Redacted_JA_SPRDL1-17-R-0397.pdf

J&A Solicitation No. SPRDL1-17-R-0397

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-17-R-0397

1. Contracting Activity: Defense Logistics Agency (DLA) Land Warren.

2. Description of Action: The planned contract action is for purchase of Blasting Machines, used to support the M11, M12, M13, M15, and M16 blasting cap systems, as well as the Mine Clearing Line Charge (MICLIC) system. This procurement will be restricted to E.I.T. Corporation (CAGE: 1ZBH5), as this firm is the only responsible source for this item, and no other supplies will satisify agency requirements. This action will be funded using Army Working Captial Funds

(AWCF).

3. Description of Supplies/Services: The proposed contract action is to procure 425 blasting machines (NSN 1375-01-517-4792; E.I.T. Corporation Part Number SBS) – with an option to purchase 425 more – at an estimated cost of , for a maximum estimated contract value of . Pertinent details regarding the proposed acquisition are listed below:

NSN Nomenclature Manufacturer P/N Acquisiton

Method Code 1375-01-517-4792 Blasting Machine E.I.T. Corporation

P/N SBS

3D

Acquisition Method Code (AMC): 3 – Acquire, for the second or subsequent time, directly from the actual manufacturer.

Acquisition Method Suffix Code (AMSC): D – The data needed to acquire this part competitively is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation. AMCS 3, 4, or 5 are valid.

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 USC 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1, “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. Reason for Authority Cited: As authorized by FAR 6.302-1, procurement by other than full and open competition is necessary because blasting machines from a manufacturer other than the original equipment manager (OEM) would require extensive testing to prove compliance with the requirements. The last awarded blasting machine was subjected to extensive testing in 2007 to verify durability to thermal shock, high temperature, humidity, solar radiation, waterproofness, transportability, drop test, operating temperatures, salt fog, dust, sand, wire and shock tube retention, human factors engineering, and safety and health concerns.

Only the blasting machine from E.I.T. Corporation successfully met all testing standards.

The Government does not own the technical data for the blasting machine, nor does the Government have the rights to the technical data. New sources would be required to pass the same testing procedures, which would be conducted at Aberdeen Proving Grounds..

Such testing would be expected to cost $265,000. These expenses would likely not be recouped through subsequent competition. Procurement history shows that the demand for these blasting machines has averaged 19.5/month for the past 24 months, for a total of 468 units over the past 2 years. Future demand is expected to increase to nearly double, to 38 units/month; even so, if a competitive effort generated 10% in cost savings – approximately $134/unit, a total of 1,978 units would have to be purchased to recoup the up-front cost incurred, equating to over four years of demand. Quantities are not high enough to justify the cost to increase competition.

Finally, testing would take approximately eight weeks to complete (NOTE: Six months of lead time is required just to get on the testing schedule at Aberdeen Proving Ground), with no assurance that additional sources would be able to successfully meet all testing standards. The time and effort involved do not justify the development and qualification of an additional source.

6. Efforts to Obtain Competition: There are no known funding efforts in progress at this time to qualify other suppliers of this item nor will there be prior to the contract award due to funding constraints - no funds are available to qualify additional sources given the cost and time involved. At this time, there has not been any expressed interest by any known vendor to become a qualified source to produce this item. Interested contractors can seek qualification through the Source Approval Program with the Competition Management Office (CMO). To date, there has not been any expressed interest by any other known vendors to become qualified to produce this item.

7. Actions to Increase Competition: There are no known funding efforts in progress at this time to acquire the commercially controlled data needed to make these parts competitive.

8. Market Research: Market research was performed using both the internet and through telephone contact with companies in this particular market segment. The research showed that there is a commercial market segment that typically manufactures blasting machines. However, only the E.I.T. Corp part number SBS can be used as a direct replacement and comply with form, fit and function requirements.

13.Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. This determination will be based on the results of a detailed cost and or price analysis. In accordance with FAR 15.403-1(b)(3), certified cost and pricing data will not be required as these items have been determined to meet the commercial item definition in FAR 2.101.

Name: Leah C. Bourdeau Title: Contracting Officer Date: 7/6/17 Signature: //s// LCB

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Leah C. Bourdeau Title: Contracting Officer Date: 7/6/17 Signature: //s// LCB

15. Legal Concurrence:

Signature:

Date: 07/07/2017

Approval Authority for Acquisitions Equal to or Greater Than $700,000

APPROVAL OF JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION

Based on the foregoing Justification, I hereby approve the procurement of the following:

a. Noun: Blasting Machine

b. NSN: 1375-01-517-4792

c. Maximum Quantity: 850

d. Estimated Value:

This action will be awarded under other than full and open competition pursuant to the authority of 10 USC 2304(c)(1) and subject to the availability of funds. This approval is subject to the proviso that the property herein described has otherwise been authorized for acquisition.

NAME:

TITLE:

SIGNATURE:

Date: 14 July, 2017