JA_SPMYM422Q0790_Redacted.pdf

CUI

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPMYM4-22-Q-0790

Controlled by: DLA Land and Maritime Controlled by: DLA Maritime Pearl Harbor

CUI Category: PROCURE/SSI Distribution/Dissemination Control: FED ONLY

POC: Amanda.Spenn@dla.mil

DLA Land & Maritime Justification for Other Than Full & Open Competition (December 2021)

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[ X ] ORIGINAL

1. The Defense Logistics Agency, DLA Maritime Pearl Harbor, is the contracting activity.

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 will be 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:

Subject requirement is for the procurement of eight (8) different types of array probes. The array probes are sole source and proprietary to the Original Equipment Manufacturer (OEM), Zetec, Inc. (Cage Code – 51327).

ESTIMATED BASE VALUE:

ESTIMATED TOTAL VALUE (BASE + OPTIONS): Not Applicable

MAXIMUM CONTRACT VALUE:

CLIN DESCRIPTION P/N QTY

EST.

UNIT

PRICE

EST.

TOTAL

VALUE

ARRAY PROBE, STRAIGHT TUBE; ITEM DIA: 0.450IN

(11MM); TUBE ID: 0.492-0.495IN (12.5-12.57MM), COIL:

212LF= 2X 12 ARRAY/LOW FREQUENCY

CXB4-026 2 EA

ARRAY PROBE, STRAIGHT TUBE; ITEM DIA: 0.450IN

(11MM); TUBE ID: 0.490-0.495IN (12.45-12.57MM), COIL:

212MR=2X 12 ARRAY/MID FREQUENCY

CXB4-052 2 EA

ARRAY PROBE, X-PROBE SOLID BODY MAG BOBBIN

(SBB); ITEM DIA: 0.460IN (12MM); TUBE ID: 0.495IN

(12.57MM); COIL: 212MR= 2X 12 ARRAY/MID FREQUENCY

XP2-034 2 EA

ARRAY PROBE, X-PROBE SOLID BODY MAG BOBBIN

(SBB); ITEM DIA: 0.460IN (12MM); TUBE ID: 0.495IN

(12.57MM); COIL: 212LF= 2X 12 ARRAY/LOW FREQUENCY

XP2-035 2 EA

ARRAY PROBE, X-PROBE SOLID BODY NON-MAG BOBBIN

(SBB); ITEM DIA: 0.460IN (12MM); TUBE ID: 0.495IN

(12.57MM); COIL: 212LF= 2X 12 ARRAY/LOW FREQUENCY

XP12-002 3 EA

ARRAY PROBE, X-PROBE SOLID BODY NON-MAG

BOBBIN; ITEM DIA: 0.460IN (12MM); TUBE ID: 0.495IN

(12.57MM); COIL: 212MR= 2X 12 ARRAY/MID FREQUENCY

XP12-008 3 EA

ARRAY PROBE, STRAIGHT TUBE; ITEM DIA: 0.460IN

(12MM); TUBE ID: 0.495IN (12.57MM); COIL: 212LF= 2X 12

ARRAY/ LOW FREQUENCY

CXB4MB-004 2 EA

ARRAY PROBE, STRAIGHT TUBE; ITEM DIA: 0.460IN

(12MM); TUBE ID: 0.495IN (12.57MM); COIL: 212MR= 2X 12

ARRAY/MID FREQUENCY

CXB4MB-005 2 EA

TOTAL EST. AMOUNT

SOLICITATION SPMYM4-22-Q-0790

DLA Land & Maritime Justification for Other Than Full & Open Competition (November 2021)

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

10 U.S.C. 2304(c)(1) - Available from only one responsible source and no other type of property or services will satisfy the needs of the agency.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code: Zetec, Inc., Cage Code – 51327.

The use of the authority cited is based on:

The subject requirement is for the procurement of Eddy Current Inspection probes to support required Eddy Current Inspections (ECIs) at Pearl Harbor Naval Shipyard (PHNSY). Eddy Current tubing inspections are part of a required maintenance package at PHNSY to determine the health of condenser and heat exchanger tubing on nuclear sub-surface craft as well as integral nuclear surface ship components. The Eddy Current Array inspection system (MIZ-200) is solely manufactured by the Original Equipment Manufacturer (OEM), Zetec Incorporated (Cage Code – 51327). Subject requirement is for various array probes which are solely manufactured by Zetec Inc.

