J_and_A_for_SPE7MX-19-R-X012_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION __SPE7MX-19-R-X012__

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A)

(April 2014)

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 items of supply on other than a full and open competition basis. This DLA Land and Maritime acquisition is for an Indefinite Delivery Contract (IDC) for spare parts for the Polar BEAR 130K BTU field space heater. The proposed acquisition is for DLA-managed items with one approved source: NGH Retail LLC (CAGE 3FZJ9). The acquisition includes twenty-five (25) National Stock Numbers (NSNs).

DLA Land and Maritime intends to enter into a fixed unit price, IDC consisting of a three-year base period.

3. The supplies required to meet the using activity's needs is described in the table on attachment #1.

Identify end item, weapon system, or class of item: The end item is the Polar BEAR 130K BTU field space heater which supports the below weapon systems.

Weapon System Name 82F F-15 Support Equipment 86F C-5 Support Equipment MVF Joint Stars Target Radar System

ESTIMATED BASE YEAR ONE VALUE

ESTIMATED TOTAL VALUE (3 YEAR BASE

MAXIMUM CONTRACT VALUE

FOR ADD-ONS, PROVIDE VALUE OF OPTION YRS REMAINING ___________________

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 and

(X) 10 U.S.C. 2304(c) (5) – Authorized by Statute – Service Disabled Veteran Owned

Small Business (SDVOSB) Sole Source Award.

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

NGH Retail LLC (CAGE 3FZJ9).

The use of the authority cited is based on:

(X) AMC 3. Applies to CLINs 0001-0008, 0010, 0011, 0013-0025. Acquire, for the second or subsequent time, directly from the manufacturer.

(X) AMC 5. Applies to CLINs 0009 and 0012. Acquire directly from the sole source contractor, who is not the manufacturer.

(The following are the AMSC descriptions. The full text is available in DFARS PGI 217.7506 Part 2).

[X] AMSC C. Applies to CLINs 0010 and 0023. 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 CLINs identified above, NGH Retail LLC is the only source that has the data rights, technical data and/or manufacturing capability to maintain the quality of the part.

[X] AMSC D. Applies to CLINs 0001-0005, 0007, 0008, 0011-0022, 0024 and 0025. 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 CLINs identified, NGH Retail is the only known source that has the data necessary to manufacture the items.

[ X ] AMSC L*. Applies to CLIN 0009. The annual buy value of this part falls below the screening threshold established by DoD components and field activities. However, this part has been screened for additional known sources, resulting in either confirmation that the initial source exists or that other sources may supply the part. No additional screening was performed to identify the competitive or noncompetitive conditions that would result in assignment of a different AMSC. This code shall not be used when screening parts entering the inventory. This code shall be used only to replace AMSC O for parts under the established screening threshold.

If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

For the CLIN identified, NGH Retail is the only known source that has the data necessary to manufacture the item. The coding of “L” indicates that the ADV of the item is less than $10,000. The lack of data that the Government possesses is the same as if the AMSC was a “D”.

[X] AMSC R. Applies to CLIN 0006. 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.

NGH Retail is the only known source that owns the data rights needed to manufacture the item.

*APPLIES TO LTCs - An Item identified by AMSC A, H, or L has been subjected to limited screening. The Government does not physically have in its possession sufficient, accurate, or legible data to purchase this item from other than the identified source. Items identified by AMSC A, H, or L on Long Term Contracts, are subject to annual review for possible assignment of a different or permanent AMSC. DLA Land and Maritime agrees to maintain a continual review of these items to ensure that an annual review at a minimum, in part to determine if new technical data is available to allow for assignment of a more permanent AMSC. Any item determined to be competitively available during the solicitation evaluation phase will be removed from the acquisition requirement. Any item determined after contract award to be competitively available may be deleted from the contract and resolicited.

