JA6.302-1SPE7MX23RX045.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX-23-R-X045

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

[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 full and open competition basis. The subject solicitation is to establish an Indefinite Delivery Contract (IDC) for NSN 4320-15-122-0649 listed below using FAR Subpart 13.5 (Simplified Procedures for Certain Commercial Items) procedures pursuant to 41 U.S.C. 1901, see FAR 13.501(a)(1)(ii). The contract term shall consist of a 3-year Base Period and two 1-year Option Periods

3. The supplies required to meet the using activity's needs are described as follows: The subject solicitation is a

Single-NSN successor project to the following auto-IDC(s):

CLIN NSN IDC Active AIDC Expiration

0001 4320-15-122-0649 SPE7M118D5001 N 08/30/2023

NSN 4320-15-122-0649 is a centrifugal pump utilized for fluid transfer on US Navy Avenger Class MCM ships (JXN) equipped with Isotta Fraschini manufactured diesel marine engines for motive power. The chart below reflects the project NSN along with its ADQ, AMC/AMSC, and estimated values.

ICP NSN DESCRIPTION

EST.

YEARLY

QUANTITY

(ADQ)

EST. ANNUAL

VALUE

(ADV)

EST. TOTAL

CONTRACT VALUE

(3 YR Base+2 Options)

CONTRACT

MAXIMUM

VALUE

AMC

AMSC

DSCC 4320-15-122-0649 Pump, Centrifugal 23 1/C

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

(x) 10 U.S.C. 3204(a)(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: 4320-15-122-0649, Gilbert Gilkes & Gordon (U1494) Part Number 44963-021 NSN: 4320-15-122-0649, Isotta Fraschini (A0106) Part Number 1T701111 NSN: 4320-15-122-0649, Isotta Fraschini (A0106) Part Number 312722F91

The use of the authority cited below:

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

Dis

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104 /

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 Gilbert Gilkes & Gordon (U1494) and Isotta Fraschini (A0106) possess the rights to the technical data/drawings and/or the data itself necessary to produce the required item.

DLA Land & Maritime SAPD Product Specialist reviewed the project NSN on 09/15/2023 who certified the supporting data, including the AMC/AMSC codes and approved sources, are complete and accurate. advised that the data needed to acquire these parts competitively is not physically available and it is not possible to draft adequate specifications or any other adequate, economical description of the materials for a competitive solicitation enabling a “Brand Name or Equal” full and open solicitation per FAR 52.211-6. The Product Specialist updated the item description and provided his concurrence that this item falls under the definition commercial “of a type” provided in subparagraph (3)(ii) of the commercial item definition in FAR 2.101and not COTS. 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 sam.gov prior to solicitation opening. At the completion of the synopsis period, this Request for Quote will be solicited on the internet for 30 days via the DLA Internet Bid Board System (DIBBS). All vendors may submit a quote, 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 and/or 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 reasonable purchases (adjusted for passage of time and quantity sensitivity), in addition to comparison to commercial market prices for potentially similar items, to support a reasonableness determination.

8. Market Research/Efforts to Obtain Competition:

A Sources Sought Notice was posted to www.sam.gov on 05/12/2023 and closed 05/19/2023 receiving no responses. On 06/01/2023 the Contracting Officer was advised by of DLA Land & Maritime Value Management (VE) that they have no open projects for this NSN currently.

Market research has been conducted prior to solicitation: A formal market survey was initiated by ZAA Branch Sourcing Specialists who sent surveys on 10/26/2022 to Isotta Franchini (A0106) receiving no response. On 06/07/2023 ZBB Branch sent market surveys to Southern Automotive Wholesalers (1Y875), Apex Pinnacle (0REY5), Fincantieri Marine Systems (0VP52), and Viking Manufacturing (1EN78).

