirement.

Any item determined after contract award to be competitively available may be deleted from the contract and resolicited.

[ X ] Other: These items are used in a very large variety of U.S. and FMS military-specific aircraft, maritime and vehicle weapon system applications (see attached spreadsheet for listing of weapons systems). For the reasons stated above and based on market research, summarized below, the approved source(s) identified for each NSN are the only known sources who currently manufacture or are capable of manufacturing these items to meet the military customer(s) need.

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

[ X ] The acquisition will be synopsized on or about July 24, 2019.

[ 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 supplier forums, bringing in industry leaders for particular commodities or weapon systems. DLA depending on budget allowance also holds supplier conferences.

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

It is anticipated that Cost or Pricing data IAW FAR 15.403-1 will be required based on analysis of the procurement history, unless an exception under the same FAR Part 15.403-1 is found to apply after the solicitation. Price analysis will be conducted using an audit of submitted Certified Cost or Pricing Data, a comparison among competition if present and also with past acquisition history, and movement of the producer price index. Based upon the above techniques to be used, the Contracting Officer hereby anticipates prices/costs to the Government will be fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

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

[ X ] A market survey was conducted on/during 3/25/2019 to 3/29/2019.

Total number of vendors contacted: Seven (7); Eaton Aeroquip (00624); General Electric (07482); Northrop Grumman Systems (26512); Smiths Tubular Systems (78570); Parker-Hannifin Corporation (98441); Lockheed Martin Corporation (98897; and Honeywell International Inc (99193).

Names of vendors contacted and responding: Only one (1) company, Eaton Aeroquip (00624), responded to the market survey.

Techniques used to conduct survey: Email.

Types of information requested: The market survey sought information on contractor’s interest in long term contract & number of years prefrerred, commerciality per FAR Part 2.101(b), FOB preference, business type (large, small, SDVOSB, WOSB), and willingness to provide cost or pricing data Additionally a sources sought notice was posted on FedBizOps on 07/11/2019 until 07/25/2019. There were no replies from any other companies showing interest or seeking more information about this project.

Summary of information received: Eaton Aeroquip (00624) replied to the market survey by stating that they were a Large Manufacturing Business with approx. 99,000 employees. They would be interested in pursuing a LTC on all items on this project.

Information received regarding the commerciality of the item(s): The buyer/Contracting Officer did a search for some of the items on the internet and could not find any items listed for sale to the general public. Eaton Aeroquip (00624) believes these items are all “commercial of a type”. However, using past knowledge, the company does not always provide or deliver adequate data to help the Contracting Officer to determine the items as “Commercial”, therefore it’s the Contracting Officer’s determination that these items will be procured using FAR Part 15 procedures instead.

A Product Specialist reviewed these NSN’s during project creation in March of 2019 and no other sources were found.

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.

[ X ] Other: Additionally, in an effort to obtain competition and satisfy FAR 10.001, the solicitation will be synopsized and a copy furnished to any vendor expressing interest. Additionally, the DLA Land and Maritime – Office of Small Business Programs (DU) and Small Business Administration (SBA-PCR), looked for additional sources and none were found at this point in time.

10. A listing of sources, if any, indicating an interest in the acquisition is: Eaton Aeroquip (00624). Additionally, all approved sources of supply will be solicited and other companies who have in the past shown interest will also be notified.

11. The following actions are being taken to identify additional sources:

[ X ] Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items [ X ] Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items [X ] Solicitation contains DLA Procurement Note, L22 Restriction of Alternate Offers will apply to all items with an AMSC of “B”.

[ X ] Source Development Review

12. A J&A for the previous long-term contract on some of these items, SPE7MX14D0084, has been located and is in the file.

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.

Cletus M. Schafrath Contracting Officer Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature Date

Mark A. Brown Head of the Contracting Activity (HCA) Date Signature

APPROVAL REQUIREMENTS

[ X ] $13,500,000 to $93,000,000 Head of Contracting Activity (HCA)

SCHAFRATH.CLETUS.M.10810

24606

Digitally signed by

SCHAFRATH.CLETUS.M.1081024606

Date: 2019.10.02 09:52:23 -04'00'

SHEARER.MARY.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.10.07 07:18:30 -04'00'

BROWN.MARK.ALBERT.104117

Digitally signed by

BROWN.MARK.ALBERT.1041175032

Date: 2019.10.07 07:59:19 -04'00'