Redacted_J&A_18R0055.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPRAL118R0055

DLA Land and Maritime Justification for Other than Full and Open Competition (May 2018)

[X] ORIGINAL

1. The Defense Logistics Agency, DLA Land and Maritime, is the contracting activity.

2. The action being approved is the acquisition of supplies based on other than a full and open competition basis for a distribution box, National Stock Number (NSN) 4520-01-631-3780 I/A/W FAR Subpart 6.302-1 and 10 U.S.C. 2304 (c) (1) will be utilized since after market research I/A/W FAR Subpart 10 was conducted and the United States Marine Corp. (USMC). The technical data that was presented, indicated the NSN is sourced by Highland Engineering, Inc. Commercial and Government Entity Code, (CAGE) unique identifier assigned to suppliers by governmental agencies (0AK83). Highland Engineering, Inc.is currently the only known provider of this item to meet the requesting customer’s needs.

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

CLIN BRIEF DESCRIPTION NSN/PN QUANTITY EST. TOTAL AMSC

0001 Liquid Water heater 4520-01-631-3780

VALUE

18 SE $3 P

The Liquid Water Heater is an item designed for heating water by a direct-fired method, using a liquid fuel burned in a combustion chamber enclosed within itself. It may be capable of using more than one type of fuel, such as gasoline, oil, kerosene, or jet fuel. It may be incorporated with a tank as an integral or as a separate unit for storage of the heated water. The Table of Authorized Material Control Number (TAMCN):

B0055 has indicated that end item support item in which the part is used for is described as a field expeditionary shower unit.

Procurement history:

Contract Cage Vendor Name QTY UI Unit Price Award Date PRC

SPE8E816V1037 0AK83 Highland Engineering 1 SE $16,850.00 3/23/2016 BB

** Price reasonable Code =BB “Buyer analysis competition with at least 1 manufacturer and 1 or more non-manufacturers.

No previous J&A is available for this NSN as the last procurement was a small purchase made by DLA Troop Support.

4. 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: Highland Engineering Inc. in accordance with (I/A/W) Technical certificate from LOGCOM (Logistics Command) / SYSCOM (System Command) M9855170543009 (Attachment #1)

Identify end item, weapon system, or class of item:

DLR item from Albany, GA- The Table of Authorized Material Control Number (TAMCN): B0055 - field expeditionary shower unit (Attachment 2) .

The portable bath unit is complete unit mounted on a common base for use by the USMC in the field. By means of suction, the unit takes water from streams, rivers, lakes, and the like, and heats it sufficiently for shower baths.

Est. value $.

5. If restricted to the only source of supply, include source and CAGE code: Procurement from a specified source is authorized by statute FAR 6.302-1 and 10 U.S.C. 2304 (c).This is a sole source purchase to Highland Engineering, Inc. CAGE (0AK83) for NSN 4520-01-631-3780. The approved source solely retain data rights, manufacturing knowledge. The technical data is not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the part. The technical data certificate is from and managed by the United States Marine Corp. (USMC), specifically Logistics Command (LOGCOM) with the technical information being managed by System Command (SYSCOM) is attached to this document. Highland Engineering, Inc. is the only company known by the Government to possess the technical data necessary to manufacture this item. As email was sent to LOGCOM asking them to validate the AMC/AMSC since, the technical certificate is several months old. In an effort to hold up this procurement, if LOGCOM changes the technical certificate than an addendum to the Acquisition Plan and Justification and Approval will be completed.

[X] AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

The use of the authority cited is based on:

[ X ] AMSC P. The rights to use the data needed to purchase this part from additional source(s) are not owned by the Government and cannot be purchased, developed, or otherwise obtained. It is uneconomical to reverse engineer this part. This code is used in situations where the Government has the data but does not own the rights to the data. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid.

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

[X] The acquisition was synopsized on or about October 26, 2018 through December 20, 2018.

