SPE7MX20R0091 - reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX-20-R-0091

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

[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:

BRIEF DESCRIPTION NSN/P/N Annual Demand Value (ADV)

Annual Demand Quantity (ADQ)

AMSC

Thermal Relay 5945-006660964 320 EA C

Identify end item, weapon system, or class of item: NSN: 5945-006660964 is a thermal relay used on the Nuclear Reactors Program (21N) weapon system. A thermal relay is used to protect an electric motor from overheating. The overload relay consists of in line bi-metal strips connected to a set of contacts that will bend when heated up. With the different expansion properties of bi-metal strips, bending causes the contact to open and interrupt the contactor’s coil supply. Once cooled down, the relay can be reset.

There items are being procured as a firm-fixed price, long-term, Indefinitie Quantity Contract (IQC) to include a base period of three (3) years with two (2) one-year option periods to be exercised at the discretion of the government.

ANNUAL DEMAND VALUE:

ESTIMATED BASE PERIOD VALUE: _

ESTIMATED BASE PERIOD WITH TWO OPTION PERIODS VALUE:

MAXIMUM CONTRACT VALUE: _

MINIMUM CONTRACT VALUE:

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

[X] 10 U.S.C. 2304(c)(1) – Only available from one responsible source or a limited number of sources

a. Brief narrative supporting the situation and weapon system:

This is a DLA stock procurement of NSN: 5945-006660964 going to DLA Depot locations. This Thermal Relay is used on the Nuclear Reactors Program weapons system.

5. If restricted to the only source(s) of supply include source(s) and CAGE code: DRS Naval Power Systems, Inc.; cage:

27192 – P/N: 6957ED14-1A and Indal Technologies, Inc.; cage: 36334 – P/N: 8007-012-1.

The use of the authority cited is based on:

[X] AMC 1. Suitable for competitive acquisition for the second or subsequent time.

[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.

Based on the AMC/AMSC 1/C, the part requires engineering source approval by the design control activity and the Government does not own the data or the rights to the data. DRS Naval Power Systems (27192) and Indal

Technologies, Inc. (36334), are currently the only sources that possess the technical data necessary and are approved by the design control activity to manufacturer this item for DLA and military service. The product specialist confirmed the AMC/AMSC of this NSN on March 30, 2020 as noted in the attached technical certification (Attachment I).

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

[X] The acquisition will be synopsized on or about April 15, 2020 for 15 days. At the completion of the synopsis period, the solicitation will be available on the DLA Internet Bid Board System (DIBBS) for 30 days.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable. The buyer will utilize price analysis techniques such as manufacturer/dealer competition or comparison to past purchases. If required, certified cost/price data or other than certified cost/price data may be requested from the offerors.

Based on the mentioned techniques, the contracting officer anticipates the cost to the Government to be determined fair and reasonable.

8. Market Research: Market Research was conducted on/during: September 24, 2019 to March 31, 2020. A previous J &

A from RFP: SPE7M218R0048 (Attachment II) was reviewed. This thermal relay, NSN: 5945-006660964, is a code and part number item and shows two (2) approved sources. This critical application NSN is coded to the weapons system for the Nuclear Reactors Program. The product specialist conducted a review on March 30, 2020 and confirmed the approved sources for this NSN are DRS Naval Power Systems (27192) and Indal Technologies, Inc. (36334).

The buyer reviewed procurement history of this NSN (Attachment III). This includes a recent previous large purchase and several small purchase buys. Since 2015, all buys have been to Jo-Kell, Inc. (5V049), quoting as a dealer for approved source, DRS Naval Power Systems (27192). These include multiple small buys and a large purchase to Jo-Kell, Inc. While the previous buys have reflected offers from more than one offeror, they have all seemed to offer the product from cage 27192; and have been solicited as unrestricted acquisitions.

A Sources Sought Notice was posted to the government-posting website of www.beta.sam.gov, on March 12, 2020 until March 19, 2020, with interested vendors advised to contact the buyer. No responses were received.

