SPE7MX19R0166 - J&A.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX19R0166

DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018)

[X] ORIGINAL

1. The Defense Logistics Agency, DLA Land and Maritime, is the contracting activity. This indefinite quantity contract (IQC) solicitation shall be a firm-fixed price (FFP) long-term contract (LTC), which includes a three-year base period.

2. The action being approved is the acquisition of supplies on other than a full and open competition basis. In addition to the NSNs specified in the proposed solicitation, the scope of this contract includes all DLA and DOD managed NSNs for which KATO ENGINEERING (32770) is the sole source. NSNs within this scope may be added to any resulting contract at a later date. The solicitation will include L27- Addition and Deletion of Items (AUG 2017) to facilitate the addition of any future NSN.

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

CLIN NSN ITEM UNIT AMC AMSC ADQ ADV

0001 3010013516024 COUPLING,SHAFT,RIGI EA 3 R 11

0002 5930015968038 SWITCH,THERMOSTATIC EA 3 D 5

0003 5950013405623 TRANSFORMER,POWER EA 3 D 30

0004 5950015960058 TRANSFORMER,CURRENT EA 3 D 14

0005 5961013330939 SEMICONDUCTOR DEVIC EA 3 C 78

0006 5998015258702 CIRCUIT CARD ASSEMB EA 3 R 12

0007 5998015291846 CIRCUIT CARD ASSEMB EA 3 D 1

0008 5998015291851 CIRCUIT CARD ASSEMB EA 3 R 2

0009 6115014815278 EXCITER,ARMATURE EA 3 D 6

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

WSDC WEAPON SYSTEM NAME

JDN ARLEIGH BURKE CLASS DDG

TBN 501K34 GAS TURBINE SYSTEMS

ALN CVN 78 UNIQUE (NUCLEAR SEP)

D3N FORD CLASS CARRIERS

JKN WASP CLASS LHD

JSN WHIDBEY ISLAND CLASS LSD

XBN CVN NUCLEAR REACTOR BOUNDARY AREA

FPN SHIP, SUPPLY CLASS TAOE

ZDN LPD-17 CLASS AMPHIBIOUS TRANSPORT DOCK

82F SUPPORT EQUIPMENT, F-15 AIRCRAFT

NPF 72KW GENERATOR SET

ESTIMATED ANNUAL VALUE:

ESTIMATED TOTAL VALUE (3 YEAR BASE PERIOD):

MAXIMUM CONTRACT VALUE:

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:

CLIN NSN CAGE COMPANY NAME PRT NUM

0001 3010013516024 32770 KATO ENGINEERING INC. 031-81460-00

32770 KATO ENGINEERING INC. 099-00134-00 ITEM 65

0002 5930015968038 32770 KATO ENGINEERING INC. 514-00361-00

0003 5950013405623 32770 KATO ENGINEERING INC. 858-55546-75

0004 5950015960058 32770 KATO ENGINEERING INC. 858-53556-75

0005 5961013330939 32770 KATO ENGINEERING INC. 040-11060-26

0006 5998015258702 32770 KATO ENGINEERING INC. 508-00576-00

0007 5998015291846 32770 KATO ENGINEERING INC. 5080058200

0008 5998015291851 32770 KATO ENGINEERING INC. 5080058400

0009 6115014815278 32770 KATO ENGINEERING INC. 230-18047-12

The use of the authority cited below:

[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 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.

For the item identified by AMSC C, Kato Engineering (32770) is the only source currently approved by the design control activity. They are the only known source to possess the requisite rights to technical data for this item. On July 8, 2019, the DLA Land and Maritime SAPD Product Specialist confirmed that the AMSC of C for this NSN is correct and validated the manufacturer and part number. The Government does not have a complete, unrestricted data package at this date and all means to obtain a technical data package adequate for manufacture of this item have been exhausted.

[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.

For the items identified by AMSC D, the Government does not have the data or rights to the data and it is not economical for the Government to obtain or otherwise develop the data. Kato Engineering (32770) is the only known source to possess the complete technical data for these items; therefore, they are the only sources uniquely qualified to manufacture these items and the only approved source listed for these items. On July 8, 2019, the DLA Land and Maritime SAPD Product Specialist confirmed that the AMSC of D for these NSNs is correct and validated the manufacturer and part numbers. The Government does not have a complete, unrestricted data package at this date and all means to obtain a technical data package adequate for manufacture of these items have been exhausted.

