Tab 4 - J_A REDACTED.pdf

Solicitation Number SPE7MX-22-R-X041

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION

X ORIGINAL

ADDENDUM

1. The Defense Logistics Agency, DLA Land and Maritime, is the contracting activity.

2. The action being approved is for the acquisition of supplies on an Other Than Full and Open competition basis. This DLA Land and Maritime acquisition is for an Indefinite Delivery, Firm Fixed Price type contract for spare parts. The acquisition is for 4 National Stock Numbers (NSNs) belonging to Federal Supply Class 4820. Solicitation will be issued utilizing FAR 13.5 procedures.

The Items included on the solicitation are sole sourced to Emerson Automation Solutions Final (04613)

The scope of this project is for 4 NSNs included in the Schedule of Supplies. Additional items within this scope may be added later in accordance with the terms of Procurement Note L27 - Addition/Deletion of items.

3. The item required to meet the activity's needs is described below:

The valves are components of piping systems for shipboards, which could transfer seawater, fuel, lubricating oil, freshwater, or for ballast control. The exact media isn’t designated, except for NSN 4820012588653, which is a seawater control valve. The manually operated valves have a wheel which drives a gear that opens/closes the valve as opposed to valves which have powered actuators controlled by motors. For NSN 4820016808962, there is a gear wheel which is manually operated. The repair Kit consists of 2 components used to repair 30” valves. The highest weapon systems for each item is show in the above chart. Attachment 1, Weapon Systems, includes a picture of the weapon systems.

NSN ITEM Unit of Issue

Est.

Annual

Demand Quantity

AMC/

AMSC PIC QCC

DPAS

Priority Rating

PLT NAICS Federal Supply Class

Highest Weapon System Code

4820012588653 VALVE,

BUTTERFLY EA 18 3/C 2 DAA DOC9 257 332911 Valves, Nonpowered

JDN-ARLEIGH

BURKE CLASS

DDG

4820013500038 REPAIR

KIT,VALVE KT 99 3/C 2 DAA DOC9 93 332911

Valves, Nonpowered

EZN-

TICONDEROGA

CLASS CG (47)

4820015104300 VALVE,

BUTTERFLY EA 6 3/D 2 DAA DOC9 172 332911

Valves, Nonpowered

JAN-

NIMITZ CLASS

CVN

4820016808962 VALVE,

BUTTERFLY EA 34 3/D 2 DAA DOC9 238 332911

Valves, Nonpowered

JDN-

ARLEIGH BURKE

CLASS DDG

Contract length will consist of one-two year base period with three, one-year option years. Option years will be exercised at the discretion of the Government. Solicitation will be issued as unrestricted as there is no expectation of receiving offers from at least two responsible small business concerns.

ESTIMATED TWO YEAR BASE VALUE: *

*Estimated Base Value represents the first two years (Base Period) of the contract. The estimated base value is calculated by multiplying the estimated annual demand quantity (ADQ) for each NSN by the estimated unit price to establish an estimated Annual Demand Value (ADV). The ADV is multiplied by two (number of years in Base Period) to determine the estimated based value. The ADVs are summed to establish the total estimated base value.

ESTIMATED TOTAL VALUE (BASE + OPTIONS): *

* The Estimated Total Value is calculated by multiplying the total ADV by 5 (number of contract years).

MAXIMUM CONTRACT VALUE: *

*Annual demand value multiplied by seven

4. The statutory authority permitting other than full and open competition is:

(X) 10 U.S.C. 2304(c)(1) - Available from only one or a limited number of sources.

5. As of 4/19/2022, the Approved Materials and Parts List (AMPL), lists Emerson Automation Solutions Final (04613) and their part numbers as the only approved source of supply for each of the four NSNs.

Acquisition is restricted to Emerson Automation Solutions Final (04613) as the source of supply for all items for the following approved part numbers:

NSN 4820012588653, Part Number 144-703-050-362-036 NSN 4820013500038, Part Number 010935300641002 or D641-30 ITEM 22 NSN 4820015104300, Part Number 1KW12PN2-ANB46-B12 or USODWM01 ASSY 1KW12PN2-ANB46-B12 NSN 4820016808962, Part Number HAS8030077

On 2/17/22, , Product Specialist (P/S), certified the technical information is complete and accurate (Attachment 2, Technical Certification). All means to obtain a technical data package adequate for manufacture of the items has been exhausted.

The use of the authority cited is based on:

- AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

An AMC of “3” applies to CLIN 0001, 0002, 0003 and 0004.

(The following is the AMSC description. The full text is available in DFARS PGI 217.7506 Part 2).

