SPE7MX19RX065 - reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX19RX065

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

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), solicited using FAR Subpart 13.5 procedures. There will be 14 NSNs solicited for a one year contract.

2. The action being approved is the acquisition of supplies on other than a full and open competition basis.

Per FAR 13.501(a)(1), a J&A is required only for items meeting the sole source acquisition definition at FAR

2.101. Only six of the 14 NSNs require a J&A (below), as they have only one approved source. The other eight items have multiple approved sources and do not require a J&A when using FAR Subpart 13.5 procedures.

J&A Required CLIN NSN Item Description AMC AMSC ADQ ADV

0001 4820014435361 REGULATOR,COMPRESSE 3 C 51

0002 6130015728960 CHARGER,BATTERY 3 D 35

0003 6665014435350 SAMPLE PROBE ASSEMB 3 L 39

0006 6665015729079 DETECTOR,GAS 3 D 110

0007 6665015729094 SAMPLING PUMP,AIR 3 D 67

0008 6665015729163 LEL SENSOR 3 D 735

Identify end item, weapon system, or class of item: these items are used on various weapon systems, primarily Navy ships such as: LITTORAL COMBAT SHIP, (LCS 2), DDG-1000 ZUMWALT CLASS DESTROYER, TICONDEROGA CLASS CG (47), ARLEIGH BURKE CLASS DDG, AVENGER CLASS MCM

Dollar value for these six NSNs requiring a J&A: and per FAR 6.302-1(c)(1)(ii)(A), these dollar values establish the approval level for this Justification:

ESTIMATED ANNUAL VALUE:

MAXIMUM CONTRACT VALUE:

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:

BW TECHNOLOGIES LTD (0H015)

The use of the authority cited below:

[X] AMC 3. Acquire directly from the actual manufacturer, whether or not the prime contractor is the actual 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, only manufacturer BW Technologies has the technical data and manufacturing knowledge essential to maintaining the quality of the part; the data and knowledge is not economically available to the Government. On April 22, 2019, the DLA Land and Maritime SAPD Product Specialist confirmed that the AMSC of C for these NSNs is correct and validated the manufacturer and part numbers. The DLA Land and maritime Product Specialist has said that after-market or alternate source parts would have to be reviewed on a case by case basis and evaluated by the ESA as using unapproved parts could potentially compromise the normal operation/function of the weapon system.

[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. BW Technologies LTD (0H015) 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 April 22, 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. Although the items are commercial, the Government does not possess the technical data or data rights to facilitate full and open competition; therefore, it is essential that the Government procure only the BW Technologies items in order to maintain the quality of the part. The DLA Land and maritime Product Specialist has said that after-market or alternate source parts would have to be reviewed on a case by case basis and evaluated by the ESA as using unapproved parts could potentially compromise the normal operation/function of the weapon system.

[X] AMSC L*. 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 items identified by AMSC L, the Government does not physically have in its possession sufficient, accurate, or legible data to purchase this item from other than by reference to the part number of the identified source. For these items, BW Technologies is the currently the only approved source by the ESA. Although the items are commercial, the Government does not possess the technical data or data rights to facilitate full and open competition; therefore, it is essential that the Government procure only the BW Technologies items in order to maintain the quality of the part. On April 22, 2019, the DLA Land and Maritime SAPD Product Specialist confirmed that the AMSC of L for these NSNs is correct and validated the manufacturer and part numbers. The DLA Land and maritime Product Specialist has said after-market or alternate source parts would have to be reviewed on a case by case basis and evaluated by the ESA as using unapproved parts could potentially compromise the normal operation/function of the weapon system.

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

[X] A sources sought was posted to FBO on 1/29/2019. No responses were received.

[X] The acquisition will be synopsized on Fed Biz Ops for a period of 15 days.

[X] Market research was conducted to obtain interest in the acquisition.

[X] Solicitation will be posted on Fed Biz Ops and the DLA Internet Bid Board System (DIBBS).

[X] Dealers of the manufacturers will be solicited.

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

Officer’s determination that all six items requiring a J&A in this procurement, fall under “commercial” item definition (1)(i) at FAR 2.101. Cost and Pricing Data is not required per FAR 15.402-1 (b) (3). These items are solicited in accordance with FAR Subpart 13.5 - Simplified Procedures for Certain Commercial Items. The Contracting Officer will use historical prices, market prices (i.e. comparison based on marketplace or offers/pricing to other customers), market research, and/or pricing information provided by offerors. The buyer will also use commercially available prices (i.e. Internet pricing and/or sales invoices) as applicable to aide in fair and reasonable determination.

7. Market Research/Efforts to Obtain Competition:

Initial market research was conducted by the Sourcing Strategy Branch-ZAA. A sources sought notice was posted on 1/29/2019 for a period of five days and did not receive any responses. On 7/22/2019, the Sourcing Strategy Specialists (SSS) sent out the market survey the following companies: Rayco Safety, Honeywell, Hurricane Electronics, AM-Mac Incorporated, Ever Ready Group, Federal Resources Supply.

Follow-ups to the above companies were made by the buyer on 9/3/2019. 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. The following responses were received:

1. Rayco Safety – Indicated that a significant number of the items in question were reaching End of Life (EOL) per original equipment manufacturer BW. They declined to participate in the acquisition on those grounds.

2. Federal Resources Supply – Federal Resources Supply holds the current LTC, containing some of the NSNs being procured in this acquisition. They echoed Rayco’s assertion that many of these items are reaching EOL, and supplied documentation from BW indicating that EOL for the items will occur in June 2021. Federal Resources maintains interest and indicated that they would propose on a solicitation, if the

DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018) solicitation was for a one year period. Federal Resources is a BW distributor, and confirmed that all items are commercial.

Additional Market Research for commerciality:

Previous LTC containing three of items being procured was solicited and awarded using FAR Part 12 (commercial) procedures.

All items were searched and found to be available for commercial purchase at various online vendors.

8. Additional facts supporting other than full and open competition are:

[X] Items in this situation are reaching End of Life (EOL) per manufacturer BW Technologies. They will no longer be supported or produced, after June 2021. This includes the primary testing module, and all associated support parts, in this procurement. It is unlikely that any other manufacturers would find it cost effective to begin manufacturing competitive parts to the items in this J&A, given that the system the items support, will no longer be available for purchase in 2021. Federal Resources Supply and BW Technologies have indicated via product bulletin, that a new system will be available then, and will not be backward compatible with current system and support parts.

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

- Federal Resources Supply

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

[X] The solicitation contains Procurement Note L04- 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. J&A for award SPE7LX15D0056 attached.

Brandy Warner, Contracting Officer

Attachments:

1. Previous J&A SPE7LX15D0056

WARNER.BRANDY.D

ANIELLE.1251897880

Digitally signed by

WARNER.BRANDY.DANIELLE.125189788

Date: 2019.10.02 09:21:30 -04'00'