SPE7MX23R0004 JA Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX23R0004

DLA Land and Maritime J&A Other Than Full and Open Competition 1

ORIGINAL

1. The Defense Logistics Agency, DLA Land and Maritime, is the contracting activity.

2. The action being approved is the acquisition of supplies on an other-than full and open competition basis. FAR 12 procedures are being used for an Indefinite Quantity Contract with a 3-year base period and 2 one-year option periods. The procurement is 100% SBSA.

3. The supplies required to meet the using activity's needs are shown below.

NSNs Covered: 61 NSNs (See Attachment 1) Item Names: Electronic Shielding Gasket, Gasket Material, Electronic Parts Kit AMC-AMSC: 3-C and 3-D Approved Source for All NSNs: Aviation Devices and Electronic Components, LLC (Av-

DEC), CAGE: 1NPE1

Identify end item, weapon system, or class of item: Various military aircraft.

ESTIMATED ANNUAL DOLLAR VALUE:

ESTIMATED BASE VALUE (3-Year Base Period): $

MAXIMUM CONTRACT VALUE: $

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

10 USC 3204(a)(1) - Available from only one or a limited number of sources.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authorities cited in paragraph 4:

Approved CAGEs and Part Numbers: Av-DEC (Aviation Devices and Electronic Components), CAGE 1NPE1, is approved for all NSNs. Approved part numbers are shown in Attachment 1.

For those NSNs coded AMSC C on Attachment 1, Av-DEC (1NPE1) is the only source approved by the design control activity because Av-DEC retains the data rights, manufacturing knowledge, or technical data that is not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the part. For those NSNs coded AMSC D on Attachment 1, Av-DEC is uniquely qualified because it is the only known source with the data or rights to the data necessary to manufacture the item. Av-DEC has engineered, designed, and manufactured products that prevent corrosion, including the conductive gaskets in this solicitation, since 1997. These gaskets are used in commercial aerospace, antenna, marine, helicopter, space, and defense applications. Av-DEC products lengthen the MTBF [meantime between failures] of customer assets by fighting the harmful effects of corrosion, and thereby reducing total cost of ownership.

Av-DEC gaskets are a carrier (a mesh of material usually metal or plastic) that is suspended within one of their polyurethane gels. They are specifically designed to provide a Hi-Tak™ (sticky) corrosion resistant seal between the two surfaces as well as provide electrically

DLA Land and Maritime J&A Other Than Full and Open Competition 2 conductive or non-conductive properties. Av-DEC has several trademarked, confidential, proprietary, trade secret, and patented processes and products related to the gasket material and the processes used to make, install, inspect, and maintain the gaskets. Additionally, each of the gasket shapes are unique to the interfacing surfaces, and the drawings for the individual gaskets are all made entirely at private expense by Av-DEC, who retains all rights regarding existence, use, revision, and dissemination, etc.

The gaskets are used to seal between surfaces of the aircraft and antennas, sensors, lights, probes, etc., which are involved in some sort of safety aspect. Therefore, the gaskets must precisely cover the interface between the items being mounted and the aircraft to ensure that the items remain in good working order for the performance of the aircraft and the safety of the crew.

The Product Specialist certified that the technical information, including the approved source and AMC/AMSC codes, is complete and accurate on 10/25/2022. The PS also certified that DLA does not possess adequate data, lacks rights to data, and/or has no record of an alternate Design Control Activity approved source. The data presently available reflects the minimum needs of the Government.

The procurement item descriptions (PIDs) are included as Attachment 2.

The use of the authority cited is based on: (refer to Attachment 1 for AMC/AMSC for each

NSN)

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

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.

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.

DLA Land and Maritime J&A Other Than Full and Open Competition 3

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

The acquisition will be synopsized on or about 11/9/2022 for about 31 days (through the closing date of the solicitation). On its Issue Date, on or about 11/10/2022, the solicitation will be posted to DIBBS for 30 days for other interested businesses to access.

A sources sought notice was posted on 9/26/2022 for 5 business days to locate sources interested in becoming approved sources and companies who wish to participate in this solicitation by providing the approved parts.

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

Cost or pricing data will not be required, since these items will be solicited using commercial procedures, which satisfies the exception for cost or pricing data listed at FAR 15.403-1 (b) (3).

However, other-than cost data (OTCD) has already been provided. Additional OTCD will be requested if needed. Per FAR 15.404-1(a)(2), a price analysis will be conducted. The price analysis will be performed using pricing from the prior LTC, which was determined fair and reasonable. That pricing will be adjusted by Producer Price indexes (PPIs) and learning curve analysis, as necessary, for comparison with proposed prices for this procurement. Negotiations will be held if needed. The proposed prices will also be compared with current commercial invoices (invoices may be adjusted for time and quantity by PPIs and learning curves as necessary).

By using the above techniques, the Contracting Officer anticipates that the cost to the Government will be fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

The sources-sought notice was posted on 9/26/2022 looking for sources interested in becoming approved sources and companies who wish to participate in this solicitation by providing the approved parts. The notice closed on 10/3/2022, and no responses were received.

