J&A6.302-1cSPE7MX19RX011_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX19RX011

[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:

The project is a 5 year Long Term Contract using Simplified Acquisition Procedures. This item is manufactured by Nova Power Systems CAGE 1BCN7

BRIEF DESCRIPTION NSN/P/N EST. ADV AMSC ADQ

BATTERY SET 6140-01-530-6548 3/D 297

Identify end item, weapon system, or class of item: These items are used on multiple weapon systems; such as the Arleigh Burke Class DDG, the Ticonderoga Class (47), and many combat ships.

ESTIMATED (3-Year) BASE VALUE ESTIMATED TOTAL VALUE (3-year BASE + OPTIONS):

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:

NOVA POWER SYSTEMS CAGE 1BCN7

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 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.

Although these items have been determined commercial, these items are used on a military specific weapon system designed to satisfy the needs of the warfighter. Based on market research, Nova Power Systems CAGE 1BCN7 is the only known source that has the technical data and manufacturing knowledge necessary to ensure these repair and replacement parts to properly support the services. There is no evidence that standard, similar commercial parts can support the various military weapon systems. It is therefore essential to limit to Nova Power Systems CAGE 1BCN7 part number items. A technical review was completed on 01/03/19 and the technical information is accurate and complete. These items are used as repair and replacement parts on military weapons systems that ensure the systems function in accordance with military requirements. Market research reveals no other source for this item that will ensure these military weapons systems function in accordance with military requirements.

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

[ x ] The acquisition will be synopsized on or about _01/04/19_____.

[ x ] Other. A sources sought notice was posted to FedBizOps on 7/28/17 with a closing on 8/11/17. No responses were received. A reposting was done on 01/09/19 with a closing date of 01/16/19. No additional responses were received.

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

The basis for the Government’s fair and reasonable price determination is anticipated to be price analysis of previous procurement pricing. Other than certified data will be requested to support pricing, if needed. Based on market research, this is sole source to Nova Power Systems, with no dealer involvement. The contract length will be 5 years based on the information obtained during market research.

8. Market Research/Efforts to Obtain Competition:

A review of the purchase history, coordination with the DLA Land and Maritime Small Business Office, and a review of the project data by DLA Land and Maritime-ZCA. A review of the previous history shows that there are 2 previous LTC procurements. Both projects were reviewed in Records Management. The buyer could not locate a previous J&A for either contract in the file.

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

[ ] A market survey was conducted on/during ___8/1/17-12/3/18____________________.

Total number of vendors contacted: __1______________________________.

Names of vendors contacted and responding:

-Nova Power Systems CAGE 1BCN7

Techniques used to conduct survey: -EMAIL and PHONE

Types of information requested: See page 4 for Survey Results Summary of information received: See page 4 for Survey Results Information received regarding the commerciality of the item(s): See page 4 for Survey Results

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.

DLA Land and Maritime-VE was contacted by email on 12/21/18. VE responded that there are no open engineering projects on this NSN at this time.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) -Nova Power Systems CAGE 1BCN7

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 [ ] VE Bailment Program [ ] Source Development Review [ ] Reverse Engineering [ ] Other (Explain)

Market Survey Results

One company was contacted for this item. Nova Power Systems CAGE 1BCN7 is the sole source OEM for this item. Nova responded to the Market Survey. This is currently on an LTC that will expire in September, 2019. This is a customer direct LTC.

Nova is a WOSB with approximately 12 employees. They have a parent company (LTI Data Comm, Inc.) with approximately 2 employees. Nova has the previous LTCs and the current LTC on this item.

This item has been established as a commercial item in the past. Nova states this is a commercial item and after reviewing the previous documentation the buyer is relying on the prior commerciality determination. This was determined commercial in July 2014 based on a commercial price list and other information from Nova Power Systems. Nova specializes in heavy duty, rack mounted and stand-alone Uninterruptible Power Supplies that are suited for shipboard, tactical military, oil rigs or other harsh operating environments. Nova supplied the buyer with a current price list and stated that the item is available for sale on Nova’s website.

The pricing is available upon request and will be sold to any commercial or military customer.

The buyer stands by the previous determinations and has determined that this item is commercial based on commercial definition in FAR 2.101 under commercial items defined under (1) that the item, other than real property, that is of a type customarily used by the general public or by non-governmental entities for purposes other than governmental purposes, and has been offered for sale, lease, or license to the general public. Therefore the current project will be solicited under commercial procedures.

These items are not carried in inventory and are also not quantity sensitive. They deal direct to the Government. They cannot hold pricing for all the base and option years and will require price adjustments.