J&A6.302-1cSPE7MX19R0114_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX19R0114

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:

This solicitation is a DLA Stock procurement for NSN 1005015569092 “Cover, Gun”. The item is used on many different weapon systems such as the MK VI Patrol Boat and the DDG-1000 Zumwalt Class Destroyer.

The Federal Stock Group Code for this NSN is 10 (Weapons) which represents the commodity class of the item.

The AMC/AMSC code for this item is 3/P.

The proposed action is for the solicitation and award of a five (5) year, firm fixed price Indefinite Quantity Contract (IQC). The five year period consists of three (3) year base period and two (2) separately priced, one year option periods. The estimated contact values are below:

Annual Demand Quantity (ADQ): 94 each Annual Demand Value (ADV):

5 year value (Base + Options):

Maximum Contract Value:

Minimum Contract Value:

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

10 U.S.C. 2304(c)(1) and 10 U.S.C. 2304(c)(5)

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

Transhield Inc. CAGE 064U8.

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 P. The rights to use the data needed to purchase this part from additional source(s) are not owned by the Government and cannot be purchased, developed, or otherwise obtained. It is uneconomical to reverse engineer this part. This code is used in situations where the Government has the data but does not own the rights to the data. 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.

Transhield is the only source that is known to have the data rights to manufacture this item. Mr.

Erik Elmendorf, an SAPD Product Specialist did a technical review on 03/26/19. Based on his review he states that the Government physically does not have in its possession sufficient, accurate or legible data to purchase this part from other than the current sources (Transhield CAGE 064U8). He also states the rights needed to purchase this part from additional sources are not owned by the Government and cannot be purchased.

This acquisition is being issued as a SDVOSB sole source award to Shore Solutions pursuant to 15 U.S.C. 657f. FAR 19.1406(a), Sole Source Awards to Service-disable Veteran-owned Small Business Concerns, has been reviewed and the requirements are satisfied.

The Contracting Officer does not have a reasonable expectation that offers would be received from two or more service-disabled veteran owned business concerns. Based on Market Research only Shore Solutions and Transhield have shown interest in this procurement. A sources sought notice was posted to FedBiz Ops with no response. A synopsis was posted to FedBiz Ops and Transhield confirmed that they only have worked with Shore Solutions on this NSN in previous procurements. The previous procurement shows Transhield and Shore Solutions were the only quotes received.

The anticipated award price of the contract will fall within requirements and will not exceed $6.5 million.

The requirement is not listed as an 8(a) NSN that has a requirement to be listed as an 8(a) set-aside.

The service-disabled veteran-owned business concern has been determined to be responsible with respect to performance.

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

The acquisition was synopsized on 06/18/19.

A sources sought notice was posted on FedBizOps from 06/19/19 to 06/26/19 with no responses received.

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

This will be a five (5) year, firm fixed price, Indefinite Quantity Contract (IQC). The five year period is inclusive of a three (3) year base period, and two (2) separately priced, one (1) year option periods. There is not expectation of competition as this will be a sole source SDVOSB to the OEM’s dealer. The Contracting Officer may obtain other than Certified Data as well as the Pricing Office support for a reasonableness determination. The price analysis for future years will be based on Global Insight Producer Price Index (PPI) forecasts. The Global Insight PPI forecast provides timely, accurate price and cost analysis, allowing procurement professionals to understand supplier cost structure and better negotiate supplier proposals.

8. Market Research/Efforts to Obtain Competition:

A market survey was conducted on/during 04/29/19-06/28/19.

Market Survey Results Two companies were contacted through email with formal market surveys. The OEM, Transhield Inc. CAGE 064U8 and a dealer, Shore Solutions CAGE 6D0X3. Originally there were seven (7) NSNs listed on a single project.

Transhield, Inc. CAGE 064U8

Transhield is a small business manufacturer with approximately 67 employees. They manufacture items for the commercial market and the Military.

CAGE 6D0X3

Shore Solutions is an 8(a), HubZone, SDVOSB, EDWOSB, WOSB, and a SB. They have approximately 18 employees and are a dealer for Transhield.

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 available, but the Government does not own the rights to the data.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) Transhield CAGE 064U8 and Shore Solutions CAGE 6D0X3

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

The Agency will continue to review market conditions prior to any follow-on acquisition.

Prospective suppliers seeking approval may submit a Source Approval Request package requesting evaluation of its product’s technical acceptability for future procurements.

Per DFARS PGI 206.304, the most recent large contract for this item (SPM7L411C055; dated 06/13/11), for which a J&A is attached.

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.

Contracting Officer

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

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

[ ] over $93,000,000 Senior Procurement Executive (AQ)

BARROWMAN.ALI

CIA.A.1368987251

Digitally signed by BARROWMAN.ALICIA.A.1368987251 Date: 2019.07.02 10:42:14 -04'00'

SHEARER.MARY.E

.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.07.02 14:22:17 -04'00'