[X] Other. Based on the technical certification that was provided by LOGCOM, SYSCOM does not own the drawings for this item to allow for full open and competition to exist. Heater, Water, Liquid is only available from Highland Engineering, Inc. the sole source manufacturer based on the tech data. The technical certificates from SYSCOM is attached to this document (Attachment #1).

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable. The current requirement is sole source to Highland Engineering, Inc. and will be solicited for 30 days. The requirement is for a total quantity of eighteen sets (18) SE for NSN 4520-01-631-3780 for a total estimate is $. There is acquisition history for this item and the Government will perform a price analysis to include a producer price index adjustment along with two learning curves applies as well to establish the Government’s low and high targets. In deeming prices fair and reasonable, an analysis of similar items may

DLA Land and Maritime Justification for Other than Full and Open Competition (May 2018)

DLA Land and Maritime Justification for Other than Full and Open Competition (May 2018) also be conducted. Certified Cost and Pricing data will not be required since the estimated value threshold does not exceed the threshold $2 million (FAR 15.403-4).

8. Market Research/Efforts to Obtain Competition:

Describe the market research conducted and the results. A market survey was submitted to the only know source provided by LOGCOM. A response was received to the market survey 20 general questions from Highland Engineering Inc. on August 28, 2018.

In addition, a source sought was conducted in FedBizOpps from August 24, 2018 with a response date of August 31, 2018. A single response received from Highland Engineering Inc., which is the only known approved source. The results of the market survey and previous solicitation will be discussed in detail under “Type of information requested”. A product review was performed in Haystack to review any procurement history and if any similar items may be available for comparison for the price analysis or to allow for enhanced competition. Highland Engineering Inc. validated that the information that they provided in their August 2018 market survey response is valid and remains unchanged as per their email from 27 February 2019.

Market Survey [10 U.S.C. 2304(f)(3)(D)]:

[X] Market survey was conducted in various ways. The efforts resulted in a single response from the source provided by LOGCOM.

Total number of vendors contacted: 1 (one).

Names of vendors contacted and responding: Highland Engineering Inc. (0AK83)/sole source Techniques used to conduct survey:

• Market Research was emailed to the company. Highland Engineering Inc. (August 2018)

• The review of history information in Records Management.

• A sources sought was posted on FedBizOpps on August 24, 2018 with a response date of August 31, 2018. The sources sought posting resulted in no other interest in the process with the exception of the approved source.

Types of information requested:

The market survey sought out interest in the process, part number validity, basic functionality and end item application. The survey requested that company provide their suggested delivery, state if the item is quantity sensitive, state if the item is commercial, indicate the amount of option years they would be willing to quote, asked if they would be willing to quote one destination zone. The survey included reference on DLA’s First Destination Transportation Initiative and First Destination Packaging Initiative asked if they could provide ASTM D-3951 packaging requirements, and asked if FOB Origin and Inspection/Acceptance at Origin or Destination would be acceptable if required. The Market Survey addressed fixed pricing. If required can Cost or Pricing Data be supplied by Highland Engineering Inc.

Summary of information received:

An e-mail response to the Market Survey was received on August 28, 2018. Highland Engineering Inc. stated they are interested in providing a proposal for this item. They are a small business. The Contractor indicated

DLA Land and Maritime Justification for Other than Full and Open Competition (May 2018)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPRAL118R0055

the items are not commercial. .

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

Based on remarks received from the market survey, items are not commercial and FAR Part 15 will be utilized.

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

[X] Based upon the technical certification on file in DLA Land and Maritime- provided by LOGCOM, SYSCOM 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:

Highland Engineering Inc. (0AK83).

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

[X] Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items [X] Other: The Marine Corp. does not intend to procure the technical data necessary to foster competition.

Attachments:

1 – Technical Certificate 2 – End item identification

CONTRACTING OFFICER CERTIFICATION

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief. If not exceeding $700,000, this signature serves as the approval.

Contracting Officer Date

APPROVAL REQUIREMENTS

[X] Up to $700,000 Contracting Officer

04 Mar 19