SPRMM1-20-R-YE67_Redacted.pdf

1. Contracting Activity

2. Description of the Action Being Approved

3. Description of Supplies/Servies

DEPARTMENT OF THE NAVY

DLA Maritime

5450 Carlisle Pike | PO Box 2020 | Mechanicsburg, PA 17055-0788

Justification for Other Than Full & Open Competition

Contracting Activity

DLA Maritime - Mechanicsburg Type C1

Folder # 20085-0098 PD # N0010420X5576

Item Manager

Work Function Phone Code

Technician Work Function Phone Code

N

Buyer Work Function Phone Code

Description Negotiation and award of a contract through other than full and open competition.

This J&A covers the acquisition of the following

Spares Repair/Overhaul Modification Management Piece Parts Data Report

Nomenclature Inertial Measuring Quantity 24

NSN 7HH 6605-01-495-0012 Cage Code 03956

P/N 4300859 Unit Price

Option No Option % Days

Estimated Value

Ship To

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9/8/2020https://my.navsup.navy.mil/apps/ops$workflow_pro.j_and_a_edit?p_id=3167

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

W25G1U

Line of Accounting

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

8PMH00000000

This J&A is based upon the authority of 10 USC 2304(C) (1), only one or a limited number of responsible sources will satisfy agency requirements, as implemented by FAR 6.302-1

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 solicited to

Northrop Grumman Systems Corporation (CAGE 03956) The article to be acquired is a highly specialized part, designed and manufactured by Northrop Grumman Systems Corporation. Northrop Grumman Systems Corporation is the design control authority for manufacturing this component and has the expertise needed to produce this part. The required item is specified by the original manufacturer's proprietary part number/drawing. As the government did not procure the Level III drawings for this equipment, NAVSUP WSS does not have the detailed technical data/manufacturing drawings or the rights to the technical data/drawings sufficient enough to allow the production of this item by sources other than the original manufacturer. It has been determined to be uneconomical to reverse engineer the part. There is no other known part that has been determined to be form, fit, and functionally compatible with the higher level assembly.

15 MAR 2019 Class Waiver of the Requirement to Post a Request for Information or Sources Sought Notice applies to this requirement

The proposed contract action was synopsized on the government-wide point of entry on and as a result To Be Determined

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), and Naval Ships Engineering Drawing Repository (NSEDR).

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 Northrop Grumman Systems Corporation (CAGE 03956) 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. Northrop Grumman Systems Corporation's SAM is valid until 09/17/2020. A review of the history for NSN 6605-01-495-0012 identifies that this item has only ever been procured from Northrop Grumman Systems Corporation. The most recent award was purchase order SPRMM1-19-F-M20R, issued to Northrop Grumman Systems Corporation (CAGE 03956) on 06/10/2019. A full review of all DLA awards for NSN 6605-01-495-0012 was also

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7. Determination of Fair And Reasonable Cost

8. Actions to Remove Barriers to Future Competition

9. Any Other Facts Supporting Other Than Full & Open Competition

History completed. A review of awards SPRMM1-16-G-1101-1029, SPRMM1-16-G-1101-1083, and SPRMM1-19-F-M20R identified that each time, Northrop Grumman Systems Corporation (CAGE 03956) was the only offeror. A review of IHS Markit's Haystack Gold and WebFLIS identifies two references/part numbers linked to two CAGES. Reference/part number MX-11681A/WSN-7A(V)2 linked to CAGE 80058 (Joint Electronics Type Designation) and reference/part number 4300859 linked to CAGE 03956 (Northrop Grumman Systems Corporation). A review of https://cage.dla.mil identifies CAGE 80058 as a military standard and not an actual company. In addition, reference/part number MX-11681A/WSN-7A(V)2 has a RNCC of 5 and a RNVC of 2, indicating that they are not an actual part number, but a secondary reference number. As the Government failed to procure the technical data or the rights to the technical data, 4300859 is the only valid part/drawing number. A review of Navy OneTouch identifies the same information to that found in IHS Markit's Haystack Gold and WebFLIS in regards to reference/part numbers MX-11681A/WSN-7A(V)2 and 4300859.