AMSC C. (Applies to CLIN 0001 and 0002) These items require engineering source approval by the design control activity to maintain the quality of the part. Existing unique design capability, engineering skills, and manufacturing knowledge by the qualified source(s) require acquisition of the part from the approved source(s). The approved source retains the data rights, manufacturing knowledge, or technical data that are not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the part. An alternate source must qualify in accordance with the design control activity's procedures, as approved by the cognizant Government engineering activity. The qualification procedures must be approved by the Government engineering activity having activity. The qualification procedures must be approved by the Government engineering activity having jurisdiction over the part in the intended application. If one source is approved, AMCs 3, 4, or 5 are valid. If at least two sources are approved or if data is adequate for an alternate source to qualify in accordance with the design control activity's procedures, AMCs 1 or 2 are valid.

AMSC D. (Applies to CLIN 0003 and 0004): 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.

For these items with an AMSC of C, the Government has retained the right to approve manufacturing sources for these items due to their weapon systems criticality. These items must be provided by Emerson Automation Solutions Final (04613) because they are the only source approved to manufacture the items. Emerson retains the data rights, manufacturing knowledge, and technical data and this information is not economically available to the Government. For the ARLEIGH BURKE CLASS DDG and TICONDEROGA CLASS CG (47) weapon systems, the military services have only approved the part numbers provided by Emerson Automation Solutions Final (04613). These items must be provided by Emerson Automation Solutions Final (04613) because they are the only source that is trusted and approved by the military services, the only source uniquely qualified to supply these items, and the only source that meets the technical and quality requirements identified by the military. For these reasons, the items with an AMSC of C must be provided by Emerson Automation Solutions Final (04613).

For these items with an AMSC of D, Emerson Automation Solutions Final (04613) is the only source with the data to manufacture the items. 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. The identified approved source retains the data rights, manufacturing knowledge, and technical data and this information is not economically available to the Government. For the ARLEIGH BURKE CLASS DDG and NIMITZ CLASS CVN weapon systems, the military services have only approved the part numbers provided by Emerson Automation Solutions Final (04613). The item(s) provided by Emerson Automation Solutions Final (04613) meet the technical and quality requirements identified by the military services.

Therefore, Emerson Automation Solutions Final (04613) is the only source uniquely qualified to supply these items.

6. Efforts to ensure that offers are solicited from as many sources as practicable are:

(X) The acquisition will be synopsized on www.SAM.gov for 15 days prior to solicitation opening date.

(X) Manufacturer of the exact product identified in the market research will be solicited.

(X) Solicitation will be posted on DLA Internet Bid Board System (DIBBS) for 15 days.

(X) The Sources Sought Notice was published on April 13, 2022, and is further discussed in paragraph 8.

7. I hereby determine the anticipated cost to the Government will be fair and reasonable.

Prices will be determined fair and reasonable through price analysis based upon the application of the Producers’ Price Index (PPI) to the past acquisitions. Should more than one offer be received, proposed prices will be compared among all offers to determine if price competition exists. Also, since the item is commercially available, buyer will compare proposed prices to commercial prices. Contract is firm-fixed price with a contract length of one three-year base period and two one-year options that will be exercised at the Government’s discretion. A price analysis for future contract years will be conducted based on the Global Insights Producer Price Index (PPI) forecasts. Since the items are commercial, certified cost and pricing data is not required per FAR 15.403-1(b)(3). Buyer will use all methods stated to determine all contract years and quantity range prices fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

Buyer reviewed buy history for potential sources (See Attachment 3, Procurement History). Buy history shows that all four NSNs have been predominantly provided by ESI Acquisition, dba JA Moody (3B558), the authorized distributor for the approved source, Emerson Automation Solutions Final (04613). The only exception has been the most recent buy for NSN 4820012588653, SPE7M022V3105, March 31, 2022, which was provided by VSE Corporation (31902). Depending on the item, previous buys included one-time buys and delivery orders issued off basic contracts

Market Survey [10 U.S.C. 2304(f)(3)(D)]:

Market research was conducted during February 15, 2022-April 15, 2022 Total number of vendors contacted: 3

•ESI Acquisition Corp, dba JA Moody (3B558) – Small Business, Veteran Owned, Dealer •Emerson Automation Solutions Final (04613) – Large Business, Manufacturer •VSE Corporation (31902) – Large Business, Dealer

The buyer sent follow up emails and made phone calls to Emerson Automation Solutions Final (04613) and to VSE Corporation (31902). The only source to respond to the market research request was ESI Acquisition Corp, dba JA Moody (3B558), who responded by completing the Markey Survey questionnaire. ESI Acquisition is the authorized distributor for the approved source, Emerson Automation Solutions Final (04613) for Emerson’s Navy and Marine business. , Inside Sales Representative for ESI Acquisition, stated in the response that ESI is interested in submitting an offer for the solicitation, for all four NSNs, for which Emerson Automation is the approved source.

Techniques used to conduct survey: Market Survey questionnaire, review of buy history, Sources Sought notice, internet search on exact and similar items and email conversations ESI Acquisition.

Types of information requested: Information included business type, business size, interest in LTC and length of contract, commerciality of the item, approximate price and delivery, inspection and packaging compliance, and ability to provide Certified Cost & Price data.

Additional market research information received:

• ESI Acquisition Corp, dba JA Moody (3B558) is a veteran owned, small business dealer, with 30 employees.

