JA6.302-1SPE7MX21R0045.pdf

SPE7MX-21-R-0045

Source Selection Information – See FAR 2.101 and 3.104

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

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:

The subject solicitation is for the establishment of a 5-year IQC covering NSN 5930-00-969-9764 (Switch, Pressure) with an ADQ of 133. This FY 21 CORE NSN is managed by DLA Land & Maritime and is an electronic component utilized on US Navy E-2C Hawkeye (17N) and C-2A Greyhound (BPN) fixed wing The AMC/AMSC is 1/C with estimated values as shown below.

ICP: DLA Land & Maritime

ESTIMATED ADV:

ESTIMATED TOTAL VALUE (3-Year+ 2 Options):

MAXIMUM CONTRACT VALUE:

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

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

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

Hydra-Electric (98505) part# 1111 and Aerospace Control Products (58918) part# SPDG6475 are currently the only ESA approved materials/sources for the NSN listed in Section #3 above.

The use of the authority cited in other than 10. U.S.C. 2304(c)(1) above:

(x) AMC 1. Suitable for competitive acquisition for the second or subsequent time.

The use of the authority cited is based on:

(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. Only Hydra-Electric (98505) and Aerospace Control Products (58918) possess the rights to the technical data/drawings and/or the data itself necessary to produce the required item.

DLA Land and Maritime SAPD Product Specialist reviewed the project NSN on 12/16/2020 updating the AMC/AMSC to 1/C and certifying that the supporting data and approved sources are complete and accurate. The SAPD Technical Certification is included as J&A Attachment #1.

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

(x) The acquisition will be synopsized on beta.sam.gov for a period of 15 days prior to solicitation opening. At the completion of the synopsis period, this Request for Proposal will be solicited on the internet for 30 days via the DLA Internet Bid Board System (DIBBS). The subject solicitation is 100% set-aside for small business, only small business vendors may submit a proposal, which shall be considered by the agency.

(x) The item contained in this procurement is limited to approved code and part numbered items, award is not limited to the manufacturer, and dealers can also receive the award.

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

The basis for the Government’s fair and reasonable price determination is anticipated to be PPI based price analysis including the analysis of other than cost or price data such as informal cost break-downs and/or material invoices with final negotiated pricing reviewed in comparison with recent past buy history.

8. Market Research/Efforts to Obtain Competition:

A Sources Sought Notice was posted to beta.sam.gov on 12/16/2020 and closed 12/24/2020 with no response. Initial market survey/research for CM20350002 was attempted by DLA Land & Maritime ZAA Branch with ZBB Branch completing formal market survey with Transaero (27541) the authorized distributor of Aerospace Control Products (ACP) (58918) and Dircksen & Associates (7S371) the representative for Hydra-Electric (98505). See the electronic contract file in Records Management for the complete market surveys from both Transaero and Dircksen. The Contracting Officer attempted to obtain a market survey with the approved sources, however the Government was deferred to their dealer/reps for survey responses. The approved sources are not expected to participate directly. Other market research efforts included Contracting Officer review of the purchase history, coordination with DLA Land and Maritime Small Business Office, and internet market research. A summary of the market survey results is documented below.

1. Transaero (27541) is a small business distributor for approved source Aerospace Control Products (ACP) (58918) located in Melville, New York. Program Manager returned a completed formal survey to DLA on 12/15/2020 with follow-up completed 01/21/2021 indicating the following key information.

i. Interested in a long-term contract.

ii. Item is not considered commercial per FAR 2.101(b) iii.

iv. Small business / Employees = less than 50 v.

x. Aerospace Control Products (ACP) (58918) indicated that Transaero will respond for them as their exclusive dealer.

xv.

2. Dircksen & Associates (7S371) is a small business representative of approved source

Hydra-Electric (98505) located in Columbus, Ohio. returned a completed formal survey to DLA on 01/26/2021 indicating the following key information.

i. Interested in a long-term contract.

ii. Hydra-Electric does not consider this item to be commercial per FAR 2.101(b).

iii. Dircksen & Associates is the exclusive representative of Hydra-Electric (98505) and they will complete survey and proposal on their behalf.

iv.

v. Dircksen is a small business representative with 3 employees and indicated

Hydra-Electric is a small manufacturer with 100 employees.

vi.

Commercial Determination: NSN 5930-00-969-9764 is an electronic pressure switch used in support of US Navy E-2C Hawkeye (17N) and C-2A Greyhound (BPN) fixed wing aircraft. A review of the COTS field in the material master for the NSN is blank, indicating that the technical community has not made a commerciality recommendation. In addition, the sources responding to the market survey state that they consider the item to be military specific and therefore non-commercial. Lastly, a search of Google for the NSN showed only information tied to Government resellers. Therefore, based on market research results and a search of part publicly available information via the Internet and GSA price lists, the Contracting Officer has determined that this NSN is not commercial and FAR Part 15 will be applied to this acquisition.

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 data presently available reflects the minimum needs of the Government.

10. A listing of sources, if any, indicating an interest in the acquisition is: Transaero (27541) and Dircksen & Associates (7S371).

11. The following actions are being taken to identify additional sources: The solicitation contains DLAD Procurement Notes L04 - Offers for Part Numbered Items and M06 - Evaluation of Offers for Part Numbered Items, which increases competition by permitting the consideration of alternate offers. If alternate offers or capability statements are provided in response to the synopsis, DLA will consider the offeror’s proposal for award after technical approval of the engineering support activity.

12. The Contracting Officer searched the previous awards listed in the contract history in Records Management in E-Procurement for previous Justifications for other than full and open competition (J&A) as required by Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance, and Information (PGI) 206.304, and was not able to locate any J&As as the procurements were all made below the Simplified Acquisition Threshold where J&As were not required. Therefore, applicable past J&A documents could not be included for the approving authority.

In accordance with DFARS PGI 206.304(a)(S-70)(i), the following planned actions to remove any barriers to competition have been completed:

In the past, DLA Land and Maritime has hosted Captains of Industries to bring in industry leaders for particular commodities or weapon systems to help decrease barriers for companies looking to become sources of supply.

A sources sought notice has been issued on beta.sam.gov for a minimum period of five business days.

Buyers continue to conduct market research to ascertain if changes have occurred in the marketplace that would enable items to become competitive.

Solicitations will be posted on beta.sam.gov The solicitation will include the provision entitled “Conditions for Evaluation and

Acceptance of Offers and Part Numbered Items” (currently Procurement Note L04) and “Evaluation of Offers for Part Number Items” (currently Procurement Note M06).

CONTRACTING OFFICER CERTIFICATION

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge.

SCOTT D. KNOWLES Date Contracting Officer, ZBB

Approval/Certification

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

MARY E. SHEARER Date DLA Land & Maritime - Competition Advocate

ATTACHMENTS:

1. TECHNICAL CERTIFICATION

KNOWLES.SCOTT.

D.1251897480

Digitally signed by

KNOWLES.SCOTT.D.1251897480

Date: 2021.02.26 13:07:28 -05'00'

SHEARER.MARY.E.

1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2021.03.10 07:07:04 -05'00'