SPE7MX19R0153 -J and A Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

LONG-TERM CONTRACT (LTC) PROJECT CM18074002

SOLICITATION SPE7MX-19-R-0153

December 3, 2019

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

ORIGINAL

1. The Defense Logistics Agency, DLA Land and Maritime, is the contracting activity.

2. The action being approved for the acquisition with Other Than Full and Open Competition basis.

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

Description NSN ADQ

(each) EST. Annual

Value

AMC AMSC

Valve 4810011228248 40 3 C Cock, Poppet Drain 4820007164001 15 3 P Valve 4820011237658 17 3 B

The items with this project support the CH-53 Sikorsky helicopter and the following is a functional description of each NSN:

NSN 4810-01-122-8248: A valve having two or more ports with valve stem or pilot needle in a normally open or closed position. The item is specifically designed to stop, start, or change the flow of fluid by means of the magnetic action of an electric coil on a moveable core or plunger.

NSN 4820-00-716-4001: The NSN is designed to drain fluids from fuel systems, tanks, filters, or similar items. The part has a mounting end, a free flowing end, and a quick-acting nonmetallic sealed closure usually spring loaded that holds it in an “off” position.

NSN 4820-01-123-7658: A valve specifically designed to automatically maintain a predetermined discharge flow rate which may be adjustable within a specific range. The item is designed to be used with various fluids and may be preset and/or adjustable.

The proposed action is for the solicitation and award of a five (5) year, Firm Fixed Price (FFP) long-term contract. The contract will consist of a three (3) year base with two one-year options. The estimated contract values are below:

o Annual Demand Value (ADV):

o 3-Year Value (ADV * 3):

o 5-Year Value (ADV * 5):

o Maximum Value (ADV * 6):

The Federal Stock Group codes are 4810 and 4820 (valves, powered and non-powered) which represents the supply class of the items.

Eaton Aerospace LLC (CAGE 16780) is the only approved source for the subject NSNs.

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.

SOLICITATION SPE7MX-19-R-0153

December 3, 2019 o The property or services needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency.

5. The subject items are restricted to Eaton Aerospace LLC. The government does not possess technical data sufficient to allow for full and open competition. Only Eaton Aerospace LLC is known to possess the necessary technical data or data rights to manufacture these non-commercial items for use on the CH-53 Sikorsky helicopter. The AMC/AMSC coding and approved source were verified with DLA Land and Maritime Product Specialist, Ashley Roberts, on April 23, 2019.

The following are the AMSC descriptions.

AMC 3. Item is 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.

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.

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.

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

A Sources Sought notice, with a copy of the market survey attached, was posted on Federal Business Opportunities website. The notice was open from March 30, 2018 through April 5, 2018.

A second notice was issued November 21, 2019 and remained open through November 27, 2019.

This acquisition will be solicited using Federal Acquisition Regulation (FAR) Part 15 procedures.

Posting of the synopsis to the Federal Business Opportunities website occurred August 12, 2019.

The solicitation will remain open for a period of 30 days. The solicitation will be posted on the internet, via the DLA Internet Bid Board System (DIBBS).

SOLICITATION SPE7MX-19-R-0153

December 3, 2019

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

Although a FAR Part 15 solicitation will be issued, the estimated value of the project is below the two million threshold requirement for Certified Cost or Pricing Data (Deviation per DAR Tracking Number: 2018-O0015, Effective 01 July 2018). Price analysis of historical contracts, as well as current and future years will be based on the Global Insights Producer Price Index (PPI) forecasts. The Global Insights PPI forecast data is provided by the DLA Land and Maritime Pricing Support group, and provides timely, accurate price & cost analysis, allowing procurement professionals to understand supplier cost structure and better negotiate supplier proposals.

8. Market Research/Efforts to Obtain Competition:

Market research occurred to find the following:

Researching items on-line via the internet for availability and features.

Reviewing previous procurements of items and determining previous acquisition methods.

Determining vendor interest in long-term contract.

Researching/gathering information regarding commerciality of the items.

Vendor size and business status information.

Delivery estimates.

Possibility for Economic Price Adjustment.

Distributor/dealer involvement.

Summary of market research:

A Sources Sought notice was posted on Federal Business Opportunities website from March 30, 2018 through April 5, 2018. No responses were received from the notice.

