SPMYM3-18-Q-3081_Redacted.pdf

SPMYM3-18-Q-3081 J&A

Justification for Other Than Full & Open Competition (November 2011)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Agency and Activity: DLA Maritime Portsmouth.

2. The action being approved is the acquisition of supplies/services on other than a full and open competition basis.

The procedures in FAR subpart 13.5 are being used in accordance with 41 U.S.C. 1901

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

BRIEF DESCRIPTION P/N QUANTITY EST. VALUE

Adjustable Round Cutter Not Applicable 2

Hydraulic Power Unit 14-000-35 1 Hydraulic Manifold Assembly 69-4363-01 1

Hydraulic Hose Set 03-404-00 1

This requirement is for the purchase of an Adjustable Round Cutter (custom design) with the accessories identified above. The total Government estimate for this purchase is

This acquisition:

[X] will not include an option.

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)

E.H. Wachs (Illinois Tool Works): Cage Code 98198

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 in other than 10. U.S.C. 2304(c)(2) above is based on:

The Government does not own the data or rights to the data needed to purchase this part from another source. It is not economical to procure the data or rights to the data.

E.H. Wachs is the sole equipment manufacturer of the ATC Trepanning System Reference No. 16-024 which is a purpose built system for the U.S. Navy. The entire ARC system including all of the components and its final working arrangement makes use of E.H. Wachs patented and company protected technologies. The ARC Trepanning System’s design, drawings, images, specifications, plan, working arrangement, and any other associated engineering and manufacturing information “whole or in part” is owned and controlled by E.H. Wachs.

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

[X] Other (Explain):

There is only one manufacturer with no dealers of this product, therefore only the manufacturer will be provided the opportunity to quote due to production information being proprietary. This requirement along with a redacted copy of the J&A will be posted to Fedbizopps.

A market survey:

[X] was conducted, and firms indicating an interest in the acquisition will be solicited. Market research efforts, include:

Sources Sought Notice SPMYM3-18-Q-3S81 was posted to Fedbizopps on 8/3/2018 and closed 8/10/2018.

There were no responses received from industry.

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

[X] Other:

Of the four shipyards, Portsmouth Naval Shipyard in Kittery is the only shipyard to not have this unit yet.

All the other Shipyards have this unit and as part of a community or practices between the shipyards, it was agreed to have all shipyards using the same equipment for ease of training and transfer of personnel between yards.

This equipment was designed at the request of the Navy to do a very specific job (cutting the hull of the boats). It was designed, tested, and approved to do this job and if another manufacturer were to build this, they would need to go through all of the same testing and proving.

9. A listing of sources, if any, indicating an interest in the acquisition are: (If none, so state)

E.H. Wachs (Illinois Tool Works): Cage Code 98198

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

(If none, so state and explain why not.)

At this time, there are no efforts being made to overcome competition as there are no other sources of this equipment.

Should the Navy ever develop their own specifications for this equipment, allowing it to be manufactured by other entities, competition will be used to the maximum extent possible.

11. I hereby determine that the anticipated cost to the Government will be fair and reasonable. Discuss relevant pricing issues, including the basis for determining that the anticipated price/cost will be fair and reasonable.

Also include here, or elsewhere as appropriate, length of contract, quantity, and other contract particulars bearing on the price/cost.

This is a first time buy for the Portsmouth Naval Shipyard. To determine prices fair and reasonable, procurement history will be requested from the other Shipyards using this equipment and used to show pricing consistency (with a PPI analysis to show market changes).

12. Additional facts, if any, supporting this determination:

This equipment is for cutting the hull of the boats, it will allow the Shipyard to perform this work much faster because the yard will not be doing HOT work. Currently, doing a hull cut takes several days because of how dangerous an evolution it is. Using this equipment, it can be done in just a few hours. This equipment preps the hull and the blank so that it is ready to reinstall without needing to go through extensive welding and grinding.

HEAD OF THE CONTRACTING ACTIVITY

I have reviewed and approve this Justification $93,000,000 or below.

Name and Title Signature Phone Date