JA6.3021SPE7MX21RX025.pdf

SPE7MX-21-R-X025

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 a Multi-NSN 5-year IQC successor project to Auto-IDC(s) SPE7M520D60EX for NSN 5965-01-580-5297 expiring 03/19/2021 and SPE7M520D60PH for NSN 5985-01-669-5678 expiring 05/18/2021, both issued below the Simplified Acquisition Threshold. These four (4) items included on CM20262143 are designated as DLA FY21 AAA SIG priority NSNs with CLIN 0001 designated a KID 1 and CLIN(s) 0002-0004 as KID 4 priority items. The items on this project are antennas and a headset for support of the Thales manufactured AN/PRC148 Family of Multi-Band Tactical Radios (R1A) utilized by the US Military. The chart below reflects the project NSNs along with their ADQ, AMC/AMSC, and estimated values.

ICP NSN DESCRIPTION

EST.

YEARLY

QUANTITY

(ADQ)

EST.

ANNUAL

VALUE

(ADV)

EST.

TOTAL

CONTRACT

VALUE

AMC AMSC

DSCC 5965-01-580-5297 Headset, Micro 316 3 D

DSCC 5985-01-669-5678 Antenna 423 3 D

DSCC 5985-01-669-5685 Antenna 165 3 D

DSCC 5985-01-679-9218 Antenna 289 3 D

Totals

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:

NSN DESCRIPTION PART CAGE Approved Source 5965-01-580-5297 Headset, Micro 1600598-3 (23386) Thales Defense & Security 5985-01-669-5678 Antenna 1600814-1 (23386) Thales Defense & Security 5985-01-669-5685 Antenna 85743-001 (23386) Thales Defense & Security 5985-01-679-9218 Antenna 1600942-1 (23386) Thales Defense & Security

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

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

The use of the authority cited is based on:

(x) 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. AMCS 3, 4, or 5 are valid.

The NSNs listed in Section #3 above are available only from the coded manufacturer Thales Defense & Security (23386) under the part numbers listed above in Section #5. Thales Defense & Security solely owns the technically data rights to these items and the end items they support. Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. These class IX items were determined commercial of a type by the Contracting Officer with no additional known manufacturing sources for these tactical radio components. Thus, it is essential that the Government obtain only Thales Defense & Security part numbered items for these replacement parts to assure there is a configuration control; operability; and safety of the higher-level assemblies these items are used as repair spares on, the AN/PRC148 Family of Multi-Band Tactical Radios (R1A).

DLA Land and Maritime SAPD Product Specialist initially reviewed the project NSNs on 09/23/2020 and then performed an updated review on 03/12/2021. The PS certified that the supporting data, including the AMC/AMSC codes and approved sources, are complete and accurate. Further, the PS advised that the data needed to acquire these parts 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. 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 1 day prior to solicitation opening. At the completion of the synopsis period, this Request for Proposal will be solicited on the internet for 15 days via the DLA Internet Bid Board System (DIBBS). All 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 and any available commercial pricing.

8. Market Research/Efforts to Obtain Competition:

A Sources Sought Notice was posted to beta.sam.gov on 12/10/2020 and closed 12/18/2020 with no response. Formal market survey was initiated by DLA Land & Maritime ZAA Branch on 09/18/2020 and re-started by the Contracting Officer in December 2020 with formal market survey sent to Thales Defense (23386). Follow-up survey clarifications with Thales were completed on 03/04/2021. Only Thales Defense & Security has responded and whom the Contracting Officer expects to respond to the solicitation as they have indicated they wish to participate and are the sole approved source. 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.

Thales Defense & Security (23386) is a large electronics / communications equipment manufacturer located in Clarksburg, Maryland. Thales is the approved sole source for each of the four (4) NSNs contained on this project. Formal market survey was completed by ZBB Branch with Contract Manager who returned a completed and returned survey to DLA on 01/13/2021 and clarified their responses and expressed their continued interest in this project to ZBB Branch on 03/04/2021 indicating the following key information.

i. Interested in a Long Term Contract ii.

iii. Thales Defense & Security is a subsidiary of Thales (Euronext Paris) with 500 employees.

iv. Thales is a global manufacturer with 80,000 employees in 68 countries.

v.

vi. Initial survey response indicated the items are not commercial per FAR 2.101(b), however further research indicated that Thales considers the project items to be “of a type” they sell commercially to the public.

vii.

Commercial Determination: In accordance with FAR 10.002(b) and FAR 2.101, Definitions, a review was conducted of the item description(s) to determine if commercial items or non-developmental items are available to meet the Government’s needs or could be modified to meet the Government’s needs. The items on this project are Class IX spares (antennas and a microphone headset) for support of the Thales manufactured AN/PRC148 Family of Multi- Band Tactical Radios (R1A) that is utilized by the US Military but are available for purchase by non-military customers by purchasing from Thales Sales. Thales Defense & Security (23386) is the designated sole approved manufacturer of the end item as well as the spares components contained on this project.

During market research Thales stated that they sell the project items and similar ones to both Government and public users direct and not through dealers. Thales indicated that the items contained on this project are of a type with minor modification sold commercially to the public and provided their 2020 commercial price list and commercial sales invoices for their similar items. Both the project NSN items and the commercially similar items are contained in the Thales Communication Systems Product Catalog published at www.thalesdsi.com.

The major differences between the project NSNs and the similar items are the operational depth (2M versus 20M) and the reception frequency. Both project items and the commercially similar items are manufactured on the same production lines using the same methods, tooling, and raw materials with no prevention on selling any items to the public. Commercial applications include firefighting, commercial diving, mining, and other applications where handheld tactical communications are important.

The Product Specialist updated the item description and provided his recommendation that these items fall under the definition commercial “of a type” provided in FAR Part 2 and not COTS. The microphone headset and radio antennas being procured on this project meet the definition of commercial found in FAR 2.101 “Any item, other than real property that is of a type customarily used by the general public or by non-governmental entities for purposes other than governmental purposes”.

Based on the information above and on information obtained in market survey, commercial sales information, and the NSN’s specification requirements; it is the Contracting Officer’s determination that the NSNs contained on this project is of a type sold commercially. FAR Part 13.5, Simplified Procedures for Certain Commercial Items, solicitation procedures will be applied.

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: Thales Defense & Security (23386)

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 the 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 recent 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: 2021.04.08 10:08:20 -04'00'

SHEARER.MARY.E

.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2021.04.09 10:48:21 -04'00'