SPE7MX21D5022 Justification - Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (J&A)

LONG TERM CONTRACT (LTC) PROJECT CM20199074

SOLICITATION SPE7MX-21-R-X004

OCTOBER 26, 2020

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

ORIGINAL

1. Defense Logistics Agency (DLA) Land and Maritime (L&M) is the contracting activity.

2. The action being approved is the acquisition of supplies on an Other than Full and Open (Unrestricted) competition basis. The part in this initiative has been determined to be commercial and will be procured utilizing the procedures found in Federal Acquisition Regulations (FAR) Subpart 13.5 – Simplified Procedures for Certain Commercial Items. A J&A is required for sole source, code & part number acquisitions.

3. The supply required to meet the using activity's needs is described as follows:

This solicitation is for one (1) National Stock Number (NSN):

Explanation of Chart Column Header Names and Abbreviations:

CLIN: Contract Line Item Number NSN: National Stock Number CAGE: Commercial and Government Entity Number P/N: Part Number U/M: Unit of Measure

EA = Each ADQ: Annual Demand Quantity AMC: Acquisition Method Code (See Section 5 for additional detail) AMSC: Acquisition Method Suffix Code (See Section 5 for additional detail) QCC: Quality Control Code - DAA

First Position: D = Standard Inspection Second Position: A = No Quality Subsystem Requirements Third Position: A = No Specific Requirements

PIC: Place of Inspection Code 2 = Inspection/Acceptance at Destination

NAICS: North American Industry Classification System Codes 334310 Audio and Video Equipment Manufacturing; Employee Standard: 750

WSDC: Weapon System Designator Code and end item:

EZN – Ticonderoga Class CG (47)

The Federal Supply Class (FSC) code for this item is:

o 5965 Headsets, Handsets, Microphones and Speakers

The scope of this solicitation, and resulting contract, is Government supply support for NSN 5965-01-597-8718, as listed in Solicitation SPEMX-21-R-X004 Attachment 2 (Pricing and Delivery Spreadsheet). The proposed action is for the solicitation and award

CLIN National Stock Number (NSN) Item Approved Source(s) CAGE Business

Size Part

Number U/M ADQ AMC/

AMSC QCC PIC NAICS WSDC

0001 5965-01-597-8718 Headset - Microphone DRS Technologies Canada 38200 Large 902164-1 EA 757 3Z DAA 2 334310 EZN of a Firm Fixed Price (FFP), Indefinite Delivery Contract (IDC), to consist of three (3) base years and two (2) one-year (1-year) option periods. The option years may be exercised at the discretion of the Government.

The estimated values of the solicitation, shown below, were taken from the Max-Out Values tab of the Project Data Pull, supplied by the Sourcing Strategy Specialist on 10/01/20. The Annual Demand Value (ADV) total is taken from the field named REC_

MAX_VALUE_1YR:

These contract minimum and maximum figures will be used as the contract values within the solicitation, and are for the life of the contract. The expected overall estimated contract maximum amount will be The maximum value is calculated as ADV * 6, which allows for unexpected surges in demand. The total anticipated guaranteed minimum for this acquisition is which is calculated as 1% of the total ADV. The contract minimum will be held in reserve by the Government.

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

10 U.S.C. 2304(c)(1) o (c) The head of an agency may use procedures other than competitive procedures only when— o (1) the property or services needed by the agency are available from only one (1) responsible source or only from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency.

The Government requires spare parts that are form, fit and functionally interchangeable with those currently used on the supported weapon system.

There are no known pending source approval requests with Engineering Support Activities (ESA) for this NSN.

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

The use of the authority cited is based on:

Acquisition Method Code (AMC) 3: Acquire, for the second or subsequent time, directly from the actual manufacturer.

Acquisition Method Suffix Code (AMSC) Z: This part is a commercial/nondevelopmental/off-the-shelf item. Commercial item descriptions, commercial vendor catalog or price lists or commercial manuals assigned a technical

NSN

Estimated Total

Base Year 1

(ADV)

Estimated 3 Year Contract

Value (ADV * 3)

Estimated 5 Year Contract Value

(ADV * 5)

Contract Maximum

(ADV * 6)

Contract Minimum

(ADV * 0.01)

5965-01-597-8718

CLIN National Stock Number (NSN) Item Approved Source(s) CAGE Business

Size Part

Number 0001 5965-01-597-8718 Headset - Microphone DRS Technologies Canada 38200 Large 902164-1 manual number apply. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources are available, AMCs 1 or 2 are valid.

