SPE7MX21R0011 - reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX-21-R-0011

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

P a g e | 2 adequate, economical description of the material for a competitive solicitation. AMCS 3, 4, or 5 are valid.

On October 26, 2020, the Product Specialist, confirmed that Tri-Tec (56349), PN: 88001-8, and Pima Valve (30263), PN: NB-25025-E 8-HH-325, are the only approved sources known to possess the required data for this NSN. He certirfied the AMSC of D is correct, that DLA does not have a complete, unrestricted data package, and that all means to obtain a technical data package adequate for manufacture of the item have been exhausted. He certified that justification for limiting competition are current and accurate.

On December 29, 2020, then confirmed that Pima Valve is no longer in business and that Hunt Valve Company (11859) acquired Pima Valve. The new part number for Hunt Valve is 5803. The current sources are Tri-Tec (56349), PN: 88001-8 and Hunt Valve Company

(11859) PN: 5803.

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

[X] The acquisition w i l l b e synopsized on or about November 4, 2020, and will be Solicited for 30 days via the DLA Internet Bid Board System (DIBBS).

[X] Dealers of the manufacturers, if any, will be solicited.

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

This will be a five-year, firm fixed price, indefinite delivery, indefinite quantity (IDIQ) contract subject to FAR Part 15. The five-year period is inclusive of a three-year base period, and two separately priced, one-year option periods. As such, the price analysis for future years will be based on the Global Insights Producer Price Index (PPI) forecasts. The Global Insights PPI forecast provides timely, accurate price and cost analysis, and historical records for thousands of commodity prices and wages around the globe, allowing procurement professionals to understand supplier cost structure and better negotiate supplier quotes. Based on the results of market research, the buyer anticipates receiving more than one offer, and expects adequate price competition between dealers at time of evaluation of offers. The buyer will request other than certified cost/price data from offerors if deemed necessary at time of offer evaluation.

Based upon the above techniques, the Contracting Officer hereby determines that the anticipated cost to the Government will be fair and reasonable.

8. Market Research/Efforts to Obtain Competition: DLA Land and Maritime conducted market research, consisting of a market survey sent on October 5, 2020, posting a Sources Sought on Beta-SAM on October 6, 2020, researching the procurement history, the MM03 transaction in EBS, and searching the internet for any available information on the NSN. The Market Survey was sent to three vendors, the current contract holders, Pima Valve (30263), and Hunt Valve (11859), and Tri-Tec Manufacturing LLC (56349), an approved source of the item. Only Hunt Valve responded to the Market Survey. See attachment #1 for a summary of their response.

The survey consists of approximately 20 general questions. Majority of questions involved check boxes and (yes or no) answers, miscellaneous questions and final

P a g e | 3 comment section at the very end of the questionnaire. The market survey sought and gathered information regarding option periods (pricing and desirability).

Information sought on the market survey also included business size, quantity sensitivity of the item, if the items are carried in the inventory, if a dealer/distributor network exists, the anticipated unit price and delivery of the item, and if the items are commercial.

A Sources Sought Notice was posted on Beta-SAM on October 6, 2020, which included the market survey as an attachment. To date, only one response to the Sources Sought has been received. Triman Industries (0ZBE8), a small business, responded. They are the authorized distributor for the OEM, Tri-Tec Manufacturing. In this response, Triman Industries indicated that they would be submitting a quote on behalf of Tri-Tec. A summary of their response can be found in Attachment #1.

In the notice, it stated that anyone not providing an approved source would need to submit a Source Approval Request (SAR). The main purpose of the Sources Sought was to provide an opportunity to other potential sources to manufacture this NSN, in order to promote competition. Sources that are not approved for this NSN are required to submit a Source Approval Request (SAR) to DLA Land and Maritime. While the approval of the SAR would not necessarily occur for this procurement, it could be reviewed for future procurements. For this procurement, there were no SAR packages submitted. As part of the Sources Sought, a market survey was included to allow potential offerors an opportunity to provide feedback on the current marketplace for this acquisition.

In addition to the publishing of a Sources Sought notice and sending the Market Survey, the Contract Specialist also researched the procurement history for the item on the proposed solicitation. Past procurements for the NSN were set-aside for small business, with Hunt Valve Company being the prominent awardee.

A search of the internet did not find this NSN available to the public. A review of the SRM MM03 for this NSN shows the Commercial Off the Shelf (COTS) field as blank.

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

[X] Based upon the technical certification on file in DLA Land and Maritime –VEP, a complete TDP is not available and cannot be developed to permit full and open competition. No data is available to the Government.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) Triman Industries (0ZBE8), offering Tri-Tec’s part and Hunt Valve Company (11859), offering their own part.

11. The following actions are being taken to identify additional sources before any subsequent acquisitions are made: (If none, so state and explain why not.)

[X] Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items [X] Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items

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

P a g e | 4

[X] The Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions for this item to be competitive.

12. Per DFARS 206.304 (a)(4)(S-70) and PGI 206.303-2(b)(i)(B), Justification and approval for previous acquisition is attached. All planned actions noted on the previous J&A appear to be completed.

CERTIFICATION

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief. The estimated total value of the J&A is

JOHN W. HUTCHESON ___________ __ January , 2021___ Contracting Officer Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

[ ] Up to $750,000 Contracting Officer

SHEARER.MARY

.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702

Date: 2021.01.07 11:07:09

-05'00'

HUTCHESON.JOH

N.W.1073665759

Digitally signed by

HUTCHESON.JOHN.W.107366

Date: 2021.01.06 11:56:23

-05'00'

P a g e | 5

[X] $750,000 to $15,000,000 Competition Advocate

[ ] $15,000,000 to $100,000,000 Head of Contracting Activity (HCA)

[ ] over $100,000,000 Senior Procurement Executive (AQ)

Attachments:

1 – Market Research Summary 2 – Copy of Sources Sought Notice 3 – Tech Certification 4 – Previous Procurement J&A