J&A6.302-1cSPE7MX20D0024 - 19R0132.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SPE7MX19R0132

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) with firm fixed price for the duration of a three (3) year base period with two (2) one-year option periods for a potential total of five (5) years. This procurement is for NSN (5930015938855) and supports end item (Noncurrent-Carrying Wiring Device Manufacturing), identified below and in Section B of the solicitation.

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 are described as follows:

This initiative is to provide support for Weapon System MRA (This will be the Parent WSDC for all Army MRAP WSDCS), for use by the Department of Defense. This item being procured is listed below and includes the Reference Number Category Code (RNCC), which is a code that designates the relationship of the part number to an item of supply. The Reference Number Variation Code (RNVC) which indicates that a cited part number is or is not item identifying, or is for information only. The proposed acquisition is for DLA-managed item for which small/large businesses DRS Network Imaging Systems, LLC (1RWE7), Northrop Grumman Space Mission (0J198), Ace Electronics Defense Systems (5TWH2), and United Support Solutions - LMT, Inc.

(7MAC9) are the only source manufacturers. The requirement is being bought to a source controlled drawing (AMC/AMSC of 1/B). The approved sources to the drawings are:

CLIN NSN BRIEF DESCRIPTION CAGE COMPANY P/N RNCC RNVC AMC AMSC

0001 5930015938855 Switch Box 1RWE7 DRS Network Imaging Systems, LLC 170306-1 3 2 1 B

0J198 Northrop Grumman Space Mission 170306-1 3 2 1 B 5TWH2 Ace Electronics Defense Systems 170306-1 5 2 1 B 7MAC9 United Support Solutions - LMT, Inc. 170306-1 5 2 1 B

*If too numerous, attach list of NSNs and AMSC codes.

RNCC CODE:

3 - Design Control Reference. The primary number used to identify an item of production or a range of items of production, by the manufacturer (individual, company, firm, corporation, or Government activity) which controls the design, characteristics, and production of the item by means of its engineering drawings, specifications and inspection requirements.

5 - Secondary Reference. Any additional number, other than a primary number (codes 1,2,3,4) informative reference (code 6) or vendor item drawing reference (code 7) assigned to an item of production or supply by a commercial or Government organization, which represents the same item of production or supply to which the National Stock Number (NSN) was assigned. The reference number may have had an RNCC of 1, 2, 3, 4 or 7 but has since been replaced in the item-of-supply concept of the NSN by another primary number.

RNVC CODE: 2 - A design control or other reference number that is an item-identifying number for an item of production, or a source control reference or a specification or standard part, type, or similar reference number that is an item-identifying number for an item of supply.

Identify end item, weapon system, or class of item(s):

NAICS CODE NAICS INDUSTRY DESCRIPTION BUSINESS SIZE

335932 Noncurrent-Carrying Wiring Device Manufacturing 1,000

Weapon system(s) being supported with this project:

CLIN NSN WEAPON SYSTEM WSDC

0001 5930015938855 This will be the Parent WSDC for all Army MRAP WSDCS MRA

ESTIMATED BASE VALUE:

ESTIMATED TOTAL VALUE (BASE + OPTIONS):

MAXIMUM CONTRACT VALUE:

FOR ADD-ONS, PROVIDE VALUE OF OPTION YRS REMAINING: N/A

Estimated total award value and cost goals:

CLIN NSN ADQ QFD

ESTIMATED BASIC

ANNUAL DEMAND

V

ESTIMATED

THREE YEAR

ESTIMATED TOTAL

CONTRACT VALUE

CONTRACT

MINIMUM

CONTRACT

MAXIMUM

0001 5930015938855 1,248 312

TOTALS

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:

DRS Network Imaging Systems, LLC (1RWE7), Northrop Grumman Space Mission (0J198), Ace Electronics Defense Systems (5TWH2), and United Support Solutions - LMT, Inc. (7MAC9) are the only source manufacturers approved by the military customer’s design control activity with the comprehensive knowledge and expertise necessary to manufacture this item. DRS Network Imaging Systems, LLC (1RWE7), Northrop Grumman Space Mission (0J198), Ace Electronics Defense Systems (5TWH2), and United Support Solutions - LMT, Inc. (7MAC9) are the only source manufacturers that own the data rights to manufacture this item. The Government does not currently possess or have access to detailed technical data sufficient to provide a description of all required form, fit, and function characteristics of this part.

The use of the authority cited is based on:

The Acquisition Method Code (AMC) and Acquisition Method Suffix Code (AMSC) are also listed below. The AMC code describes to the contracting officer and other Government personnel the results of a technical review of a part and its suitability for breakout, and the AMSC code provides the contracting officer and other Government personnel with engineering, manufacturing, and technical information. The Contract Specialist verified with SAPD Tech on 07/15/19 that the AMC/AMSC code is correct for this procurement. Reference table below:

AMC AMSC

AMC 1: Suitable for competitive acquisition for the second or subsequent time.

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.

A description of the Federal Supply Groups (FSG) and the Federal Supply Class (FSC) for this item is listed below. The FSG is represented by the first two digits of the NSN and identifies, by title, the commodity area covered by classes within the group.

The FSC is represented by the first four digits of the NSN and the code covers a relatively homogeneous area of commodities, in respect to their physical or performance characteristics, or in the respect that the item included therein is such as are usually requisitioned or issued together, or constitute a related grouping for supply management purposes. Reference table below:

FSG: 59 - Electrical and Electronic Equipment Components

FSC 5930: Switches Includes: Rotary, Knife, Toggle, Push Button, Mercury, Thermostatic, and Differential Pressure Switches.

Excludes: Switchgear.

