SPE7MX19RX062 - J-A Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX-19-R-X062

[X] ORIGINAL

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

2. The action being approved is the acquisition of supplies/services on Other Than Full and Open Competition basis for three NSNs: CLIN 0003 5965-01-507-4318, CLIN 0005 5965-01-567-7894, CLIN 0008 5965-01-658-2940 and Total Small Business Set-Aside for the remaining NSNs on this project. Solicitation will be unrestricted with other than full and open competition, utilizing FAR 13.5 Indefinite Delivery Contract (IDC) procedures. The rationale specific to these items are detailed by the Acquisition Method Suffix Code (AMSC), as stated below in paragraph 6. There is only one approved manufacturer, Bose Corporation (Cage) 32108, large business. Market Research was performed including sources sought notice and internet research. The NSNs are for the items named, shown below with the following FSG and FSC:

FSG 59 – Electrical and Electronic Equipment Components FSC 5930 – Switches FSC 5965 – Headsets, Handsets, Microphones, Speakers

This acquisition is being pursued to provide continued or improved supply availability to preclude backorders, reduce administrative and production lead-time (ALT and PLT), decreased potential contract administration action and obtain reduced and stable unit pricing.

WSDC WEAPON SYSTEMS/END ITEM

23N Ohio Class SSBN (Trident) DTN Sonar AN/BQQ-10 EXN Los Angeles Class Ssn (688) WLN Submarine Acoustic Sonar Systems 06F Aircraft, Hercules C-130 81M Light Armored Vehicle 35N Aircraft, P-8A POS YJN Virginia Class Submarine

XHN F5

ELECTRICAL SWITCH COVER – Excludes Boot, Dust and Moisture Seal; Cover Switch Terminal; Guard, Switch;

and Plate, Wall, Electrical.

CUSHION, EAR - An item made of soft material(s) designed to fit on an earphone shell of an electrical headset or on the muff of a hearing protector by a positive means of attachment, such as an elastic band or a clamp ring. Its purpose is to prevent external noises from reaching the ears of the user and to lessen physical discomfort occasioned by continuous use.

HEADSET – MICROPHONE - An item consisting of a HEADSET, ELECTRICAL and a MICROPHONE (as modified) mounted on or supported from the head. It may include connecting cords, plugs, jacks, and switches.

ELECTRICAL HEADSET - An item consisting of one or two earphones with a connecting cord and with or without a headband. Single headphone type must include facilities as required for use.

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

CLIN

NSN

ITEM

UI

AMC

AMSC

Price Standard

QCC

ADQ

ADV

0001 5930-01-464-9981 Cover, Electrical Switch EA 3 B DAA 1,875 0002 5930-01-464-9985 Cover, Electrical Switch EA 3 B DAA 765 0003 5965-01-507-4318 Headset, Electrical EA 3 D DAA 528 0004 5965-01-554-2388 Cushion, Ear EA 3 D DAA 494 0005 5965-01-567-7984 Headset – Microphone EA 3 D DAA 158 0006 5965-01-615-9680 Headset, Electrical EA 3 D DAA 4 0007 5965-01-652-1202 Cushion. Ear EA 3 D DAA 119 0008 5965-01-658-2940 Headset. Electrical EA 3 D DAA 499

ESTIMATED ANNUAL VALUE:

ESTIMATED TOTAL VALUE (3 YEAR BASE + 2 ONE-YEAR OPTIONS):

MAXIMUM CONTRACT VALUE:

The subject solicitation is for the establishment of a fixed-price Indefinite Delivery Contract (IDC) with a three-year base period and two available one-year options. This acquisition will be unrestricted with other than full and open competition.

3. 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.

4. If restricted to the only source(s) of supply include source(s) and CAGE code: Bose Corporation (32108), P/Ns 263279-

1, 251796-1, 789564-0010, 022243, 324843-W020, 251790-3, 331366-0010, and 324843-W060.

The use of the authority cited is based on:

[X] AMC 3. Acquire, for the second or subsequent time, directly from the actual manufacturer

[X] 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.

The limited availability of sources for an item coded with an AMSC of “B” is inherent and not severable given that the item is identified with an increased level of criticality therein requiring a high degree of production and manufacturing fidelity. The technical direction provides simple and clear instruction to acquire this item directly from the identified manufacturer only. As determined by the Technical/Quality Specialist of record, it is a fact that Bose Corporation (32108) is the only manufacturing source specified on the source control drawing. Only the approved source Bose Corporation (32108) is specified on the source control drawing and suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources. Although the Government has the drawings, they are source-controlled drawings. Because the Government does not have full rights to the drawings, the drawings cannot be used to provide full and open competition.

