JA - Industrial Fluid Cooler TD 4.10.25 (002) - Redacted.pdf

Controlled Unclassified Information (CUI)

Controlled by: DLA Troop Support Controlled by: C&E – FCAC CUI Category: Source Selection Distribution/Dissemination Control: FED ONLY POC: Luis Marrero, Luis.Marrero@dla.mil

Controlled Unclassified Information Source Selection Information – FAR 2.101 and 3.104

JUSTIFICATION FOR OTHER THANFULL AND OPEN COMPETITION

1. Defense Logistics Agency (DLA) Troop Support, Construction and Equipment Supply Chain, is the contracting activity.

2. The action being approved is the ability to solicit for DLA requirements on an other than full and open competition basis.

3. Following are the supplies required to meet DLA’s needs:

Item Description: Industrial Fluid Cooler National Stock Number (NSN): 4420- 01-067-0698 Manufacturer/ Supplier: Fluid Handling LLC (Cage Code) 6LE50 Manufacturer/ Supplier Part Number (P/N): 5-131-21-084-001 Quantity: 2 EA Estimated Unit Price: $435,000.00 Estimated Dollar Value: $870,000.00

4. The applicable statutory authority permitting other than full and open competition is 41 U.S.C.

1901, as implemented by FAR Part 13.501(a), Sole Source Acquisitions.

5. The use of this authority is necessary because Fluid Handling LLC is the only source that can supply the required item. Industrial Fluid Cooler is used on the Ohio-class submarine. The Ohio-class has a 23N Weapon System Designation Code (WSDC). The item must not only meet the exact dimensions to fit on all classified submarines within the fleet, it must also meet the same specifications that are proprietary to the sole source. Industrial Fluid Coolers function by transferring the heat/energy from the warm shell-side water to the cold tube-side sea water. Inside of the shell there are a bundle on tubes that have a series of baffles that direct the water-flow though the bundle that keeps the flow turbulent, which helps in the transfer through the tube wall to the cold sea water. The design is proprietary to Fluid Handling LLC, as they own the data and rights. According to the ESA, 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.

Therefore, material must be acquired directly from the actual manufacturer, Fluid Handling.

6. In accordance with FAR 5.2, this acquisition will be synopsized in Contract Opportunities in the System for Award Management (SAM.gov) website and will be published on the DLA Internet Bid Board System (DIBBS). In addition, this justification will be made available for public mailto:Luis.Marrero@dla.mil

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7. As the Contracting Officer, I hereby determine that the anticipated cost to the Government will be fair and reasonable based on the analysis of other than certified cost and price data, and comparison to procurement history of similar commercial Industrial Fluid Coolers used by commercial tug boats and cruise ships.

8. A Sources Sought Notice (SSN) was published on SAM.gov on November 19th, 2024 with a closing date of December 3rd, 2024, and one response was received from BHPE LLC. CAGE 9SWS7. BHPE was contacted via phone; they are a distributor in the process of working with Fluid Handling. Fluid Handling did not respond directly to the SSN, however they have consistently confirmed interest in the procurement via phone conversations and email as recently as 12/13/2024. The subject of these conversations with Fluid Handling was market research regarding but not limited to: material cost, delivery lead time, and manufacturing complexity.

9. There are no other facts supporting the use of other than full and open competition.

10. Fluid Handling LLC and BHPE LLC. have expressed an interest in the proposed acquisition.

11. DLA Troop Support will continue to perform market research prior to any further acquisitions for this requirement. In an effort to overcome barriers to competition, the solicitation for this requirement will contain DLAD Procurement Note M06, Evaluation of Offers for Part Numbered Items and L04, Offers for Part Numbered Items to encourage the submission of offers for alternate products. Any alternate offers received will be forwarded to the Product Specialist or the ESA for evaluation.

12. As the contracting officer, I hereby certify that this justification is accurate and complete to the best of my knowledge and belief.

MATTHEW KRUC

IST Chief/ Contracting Officer

NESO

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I hereby certify that the requirements which form the basis of this justification are accurate, that these supplies meet the Government’s needs in accordance with applicable specifications and that this justification is accurate and complete to the best of my knowledge and belief.

COLLEEN COLARIK

Product Specialist

I have reviewed and hereby approve this justification.

MACIEJ OKULICZ-KOZARYN

DLA Troop Support- Competition Advocate