J&A_SPRDL1-18-R-0425.pdf

Solicitation No. SPRDL1-18-R-0425

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION NO. SPRDL1-18-R-0425

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

2. Description of Action: The planned contract action is for the purchase of 13 distillation apparatus sets (NSN 6640-01-524-7938), with a 100% option. Competition for these sets will be restricted to Petroleum Analyzer Company L.P. (CAGE: 02BZ8), as this firm is the only responsible source for this item, and no other supplies will satisfy agency requirements. The funding for this contracting action is Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: These distillation apparatus sets are used in the Petroleum Quality Analysis System – Enhanced (PQAS-E). The PQAS-E is a mobile testing lab for determining fuel quality in theatre in accordance with modified level B standards per MIL-STD-3004, ASTM International and ISO standards. 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. In this case, the proposed contract action is to procure 13 distillation apparatuses – with an option to purchase 13 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

6640-01-524-7938 Distillation Apparatus Petroleum Analyzer Company L.P., P/N V23102

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.

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 Petroleum Analyzer Company distillation apparatus was developed and tested at private expense; as a result, the technical data is considered proprietary to the manufacturer. 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. Petroleum Analyzer Company is the sole source owner of the drawing package and technical data rights.

The lack of such data requires the distillation apparatus 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 Petroleum Analyzer Company’s distillation apparatus was chosen through research for the PQAS- E and is needed to insure standardization of equipment, operating procedures, training, spare parts, and manuals with the PQAS-E. The Petroleum Analyzer Company distillation apparatuses are the only approved items for these systems. Due to the specific dimensions of the interior of the PQAS-E, the only suitable instrument available is the Petroleum Analyzer Company model. Additionally, the mounting brackets have been specifically designed for the Petroleum Analyzer Company distillation apparatus, and will not work with any other models. Furthermore, counter space is also conserved due to the small size of the distillation apparatus. If a new distillation apparatus were used instead, these benefits would be lost. Finally, the Technical Manual (TM) has been written specifically for this item. If a new distillation apparatus were to be used, it would be very costly and time consuming to update the TM to reflect the new operating procedures.

6. Efforts to Obtain Competition: The Government does not own a fully detailed TDP required to manufacture this item. There are no vendors in the process of being qualified at this time, nor will be prior to the contract award due to funding constraints.

Additionally, there are no planned efforts to qualify additional sources due to the fact that that there is no technical data available to produce a competitive TDP, nor are there any funds available to conduct the extensive (costly and time consuming) qualification testing requirements. Additional interested contractors can seek qualification through the Source Approval Program with the Competition Management Office. Testing and validation of any claims would need to be verified before approval is granted. At this time, there are no known contractors seeking approval through the CMO. Currently, there has not been any expressed interest by any known vendor(s) to become a qualified source(s) to produce this item. Therefore, this action will only be limited to Petroleum Analyzer Company, the owner of the intellectual property and manufacturer of the distillation apparatus.

7. Actions to Increase Competition: There are no contractors currently in the process of being qualified as an alternate source of supply for this item. At this time, there are no current or planned efforts to qualify additional sources due to the fact that the Government does not possess a full-defined and validate technical data package for this item. The source of supply owns the detailed technical data regarding this item. Any vendor that believes it can provide this item, while meeting the same requirements, should seek qualification as a secondary source through the Competition Management Office Source Approval Program. Reverse engineering, testing, and all other efforts to become a secondary approved source would have to be conducted at their own expense.

8. Market Research: The government has no funding to qualify additional sources, and any qualification would be done at contractor’s expense. Computer based market research was conducted in the preparation of this document and no additional sources of supply were identified. Given that no detailed technical data is available for the distillation apparatus (NSN: 6640-01-524-7938), market research results were very limited. Additional contractors can seek qualification through the Source Approval Program with the Competition Management Office.

9. Interested Sources: A Sources Sought Synopsis was posted to FedBizOpps on 2 March 2018. To date, no other sources have expressed an interest in providing the subject item. Only the approved source owns the most current TDP part iteration (revision level). Therefore, interested, non-approved sources cannot provide the Government with valid proposals and cannot be considered at this time. The Sources Sought Notice can be found at the following link:

SSN 2018-312.pdf

10. Other Facts:

a. Procurement history:

(1) Contract: SPRDL1-17-C-0180-P00001 Award Date: 5 January 2018 Contractor: Petroleum Analyzer Company L.P.

Value: $241,360.00 (7 units)

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

(2) Contract: SPRDL1-17-C-0180 Award Date: 17 May 2017 Contractor: Petroleum Analyzer Company L.P.

Value: $241,360.00 (7 units)

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

(3) Contract: W56HZV-15-P-0086 Award Date: 19 November 2014 accordance with FAR 15.403-1(b)(3), certified cost and pricing data will not be required as this item has been determined to meet the commercial item definition in FAR 2.101.

Name: Leah C. Bourdeau Title: Contracting Officer Date: 5/10/18 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: 5/10/18 Signature: //s// LCB

15. Legal Concurrence:

Concur:

Date: 05/13/2018

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: Distillation Apparatus

b. NSN: 6640-01-524-7938

c. Maximum Quantity: 26

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: 23 May 2018