J&A SPMYM220Q0885_Redacted.pdf

DLA Maritime Puget Sound Justification For Other Than Full And Open Competition Over $250K (May 21,2018)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION OVER $250K

SPMYM220Q0885

1. Contracting Agency and Activity: DLA Maritime Puget Sound and Puget Sound Naval Shipyard and Intermediate Maintenance Facility (PSNS & IMF), Bremerton, WA

2. The action being approved is the acquisition of supplies on other than a full and open competition basis. FAR subpart 13.5 - simplified acquisition procedures will be used in accordance with 41 U.S.C. 1901.

3. The supplies required to meet the using activity’s needs are described as follows:

BRIEF DESCRIPTION NSN/P/N QUANTITY EST VALUE AMSC

.490 ARRAY PROBE CXB4-022 26

.570 ARRAY PROBE CXB4-012 4

.490 LF BOBBIN PROBE BSTBB-003 8

.490 MR BOBBIN PROBE BSTBB-002 5

.420 LF BOBBIN PROBE BJF-013 2

.520 LF BOBBIN PROBE BJF-022 2

.560 LF BOBBIN PROBE ULC-041 2

.480 MAG BIAS PROBE MBS-002 2

.480 LF BOBBIN PROBE BSTBB-004 2

.480 MR BOBBIN PROBE BSTBB-005 2

36 PIN SLIP RING 10013316-1 2

3/4X3FT CONDUIT 10035771 2

3/4X6FT CONDUIT 10035775 2

This acquisition:

[X] will not include an option.

[ ] will include a % option for increased quantity. Total estimated dollar value of option quantity is $ [ ] will include an option to extend the term of the contract for a period of exercisable in increments of . Total estimated dollar of all option periods is $ .

The total estimated dollar value of this acquisition (inclusive of any option) is

4. The acquisition is restricted to the only source(s) of supply known to have the capability of furnishing the required supplies/services. Source(s) are: (Include CAGE code) Zetec Inc., Cage Code 51327

5. 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.

6. The use of the authority cited above is based on:

Existing Eddy Current Array inspection system (MIZ-200) at PSNS is manufactured by Zetec, Inc (OEM). These machines, along with the various designed probe and probe attachments, are used to inspect condenser tubes on all Nuclear carriers and submarines to detect flaws within the tubing wall. These probes have proprietary restriction designs, and will not be released for duplication purposes. Only the Zetec manufactured probes will interface with the existing MIZ-200 instruments and Zetec is the only source for these probes. Failure to procure requested Zetec (OEM) manufactured array probes for existing Zetec (OEM) equipment could result in costly damage to inspection equipment and failure to perform required inspections during the ship's availability. Ultimately, this would create serious mission degradation to Puget Sound Naval Shipyard & IMF support functions, as well as mission decrement to the Navy’s Fleet.

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

[X] The acquisition will be synopsized and any firm requesting a solicitation copy will be provided one.

DLA Maritime Puget Sound Justification For Other Than Full And Open Competition Over $250K (May 21,2018)

8. Market Research:

These OEM items are proprietary to Zetec Inc., therefore, no additional market research will be conducted as only the OEM components can be utilized.

These items are commercial items in accordance with FAR 2.101(3).1.

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

[X] Other: Proprietary property of Zetec. No reproduction, use, or duplication of the information is permitted without express written consent of Zetec.

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

A sources sought notice was posted to beta.SAM.gov on 06 Dec 2019 with a response date of 12 Dec 2019 for these items. Only one interested source responded. The interested source, Jess W. Jackson & Associates, Inc., is a small business concern representing Zetec, Inc. products (CAGE 0DLY2), which is based in Buford, GA.

The other known source is Zetec, Inc., the OEM, who was awarded the previous contract SPMYM218C0027 in May 2018, on a sole source basis.

11. The actions being taken to overcome barriers to competition before any subsequent acquisitions are made are:

As noted previously under the sole source requirement for SPMYM218C0027, future competition is not feasible until the Government determines that the probes and associated hardware no longer meet the required standards for accomplishing Eddy Current Inspections. Until that occurs, only the OEM manufacturer or its distributors are expected to respond to the solicitation. Should another potential source emerge, DLA Maritime Puget Sound will assess whether competition for future requirements is feasible.

12. I hereby determine that the anticipated cost to the Government will be fair and reasonable. Given the complexity and essential nature of the Eddy Current Array inspection probes, the unit price and 12 week ARO lead time are considered reasonable

13. Additional facts, if any, supporting this determination: NA

APPROVAL

APPROVAL LEVELS OF THE JUSTIFICATION – FAR 6.304

[X] not exceeding $700,000 Contracting Officer

[ ] over $700,000 to $13,500,000 Competition Advocate

[ ] over $13,500,000 to $93,000,000 Head of Contracting Activity (HCA)

DLA Maritime Puget Sound Justification For Other Than Full And Open Competition Over $250K (May 21,2018)