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

The acquisition will be synopsized 15 days prior to issue date.

Other: Any sources received from Market Surveys and/or previous procurements 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 & Maritime hosts Captains of Industries bringing in industry leaders for particular commodities or weapon systems. DLA depending on budget allowance also holds supplier conferences.

The previous purchase order for this project is SPE7M819P1188. There is no prior J&A related to the previous purchase order as this was under the simplified acquisition threshold.

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

While the dollar value of the requirement exceeds the $2M threshold for submission of cost or pricing data, cost and pricing data is not anticipated to be required. Proposals are anticipated from two independent small business manufacturers of the item: Ace Electronics (CAGE 5TWA2) and United Support (CAGE 7MAC9). A price analysis will be conducted using historical pricing, the Producer Price Index (PPI) and learning curve analysis. By using the above techniques, the Contracting Officer anticipates that the cost to the Government will be fair and reasonable. Requirement is being solicited with a three-year base period and two option years.

8. Market Research/Efforts to Obtain Competition:

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

A Market Survey was conducted on/during: 06/24/19

Total number of vendors contacted: 4

Names of vendors responding: Ace Electronics Defense Systems (5TWH2), OptogainUSA, Inc. (3FUX9), Pioneer Industries, Inc. (66200), and United Support Solutions - LMT, Inc. (7MAC9).

Techniques used to conduct survey: Email to include a Market Survey questionnaire, an excel spreadsheet and posting a Sources Sought.

Type of information requested: Inquired about the interest of pursuing a Long Term Contract (LTC) for 5-year period to include delivery, cost and pricing data and commercial requirements.

Summary of information received: For this project, the Market Research was conducted by the Contract Specialist, . Four contractors were contacted with Ace Electronics Defense Systems responding with the survey. Ace Electronics stated on their market survey that they are interested in an LTC; that they fully understand the requirements for Certified Cost or Pricing Data or Information Other Than Cost or Pricing Data and are willing and able to provide such requirements, and that this item is not commercial (Reference Attachment #1).

For this project, the Sources Sought was conducted by the Contract Specialist, . A Sources Sought was issued on FedBizOpps on 07/01/19 and closed on 07/12/19. A market survey, an excel spreadsheet, and an alternate offer and source approval request guidance (AO-SAR) package were provided for contractors to fill out for this posting. One vendor responded on the posting. OptogainUSA, Inc. (3FUX9) stated on their market survey that they are interested in an LTC; that

, and that this item is not commercial.

On 09/05/19, clarification was requested on whether OptogainUSA would be proposing as a manufacturer or a dealer, and information on how to become an approved source (SAR process) was readdressed with company. If OptogainUSA would be proposing as a manufacturer, as they are not one of the approved sources, they would need to go to cognizant design activity for approval, as DLA would not be entertaining alternate offers. OptogainUSA responded saying they will be coming in as a dealer, and would be looking into becoming an approved source in the future.

NOTE: On the previous project, a market survey was received by Pioneer Industries, Inc. (66200). Pioneer’s survey was based on two NSNs, which was separated into two new projects. Pioneer stated on their market survey that they are interested in an LTC; that they fully understand the requirements for Certified Cost or Pricing Data or Information Other Than Cost or Pricing Data and are willing and able to provide such requirements, and that this item is not commercial.

NOTE: Contracting Officer, contacted United Support to see if they would be interested in this LTC.

COO & Head of Sales, stated they are interested. emailed the market survey on 09/18/19 and provided the market survey on 09/24/19, and stated they are interested in an LTC;

and that this item is not commercial.

Based on market research proposals anticipated by Ace Electronics (5TWH2) proposing its own part number, OptogainUSA (3FUX9) offering the part as a dealer from one of the approved sources, Pioneer Industries (66200) and United Support

Solutions - LMT, Inc. (7MAC9) proposing its own part number. As indicated previously, in market research Pioneer Industries had indicated they would be offering the product of a large business. For this procurement they would need to offer the product of one of the SB manufacturers approved on the NSN.

Information received regarding the commerciality of the item(s): The requirement will be solicited based on FAR Part 15 procedures. The commerciality code on the Data Refresh Spreadsheet received from the Sourcing Strategy Branch ZAA stated “N” and “No” in MM03. Ace Electronics, OptogainUSA, Pioneer Industries, and United Support Solutions responded to the market survey and checked “No” when asked if this item was commercial. A search online did not indicate that this item is commercial. A separate memorandum detailing this determination has been prepared and is included in the solicitation file.

9. Additional facts supporting other than full and open competition:

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.

Other: This NSN included on this solicitation was reviewed by the Strategic Acquisition Programs Directorate (SAPD) Product Specialist during the project development phase. No additional sources were identified during that review.

Forecast information is available to the potential sources for these source items. The DLA Supplier Requirements Visibility Application (SRVA) is a database 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 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.

10. A listing of sources, if any, indicating an interest in the acquisition is:

Ace Electronics Defense Systems (5TWH2) Optogain USA, Inc. (3FUX9) Pioneer Industries, Inc. (66200) United Support Solutions - LMT, Inc. (7MAC9)

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

ATTACHMENTS:

1. Market Research Summary

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 approved this justification:

Competition Advocate Date

APPROVAL REQUIREMENTS

Up to $700,000 Contracting Officer

$700,000 to $13,500,000 Competition Advocate

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

Over $93,000,000 Senior Procurement Executive (AQ)

10/1/19

10/3/2019

HAYDEN.ESTHE

R.A.1206755578

Digitally signed by

HAYDEN.ESTHER.A.120675557

Date: 2019.10.01 09:51:02 -04'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.10.03 07:30:43 -04'00'