SPE7MX20R0011.docx

ORIGINAL J & A

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 Full and Open Competition basis. The award will be made on an ALL OR NONE per NSN basis for one NSN for supplies covered under this contract. The resulting contract(s) will be Firm Fixed-Price with Annual Price Adjustments, Indefinite Quantity Contract(s) issued under FAR Part 15 for a 3-year base period with the option to extend the contract for two additional years in one-year increments

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

Estimated ADV

End Item Description and Weapon System (s):

ITEM

Brief Item Description:

Transducer Temperature Temperature Transducer is a device that converts the thermal quantity into any physical quantity such as mechanical energy, pressure and electrical signals etc. E.g. In Thermocouple the electrical potential difference is produced due to temperature difference across its terminals.

The Product Specialist of record, John Grable DLA Land and Maritime-FMTD confirmed the AMS/AMSC codes, the weapon systems on 04-09-2020. Also, on the same day the Integrated Data Sheet (IDS) was check for the weapon system codes.

This NSN is a critical application item with the Weapon System Indicator Code (WSIC) “0” and the Weapon System Essentiality Code (WSEC) “F”. The meaning for these codes are as follows:

ESTIMATED BASE VALUE:

ESTIMATED TOTAL VALUE (BASE + OPTIONS) MAXIMUM CONTRACT VALUE:

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION SOLICITATION

SPE7MX-20-R-0011

D

LA

Land

Maritime

Justification for

O ther

Than

Full

Open

Competition

(AUG2016)

4. The statutory authority permitting other than full and open competition is:

10 U.S.C. 2304(c) (1) - Available from only one or a limited number ofsources.

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

The use of the authority cited below:

AMC 1. Suitable for competitive acquisition for the second or subsequent time. The use of the authority cited is based on:

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

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 act ivity 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.

Rosemount Aerospace Inc. (60678), Ateez Inc. (1PEC0) and United Electric Controls Co. (88234) are the approved sources of supply. The approved code/PN item is the only item known to fit and/or work in the end item. Adequate data for the evaluation of alternate offers is not available at the procurement agency. The companies listed above are the only companies that have gone through the source approval process. If a product different from the approved part is offered by the contractor, the contractor must get their part numbers approved by submitting a source approval package to the Engineering Support Activity (ESA). The companies listed above are the only uniquely qualified sources of supply that own the technical rights for the NSNs/items. In order for competition to be present, the owners (such as the U.S. Army or U.S. Navy) of the weapons systems would need to buy the technical rights from the companies, who are the Original Equipment Manufacturer (OEM), then re-code all the items so that other companies could offer proposals. For this project though, Rosemount Aerospace Inc. (60678), Ateez Inc. (1PEC0) and United Electric Controls Co. (88234) again are the only sources of supply that own the technical rights to supply this part.

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

a. The acquisition will be synopsized on or about April 24, 2020 for a period of 15 days.

b. At the completion of the synopsis period, the solicitation will be posted to the DLA Internet Bid Board System (DIBBS) for a period of 30 days.

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

Past procurement, history will be reviewed and a price analysis will be performed using the producer price indexes from the Bureau of labor Statistics. The basis for determining the reasonableness of the procurement will be price analysis and additional data may also be requested such as other than cost and pricing data. The Contracting Officer anticipates that the costs to the Government will be fair and reasonable.

8. Market Research/Efforts to Obtain Competition: The results of the market surveys are detailed below. A Sources Sought notice was posted to the FedBizOpps website on September 16, 2019 with a response date of September 23, 2019. No responses were received.

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

A market survey was conducted on October 16, 2019. Techniques used to conduct survey:

Market Survey Package was emailed to each source supplier. The Buyer attempted to contact United Electric Controls Co. (88234); however, the vendor did not respond with a POC or email, so the Buyer was unable to send a copy of the market survey.

Total Number of vendors contacted: 2 Name of vendor contacted:

Rosemount Aerospace Inc. (60678) Ateez Inc. (1PCE0)

Techniques used to conduct survey: emails, FedBizOpps, Market survey questionnaire and attachments. Types of information requested:

· Is there a Published Catalogs/Price Listed?

· Is the company willing to do a Long Term Contract?

· Can the company hold their prices for the Base Period?

· Does the company prefer Economic Price Adjustment (EPA based on the Producer Price Index (PPI)?

· What are the components/raw materials primary drivers in pricing the items?

· What is the industry standard contract term for long-term agreements/contracts for these items and/or the raw material?

· If required, is the contractor capable of preparing certified Cost and Pricing Data?

· Does the company require a Minimum Dollar Amount?

· How will the higher Guaranteed Minimum percentage affect the contractor’s pricing?

Summary of infon nation received:

Rosemount Aerospace Inc. (60678):

On 10/16/2019 a representative from Rosemont Aerospace Inc. responded to the market research. Rosemont Aerospace Inc is a manufacturer for the subject NSN. This supplier is a Lar e Business with 1400 em lo ees with a arent co and with commercial distribution network.

Rosemont did not providea cm-rent invoice. Rosemont stated in an email ''t he best approach would be to submit a RFQ, and we will submit the commercial package with our pricing".

The NSN was researched on the internet and no information about commerciality was found. Per the ProductSpecialist of record-- DLA Land and Maritime-FMTD the item is not commercial. Therefore the Contracting Officer and the buyer this item would be solicitedFAR PART 15.

Ateez Inc. (1PCE0):

On 10/16/2019 a representative from Ateez Corp responded to the market research. Ateez Corp is a manufacturer for the subject NSN. The supplier is a Small Business with 5 emplovees.with no parent company and with no commercial distribution network They are not interested in an LTC for this item. Per Ateez they stat "We wou pre er to 1 on a smg e quantityper year rather than multi-year with a minimum quantity basis".

9. Additi onal facts suppo1ting other than full and open competition are:

Based upon the technical ce1t ification on file in DLA Land and Maritime - VEP technical data is not available and cannot be developed to pennit 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:

Rosemount Aerospace Inc. (60678) respondedto the market survey and expressed an interestin the acquisition. The vendor will be added to the solicitation mailing list.

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

a. Solicitation contains DLA Procurement Note L04 Offers for Pait Numbered Items and M06- Evaluation ofOffers for Pait Numbered Items.

b. The buyer was not able to locate a copy of a previous J & A statement in the SRM Records Management because all previous buys were under the simplified acquisition threshold.

c. Planned actions for the future to overcome any barriers to competitions will be periodic market researchand sources sought.

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.

MATZ.RICHARD.J AMES.1080066615

Richard Matz

Digitally signed by MATZ.RICHARD.JAMES.1080066 615 Date: 2020.04.16 15:48:12 -04'00'

Contracting Officer Date

APPROVAL REQUIREMENTS

I have reviewed and approve this justification:

HOPSON.LILLI. A.1230127324

Digitally signed by HOPSON.LILLI.A.1230127324 Date: 2020.04.22 16:18:08 -04'00'

Competition Advocate Signature Date

[x ] $70,000 to $13,500,000 Competition Advocate image1.png image2.png image3.png