SPE7MX22RX002-FINAL REDACTED.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITA MX-22-R-X002

DLA Land & Maritime Justification for Other Than Full & Open Competition (October 2020)

[X] 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:

CLIN NSN Brief Description

Acquisition Method

Code

(AMC)

Acquisition Method

Suffix Code

(AMSC)

Annual Demand Quantity

(ADQ)

Estimated Annual

Demand Value (ADV)

3-Year Estimated

BASE Value

5-Year Estimated

(BASE &

OPTIONS)

Value

Contract Maximum*

0001 4320013752315 PUMP,RECIPROCATING 3 D 19

0002 4730010503385 ELBOW,TUBE 3 C 102

0003 4730010530309 ELBOW,TUBE TO BOSS 3 D 25

0004 4730011189371 SWIVEL JOINT,HYDRAU 3 C 46

0005 4730011537913 ELBOW,TUBE 3 D 136

0006 4730011982788 ELBOW,TUBE 3 C 130

* A multiplier of 2.0 was used in the calculation of the Contract Maximum to cover for potential surges in demand.

Identify end item, weapon system, or class of item:

CLIN NSN WSDC LONG NAME

0001 4320013752315 09M ASSAULT BREACHER VE

0001 4320013752315 40N HELICOPTER, SEA KNIGHT H-46

0001 4320013752315 DTF AIRCRAFT, AIRLIFTER C-17A

0002 4730010503385 26F AIRCRAFT, F-16

0002 4730010503385 A4F DRONE, QF-16 AIR SUPERIORITY TARGET PROGRAM

0003 4730010530309 02F AIRCRAFT, PHANTOM F-4

0003 4730010530309 21F AIRCRAFT, FREEDOM FIGHTER F-5

0003 4730010530309 XHN F5

0004 4730011189371 05A HELICOPTER, CHINOOK, CH-47

0004 4730011189371 YYA AIRCRAFT MH-47E SPECIAL OPERATIONS AIRCRAFT

See continuation of table on next page.

SOLICITA 7MX-22-R-X002

0005 4730011537913 26F AIRCRAFT, F-16

0005 4730011537913 CAF ENGINE, AIRCRAFT, J85-GE-21 (F-5E/F)

0006 4730011982788 26F AIRCRAFT, F-16

0006 4730011982788 A4F DRONE, QF-16 AIR SUPERIORITY TARGET PROGRAM

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:

Designed Metal Connections DBA Permaswage USA (14798)

The use of the authority cited below:

[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 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. If one source is approved, AMCs 3, 4, or 5 are valid. If at least two sources are approved or if data is adequate for an alternate source to qualify in accordance with the design control activity's procedures, AMCs 1 or 2 are valid.

[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.

[X]Other: The Government has reserved the right to approve sources and only CAGE 14798 has been approved for this procurement’s NSNs. In addition, per the approved manufacturer parts list for these NSNs in SAP (as received from the Defense Logistics Information Service), only CAGE 14798 has been identified as having the proper complete technical data and manufacturing expertise to supply these items to DLA and to the applicable military service. Additionally, for the AMSC C items, CAGE 14798 is the only source approved by the design control activity. Therefore, competition must be limited to offers of the product of CAGE 14798. The most recent technical review in support of a potential LTC was performed on 11 AUG 2021 for these NSNs. These NSNs were determined to be suitable for an LTC at that time and the technical certificate dated 11 AUG 2021 is attached to this justification (as Attachment #1). The Product Specialist certified on 11 AUG 2021 that the technical information, including the AMC/AMSC codes and approved source, is complete and accurate.

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

[X] The acquisition will be synopsized on or about 25 OCT 2021.

[X] The solicitation will be posted to DLA DIBBS on or about its issuance date of 18 NOV 2021.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable. The resulting procurement action is to be a five-year, firm fixed price, Simplified Indefinite-Delivery Contract conducted under FAR Part 13.5 Simplified Procedures for Certain Commercial Items. The contract will be structured with a 3-year base and two 1-year option periods. There will be multiple quantity ranges included. Offerors will be permitted to propose escalation percentages for years two through five. The Producer Price Indices from the Bureau of Labor Statistics and Global Insight Data will be used in the Price Analysis of offers.

Based on market research, the solicitation is expected to receive multiple offers; therefore, it is expected price competition will exist. Conducting a reverse auction could potentially be used to have offerors compete against each other and further drive down prices. 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:

Describe the market research conducted and the results.

Sources Sought Notice:

A Sources Sought notice, along with a market research survey and spreadsheet, was published to SAM.gov and ran from 14 SEP 2021 to 24 SEP 2021. Wesco Aircraft Hardware Corporation DBA Incora (CAGE 1V757) was the only responder to the Sources Sought Notice. This contractor is interested in the contract. Wesco Aircraft is a large business that would be acting as a distributor providing the OEM’s product. Wesco Aircraft provided information, such as: price breaks, both minimum order & maximum order quantities and estimated delivery schedules. Wesco Aircraft did not submit any support for commerciality.

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

-A market survey was conducted on/during: 14 SEP 2021 to 24 SEP 2021.

-Total number of vendors contacted: Nine -Names of vendors contacted and responding:

Orkal Industries (4M1Q2) Adept Fasteners (1V0G6) ASC Industries (06329) Blue Sky Industries (1BRD5)

-Techniques used to conduct survey: Email transmission and Sources Sought Notice -Types of information requested: Contact information, business size, type of business, interest in a LTC and potential LTC structure, commerciality, minimum and maximum order quantities, quantity sensitivity/price break availability and estimated delivery times.

SOLICITATION 7MX-22-R-X002

-The responses received from the above four vendors are summarized in the table below:

Survey Topics Orkal Industries 4M1Q2

Adept Fasteners 1V0G6

ASC Industries 06329

Blue Sky Industries 1BRD5

Business Size Large Small Small Large Manufacturer or Distributor Distributor Distributor Distributor Distributor

Interested in LTC Yes Yes Yes Yes

Base Term

Options

Commercial Yes Yes No Yes

Price Breaks

Minimum Order Qty

Maximum DO Qty

Delivery Estimates

Information received regarding the commerciality of the item(s): During the course of market research, it was discovered that Orkal Industries would be willing to provide commercial invoices on two different CLINs and a spreadsheet with multiple invoice information and details regarding their commercial aerospace customers for the other four CLINs. The spreadsheet included Customers, Order Dates, Customer POs, Part Numbers, Quantities Ordered, Unit Prices, Invoice Dates and Invoice Numbers. A Commercial Item Determination memorandum has been signed by the Contracting Officer and can be found in the contract file.

Based on the results of the market research and the understanding of the commercial item definition as reflected at FAR 2.101, the Contracting Officer has determined these items to be commercial items in accordance with:

(1) 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, and-

(i) Has been sold, leased or licensed to the general public.

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 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. CAGE 14798 is the only approved source for this NSN.

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

CAGE 1V757 - Wesco Aircraft Hardware Corporation DBA Incora CAGE 4M1Q2 - Orkal Industries CAGE 1V0G6 - Adept Fasteners CAGE 06329 - ASC Industries CAGE 1BRD5 - Blue Sky Industries, Inc.

11. The following actions are being taken to identify additional sources:

[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 [X] Market research will continue throughout the procurement which could potentially lead to actions that would permit full and open competition amongst multiple manufacturers.

12. The J&A from the most recent past LTC procurement on these NSNs is attached (RFP# SPE7MX21R0018).

This past procurement was conducted under FAR Part 15 procedures. It did not result in an award due to OEM was not willing to provide CCPD.

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief. If not exceeding $750,000, this signature serves as the approval.

Megan M. Saylor Contracting Officer

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Mary E. Shearer Competition Advocate Signature

APPROVAL REQUIREMENTS

Up to $750,000 Contracting Officer

$750,000 to $15,000,000 Competition Advocate

SAYLOR.MEGA

N.M.1364088848

Digitally signed by

SAYLOR.MEGAN.M.1364088848

Date: 2021.10.18 12:29:36 -04'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2021.10.20 07:23:29 -04'00'

CUI

SOLICITA 7MX-22-R-X002

DLA Land & Maritime Justification for Other Than Full & Open Competition (October 2020)

CUI - SOURCE SELECTION INFORMATION – I/A/W FAR 2.101 and 3.104

ATTACHMENTS: (Attachments are located in the Attachment Section of this PDF.)

1) Tech Certs

2) J&A- SPE7MX21R0018