, a Product Specialist at DLA L&M FLBC/LTC, completed a technical review for this item on 07/20/20. was contacted on 10/05/20, and asked to confirm the AMSC Code of Z and that this item is Commercial Off-The-Shelf (COTS). She responded the same day, stating that “This NSN was made commercial by the ESA. I see it available on the internet and would have to agree that this item is commercial.” (See J&A Attachment 1 for information received from )

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

Market research efforts are detailed in Section 8.

A Sources Sought notice, which included a market survey, was posted on the beta.SAM.GOV web site from 10/07/20 through 10/14/20, with no responses received.

A synopsis was posted on the beta.SAM.GOV web site on 10/23/20, and will run through

11/08/20.

On the first business day after the close of the synopsis, currently scheduled to be

11/09/20, the solicitation will be posted on the internet, via the DLA Internet Bid Board System (DIBBS). The solicitation will run for a period of 30 days.

On the day that the solicitation is posted to DIBBS, a copy of the solicitation will be e-mailed to the sole approved source for this NSN, DRS Technologies Canada (CAGE 38200). There are no known dealers/distributors for this part, and DRS Technologies Canada has received all prior contracts for this item. (See J&A Attachment 2 – Procurement History)

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

The total value of this acquisition is less than the $2,000,000.00 threshold for Certified Cost or Pricing Data (CCPD). Therefore, CCPD will be not be required for this acquisition.

The price analysis of historical contracts, as well as current and future years will be based on the Global Insights Producer Price Index (PPI) forecasts. The Global Insights PPI forecast data is provided by the DLA L&M Pricing Support group, and provides timely, accurate price & cost analysis, allowing procurement professionals to understand supplier cost structure and better negotiate supplier proposals.

Based upon the above techniques to be used, the Contracting Officer hereby anticipates costs to the Government will be fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

Market research was conducted to find the following:

o Researching items on-line via the internet for availability and features.

o Reviewing previous procurements of items and determining previous acquisition methods.

o Determining vendor interest in long-term contracting for this NSN.

and open competition. The data presently available reflects the minimum needs of the Government.

As noted in Section 5, the Product Specialist supplied a technical certification on 07/20/20, which included a Memo for Record (MFR) - Justification for Restricting Competition, indicating that the AMC/AMSC codes had been reviewed.

A DD2579 was referred to the DLA L&M Office of Small Business Programs.

a Small Business Specialist at DLA L&M concurred with the Unrestricted solicitation and signed the document on 10/20/20. noted that review by the Small Business Administration (SBA) was not needed, as a DLA L&M Blanket DD2579, recently extended to September 30, 2021, applies for the following reasons:

o A single NSN solicitation valued over the SAT (SEPA $750K) but less than $5M, o The item has an AMC of 3, o There is only one other-than-small-business (OTSB) approved source listed in the

Acquisition Item Description for which an SBA Class Waiver to the Non- Manufacturer Rule does not apply.

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

DRS Technologies Canada (CAGE 38200)

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

Procurement History: DRS Technologies Canada has received all prior contracts for this item. A review of the previous 12 contracts for this item, covering the period of 2018 to 2020, found that DRS Technologies Canada was the only offeror.

All of the prior procurements were awarded under simplified acquisition procedures, either manually or via automated orders. A review of the prior acquisitions in Records Management found that a J&A has not been previously utilized.

The Government will continue to conduct market research, to see if changes occur in the marketplace that would enable future actions for this item to be competitive. This solicitation contains the DLAD Procurement Note entitled Offers for Part Numbered Items (L04). This clause provides that the Government will consider alternate offers, and that alternate offerors should submit a source approval request (SAR) package that will be referred to the engineering activity. If the current procurement cannot be delayed, due to mission requirements, and to allow sufficient time for the engineering activity to determine whether to approve the alternate offer, the SAR package will be considered for future awards.

At this time, the requirement/guidance in DFARS PGI 206.304 has been fulfilled.

Attachments:

1. Technical and commercial review documentation

2. Procurement History

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.

Robert Varcho Acquisition Specialist/Contracting Officer

APPROVAL/CERTIFICATION

I have reviewed and approved this justification:

Competition Advocate

APPROVAL REQUIREMENTS

( X ) Up to $700,000 Contracting Officer ( X ) $700,000 to $13,500,000 Competition Advocate ( ) $13,500,000 to $93,000,000 Head of the Contracting Activity (HCA) ( ) Over $93,000,000 Senior Procurement Executive (AQ)

VARCHO.ROBER

T.J.1365197896

Digitally signed by

VARCHO.ROBERT.J.1365197896

Date: 2020.10.26 14:28:33 -04'00'

SHEARER.MARY.E.1

250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2020.10.30 10:51:31 -04'00'