0001 5930-01-464-9981 and 0002 5930-01-464-9985= The AMC/AMSC code and source for each NSN was reviewed by the Product Specialist on 9/30/19. The Product Specialist has stated that these electrical switch covers are used specifically for the Bose headphones used by the Military. They also stated that for NSN -9981, this item also requires export controlled and is subject to the Northrup Grumman Aerospace data license agreement which entails a use and non-disclosure agreement.

Although these items are commercial, it is essential that the Government procure the items only from Bose Corporation because the Cover, Electrical Switches support the Ohio Class Trident submarines, the P-8A Poseidon aircraft, and the C -130 aircrew communication headsets and their piece parts, and alternate source parts would have to be reviewed on a case by case basis and evaluated by the Engineering Support Activity. It is necessary to procure only the item manufactured by Bose Corporation because these are the only cover, electrical switches DLA can ensure will operate in the Military’s weapon systems identified above.

[X] AMSC D. For CLINs 0003 – 0008, 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. Bose Corporation (32108) is the only known source to possess the complete and adequate technical data/data rights for these items; therefore, they are the only sources uniquely qualified to manufacture these items and the only approved source listed for these items and that the ESA has approved to provide these items. On 9/30/2019, 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. They also advised that if another source would like to provide these items, they can submit a SAR to the ESA for review. 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.

0003 5965-01-507-4318, 0005 5965-01-567-7984 0006 5965-01-615-9680, and 0008 5965-01-658-2940 - The Product Specialists have stated the Air Force and Navy have assigned BOSE as a source for these headsets based on the comfort, reliability, ease of use, fitment, and compatibility with systems and other needs specific to the military weapon systems listed in item #2 above. Bose is the only source that the Engineering Support Activity has approved to provide these items. Using unapproved parts could potentially compromise the normal operation/function of the end items.

While these headsets may be used commercially or for Military use, alternate source headsets would have to be reviewed on a case by case basis and evaluated by the Engineering Support Activity. Using unapproved parts could potentially compromise the normal operation/function of our Military troops.

0004 5965-01-554-2388 and 0007 5965-01-652-1202- the Product Specialist has stated only the cushions manufactured by BOSE are approved as they fit their headsets specifically and they are the only ear cushions that fit the headsets and Bose is the only source that the Engineering Support Activity has approved to provide these items. Alternate source cushions would have to be reviewed on a case by case basis and evaluated by the Engineering Support Activity.

Although these items are considered commercial-of-a-type, the Product Specialist has stated that Military headsets are generally low impedance instead of high impedance found in commercial aircraft. In other words, just because the plugs look the same does not mean you should expect a commercial headset to work in a military aircraft - or vice versa.” These headsets are low impedance headsets and additionally these specifically have 1/3 less clamping force than conventional noise reducing aviation headsets, and additional room for the ears. They also are equipped for 30% greater noise reduction than conventional aviation headsets. The additional NSNs would stem from the replacement parts since BOSE has specific replacement kits. These NSNs support the Ohio Class Trident submarines, the P-8A Poseidon aircraft, and the C -130 aircrew communication headsets and their piece parts, and alternate source parts would have to be reviewed on a case by case basis and evaluated by the Engineering Support Activity. It is necessary to procure only the item manufactured by Bose Corporation because these are the only Ear Cushions/Headsets that DLA can ensure will operate in the Military’s weapon systems identified above.

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

[X] The acquisition was synopsized on October 24, 2019 for a period of 15 days [X] Dealers of the manufacturer will be solicited.

[X] Other. The solicitation will be posted and available on the DLA Internet Bid Board System (DIBBS), a web-based application that allows vendors to search and review RFPs.

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

a. This acquisition will include a 3-year base period and two 1-year option periods. Quantity ranges will be included for the NSN to allow offerors the opportunity to provide quantity price breaks. Cost or pricing data in accordance with FAR 15.403-4 will not be requested as the acquisition falls under the exception at FAR 15.403-1(b) (3). The contracting officer will use price analysis and buy history to compare proposed unit prices to those of previously awarded acquisitions and adjusting it based on the Producer’s Price Index (PPI) to determine that the contract award prices are fair and reasonable as required by FAR 6.303-2 (a)(7). The price will be adjusted utilizing learning curves to determine the Government low and high targets for this acquisition. In addition, the offeror(s) may be requested to submit information other than cost or pricing data for determining price reasonableness.

b. Price analysis will be done to determine price reasonableness by comparing proposed and past history pricing with comparable quantity adjusted by the PPI.

