SPMYM221R0009_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

JML Doc. # 1050-4053, SPMYM2-21-R-0009

1. Contracting Agency and Activity: Defense Logistics Agency (DLA) Maritime Puget Sound.

2. The action being approved is the acquisition of 24” Atomizing Valve on other than a full and open competition basis. The part in this initiative has been determined to be commercial and will be procured utilizing the procedures found in Federal Acquisition Regulation (FAR) Part 13.5 and Part 12.

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

BRIEF DESCRIPTION NSN/P/N QUANTITY EST. VALUE AMSC

24” Atomizing Valve 158334 1 N/A

The function of the atomizing valve is to perform final and complete heating of the condensate to the saturation temperature corresponding to the operating steam pressure and to remove all non-condensable gases remaining in the condensate after it leaves the preheating chamber, thereby achieving complete deaeration. This valve directly supports steam plant operation of the Cochrane Deaerating Feed Tank on CVN 76. This item is of a very large size and is being used in a specialized application with the nuclear power plant.

This item is not associated with a specific NSN.

*If too numerous, attach list of NSNs and AMSC codes

The proposed action is for the solicitation and award of a Firm, Fixed Price (FFP), large one time purchase.

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)

Newterra Inc., 2650 Eisenhower Ave Ste 100A, Norristown, PA, 19403-2337, UNITED STATES Cage Code: 13344 DUNS:119624570 P/N: 158334

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.

[ ] 10 U.S.C. 2304(c)(2) – Unusual and Compelling Urgency.

[ ] 10 U.S.C. 2304(c) - _______________________________________.

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

Newterra Inc, is the OEM for the Cochrane Atomizing valve installed on CVN 76 USS Ronald Reagan. Their designs (drawings and specifications) are proprietary. All replacement parts must meet the form/fit/function of the existing equipment.

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

[ ] 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)

[ ] Manufacturers of similar products identified in the market survey will be solicited.

[ X ] Dealers of the manufacturers will be solicited.

[ ] Other (Explain):

A Source sought posted on 3/19/2021 and closing 3/25/2021 received no interest from industry. The price of the item is anticipated to be considered fair and reasonable as determined by the KO utilizing price analysis of past contracts or utilizing other than cost and pricing data. The acquisition will be synopsized for 1 day and then posted for 15 days.

8. Market Research:

A market survey was sent to the sole source indicating company information and helping to define the parameters of the acquisition. The vendor indicated that this material has a commercial version but that this material is being modified for government use. The vendor also indicated that the delivery schedule was acceptable and that because this was a custom item that was singular and would not receive price breaks. A Source sought posted on 3/19/2021 and closing 3/25/2021 received no interest from industry. For the reasons set forth in Paragraph 5 and 6, FPO has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, FPO will assess whether competition for future requirements is feasible. Based on previous acquisitions, internet research, and review of the market research that the Contracting Officer determines this item to be commercial. All required sources of supply were screened to determine their ability to supply the requested items/services. Ability One, GSA, Unicor and EPA were all unable to supply these items. NAICS code 332919 was searched on the Non-Manufacturer waiver list. This NAICS code is not listed. The suggested source for this acquisition and the sole source provider is a large business manufacturer. Past busy of similar material have been awarded to small vendors such as Delta Machine and Tool company demonstrating there is a capability among small businesses to supply material similar to this. However, only one source of supply (NEWTERRA INC) is available for this material due to its specialized nature and application. This indicates that there is a reasonable expectation that 2 or more small businesses will not be able to provide quotes. Therefore, it is recommended that the solicitation for this acquisition should be issued as unrestricted.

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

[ X ] Based upon the technical certification on file, 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.

[ ] Other: _________________________________________________________________________________.

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

A Source sought posted on 3/19/2021 and closing 3/25/2021 received no interest from industry.

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

Potential sources of supply will be evaluated prior to any subsequent purchase of this material to determine if potential competition is available in the marketplace.

12. Additional facts, if any, supporting this determination: Procurement note L04 will be included in the solicitation

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)