A second Sources Sought notice was issued November 21, 2019 and closed November 27, 2019. The second notice was required by the Competition Advocate. There were no responses received.

In addition to a copy of the market survey being made available with the Sources Sought posting on Federal Business Opportunities website, the market survey was e-mailed March 15, 2018. A second issuance of the survey occurred between July 24, 2019 and August 14, 2019. The survey was sent to the following contractors:

Contractor CAGE Business Size-NAICS 332911 *Burhan Agencies 0S222 *Gigli Enterprises 1CU83 Martin Military Incorporated 1WZZ2 Small business AAR Supply Chain Incorporated 1Y249 Large business Phoenix Trading Incorporated 4LF36 Small Disadvantaged business Par Defense Industries 7DWH2 Small Disadvantaged business *Eaton Aerospace 16780 *Dutch Valley Supply Company 31068

*These contractors will not be considered. Burhan Agencies is ineligible for consideration

SOLICITATION SPE7MX-19-R-0153

December 3, 2019 based upon information in System for Award management. Gigli Enterprises and Dutch Valley Supply Company are no longer approved dealers of Eaton Aerospace LLC. Eaton Aerospace LLC, the only approved source, has stated they will not consider providing an offer. Responses were only received from Dutch Valley Supply Company and AAR Supply Chain Incorporated. Dutch Valley Supply Company provided an email August 7, 2019 stating they are no longer an approved Eaton Aerospace LLC dealer.

Summary of AAR Supply Chain Incorporated responses to the market research survey:

o Contractor prefers a long-term contract.

o

Market research did not result in the identification of any potential new manufacturing sources.

Correspondence was not received inquiring about the qualification process.

Information received regarding the commerciality of the item:

Commerciality was investigated using several different techniques. The previous Justification and Approval Document for these requirements provided justification that the NSNs are not commercial. Further, Eaton Aerospace LLC has stated the NSNs are not commercial. The Contracting Officer solicited and awarded the previous requirements under FAR Part 15 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. Strategic Acquisition Programs Directorate, Product Specialist, reviewed the NSNs with this solicitation during the project development phase. The review identified no additional sources.

Forecast information is available to all potential sources for both sole source and competitive items. DLA Supplier Requirements Visibility Application (SRVA) is a database available via the DLA Internet Bid Board System. SRVA provides potential sources the opportunity to search for information on DLA’s anticipated requirements based on updated monthly forecasts. Essentially, it provides twenty-four 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 reach the Value Management Unit to become approved for sole source, code and part number items. DLA Land & Maritime Value Management Unit continually seeks sole source, limited competition, over-priced, low reliability and hard to buy items to improve their value and support posture. DLA Land & Maritime internet website contains information for all potential sources to challenge prices, submit Value Engineering Change proposal, link to DoD’s Value Engineering program and the necessary references for both DLA Value Engineering program and DoD Value Engineering program.

SOLICITATION SPE7MX-19-R-0153

December 3, 2019

10. A listing of sources indicating an interest in the acquisition are:

Name CAGE Business Size Business Type

AAR Supply Chain Incorporated 1Y249 Large Dealer

In addition to the specific actions taken by Technical Support personnel to overcome barriers to competition, before any subsequent acquisitions or recertification of class determination are made, this item is subject to the following methods of locating additional sources:

The Government will continue to conduct market research to see if changes occur in the marketplace that would enable future actions for these items to be competitive. The Government will also include a clause in this solicitation that provides that the Government will consider alternate offers, and that alternate offerors should submit a source approval request (SAR) package that will be referred to the engineering activity. If the current procurement cannot be delayed, due to mission requirements, and to allow sufficient time for the engineering activity to determine whether to approve the alternate offer, the SAR package will be considered for future awards.

The contract for the most recent acquisition for subject item is stated below. This contract expired April 2018.

Contract Number / Solicitation Number

SPM7MX-13-D-0053/SPM7MX-09-R-0074

SOLICITATION SPE7MX-19-R-0153

December 3, 2019

CONTRACTING OFFICER CERTIFICATION/APPROVAL

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief.

Michael L Shirley Date Contracting Officer

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

Up to $13,500,000 Competition Advocate

Attach 1: J & A - NSNs Attach 2: J & A –Contract SPM7MX-13-D-0053 J & A

12/3/2019

Michael L Shirley

12/3/2019SHEARER.MARY.E.1250

702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.12.03 12:01:25 -05'00'