7. A Market research analysis I/A/W FAR 12.1 was conducted and market surveys were sent to the six companies, which included the only approved manufacturer, and recent distributors on these NSNs from the past buy history. The following vendors were contacted via email on 3/08/2019 for market research purposes by the Sourcing Strategy Branch, ZAA: Bose Corporation (32108 – large manufacturer), Pioneer Industries (66200 – small business distributor), Empire Avionics Corporation (1BRS6 – service-disabled veteran owned small business distributor), Kampi Components Co. Inc. (7Z016 – small business distributor), Edmo Distributors (0Z3C6 – small business distributor), and Golden Marv Discount Sales, Inc. (0KNC1 – small business distributor). The companies were asked to provide 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, asked information regarding Cost or Pricing Data and addresses the consolidation requirements. The Buyer followed-up with all the contractors on 8/09/2019. The surveys were compiled from the responses that were received. Bose Corporation (32108), Pioneer Industries (66200) and Empire Avionics Corp. (1BRS6) did express interest in providing a quote. The other vendors were non-responsive to email and phone calls. The following responses were received:

Bose Corporation (32108) –

Large Business manufacturer. They did not state the approximate number of employees.

Is interested in pursuing a Long-Term Contract for these items.

They indicated that they could no longer sell NSN 5965-01-507-4318 direct, but through a third party supplier, (Incentive Concepts). Therefore, they recommend deleting this item from this LTC Project.

Responded that the NSNs are commercial.

They are the actual manufacturer for the items.

Pioneer Industries, Inc. (66200) – sales@pioneerspares.com

Small Business distributor. They currently have approximately 18 employees.

They are a distributor for the following manufacturer: Bose Corporation (32108), large business.

Responded that the NSNs are not commercial.

They are not the actual manufacturer for the items. The company that makes the items is Bose

Corporation (32108).

Empire Avionics Corp. (1BRS6) – sales@empireavionics.com

Service-Disabled Veteran Small Business distributor. They currently have approximately 6 employees.

They are a distributor for the following manufacturer: Bose Corporation (32108), large business.

Responded that the NSNs are commercial and would be willing and able to provide evidence of commercial sales and support needed to verify price reasonableness.

They are not the actual manufacturer for the items. The company that makes the items is Bose

Corporation (32108).

Kampi Components Co. Inc. (7Z016) – No response was received.

Edmo Distributors (0Z3C6) – govsales@edmo.com.

Golden Marv Discount Sales, Inc. (0KNC1) –

A Sources Sought notice was published 8/07/2019 via the internet (at https://www.fbo.gov/) closing on 8/14/2019. The purpose of sources sought was to provide an opportunity to other potential sources to manufacture this NSN in order to promote competition. As part of the sources sought, the market survey was included to allow potential offerors an opportunity to provide feedback on the current marketplace for this acquisition. No responses were received.

Information received regarding the commerciality of the items: Market research analysis I/A/W FAR 12.1 was conducted and based on the market surveys received it was noted that the items are purchased commercially and sold in the commercial marketplace. The approved sole source manufacturer, Bose Corporation, Cage (32108), , submitted their Bose A20 Aviation Headset End User Commercial Price List, Bose A20 Aviation Headset GSA – Price List, Commercial Pricing A20 Enhanced Price List Effective 1/1/2016, GSA Price List, Commercial Price List (Valid 7/1/2019 – 6/30/2020) and Bose A20 Aviation Headset GSA – Price List effective 12/1/2011.

also submitted the following links and advised that they do not publish the items to the public link. He also stated, “The customers email him directly from the website and they proceed from there, as they do not want them to purchase the wrong plug configurations for the intercoms. Once we get that, I email it to them.”

PICVC Headset:

https://www.bose.com/en_us/military/cvch.html.html

Manual:

https://www.bose.com/en_us/support/products/bose_headphones_support/bose_aviation_headsets_support/combat -vehicle-crewman-headset.html

Parts List:

https://assets.bose.com/content/dam/Bose_DAM/Web/consumer_electronics/global/products/headphones/combat_ vehicle_crewman_headset/pdfs/47228_BOSE_PartsAccessories_PICVC_FLO.pdf

Additional Research:

(X) Queried the Government-wide database of contracts and other procurement instruments intended for use by multiple agencies available at https://www.fpds.gov and other Government and commercial databases that provide information relevant to agency acquisitions;

(X) Reviewed catalogs and other generally available product literature published by manufacturers, distributors, and dealers or available on-line. There is a variety of Aviation Headsets available on the Internet from Bose, David Clark Headsets, LightSPEED Headsets, FlightCom Headsets, Sennheiser Aviation Headsets, AvComm / Ruigged Air, Sigtronics, Telex, and SoftComm. My Pilot Store states when selecting a headset, you will see some that are labeled for fixed wing, panel power, helicopters, military or a variety of airline applications. Military headsets are generally low impedance instead of high impedance found in civilian aircraft. In other words, just because the plugs look the same does not mean you should not expect a civilian helicopter headset to work in a military aircraft - or vice versa.