• ESI is the authorized distributor for the approved source (Emerson Automation Solutions Final (04613) for their Navy & Marine business.

• ESI expressed interest in a long-term contract for all four NSNs in the scope of work.

• ESI has provided all four NSN’s on all previous small and large buys, with the exception of the most recent buy for NSN 4820012588653.

• ESI stated in their response that the four NSNs are not commercial items,

• ESI stated they understand the requirements for Certified Cost or Pricing Data;

• VSE Corporation (31902) is a large business dealer that performed on the most recent buy for NSN 4820012588653 on March 31, 2022. VSE has not returned a response regarding the market survey request.

Research conducted by the Contracting Officer included the following:

Checked the Commercial-Off-The-Shelf (COTS) line in the Material Master for subject NSN to verify if the COTS line was populated with a either a “Yes”, “No”, or left blank. The item was left blank.

Referred to the Defense Contract Management Agency (DCMA) Commercial Item Group (CIG) database to see if commercial determination and/or other commercial recommendation was submitted to other DCMA offices and buying command engineers/SMEs for review.

The subject NSN was not previously submitted for review.

The General Service Administration’s (GSA) online shopping system, GSA Advantage, was reviewed and it was confirmed that the subject NSN was not available through that service.

Conducted an internet search using the item’s approved part number and nomenclature to determine if the exact item or similar items are available for purchase to the public.

, Inside Sales Representative for ESI Acquisition, stated in the response to the market survey that the items were not commercial.

To identify other possible sources, a Sources Sought Notice was issued on SAM.gov on April 13, 2022, with a response date of April 29, 2022. There have been no responses to the Sources Sough Notice.

Items using the exact code and part number were not found to be commercially available; however, items matching the exact item description, material type and dimensions were found commercially available for purchase for the 3 butterfly valves (NSNs 4820012588653, 4820015104300 and 4820016808962). For the repair kit, butterfly valve, Size 30 inch, (NSN 4820013500038), items matching the exact description and material type, but with different size dimensions were found commercially available for purchase. Contracting Specialist found many other kits to repair butterfly valves of various sizes but could not find a repair kit specifically for a 30” valve.

The results of the market research are evidence that items of these types are being offered for sale to the general public. Each of the 3 butterfly valves were available in the commercial marketplace without modification; however, the Repair Kit, Butterfly Valve, Size 30 inch requires an additional modification. Therefore, after consideration of all the market research above, the Contracting Officer determines that these items are Commercial of a Type.

9. Additional facts supporting other than full and open competition are:

Based upon the technical certification on file in DLA Land and Maritime-VEP technical data is not available and cannot be developed to permit full and open competition. The data presently available reflects the minimum needs of the Government.

Additionally, forecast information is available to all potential sources for both sole source and competitive items. The DLA Supplier Requirements Visibility Application (SRVA) is a database that is available via the DLA internet Bid Board System (DIBBS.) SRVA provides potential sources the opportunity to search for information on DLA’s anticipated requirements based on updated monthly forecasts. Essentially it provides 24 months of sole source and competitive projected purchase order quantities. Potential alternate sources for current sole source items can easily see DLA’s forecasted procurements and can contact the Value Management Unit to become approved sources for sole source and code and part number items. The DLA Land & Maritime Value Management Unit continually seeks out sole source, limited competition, over-priced, low reliability and hard to buy items to improve their value and support posture. The DLA Land & Maritime internet website contains information for all potential sources on how to challenge prices, how to submit a Value Engineering Change proposal, a link to DoD’s Value Engineering program and the necessary contact info for both the DLA Value Engineering program and the DoD Value Engineering program.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state)

•ESI Acquisition Corp, dba JA Moody (3B558)

11. The following actions are being taken to identify additional sources:

The Government will continue to conduct market research, to see if changes occur in the marketplace that would enable future actions for these items to be competitive. The Government will also include in the solicitation DLA Procurement Notes L04 Offers for Part Numbered Items and DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items. Should alternate offers be received, sources will be encouraged to submit a source approval request (SAR) package that will be referred to the engineering activity for consideration of future procurements. Buyer researched the availability of previous J&As for the items but was unable to locate any prior J&A documentation in Records Management for either the contracts listed in the procurement history from 2006 and 2007 or the small buys listed in the procurement history.

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief. If not exceeding $750,000, this signature serves as the approval.

Tracy L Holmes Contracting Officer Date

Approval/Certification

I have reviewed and approve this justification. The estimated total value of the J&A is

Mary Shearer Competition Advocate Signature Date

APPROVAL REQUIREMENTS

[X] Up to $750,000 Contracting Officer

[X] $750,000 to $15,000,000 Competition Advocate

Attachments:

1. Weapons System

2. Technical Certification

3. Procurement History

HOLMES.TRAC

Y.L.1251897499

Digitally signed by

HOLMES.TRACY.L.1251897499

Date: 2022.06.02 09:51:57 -04'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2022.06.03 14:08:22 -04'00'