J&A6.3021CSPE7MX20D0001.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX-19-R-0098

FOR OFFICIAL USE ONLY

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.04

[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. This

DLA Land and Maritime acquisition is for an Indefinite Quantity Contract (IQC) for NSN 4820-01-365-5583.

The proposed acquisition is for a DLA-managed Valve, Regulating, Oxygen that is manufactured by East/West Industries, Inc. (CAGE 30941). This acquisition is being pursued to provide continued or improved supply availability to preclude backorders, reduce administrative and production lead-time (ALT and PLT), decrease potential contract administration actions, and obtain reduced and stable unit pricing.

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

CLIN

NSN

Item Description

U/I

AMC

AMSC

Estimated Annual Demand Quantity

(ADQ)

Estimated

Annual Demand

Value (ADV)

Estimated 3-

Year Base Value

Estimated 5- Year Total

Contract Value

0001 4820-01-365-5583

VALVE, REGULATING,

OXYGEN EA 3 C 73

Estimated value and contract duration:

The proposed action is for the solicitation and award of a five-year, Firm-Fixed Price, Indefinite Delivery Indefinite Quantity (IDIQ) type contract. The five-year period is inclusive of one three-year base period and two one-year option periods. The three-year base period has an estimated value of and the base period and two option years has an estimated value of . The contract maximum is

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

This NSN is used to support the F-14D and F-18C/D Aircraft weapon system (Z9N).

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.

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

East/West Industries, Inc. (CAGE 30941) is the only source approved by the design control activity because it is the only source that retains the data rights, manufacturing knowledge, or technical data that is not economically available to the Government and that data or knowledge is essential to maintaining the quality of the part. This part is a critical safety item and, as such, requires engineering source approval by the design control activity in order to maintain the quality of the part pursuant to DFARS 209.270. East/West Industries, Inc. (30941) is currently the only source approved by the applicable design control activity.

The use of the authority cited below:

AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

The use of the authority cited is based on:

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.

Per the approved manufacturer parts list for this NSN in SAP (as received from the Defense Logistics Information Service), only CAGE 30941 has been identified as having the proper complete technical data and manufacturing expertise to supply this item to DLA and the using military services. This item has been determined to be non-commercial. A technical review in support of a potential LTC was performed in April 1, 2019, and this NSN were determined to be suitable for a long-term contract. The Product Specialists reviewed the technical information and have certified it as complete and accurate.

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

The acquisition will be synopsized on or about June 26, 2019.

The solicitation will be posted to DIBBS for 30 days.

The manufacturer will be solicited.

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 Captains of Industries 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.

a. Cost or Pricing data is not required as this acquisition falls below the Cost or Pricing Data threshold of $2 million. This item will be solicited as Other Than Full and Open Competition. Offerors may be required to provide additional information for determining reasonableness of price. This data may consist of material cost or an explanation of their pricing approach. The buyer only intends to award the NSN if fair and reasonable price determinations can be made.

b. I hereby determine that the anticipated cost to the Government will be fair and reasonable based on anticipated competition, conducting a Price analysis, "should cost" negotiations, Producer Price Index (PPI), learning curve analysis, and/or informal cost breakdown.

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 to the publishing of a Sources Sought notice, the Market Survey team contacted suppliers from the procurement history.

Sources Sought Notice:

The Sources Sought Notice was posted to FBO on May 17, 2019, and closed on May 24, 2019. No additional sources responded.

Market Research Conclusion:

Market surveys were conducted on: Initial market surveys were sent on May 17, 2019 – June 26, 2019.

Total number of vendors contacted: 3

Names of vendors contacted:

Name of Source CAGE Size Status Responded

East/West Industries, Inc. 30941 Women-Owned Small Business Yes Kampi Components 7Z016 Small Yes (Negative) JGILS LLC 1N8T8 Small No

Techniques used to conduct survey: E-mail

Types of information requested: Commerciality, Length of Contract, FOB, Delivery & General information questions.

Summary of information received:

East/West Industries, Inc. (30941)

On June 26, 2019, of East/West Industries, Inc. responded to the Market Survey. The following information was provided (See Attachment 1 – Market Survey Response):

Women-Owned Small Business manfucturer Deals directly with the Government Interested in a firm-fixed price LTC

Item is not commercial

Kampi Components (30941)

On June 7, 2019, of Kampi Components responded to the Market Survey that “unfortunately I am unable to provide you with this information”.

Information received regarding the commerciality of the item(s):

The Market Survey respondent stated that the item is not commercial. Online research and past procurement history indicates that this item is not commercial. This is a Critical Safety Item (CSI). Prior acquisitions were conducted utilizing FAR Part 15 procedures. It has been determined that this item is not commercial.

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.

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

East/West Industries, Inc. (CAGE 30941)

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

Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items.

Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items.

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.

Per PGI 206.304, the requirement states, “the justification shall include a copy of the previous justification to assist the approval authority in determining whether the planned actions to remove any barriers to competition cited on the previous justification were completed”. Based on a review of the recent contract history, prior award SPE7MX15D0001 included a Justification and Approval (J&A). The buyer was able to locate a redacted copy of the J&A (See Attachment 2 –SPE7MX15D0001 J&A).

ATTACHMENTS:

1 – Market Survey Response

2 – SPE7MX15D0001 J&A

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.

ANNA M. DOUGLASS, Date Contracting Officer

APPROVAL/CERTIFICATION

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

MARY E. SHEARER, Date Competition Advocate

APPROVAL REQUIREMENTS

[X] Up to $700,000 Contracting Officer

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

DOUGLASS.ANNA.MARIE.12

43838416

Digitally signed by

DOUGLASS.ANNA.MARIE.1243838416

Date: 2019.07.01 09:34:10 -04'00'

SHEARER.MARY.E.12507024

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.07.02 10:11:03 -04'00'