Only the Zetec array probes will interface with the existing MIZ-200 inspection system equipment currently in use at PHNSY. This equipment is used to inspect condenser tubes to find circumferential cracks and other indications of flaws or failures in heat exchangers.

Per NAVSEA Technical Publication T9074-AT-GIB/2032, “Eddy Current Inspection of Heat Exchanger Tubing on Ships of the United States Navy,” Zetec is the only approved manufacturing source of the array probes for use on Naval ships. Section C.4.1.3.1 of the NAVSEA Technical Publication states, “Primary Probes Zetec CXB4 or XP12 shall be utilized as the primary probe.” Additionally, Section C.4.1.4 also states; “Calibration Standards for inspection shall be obtained from Zetec.” Furthermore, NAVSEA Instruction 9254 also mandates and approves only the Zetec array and bobbin probes for use on Naval vessels.

These array probes have proprietary restriction designs rights, which are owned by Zetec, and will not be released for duplication purposes. The use of any other brand or product would be incompatible with the existing equipment on hand. At this time, there is no other known source of supply capable of providing the required probes that would be compatible with the proprietary design and existing equipment already in use. Utilizing a different brand or source of array probes would require a technical review of any alternative probes, thereby initiating another demonstration to determine efficiency. In addition, the NAVSEA Technical Publication would require an amendment which would certainly cause delays. This would result in a substantial duplication of resources, cost, and time to the Government that would not be recovered through competition. Failure to procure requested Zetec manufactured array probes, which are the only probes compatible with the existing Zetec equipment in use, would result in costly damage to the inspection equipment and render the equipment inoperable to perform the required inspections during the ship’s scheduled maintenance availability. Ultimately, this would create serious mission degradation to PHNSY support functions, as well as mission decrement to the Navy’s fleet.

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

This acquisition will be synopsized for two (2) days and solicited on SAM.gov for a minimum of twelve (12) days to encourage potential supplier participation. Any interested party that requests a copy of the solicitation will be

SOLICITATION SPMYM4-22-Q-0790

DLA Land & Maritime Justification for Other Than Full & Open Competition (November 2021)

P a g e | 4 unrestricted basis to Jess W. Jackson and Associates, Inc. (Cage Code – 0DLY2). DLA Maritime Puget Sound awarded contract SPMYM2-20-C-0004 for similar array probes on 31 January 2020, in the total award amount of $487,225.00. Contract SPMYM2-20-C-0004 was awarded on an unrestricted basis to Jess W. Jackson and Associates, Inc. (Cage Code – 0DLY2).

The Acquisition Specialist contacted knowledgeable individuals within the Government regarding market capabilities, published a sources sought notice, conducted a market survey, reviewed the results of recent market research undertaken to meet same and similar requirements, analyzed past procurement history, queried Government-wide databases, and also reviewed catalogs and other product information available on the internet.

Based on the information above and outlined herein; there is no indication or reasonable expectation that any other manufacturing source would have the capability or resources available to support this requirement. Therefore, the Acquisition Specialist has determined Zetec, Inc. as the only approved manufacturing source capable of providing the required items at this time. Although this acquisition is being restricted to Zetec Inc., the Government expects to receive competition among dealers of the Zetec array probes.

Information received regarding the commerciality of the item(s):

In accordance with FAR 10.002(b), market research has been conducted to determine if commercial items or non-developmental items are available to meet the Government’s needs or could be modified to meet the Government’s needs. The results of market research establish that the same Zetec array probes are available in the commercial marketplace and have been offered for sale to the general public. Based on the results of the market research conducted, the Contract Specialist has determined that this requirement meets the FAR 2.101(1)(i) definition of a commercial item.

Per DFARS 212.102(a)(ii)(A), the Contracting Officer may presume that a prior commercial item determination made by a military department, a defense agency, or another component of DoD shall serve as a determination for subsequent procurements of such item. Therefore, the previous commercial item determination (CID) established under Requisition No. N42158-1040-9560, Solicitation No. SPMYM1-21-Q-0046 applies. The previous CID was approval and signed by the Contracting Officer on 17 May 2021, and a completed copy is included in the contract file documentation.

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

[ X ] Based upon the included technical certification signature below, 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:

Jess W. Jackson & Associates Inc. (Cage Code – 0DLY2) Govaged Inc. (Cage Code – 98WQ2)

11. The following actions are being taken to identify additional sources: