CM23032002_JA FULLY EXECUTED reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX23RX041

Product Specialist (PS), , confirmed the following on 02/02/2023:

This item is an AMC/AMSC of 3/D. This item supports various weapon systems, a critical application item, and IS NOT a critical safety item. Rae Systems Inc. (06JB6) is the only sources capable of making this item. The Government DOES NOT HAVE the data or drawings for full and open competition; the approved source is the only source known to possess the required drawings. There ARE NOT currently 339’s out to the ESA (Engineering Support Activity) and current information indicates that the item IS commercial-of-a-type. The approved part GVC03-0942-000 while not commercially available, part number C03-0942-000 is sold commercially and available with no change to fit, form or function as prescribed by the PS. Rae Systems (06JB6) is the only known source with the data and rights to the data necessary to manufacture this item. Technical Data Certification is attached (attachment 1 ).

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

The acquisition will be synopsized for ays prior to the solicitation opening on or about 05/1 /23. At the completion of the synopsis period, the Purchase Request (PR) will be solicited on the internet for days on or about 05/ /2023 via the DLA Internet Bid Board System (DIBBS).

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

This will be a one, three-year base period with two, one-year option periods, Firm Fixed Price, Indefinite Quantity Contract. Certified Cost and Pricing Data requirements do not apply. In accordance with FAR Part 12.209, while the Contracting Officer must establish price reasonableness in accordance with 13.106-3, 14.408-2, or subpart 15.4, as appli able, the Contracting Officer should be aware of customary commercial terms and conditions when pricing commercial items. Therefore, the Contracting Officer will conduct a price analysis using historical pricing, market trends available by the U.S. Bureau of Labor Statistics, comprehensive economic S&P global market intelligence via global insight data, and learning curve analysis. Commercial item prices are affected by factors that include, but are not limited to, speed of delivery, length and extend of warranty, limitations of seller’s liability, quantities ordered, length of the performance period, and specific performance requirements. The Contacting Officer will determine whether the contract award prices are fair and reasonable in accordance with Far Subpart 15.4. The buyer may request information other than cost or pricing data to support price reasonableness if necessary.

Market Research/Efforts to Obtain Competition:

Market research consisted of a sources sought notice, a formal market survey, review of the procurement/quote history, and a review of the results of recent market research undertaken to meet recent acquisitions of this item.

Procurement history:

The PO history shows multiple priors awarded.

A sources sought notice was posted on SAM.gov from 03/17/2023 to 03/27/2023, with one response received from Wisecom Technologies Inc. (88KZ6). A sources sought was republished with an updated part number C03- 0942-000 provided by DLA L&M Quality Assurance Specialist (QAS) on 04/07/2023. This sources sought was later updated again on 04/17/2023 redacting the updated part number C03-0942-000 and replacing with former part number GVC03-0942-000 due to misinformation provided by the manufacturer (Attachment 2). No additional responses were received from updated sources sought.

Market Survey:

In accordance with IAW FAR part 10 and 12.1, the market surveys for this project requested companies provide answers to general questions regarding their company size and status. The long-term contract (LTC) questions included overall interest in the LTC, preferable length of contract, commerciality of the item and supporting documentation, delivery schedule, and the vendor’s ability to provide Certified Cost or Pricing Data (CCPD). The vendors also had an opportunity to provide any information that they feel may be of assistance in building our acquisition strategy and possible solicitation development.

On 02/06/2023, an Acquisition Specialist from the Sourcing Strategy Branch emailed market surveys to the following one (1) vendor:

o Honeywell International Inc. (99193)

The project was assigned to the Buyer with no responses.

On 03/14/2023, Contract Specialist followed up with seven (7) vendors:

o Honeywell International Inc. (99193) o Federal Resources Supply Company (1Q3Z9) o Envirosupply & Service, Inc. (3FTP5) o TT Environmental, LLC (3V7V8) o All Safe Industries (1FZK7) o Safeware Inc. (1DCA7), o Wisecom Technologies Inc. (88KZ6)

Federal Resources Supply Company (1Q3Z9) provided the following on 03/15/23 (attachment 3):

• POC:

• Small business dealer with approximately 270 employees.

• Authorized distributor for Honeywell International Inc. (99193) and therefore Rae Systems Inc. (06JB6).

• Interested in pursuing an LTC.

• Item is commercial.

discovered that part number GVC03-0942-000 was discontinued from the manufacturer and no longer available. On 03/29/2023, part number C03-0942-000 was cataloged as the new approved part number. Upon new information found via market research, the buyer followed up with the QAS on 04/07/2023 to confirm obsolete part number GVC03-0942-000. On 04/14/2023, the PS rescinded part number C03-0942-000 as the approved part number faulting misinformation from the manufacturer and replaced it with formerly approved part number GVC03-0942-000. It’s determined that part numbers GVC03-0942-000 and C03-0942-000 manufactured by Rae Systems are inherently the same and have no change to fit, form and function.

Authorized distributor Federal Resources Supply Company for approved source Rae Systems provided information asserting commerciality of this item. According to Federal Resources Supply Company, part number GVC03-0942-000 manufactured by Rae Systems is sold to commercial entities as commercial part number C03- 0942-000. Federal Resources Supply Company provided unredacted commercial sales orders confirming as such (Attachment 7).

The General Services Administration’s Advantage website was consulted and while not able to locate part number GVC03-0942-000, C03-0942-000 was found with unit prices of $289.98 and $218.39 (Attachment 6). A Google search was conducted on 03/28/2023 for NSN 6665016093499, and Part Number C03-0942-000 was found available (Attachment 6). These prices are significantly higher than the $170.42 price offered to the Government by Federal Resources Supply Company on LTC SPE7MX21D5021.

1) On www.gasdectorshop.com at a unit prices of $336.75,

2) At www.pksafety.com at a unit price of $271.00,

3) With www.amazon.com at a unit price of $290.00,

4) And www.rshughes.com for a unit price of $271.00.

In accordance with DFARS 212.102(a)(ii)(A) the KO may presume that a prior commercial item determination made by a military department, a defense agency, or another component of DoD shall service as a determination for subsequent procurements of such items. Procurement history indicates that this item has been procured on LTCs and small purchases. The most recent LTC (IQC, SPE7MX21D5021) was awarded using FAR subpart 13.5 to Federal Resources Supply Company (1Q3Z9) with an expiration date of 02/24/2026. The unit price for CLIN0001 was $170.42.

Based on the information presented above, this item is considered commercial and will be procured in accordance with the procedures of FAR Subpart 13.5 – Simplified Procedures for Certain Commercial Items.

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:

Federal Resources Supply Company (1A3Z9) Wisecom Technologies Inc. (88KZ6) All Safe Industries (1FZK7)

11. In addition to the specific actions being taken by Technical Support personnel to overcome barriers to competition before any subsequent acquisitions or recertifications of class determination are made, theses items are subject to the following methods of locating additional sources: The solicitation contains L04-Offers for Part Numbered Items and M06 -Evaluation of Offers for Part Numbered Items.

12. Previous Justification for Other than Full and Open Competition IS attached:

Recent procurement history reflects award SPE7MX21D5021, used FAR 13.5 Simplified Procedures for Certain Commercial Items. See attachment 8 for the most recent unredacted J&A.

APPROVAL/CERTIFICATION

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.

CONTRACTING OFFICER

I have reviewed and approved this justification:

COMPETITION ADVOCATE

APPROVAL REQUIREMENTS

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

Attachments:

Memorandum for Record Technical Data Supporting Certification PS Commercial Correspondence Federal Resources Supply Company (1Q3Z9) Market Research Wisecom Technologies Inc. (88KZ6) Market Research All Safe Industries (1FZK7) Market Research Internet Search Commercial Information Federal Resources Supply Company (1Q3Z9) Commercial Invoices Previous J&A SPE7MX21RX002 (Award: SPE7MX21D5021)

MIELKE.CHARLES.E

VANS.II.1253169750

Digitally signed by

M ELKE.CHARLES.EVANS.II.125

3169750 Date: 2023.05.18 08 07:51 -04'00'

DAPO.DOUGLA

S.A.1230220014

Digitally signed by

DAPO.DOUGLAS A.1230220014

Date: 2023 06 06 08 36 54 -04'00'