Market Survey responses were received from Southern Automotive, Apex Pinnacle, and a negative response was received from Fincantieri the exclusive US Distributor for approved source Isotta Fraschini (A0106). Fincantieri Marine Systems advised the Government that Isotta Fraschini will not participate in long term contracts for this material at this time due to low demand and costs but did provide DLA a copy of their 2023 Commercial Price List including part# 1T701111. ZAA Branch attempted to contact approved source Gibert Gilkes & Gordon (U1494) who has a remanufacturing facility in Texas and new manufacturing facility in the United Kingdom (UK) doing business as Gilkes. Gilkes initially responded with points of contact, however all further attempts failed with no further responses to DLA calls and emails. During review of recent IDC SPE7M118D5001 ZBB Branch determined that material from Gilkes was being provided via UK distributor Sleeman Hawkins and sold to the Government by Southern Automotive. The Contracting Officer contacted Sleeman Hawkins who confirmed that it can provide Gilkes part# 44963-021, however Sleeman Hawkins is not set-up to do direct sales to the Government.

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 review of the GSA Schedule website (GSAadvantage.gov) showed that the approved part numbers and NSN were not listed.

Summary of survey information received:

(1) Apex Pinnacle (0REY5) – Small Business Distributor of Gilber Gilkes & Gordon (U1494)

- Located in Binghamton, New York and has 7 employees.

- Will accept 3-year Base

- Does not feel this item is commercial.

(2) Southern Automotive Wholesalers (1Y875) – Small Business Distributor of Gilber Gilkes & Gordon

(U1494)

- Located in Pontiac, Michigan and has 20 employees.

- 3-year Base .

- Feels the item is no commercial as it is used on military end item.

Commercial Determination: The item contained on this project is a Class IX spares utilized on various US Navy Avenger Class MCM ships (JXN). NSN 4320-15-122-0649 is a Centrifugal Pump utilized on Isotta Fraschini manufactured 6- and 8-cylinder diesel marine engines utilized in both commercial marine and military applications with the same basic function where fuel/oil or other fluids (sea water, fresh water, and or bilge water) are accelerated to transfer by rotational energy from one or more driven rotors (impellers).

This increases the fluid’s velocity and pressure. The approved sources for this NSN are Isotta Fraschini (A0106) and Gilbert Gilkes & Gordon (U1494). On previous IDC SPE7M118D5001 the Fraschini part (1T701111) was determined by the Contracting Officer of record to be commercial of a type and was found for sale on the Fincantieri Marine Systems (0VP52) website www.fincantieri.com with commercial pricing ($23802.22), see MRCDM Attachment #1 for current list pricing. The Isotta Fraschini part is the same form-fit-function as the Gilbert Gilkes & Gordon part (44963-021). Online market research for this current project found numerous dealers and manufacturers of similar centrifugal pumps with the same basic function of accelerating fluid outward from the center of rotation which increases fluid pressure motion within the pump. There are 3 types of pumps: Radial, mixed, and axial flow pumps. Similar type pumps vary in cost based on size/dimensions, end applications, and capacity/performance specifications. The Contracting Officer sees no reason to reverse the previous commercial determination for NSN 4320-15-122-0649 and this item is of a type modified from commercial components to meet the military’s specific end applications for size, capacity, and fitment.

NSN 4320-15-122-0649 was contained on expired IDC SPE7M118D500 where it was determined commercial of a type and Part 13.5 procedures utilized. The Contracting Officer for this project sees no reason to change the prior commercial determination for this item and is relying on prior commerciality determination pursuant to DFARS 212.102 (a)(ii)(A) for this item. In accordance with FAR 2.101 and DLAD 12.102 the NSN included on this project has been determined by the Contracting Officer to be commercial items or items “of a type” commercially available. This determination is based upon the information obtained in the market survey, market research, previous determination, Contracting Officer’s research, and the NSN’s specification requirements. FAR Part 13.5, Acquisition of Certain Commercial Items, 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: Southern Automotive Wholesalers and

Apex Pinnacle.

11. The following actions are being taken to identify additional sources: The solicitation will contain 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 most recent previous award SPE7M118D5001 listed in the contract history for NSN 4320-15-122-0649 in Records Management for a 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. The previous acquisition was listed as a full & open procurement by the buyer of record and no J&A was completed and therefore a J&A for the project NSN is not 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:

JUSTIFICATION FOR OTHER T AND OPEN COMPETITION

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

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 www.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 www.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) for applicable NSNs.