Technical validation of the AMSCs for the project was obtained on 6/15/18. By email dated 12/12/18 the SAPD Product Specialist revised the AMSC for CLIN 0014 NSN 5961-01-550- 0849 from “Z” to ”D” due to receiving further information from the company on the commerciality aspect of the item. By email on 12/18/18, the SAPD Product Specialist revised the AMSC or CLIN 0008 NSN 4810-01-550-1242 from “L” to “D” as the annual dollar value is greater than $10,000.00.

[X] Procurement from a specified source or agency is authorized by statute. FAR 6.302-5(a) (1)

– Authority Citation: 10 U.S.C. 2304(c) (5). Application FAR 6.302-5(b) (6) – sole source awards under the Veterans benefits Act of 2003 (15 U.S.C. 657f).

Based on FAR 19.1406(a), a Contracting Officer shall consider a contract award to a SDVOSB concern on a sole source basis before considering small business set-asides provided none of the exclusion of 19.1404 apply and –

(1) The Contracting Officer does not have a reasonable expectation that offers would be received from two or more service-disabled veteran-owned small business concerns.

Based on history and market research, the Contracting Officer only anticipates a quote from the coded source: NGH Retail.

(2) The anticipated award price of the contract, including options will not exceed – $6.5 million for a requirement within the NAICS codes for manufacturing. The contract maximum of is under the $6.5 million threshold.

(3) The requirement is not currently being performed by an 8(a) participant.

(4) The service-disabled veteran-owned small business concern has been determined to be a responsible contract with respect to performance. In reviewing Supplier Performance Risk System scores within the Vendor Performance History system, company has a composite vendor delivery score of 92.

(5) Award can be made at a fair and reasonable price. Refer to paragraph #7 below for efforts that will be taken to ensure award will be made at a fair and reasonable price.

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

( ) The acquisition will be synopsized on or about ___________.

( ) Manufacturers of similar products identified in the market research will be solicited.

( ) Dealers of the manufacturer will be solicited.

(X) A synopsis exception cited in FAR 5.202 (A) (4) applies. The proposed contract action is expressly authorized by statute to be made from a specific source.

(X) Other (Explain) a sources sought was posted on FEDBIZOPPS on 5/21/18 with a return response of 5/29/18. No responses were received as a result of the sources sought that was posted.

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

Cost or pricing data in accordance with FAR 15.403-4 will not be required as NSNs have been determined commercial “of a type”. A price analysis will be conducted using historical pricing, the Producer Price Index (PPI) and learning curve analysis. Comparison will be made of the historical prices for the similar items. 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.

8. Market Research/Efforts to Obtain Competition:

Describe the market research conducted and the results. Initial market research was started on April 23, 2018. Market research questionnaires were emailed to the coded source and seven other companies by the ZAA market survey team. A sources sought was posted on FEDBIZOPPS on 5/21/18 with a response date of 5/29/18. The sources sought resulted in no companies showing interest in proposing on the requirement. Buyer supplemented market research from 10/18/18 through 12/12/18 to obtain coded source’s market research information and for information to support commerciality.

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

A market survey was conducted on/during April 23, 2018 through May 29, 2018 from the SAPD market research team. Buyer supplemented market research from 10/18/18 through 12/12/18.

Total number of vendors contacted: 8

Names of vendors contacted and responding: Vendors contacted were: Area Diesel Service (5Z018), Boatswain Locker (5E553), Central Diesel (7A013), CME Arma (0T0Y2), Continental Engines (1VUQ9), RYKO Systems (7AL75), NGH Retail (3FZJ9) and SE Power Systems (3L018). NGH Retail was the only company responding with interest in proposing on the subject solicitation. Boatswain’s Locker indicated they were a dealer for Yanmar parts. Project is not for Yanmar items.

Techniques used to conduct survey: Email, posting a sources sought on FEDBIZOPPS and coordination with SAPD Product Specialist and the DCMA Commercial Item Group (CIG).