A search of the internet was conducted utilizing the Bing search engine of NSN 6605-01-495-0012. This identified 220 different listings, although only two listings were posted within the last year. The first website was https://www.wakayamamed.jrc.or.jp/medical_pros/iryorenkei_sogoshien_center/bca6bl00000010ma-att/online2014_syousai-15.pdf, which provided a list of medical facitities/doctors in China. The second website was https://www.dcma.mil/Portals/31/Documents/CIG/Database_Exported_28_August%20_19%20updated.xlsx?ver=2019-08-28-142947-263, which link to DCMA's Commercial Item Group (CIG) database. The NSN was then checked against DCMA’s CIG database which showed that that no commercial item determinations had been registered/found. A review of the Small Business Administration's Non-manufacturer rule class waiver list identifies that a class waiver of the non-manufacturing rule does not exist for NAICS 334511, FSC 6605. 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 Northrop Grumman Systems Corporation (CAGE 03956) is the only known manufacturing source.

The contracting officer determines that the anticipated cost to the Government for the supplies covered by this J&A will be fair and reasonable. This item has been previously procured on a non-commercial basis and is for a specific military application. As the anticipated cost is significantly above the TINA threshold, certified cost and pricing data will be required in accordance with FAR 15.403-4 (a)(1). An analysis of the cost information will be performed which will consider field pricing reports, commerciality, procurement history and other available cost and pricing information in determining price reasonableness.

To promote competition, the Government will continue to encourage vendors with the expertise to manufacture/repair the subject item to submit a technical data package for review and source approval by the appropriate engineering source approval authority per NAVSUP WSS guidelines.

Future requirements will be advertised on the Government point of entry (currently https://beta.sam.gov), in order to encourage potential vendors to submit Source Approval Requests (SARs). If another potential manufacturing source emerges, the cognizant engineering activity will assess whether competition for future requirements is feasible. A review of the previous J&A identifies that a clause would be included in the solicitation stating that the Government would consider alternative offers. A review of that subsequential solicitation identifies that the solicitation remarks specifically state that the Government would make every reasonable effort to accept alternative offers and specified what information needed to be provided in order to accept the alternative offer. It has been determined that all actions to remove barriers to future competition were completed as stated.

Previous J&A Previous J&A Attached

Item Description: This Inertial Measuring Unit is a ship/submarine electronic navigational device used to identify and report a vessel's location. The IMU is a component of the AN/WSN-7(V)1, Inertial Navigation System of AA, CVN, DDG, F, HN, LCS, LHA, and SSN class ships. The AN/WSN-7 is a self contained, ring-laser, gyro inertial navigation system that senses ship motions, computes the ship's precise position, velocity, altitude specifications and heading in digital and analog formats. It then forwards this data to other vital ship systems. It is accurate within 1 nautical mile in a 24 hour period. The IMU is critical for the navigational system of these ships, and is required for fleet readiness. There are no known replacements for this inertial measuring unit that are compatible within the AN/WSN-7(V)(1), Inertial Navigation System.

Created By Work Function Reprocurement Technician

Created Date 2020-04-03 04/03/2020

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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Requirements Cognizance Signature

Work Function Planner Requirements Cognizance Signature Date

2020-04-03

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

Technical Cognizance Signature

Work Function Reprocurement Technician

Technical Cognizance Signature Date

2020-04-03

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

Contracting Officer Certification Signature

Brandon Bernhard

BERNHARD.BRANDON.W.1363692130

Work Function Contract Specialist

Contracting Officer Certification Signature Date

2020-08-06

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

Competition Advocacy Review And Concurrence Signature

Adam Johnson

JOHNSON.ADAM.LEE.1036144951

Work Function Competition Advocate

Competition Advocacy Review And Concurrence Signature Date

2020-08-07

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

Legal Sufficiency Review Signature

Work Function Contract Specialist Legal Sufficiency Review Signature Date

2020-08-11

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

2020-08-12

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