On 3/29/2022 market surveys were sent to 3 companies:

Av-DEC (1NPE1) – small mfr, approved source, Kampi (7Z016) – small dealer, offered on the last solicitation for the LTC T-L Sales (1XLG2) – small dealer

A response was received from Av-DEC, the approved source, stating that they are interested in pursuing a follow-on LTC for these items.

and also stated that the items are all either commercial or of a type customarily found in the commercial marketplace. The contractor provided information from their own website for each type of item on the list. Upon request, No follow-up was done with T&L or Kampi, since the manufacturer they would represent will be offering directly to the Government on this solicitation.

DLA Land and Maritime J&A Other Than Full and Open Competition 4

Kampi would know what the awarded LTC pricing is, since the contract pricing is public information.)

Commercial Determination:

Prior Commercial Determination - The prior solicitation for the current LTC determined the NSNs being solicited to be commercial.

Commercial Invoices – Av-DEC submitted current commercial invoices for 49 of the 61 NSNs. (Invoices are attached to the Acquisition Plan.) The other NSNs are very similar, and one is a parts kit.

DLA System Data – The NSNs that Av-DEC provided invoices for are already marked commercial by a Product Specialist in the DLA System.

Gasket Descriptions – The gaskets

They are used to seal between surfaces of the aircraft and antennas, sensors, lights, probes, etc. Av-DEC stated that the only difference between one part number and another part number of the same style of gasket is the shape that is cut from the same base material. It is cut to match the interfacing surfaces, such as the bottom of an antenna to where it is mounted on the aircraft.

Based on the information above, the Contracting Officer determines the items being procured to be commercial “of a type” customarily used by the general public, as defined in the FAR:

FAR 2.101

“Commercial Product” means

(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; or

(ii) Has been offered for sale, lease, or license to the general public.

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

The Product Specialist certified (Attachment 3) that DLA does not possess adequate data, lacks rights to data, and/or has no record of an alternate Design Control Activity approved source. The data presently available reflects the minimum needs of the Government.

10. A list of business sources indicating an interest in the acquisition:

Av-DEC (1NPE1) – small mfr, approved source

DLA Land and Maritime J&A Other Than Full and Open Competition 5

11. Actions being taken to overcome barriers to competition:

DLAD Procurement Notes L04, Offers for Part Numbered Items, will be included in the solicitation. Provision M06, Evaluation of Offers for Part Numbered Items, will also be included.

12. Attachment 4 is a copy of the J&A (and Addendum for add-on NSNs) from the current/prior LTC SPE7MX18D0012 for all of the NSNs being solicited.

Attachments:

1 NSN Info 2 PID Pkg 2022.10.11 3 Tech Cert R0004 4 Prior J-A Addm and Orig

CLIN NSN

Approved Part No. (approved

CAGE 1NPE1)

0001 5330015425788 HT3000RT-150

0002 5330015702786 SG283000-08

0003 5999014925692 AG247000-01

0004 5999014925696 AG369000-01

0005 5999014925829 AG867000-06

0006 5999014925838 AG843000-20

0007 5999014925842 AG843000-19

0008 5999014925849 AG433000-04

0009 5999014925856 AG527000-01

0010 5999014925863 BL171050-01

0011 5999014925875 AG627000-05

0012 5999014925882 AG723000-07

0013 5999015026222 AG843000-16

0014 5999015068721 AG627000-09

0015 5999015074151 AG736000-02

0016 5999015074267 AG272000-01

0017 5999015075029 AG778000-02

0018 5999015075162 AG433000-03

0019 5999015075179 AG843000-21

0020 5999015077063 AG477000-04

0021 5999015078633 AG843000-17

0022 5999015078649 AG436000-03

0023 5999015078662 AG433000-02

0024 5999015078680 AG867000-08

0025 5999015078802 AG433000-05

0026 5999015078805 AG437000-03

0027 5999015078808 AG822000-01

0028 5999015079303 AG778000-01

0029 5999015082913 AG843000-03

0030 5999015083339 AG358000-02

0031 5999015083354 AG723000-01

0032 5999015086033 AG477000-02

0033 5999015093134 AG843000-58

0034 5999015098953 AG843000-57

0035 5999015100799 AG477000-03

0036 5999015136999 AG843000-34

0037 5999015149191 AG723000-05

0038 5999015149195 AG843000-11

0039 5999015151952 AG627000-08

0040 5999015155383 AG768000-04

0041 5999015227812 AG358000-05

0042 5999015230216 AG728000-18

0043 5999015238524 AG723000-19

0044 5999015248693 AG723000-08

0045 5999015271575 AG843000-47

0046 5999015272002 AG843000-45

0047 5999015272308 AG843000-46

0048 5999015277836 AKH60000-01

0049 5999015315744 AG457000-02

0050 5999015344782 AG627000-02

0051 5999015345835 AG728000-08

0052 5999015347908 AG282000-03

0053 5999015358182 AG477000-15

0054 5999015392067 AG867000-16

0055 5999015439464 AG436000-05

0056 5999015442155 AG728000-26

0057 5999015461500 AG436000-06

0058 5999015608684 PG983078-01

0059 5999015652822 AG728000-34

0060 5999015677786 AG642000-01

0061 5999015788424 AG728000-41