JA_SPRDL117R0564_Redacted.pdf

J&A Solicitation No. SPRDL1-17-R-0564

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION NO. SPRDL1-17-R-0564

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

2. Description of Action: The planned contract action is for purchase of thermal oxidation testers, used to support the Petroleum Quality Analysis System – Enhanced (PQAS-E). The PQAS-E is a mobile lab that is intended to test fuels in theatre to a modified level B standard, according to ASTM International and ISO standards to determine fuel quality. The PQAS-E increases the testing capabilities to ensure the quality of fuel that is received, stored, and issued from either commercial, military, and/or captured enemy stocks throughout the theater of operation. This procurement will be restricted to Compass Instruments, Inc., (CAGE: 43AS7), as this firm is the only responsible source for this item, and no other supplies will satisfy agency requirements.

This action will be funded using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: The proposed contract action is to procure 14 testers (NSN 6630-01-564-5517; Compass Instruments, Inc., Part Number 400-001- 001, and also known as the Falex Fuel Thermal Oxidation Tester, or FTOT) – with an option to purchase 14 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 Acquisition Method Code

6630-01-564-5517 Tester, Thermal Oxidation

Compass Instruments, Inc. P/N 400-001-001

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 FAR 6.302-1, “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. Reason for Authority Cited: The U.S. Government does not own or have rights to the technical data for this item, as the Falex FTOT was developed, tested, and earned

ASTM approval at private expense; as a result, the technical data is considered proprietary to the manufacturers. The Government did not fund any efforts in developing or testing this item, nor did the Government fund any efforts to prepare a fully detailed technical data package (TDP) after approval. Compass Instruments is the sole source owner of the drawing package and technical data rights. The lack of such data requires the oxidation tester to be procured on a non-competitive basis from the current manufacturer for all replenishment acquisitions

Procurement by other than full and open competition is necessary because Compass Instrument’s Falex FTOT was chosen through research for the PQAS-E and is needed to insure standardization of equipment, test procedures, training, spare parts, and manuals with the PQAS-E. These Compass Instruments testers are the only approved items for these systems. Due to the specific dimensions of the interior of the PQAS-E, the only suitable fuel thermal oxidation tester available is the Falex FTOT model.

Additionally, the mounting brackets and trays have been specifically designed for the Falex FTOT, and will not work with any other models. Furthermore, counter space is also conserved due to the small size of the instrument which allows for 2 identical instruments to be mounted on the counter top; if a new instrument were used instead, these benefits would be lost. Finally, the Technical Manual (TM) has been written specifically for this instrument. If a new instrument were to be used, it would be very costly and time consuming to update the TM to reflect the new operating procedures.

These instruments were recently procured in 2016. As previously mentioned, there is a fully provisioned PQAS-E Army TM in place for sustainment, and there are no known issues with the Falex FTOTs that are within the previously assembled PQAS-E mobile labs.

6. Efforts to Obtain Competition: Currently, there are no planned efforts to qualify other suppliers of this item, nor will there be prior to the award of this proposed contract due to funding constraints – no funds are available to qualify additional sources, given the cost and time involved, as described below:

Cost: If alternatives to Falex FTOT were used in the PQAS-E, the Government would lose the benefit of the commonality of equipment with the mobile labs. This would lead to additional costs not only for the testing and qualifying of different equipment, but also the cost to train soldiers in the use of different equipment. A new instrument would require time for testing and qualification, and additional training for soldiers as well.

Additionally, it would be costly for the TMs to be rewritten and validated/verified for a new model.

Delay: Testing and training would be unacceptable because it would further delay soldiers from having accessibility to the PQAS-E in the field These instruments meet the necessary form, fit, and function, and without standardization our soldiers are placed under an unnecessary risk that could cause inaccurate results and safety hazards. This procurement will not be subject to those costs or delays in the program schedule.

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 testers competitive. The time and money costs would not be recouped through competition, due to the complexity of the design and the time it would take to produce the tester in the quantities needed, which would create unacceptable delays in filling the Government’s requirements.

Additionally, 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 known vendor(s) to become a qualified source(s) to produce this item.

8. Market Research: This item appears on the Competition Advocate’s Shopping List (CASL), dated 31 July 2017. The CASL contains TACOM-Warren’s projected buy list of sole source items for the next three years based on the AMC Codes of 3, 4, and 5. It is updated and advertised twice a year in the FedBizOpps and is available to interested contractors on the TACOM-Warren Business Opportunities website under the Future and Potential Buys Link. Contractors interested in competing on any items listed are instructed to contact the Competition Advocate’s Office. In addition, computer based market research was conducted in the preparation of this document and no additional sources were identified.

9. Interested Sources: A sources sought synopsis was posted to FedBizOpps on 29 September 2017. To date, no other sources have written to express an interest.

Nevertheless, offerors are always encouraged to seek qualification through TACOM’s Source Approval Program (SAP) with the CMO. Additionally, the synopsis notice required by FAR 5.201 will be published and any proposals received shall be considered.

10. Other Facts:

a. Procurement history:

(1) Contract: SPRDL1-17-C-0203 Award Date: 31 May 2017 Contractor: Compass Instruments Value: $374,500.00

Competitive Status: Restricted Authority: 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements

b. Acquisition Data Availability: The Government does not own or have rights to the technical data used for these instruments.

c. Unusual and Compelling Urgency: N/A

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: Tester, Thermal Oxidation

b. NSN: 6630-01-564-5517

c. Maximum Quantity: 24

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:

Previous J&A

Comp Ad Signed

JA_SPRDL1-17-R-000

HOPSON.LILLI

.A.1230127324

Digitally signed by

HOPSON.LILLI.A.1230127324

Date: 2018.01.12 14:16:40 -05'00'