SPRMM1-20-Q-YF86 Redacted.pdf

4. Statutory Authority Permitting Other Than Full & Open Competition

5. Rationale Justifying Use of Cited Authority

6. Description of Efforts Made To Solicit Offers From as Many Offerors as Practicable

Line of Accounting

97 00 XX XX 4930 NC1A 000 81004 0 050120 7R 000000

8PMF00000000

List of Items/Item Description

See paragraph 5.

This justification is based upon the statutory authority of 41 U.S.C. 1901, as implemented by Federal Acquisition Regulation Subpart 13.5

A/RMC 3

Acquire, for the second or subsequent time, directly from the actual manufacturer.

A/RMSC R

The Government does not own the data or the rights to the data needed to purchase / contract repair of this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights. If only one source has the rights or data to manufacture/repair this item, A/RMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture/repair this item, A/RMCs 1 or 2 are valid.

This acquisition will be negotiated with

General Electric Company (CAGE 07482) General Electric Company is the only approved manufacturing source because it owns the drawings and specifications for this highly specialized item. There are no authorized substitutes of this item due to critical machining and precision. The item has to be tested while in the higher assembly LM2500 Base Enclosure, and qualify within the required testing specifications. No other manufacturing source has been identified through market research that is capable of manufacturing this item. The Nozzle, Turbine, also known as the Nozzle, Low Pressure Turbine (LPT), Stage 6 is a component of the LM2500 Maritime Engine, utilized on various U.S. Naval Platforms. The Power Turbine consists of the LPT Rotor, LPT stator, and Nozzles (Vanes). Air, taken in through the front frame, passes through successive stages of compressor rotor blades and compressor stator vanes and is compressed as it passes from stage to stage. After passing through 16 stages, the air has been compressed in the ratio of 16 to 1. The Inlet Guide Vanes (IGV) and the first 6 stages of stator vanes are variable; their angular position is changed as a function of Compressor Inlet Temperature (CIT) and compressor speed. This provides stall-free operation of the compressor throughout a wide range of speed and inlet temperatures. The Turbine Nozzle, is built specifically for the LM2500 Maritime Engine, and is configured for the LM2500 base enclosure.

The proposed contract action will be synopsized in the government-wide point of entry

The following sources have expressed an interest, in writing, in this acquisition

The following vendors expressed interest in providing General Electric Company part number 1474M46P01: Aero Land & Marine, LLC (CAGE 7MYW5), Aircraft & Turbine Support Corporation (CAGE 3UGD4), and BGT Holdings LLC (CAGE 6VWV7).

Market research was conducted in accordance with far part 10. The results of the market research conducted (or the reason(s) market research was not conducted) are as follows

Market research was conducted by the technical community of the following Government databases; Integrated Technical Item Management & Procurement (ITIMP), ERP/ORACLE/FMT, In-Service Engineering Activity (ISEA), Naval Ships Engineering Drawing Repository (NSEDR), Federal Logistics Information System (WebFLIS). Search criteria included Part Number, Design Control Activity, Cage Code, NSN, Nomenclature, AMC/AMSC, AAC, Criticality Coding, recorded approved source of manufacture, historical sources of supply and past contracts. All databases indicate that General Electric Company is the only manufacturing source of supply for this material. In addition, the contracting office conducted its own independent market research. This market research showed the following: A review of the mandatory sources of supply has been conducted in accordance with FAR 8.002 and DFARS 208.002. None of the mandatory sources of supply are capable of providing this requirement. Known

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7/16/2020https://my.navsup.navy.mil/apps/ops$workflow_pro.j_and_a_edit?p_id=4802