CONTRACTING OFFICER 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.

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

APPROVAL REQUIREMENTS

( x ) $750,000 to $15,000,000 Competition Advocate

ATTACHMENT:

1 – Tech Certification

KNOWLES.SCOTT.

D.1251897480

Digitally signed by

KNOWLES.SCOTT.D.1251897480

Date: 2023.10.03 08:16:34 -04'00'

DAPO.DOUGLAS.A.

1230220014

Digitally signed by

DAPO.DOUGLAS.A.1230220014

Date: 2023.10.03 11:59:20 -04'00'

MEMORANDUM FOR RECORD

SUBJECT: Technical Data Supporting- Limited Sources for Solicitation

This memorandum serves as the technical certification required by FAR 6.303-2(c) for the subject solicitation .

The approved source and item of supply for NSN_______________ is CAGE_ ____ Part number _______ __________________________ _.

Multi-NSN Evaluation (see attachment)

The item(s) has the following AMC Code(s):

The item(s) has the following AMSC :

A The Government’s rights to use data in its possession are questionable.

B Acquisition of this part is restricted to source (s) specified on a Source Control and, Altered Item or A Selected Item drawings/documents.

C This part requires engineering source approval by the design control activity in order to maintain 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.

D The Government physically does not have in its possession sufficient, accurate or legible data to purchase this part from other than current source(s).

L The Government physically does not have in its possession sufficient, accurate or legible data to purchase this part from other than current source(s)

K This part must be produced from class 1A castings (e.g., class 1 of MIL-C-6021) and similar type forging(s). The part must be procured only from sources which use castings or forging(s) obtained from approved (controlled) source(s).

M Master or coordinated tooling is required to produce this part. This tooling is not owned by the Government or, where owned, cannot be made available to other sources.

N This part requires special test and/or inspection facilities to determine and maintain ultra-precision quality for its function or system integrity. Substantiation and inspection of the precision or quality cannot be accomplished without such specialized test or inspection facilities.

P The rights to use the data needed to purchase this part from additional sources are not owned by the Government and cannot be purchased

Q The Government does not have adequate data, lacks rights to data, or both, needed to purchase this part from additional sources

R The data or the rights to use the data needed to purchase this part from additional sources are not owned by the Government and it has been determined that it is uneconomical to purchase them.

U The cost to the Government to breakout this part and acquire it competitively has been determined to exceed the projected savings over the life span of the part.

V This part has been designated a high reliability part under a formal reliability Probability of failure would be unacceptable from the standpoint of safety of personnel and/or equipment. The cognizant engineering activity has determined that data to define and control reliability limits cannot be obtained nor is it possible to draft adequate specifications for this purpose.

Y The design of this part is unstable. Engineering, manufacturing, or performance characteristics indicate that the required design objectives have not been achieved. Major changes are contemplated because the part has a low process yield or has demonstrated marginal performance during tests or service use. These changes will render the present part obsolete and unusable in its present configuration. Limited acquisition from the present source is anticipated pending configuration changes.

Z This is a Commercial/non-developmental (off-the-shelf item). When one or a limited number of sources are available, then a J&A is required. When an item is coded with AMSC “Z” and is listed on an interchange catalog or appears on a commercial cross reference list, this constitutes full and open competition and a J&A is not necessary.

CM22298002

single NSN

151220649

Technical Data Supporting - Limited Sources for Solicitation _______________________

4. Availability of data packages or additional sourcing (Check all that are applicable as of the date of this certification):

I hereby certify to the best of my knowledge and belief the information contained in this memorandum for record is accurate and complete.

The Government is pursuing means to obtain a technical data package(s); however, it is uncertain as to when or if the data will be available for procurement.

LA 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.

here is no outstanding DLA Form 339 request for additional sources.

Item(s) has been forwarded to engineering to evaluate for reverse engineering or Brand Name or Equal characteristics: however, it is uncertain when or if the data will be available for procurement.

SANDERS.DOUGLAS

.EUGENE.1077024308

Digitally signed by

SANDERS.DOUGLAS.EUGENE.1077024

Date: 2023.09.15 13:17:30 -04'00'

9/15/2023

CM22298002