(X) Contacted knowledgeable individuals in Government and industry regarding market capabilities to meet requirements

(X) General Services Administration (GSA) Advantage- NSNs 5965-01-567-7984 and 5965-01-658-2940 BOSE Contract No.: GS-07F-0232N (ends: Jan 31, 2023)

The following are additional links for the items available for sale on the internet:

CLIN 0001 – 5930-01-464-9981:

https://www.mxdolxxhdesign.xyz/kampi-components-electrical-switch-cover-10-each-a32066135-item-3617.html https://binge.sa/product/O078TZDF7K/kampi-components-electrical-switch-cover-10-each-a3206613-5

CLIN 0003 – 5965-01-507-4318:

https://www.bestbuy.com/site/bose-quietcomfort-35-wireless-noise-cancelling-headphones-ii-black/5876115.p?skuId=5876115

CLIN 0004 - 5965-01-554-2388:

https://www.gulfcoastavionics.com/products/573-ear-cushions.aspx

CLIN 0005 – 5965-01-567-7984:

https://www.amazon.com/Bose-Aviation-Headset-Bluetooth-Cable/dp/B010FTYIUS https://www.seaerospace.com/sales/product/Bose/A20/324843-U020

CLIN 0006 – 5965-01-615-9680:

https://www.bose.com/en_us/products/headphones/aviation_headsets/a20-aviation-headset.html

CLIN 0007 – 5965-01-652-1202:

http://www.mypilotstore.com/MyPilotStore/sep/9432 https://www.seaerospace.com/sales/product/Bose/A20/331366-0010

CLIN 0008 – 5965-01-658-2940:

http://www.mypilotstore.com/mypilotstore/sep/8814

8. 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 complete and cannot be developed to permit full and open competition. However, the item provided must meet the requirements of the available reflects the minimum needs of the Government.

[X] A standard technical data review was completed by the SAPD product specialist, , and strategic sourcing specialist on 3/26/2019. During the review, the Acquisition Method and Acquisition Method Suffix Codes were reviewed and verified for the included NSNs. Confirmation of sources for the NSNs were completed and determined to be acceptable. The subject NSNs have been identified as sole/limited source items. No other sources or adequate technical data could be identified. The Government physically does not have in its possession sufficient, accurate or legible data to purchase this part from other than current sources(s). All means to obtain a technical data package adequate for manufacturer of the items have been exhausted.

[X] The Contracting Officer requested the Product Specialist review the items to verify if they would be good candidates for Brand Name or Equal (BNOE) procedures. The Product Specialist has stated “This project is in support of Ohio Class Trident submarines, the P-8A Poseidon aircraft, and the C -130 aircrew communication headsets and their piece parts, which are sole sourced to BOSE. BNOE acquisition may not be in the best interest of the Government. BNOE in this instance will create an additional cost to the supply chain and warfighter by creating additional NSNs. The creation of these additional NSNs and the effected replacement parts can create confusion amongst the warfighter and overwhelm the supply chain due to the lack of interchangeability with "BNOE like items" and the already existing, service-approved aviation equipment. BOSE has established a quality product that ensures reliability during mission critical communications and is trusted by our warfighter. These items are considered commercial-of-a-type, as military headsets are generally low impedance instead of high impedance found in commercial aircraft. In other words, just because the plugs look the same does not mean you should expect a commercial headset to work in a military aircraft - or vice versa. These are low impedance headsets and additionally these specifically have 1/3 less clamping force than conventional noise reducing aviation headsets, and additional room for the ears. They also are equipped for 30% greater noise reduction than conventional aviation headsets. The additional NSNs would stem from the replacement parts since BOSE has specific replacement kits.”

12. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) Bose Corporation (32108), Pioneer Industries, Inc. (66200) and Empire Avionics Corp. (1BRS6). No additional sources indicated interest.

13. This items are subject to the following methods of locating additional sources:

[X] The solicitation contains Procurement Note L04 Offers for Part Numbered Items and M06 Evaluation of Offers for Part Numbered Items. The solicitation also contains DLAD Procurement Note L22 Restriction of Alternate Offers for Source Controlled Items, which applies to CLINS 0001 and 0002.

14. J&A’s from previous procurements are not available as the aggregate total dollar value of orders does not exceed the Simplified Acquisition Threshold (SAT).

CONTRACTING OFFICER CERTIFICATION

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

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.12

51897880 Date: 2019.12.06 16:16:37 -05'00'

HOPSON.LILLI.

A.1230127324

Digitally signed by

HOPSON.LILLI.A.1230127324

Date: 2019.12.10 07:42:36 -05'00'