Market Survey requests were sent to the approved sources and previous small business dealers as past awardees. Market Surveys were sent to: approved sources DRS Naval Power Systems (27192) and Indal Technologies, Inc. (36334) and past awardees Jo-Kell, Inc. (5V094) and Wesco Distribution, Inc. (2B094)

Type of information requested: contractor size and status, willingness to enter into a long-term contract (LTC), commerciality of the item, and willingness of the contractor to provide certified cost or price data.

Market Surveys no response: Cages: 27192 and 2B094.

Market Surveys response received: Cages: 36334 and 5V049.

Market Survey responses: Jo-Kell, Inc. (5V094): This distributor for the large business manufacturer, DRS Naval Power Systems, returned the market survey indicating they are a small, woman owned business. They are interested in pursuing an LTC for this item, Their survey indicates the item not to be commercial, although the dealer indicated this item is on the DRS Naval Power System price list for distributors.

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

Indal Technologies, Inc. (36334): This manufacturer did not complete and return a market survey; however, they did advise the buyer that their part number is a valid and available item. They did not respond to the buyers request to confirm their interests in submitting a proposal on potential solicitation.

The RFP solicitation will be issued with a delivery requirement of 300 days, FOB origin (FDT) and inspection/acceptance at destination requirements.

The buyer conducted internet research, including the General Services Administration (GSA) website. No beneficial information was located. This thermal relay part is listed in a product catalog from DRS Naval Power Systems website for their Marine Systems product line.

Information regarding the commerciality of the item(s): The buyer sought to clarify the Jo-Kell, Inc.’s reference to a price list for this item to confirm commerciality and the vendor supplied a screen print of an internal price list made available to OEM distributors. While they did provide an invoice in which they sold this item to a company outside of the government, that company is also a government contractor. This information is insufficient to determine the item commercial.

Additionally, Internet research did not reveal any commercial sales history, the NSN has an AMC/AMSC of 1/C, a blank SAP COTS status, and zero (0) results found on GSA Advantage site. Therefore, NSN 5945- 006660964, due to the lack of information obtained and in accordance with FAR 2.101, is determined to be non-commercial. Previous procurements of this NSN have found this item to be non-commercial.

Additional facts supporting other than full and open competition are:

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 (Technical Certification, attachment I).

The data presently available reflects the minimum needs of the Government. The buyer received notice of the technical review dated 03/30/2020 for this item. This NSN is designated as a critical application item.

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

Jo-Kell, Inc. (5V049)

This item is subject to the following methods of locating additional sources:

Efforts to Qualify Additional Suppliers for future procurements include the following: Any new vendor who decides to pursue source approval will be directed to the Competition Advocate's Source Approval Program.

The Competition Management Office (CMO) would encourage interested parties to submit Source Approval Request (SAR) for this item if it should later be determined that future buys of subject NSN are in the best interest of the Government.

The solicitation contains the DLAD Procurement Notes L04 and M06; Offers for Part Numbered Items and Evaluation of Offers for Part Numbered Items.

The previous large purchase was made solicitation SPE7M -18-R-0048 for contract SPE7M2-18-C-0048. The J&A is attached.

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.

Joseph A. Werstak Date Contracting Officer

APPROVAL/CERTIFICATION

I have reviewed and approve this justification.

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

[ ] Up to $700,000 Contracting Officer

[X] $700,000 to $13,500,000 Competition Advocate

ATTACHMENT:

1. Technical Certification

2. Justification and Approval for SPE7M218R0048

3. Procurement History

WERSTAK.JOSEPH.A.

1283966654

Digitally signed by

WERSTAK.JOSEPH.A.1283966654

Date: 2020.04.21 10:08:47 -04'00'

HOPSON.LILLI.A.1230

127324

Digitally signed by

HOPSON.LILLI.A.1230127324

Date: 2020.04.24 10:36:58 -04'00'