7. Determination of Fair And Reasonable Cost

8. Actions to Remove Barriers to Future Competition

History manufacturing source General Electric Company is currently registered in SAM as being active. A review of this recent history for NSN 2835-01-373- 1806 identifies two purchase orders, SPRMM1-19-P-RA08 and SPRMM1-19-P-RA09 issued to Aircraft and Turbine Support Corporation (CAGE 3UGD4) on 10/09/2018. Both of these orders were later canceled for administrative reasons. A review of past history also identified Turbine Technics, Inc. (CAGE 49C77), as a past supplier for this part. DLA reached out to Turbine Technics, which confirmed that they supply many OEM parts new, not surplus, but they were unable to supply part number 1474M46P01. A review of the Interagency Contract Directory identifies that there is not an existing long-term contract that DLA could use to procure this requirement. A review of IHS Markit's Haystack Gold and WebFLIS identifies General Electric Company as the sole source of supply for NSN 2835-01-373-1806. Both websites list three reference/part numbers manufactured from GE for NSN 2835-01-373-1806: L31846G01, L31846G04, and 1474M46P01. Reference/part numbers L31846G01 and L31846G04 are both listed by IHS Markit's Haystack Gold and WebFLIS as having a Document Availability Code (DAC) of 5, indicating that the part number is represented by a drawing, but that the drawing is not available to the RNAAC. A review of Navy OneTouch identifies similar information to that found in IHS Markit's Haystack Gold and WebFLIS indicating that this material is sole sourced to General Electric Company. Market research identified a similar requirement (NSN 2835-01-373-1805), as also being a commercial item sole sourced to General Electric Company (CAGE 07482). The similar item was procured on 06/30/2020 under award SPRMM1-20-F-KR09 at a similar quantity. The primary difference between the two turbine nozzles is their placement within the LM2500. The similar item (part number 1474M45P01) is a stage 5 turbine nozzle. The requirement currently being procuring (part number 1474M46P01) is a stage 6 turbine nozzle. Contact directly with General Electric Company has indicated that this is a commercial item that they provide. General Electric Company has provided a copy of their 2019 and 2020 LM Spare Parts Published Catalogs as well as invoices of past sales to non-Government entities as evidence of 1474M46P01 being a commercial item. A sources sought notice (SPRMM1- 19-Q-HA60) was posted on the GPE on 12/06/2018, closing 12/13/2018. The sources sought notice received three responses from small businesses identifying that they could provide 65 units of part number 1474M46P01. Those three small businesses were identified as Aircraft and Turbine Support (CAGE 3UGD4), BGT Holdings (CAGE 6VWV7), and Aero Land & Marine (CAGE 7MYW5). The sources sought notice was for 65 units (the initial quantity required) but was later increased to 395 units due to the cancellation of two previous purchase orders and increased demand. Each vendor identified this material as a commercial item without any type of modification. A review of the Small Business Administration's Non-manufacturer rule class waiver list identifies that a class waiver of the non-manufacturing rule exists for turbines NAICS 333611, FSC 2835. A review of the drawings received from the technical warrant holder identifies that part number 1474M46P01 is currently on Revision U. Revision U, dated 01/05/2007 incorporates Change In Design (CID) 539179. Based on the market research conducted and as a result of the Government failing to procure the adequate technical data and rights to the data for this material, the Contracting Officer has determined that General Electric Company (CAGE 07482) is the only known manufacturing source.

The anticipated cost to the Government will be fair and reasonable. Per FAR 15.404-1(b), price analysis will be used to evaluate pricing.

This item was determined commercial on July 6, 2020. Per FAR 15.403-1(b)(3), the commerciality of this item makes it exempt from the requirement for certified cost or pricing data. Comparison to historical pricing of same or similar items, data other than certified cost or pricing data (if necessary), and any other means allowed by regulation, will serve as the basis for determining that the proposed pricing is fair and reasonable.

To promote competition, NAVSUP WSS will continue to encourage vendors with the expertise to manufacture the subject item to submit a complete technical data package for review and source approval by the appropriate engineering source approval authority per the (WSS) guidelines. Also future requirements will be advertised at https://beta.sam.gov in order to encourage potential vendors to submit Source Approval Requests. If another potential manufacturing source emerges, NAVSUP WSS will assess whether competition for future requirements is feasible.

Created By Work Function Reprocurement Technician

Created Date 2020-07-06

06-JUL-20

I certify that the facts and representations under my cognizance which are included in this J&A are complete and accurate to the best of my knowledge and belief

Requirements Cognizance Signature

Work Function Reprocurement Technician

Requirements Cognizance Signature Date

2020-07-06

I certify that the facts and representations under my cognizance which are included in this J&A are complete and accurate to the best of my knowledge and belief

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Technical Cognizance Signature

Work Function Reprocurement Technician

Technical Cognizance Signature Date

2020-07-06

I certify that this J&A is accurate and complete to the best of my knowledge and belief

Contracting Officer Certification Signature

Timothy Mccloskey

MCCLOSKEY.TIMOTHY.SEAN.1237828999

Work Function Contract Specialist

Contracting Officer Certification Signature Date

2020-07-09

I certify that the facts and representations under my cognizance which are included in this J&A are complete and accurate to the best of my knowledge and belief

Competition Advocacy Review And Concurrence Signature

Adam Johnson

JOHNSON.ADAM.LEE.1036144951

Work Function Competition Advocate

Competition Advocacy Review And Concurrence Signature Date

2020-07-13

I certify that this J&A is legally sufficient to the best of my knowledge and belief

Legal Sufficiency Review Signature

Work Function Legal Sufficiency Review Signature Date

2020-07-14

I certify that this J&A is accurate and complete to the best of my knowledge and belief

Approval Required By Far

6.304 Signature

Bradley Holtzapple

HOLTZAPPLE.BRADLEY.A.1198214309

Work Function Competition Advocate

Approval Required By Far

6.304 Signature

Date

2020-07-16

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