Types of information requested: Companies were asked to respond to areas regarding their independence from the manufacturer if they were a dealer/distributor, inventory capability, their opinions as to quantity sensitivity of the item, their willingness to propose option years, questions to assist Contracting Officer in determining/not determining whether the item was commercial, preference to FOB point and its impact on price, if inspection and acceptance at origin was acceptable, preference as to zone pricing, packaging capability and EDI capability.

Summary of information received:

NGH Retail (3FZJ9): Company responded with market research questionnaire on 11/8/18.

Company is a service disabled veteran owned small business manufacturer and is interested in pursuing a Long Term Contract for these items.

Company indicated the items were commercial and they could provide information to support.

Information received regarding the commerciality of the item(s): Coordination with SAPD PS and the DCMA CIG have assisted Contracting Officer in making a commerciality determination.

The Air Force determined the end item (BEAR 130K Heater) commercial of a type. The DCMA CIG recommends the components to be determined commercial “of a type”. The components are of a type customarily used by the general public or by non-Governmental entities for purposes other than Governmental use. Multiple distributors were identified which sell similar items.

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.

There is no previous J&A for the items as all history was under the simplified acquisition threshold.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) NGH Retail (3FZJ9). _________________

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

(X) The solicitation contains DLA Procurement Notes L04, Offers for Part Numbered Items and M06, Evaluation of Offers for Part Numbered Items.

( ) VE Bailment Program ( ) Source Development Review ( ) Reverse Engineering

(X) Other: Forecast information is available to all potential sources for both sole source and competitive 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 sole 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 and 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 information for both the DLA Value Engineering program and the DoD Value Engineering Program.

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

HAYDEN.ESTHE

R.A.1206755578

Digitally signed by

HAYDEN.ESTHER.A.120675557

Date: 2019.01.22 09:03:58 -05'00'

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature

APPROVAL REQUIREMENTS

[X] 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)

HOPSON.LILLI

.A.1230127324

Digitally signed by

HOPSON.LILLI.A.1230127324

Date: 2019.01.24 13:44:59 -05'00'

NSNs on Solicitation SPE7MX-19-R-X012

Attachment #1

CLIN ITEM NSN ADQ ADV AMSC

0001 TANK,FUEL,VEHICULAR 2540015067162 32 D

0002 ENGINE BLOCK,DIESEL 2815016049253 16 D

0003 DEFLECTOR,AIR CLEAN 2940015061943 76 D

0004 GOVERNOR,DIESEL ENG 2990015096376 104 D

0005 FILTERING DISK,FLUI 4330015503433 228 D

0006 HOSE,AIR DUCT 4720015889719 116 R

0007 HOSE ASSEMBLY,AIR D 4720015889778 164 D

0008 VALVE,SOLENOID 4810015501242 200 D

0009 SWITCH,TOGGLE 5930015500289 168 L

0010 SWITCH,ROTARY 5930015500330 384 C

0011 SWITCH,THERMOSTATIC 5930015500693 396 D

0012 SWITCH,THERMOSTATIC 5930015540809 772 D

0013 CONNECTOR,PLUG,ELEC 5935015507565 368 D

0014 SEMICONDUCTOR DEVICE, PHOTO 5961015500849 28 D

0015 MOTOR,ALTERNATING C 6105015503003 200 D

0016 MOTOR,ALTERNATING C 6105016610666 28 D

0017 CONTROL,REMOTE SWIT 6110015064618 68 D

0018 CONTROLLER,MOTOR 6110015503011 384 D

0019 CONTACTOR,MAGNETIC 6110015503280 340 D

0020 CONTROL,VOLTAGE REG 6110015503299 400 D

0021 CONTROL,GENERATOR 6110015875195 16 D

0022 CONTROL,VOLTAGE REG 6110015875207 24 D

0023 GENERATOR,ALTERNATI 6115016531259 232 C

0024 GENERATOR,ALTERNATI 6115016610704 48 D

0025 TRANSFORMER ASSEMBL 6120016495314 72 D

ADV

With 3 year base

Max value