[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.

For the items identified by AMSC R, the Government does not have the data or rights to the data and it is not economical for the Government to obtain or otherwise develop the data. Kato Engineering (32770) is the only known source to possess the complete technical data for these items; therefore, they are the only sources uniquely qualified to manufacture these items and the only approved source listed for these items. On July 8, 2019, the DLA Land and Maritime SAPD Product Specialist confirmed that the AMSC of R for these NSNs is correct and validated the manufacturer and part numbers. The Government does not have a complete, unrestricted data package at this date and all means to obtain a technical data package adequate for manufacture of these items have been exhausted.

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

• A sources sought notice was issued on Fed Biz Ops for a minimum period of five business days.

• The acquisition will be synopsized on Fed Biz Ops on October 1, 2019 for a period of 15 days.

• Market research was conducted to obtain interest in the acquisition.

• Solicitation wil lbe posted on Fed Biz Ops and the DLA Internet Bid Board System (DIBBS).

• Dealers of the manufacturers will be solicited.

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

It is the Contracting Officer’s determination that the NSNs will not be solicited commercial. Market research was conducted in regards to the commerciality of the items and the distributor was unable to provide any documentation supporting commercial use or sales. These items are not available on the General Services Administration (GSA) Advantage website. The previous procurements were non-commercial. The NSNs will be solicited under FAR 15- Contracting by Negotiation. The contract maximum value falls under the Truth in Negotiations Act (TINA) threshold of $2M; therefore, cost or pricing data is not required. Price analysis and buy history will be used to determine contract award prices fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

A sources sought notice was posted on 8/27/19 and closed on 9/3/19. The Sourcing Strategy Specialists (SSS) sent out the market surveys when this project was originally created in 2016 and there were no responses. The Contracting Officer contacted the manufacturer and their authorized distributor for market research.

The market survey asked information such as willingness to quote a three-year base period and priced option years, provide stock delivery, state if the items are quantity sensitive, state if the items are commercial, preference for zones, asked if they could provide packaging requirements, asked information regarding FOB and zones.

A summary of the responses received is below:

1. Kato Engineering (32270) Senior Parts Sales Specialist I Team Lead

2075 Howard Dr. West| North Mankato, MN 56003 | USA T +1 507-345-2823 | F +1 507-389-4146

Responded on 8/28/19, “Kato Engineering has an authorized distributor. Below is their information. Feel free to work with them directly and they will consult with us on questions they may have.”

2. Triman Industries (0ZBE8)

, Contract Management Administrator PH: 856-767-7945 Ext 309 E-mail:

Responded on 9/9/19, with the following information:

Triman Industries is an authorized distributor for Kato Engineering, therefore, Triman is interested in providing pricing on any solicitation issued on their behalf.

Unfortunately, we are unable to provide all the information requested on the Market Survey at this time, however, we are able to confirm the following information regarding the potential RFP:

- These items are all valid and procurable.

- The manufacturer has confirmed that these items are used on any application, military or commercial.

- Attached please find a copy of our distributor letter.

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.

10. A listing of sources, if any, indicating an interest in the acquisition is: Triman Industries (0ZBE8)

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

12. The buyer searched the previous awards listed in the contract history in Records Management in EProcurement for previous J&A’s, as required by DFARS PGI 206.304, and was not able to locate any previous J&As. Buy history shows these items are currently being purchased as manual procurements under the Micro-Purchase threshold, Simplified Acquisition Threshold (SAT) or using the Procurement Automated Contract Evaluation (PACE) system.

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.

BRANDY WARNER, Contracting Officer

APPROVAL/CERTIFICATION

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

Competition Advocate Signature

WARNER.BRANDY.D

ANIELLE.1251897880

Digitally signed by

WARNER.BRANDY.DANIELLE.125189788

Date: 2019.10.01 15:03:20 -04'00'

SHEARER.MARY.E.1

250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.10.03 08:17:07 -04'00'