SPE7MX20R0104 - Redacted J and A.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX20R0104

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

5. The subject NSNs are restricted to DRS Naval Power Systems Incorporated (CAGE 27192). The authority for using other than full and open competition is FAR 6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements qualifications”. It is essential that the Government obtain these parts only from DRS Naval Power Systems Incorporated because it is essential that the Government only obtain source approved parts that have been tested and verified to be used in specific higher level assemblies. Those higher assemblies include naval vessels. To insure operability in accordance with military requirements of the stated higher assemblies, the spare/replacement parts incorporated in the higher level assembly must be the same form, fit, and function as the parts currently used in these higher assemblies. This is supported by the NSN Acquisition Method Code (AMC)/Acquisition Method Suffix Code (AMSC) of 3C and 3D. The 3C coded parts must be provided by an engineering source approved by the design control activity. DRS Naval Power Systems Incorporated is the only known source for the 3C coded items with Project CM19183003. DRS Naval Power Systems Incorporated is the only company known to possess the technical data and/or rights in that data required to manufacturer the items being solicited for the 3D coded items. Because the Government does not have full rights to the drawings, the drawings cannot be used to provide full and open competition.

The use of the authority cited is based on:

(X) AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

The following is the AMSC description.

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.

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

, Quality Assurance Specialist, has verified on February 6, 2020 that DRS Naval Power Systems Incorporated rated is the only known source and verified the AMSC/AMC codes. At the time of the certification, all NSNs referenced in Attachment 1 are included in Project CM19183003. NSNs 5945005676264 and 5945008375279 were removed from the project because the items are the only commercial NSNs in the product mix of Project CM19183003. Further, Market Research has demonstrated there are no other known sources capable of providing the subject items.

NSN AMC AMSC

5945009363932 3 C 5945014690299 3 D 6110010166247 3 C 6110013654282 3 D

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

The acquisition was synopsized May 8, 2020. A solicitation will be issued on or about August 13, 2020. The solicitation will remain open for thirty days. In addition to notifying the approved source for the item of the Request for Proposal (RFP), dealers of the manufacturer will be solicited.

Sources Sought Posted (See Section 8 for more information concerning Sources Sought).

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

This will be a three (3) year, firm fixed price Indefinite Quantity Contract. The three-year period is inclusive of a three (3) year base period and no options. Certified Cost or pricing data as directed by FAR 15.403-4 is not required because the estimated value is under $2,000,000. Price analysis will occur comparing the offer(s) received with past acquisition history, movement of the producer price index, and comparisons to similar items. Based upon the above techniques to be applied, the Contracting Officer anticipates costs to the Government will be fair and reasonable. The NSNs in this initiative are determined not to be commercial.

8. Market Research/Efforts to Obtain Competition:

In an effort to obtain competition and satisfy FAR 10.001, the solicitation will be synopsized and a copy will be furnished to any vendor expressing interest. Additional sources may be identified by the DLA Land and Maritime – Office of Small Business Programs (DU) and Small Business Administration – Procurement Center Representative (SBA-PCR), and will be solicited when practicable. A Sources Sought notice was posted on Federal Business Opportunities (BetaSam) on April 21, 2020 with Project CM and remained open until April 28, 2020. No additional sources of supply were identified as a result of the notice. The main purpose of posting a Sources Sought notice is to provide an opportunity to other potential sources to manufacture the subject NSNs in order to promote competition. All interested parties will be added to the source list to be solicited.

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

A market survey occurred on 5/27/2020.

Total number of contractors contacted: 2 Names of dealers contacted: DRS Naval Power Systems Incorporated (CAGE 27192), Jo-Kell Incorporated (CAGE 5V049) Name of approved source contacted: DRS Naval Power Systems Incorporated (CAGE 27192) Names of vendors responding: Jo-Kell Incorporated and DRS Naval Power Systems Incorporated Techniques used to conduct survey: Market Surveys sent via email, phone calls, internet research.

Types of information requested: The market survey sought information on contractors’ capabilities, vendor size and business status information, distributor involvement, researching/information gathering on commerciality of the items, delivery information, interest in Economic Price Adjustments (EPA), Base year and option years; optimal lengths, possible price/cost advantages, and interest in a multi-year contract and the duration of such a contract.

Summary of information received:

DRS Naval Power Systems Incorporated (CAGE 27192)

Large Business Manufacturer States items are not commercial

Jo-Kell Incorporated (CAGE 5V049)

Small Business Dealer States item is noncommercial

The Contracting Officer has determined the NSNs with Project CM19183003 not to be commercial items. This determination is based upon market research and data obtained from the Product Specialists.

9. 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.

The NSN included in this solicitation were reviewed by the Strategic Acquisition Programs Directorate (SAPD) Product Specialist during the project development phase. No additional sources were identified during that review.

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 & 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 info for both the DLA Value Engineering program and the DoD Value Engineering program.

10. A listing of sources if any, indicating an interest in the acquisition is:

DRS Naval Power Systems Incorporated (34623) Jo-Kell Incorporated (5V049)

11. In addition to the specific actions being taken by Technical Support personnel to overcome barriers to competition before any subsequent acquisitions or recertification of class determination are made, these items are subject to the following methods of locating additional sources:

(X) Source Development Review and a Sources Sought notice was posted on https://beta.sam.gov/ on April 21, 2020 and closed April 28, 2020. No responses were received in response to the posting.

(X) Solicitation SPE7LX20R0040 will include notes L04 (Offers for Part Numbered Items) and M06 (Evaluation of Offers for Part Numbered Items).

(X) The solicitation will be posted on the DLA Internet Bid Board System (DIBBS} for 30 days.

The Government will continue to conduct market research to see if changes occur in the marketplace that would enable future actions for these items to be competitive. The buyer conducted an online search and found no indication the items are for sale to the general public and the product specialist indicated the subject NSNs are not for sale to the general public or the NSNs are of a commercial type.

Attachments:

1. NSN and Annual Demand Value

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.

______________ 9833_____________8/21/2020 Contracting Officer Phone Date Michael L. Shirley

Approval/Certification

I have reviewed and approve this justification. The estimated total value of the J&A is

Competition Advocate Phone Date

SIGNATURE

APPROVAL REQUIREMENTS

(X) $700,000 to $13,500,000 Competition Advocate

SHIRLEY.MICHAE

L.L.1230150806

D g ta ly signed by SHIRLEY.MICHAEL L.1230150806 Date: 2020.08.21 11:36:23 -0 00'

SHEARER.MARY.E.1250702449

Digitally signed by

SHEARER MARY E.1250702449

Date: 2020.08.25 13 52 33 -04'00'