Tab 4 - J and A - Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX-19-R-0118

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

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 a full and open competition basis. This DLA Land and Maritime acquisition is for an Indefinite Quantity Firm- Fixed Price type corporate contract for spare parts. The proposed acquisition is for DLA-managed items for which Essex Industries (19062) or Essex Industries (83533) is the only approved source. The acquisition includes National Stock Numbers belonging to Federal Supply Classes 4710 – Pipe and Tube, 4810 - Valves, Non-Powered, and 5930 - Switches. Solicitation will be issued utilizing FAR 15 procedures.

3. The supplies required are to meet the activity's needs are described in Attachment 1 titled, NSN Information.

Identify end item, weapon system, or class of item:

The seven items are replacement parts for various aircraft weapon systems. Attachment 1 lists the highest weapon for each item. Attachment 2 includes a picture of the highest weapon system.

Contract length will consist of one-three year base period with two, one-year option years.

Option years will be exercised at the discretion of the Government. Solicitation will be issued as a 100% small business, set-aside.

ESTIMATED THREE YEAR BASE VALUE: $

* Estimated Base Value represents the first three 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 three (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 ten

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.

Items are available from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency.

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

5. If restricted to the only source(s) of supply, include source(s) and CAGE code:

As of January 29, 2020 per the Approved Materials and Parts List (AMPL) the only approved source for CLINs 0001-0003 and 0005 is Essex Industries (19602) and for CLINs 0004 and 0006-0007 is Essex Industries (83533).

On March 18, 2020, the Product Specialist of Record (PSOR) for each item was contacted and asked to confirm that the technical information is complete and accurate. By March 23, 2020, each PSOR responded by stating the technical information for each item is accurate with the exception of NSN 4710000888064 (CLIN 0002). The AMSC for this NSN has changed from “L” to “D”.

The use of the authority cited is based on:

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

(The following is the AMSC description. The full text is available in DFARS PGI 217.7506 Part AMSC C. (Applies to CLINs 0003, and 0006-0007) This part requires engineering source approval by the design control activity in order 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(s) retain 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.

The Government has retained the right to approve manufacturing sources for this item due to their weapon systems criticality. For CLIN 0003, Essex Industries (19602) and for CLINS 0006- 0007, Essex Industries (83533) are the only sources that has been approved to manufacture this item. The identified approved source retains the data rights, manufacturing knowledge, and technical data and this information is not economically available to the Government. Essex Industries (19602) and (83533) are the only sources to have part numbers approved. Therefore, Essex Industries (19602) and (83533) are uniquely qualified to supply these items.

AMSC D. (Applies to CLIN 0001, 0002 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.

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

The Government does not have technical data for these items and cannot obtain the technical data economically. For CLIN 0001, Essex Industries (19602) and for CLIN 0004 Essex Industries (83533) are the only known source to own or possess the technical data for the identified items. These exact items are required to ensure proper operability of the weapon systems. Use of any similar items available from other vendors may not produce the same operational results. Therefore, Essex Industries (19602) and (83533) are uniquely qualified to supply these items.

AMSC R. (Applies to CLIN 0005) The Government does not own the data or the rights to the data needed to purchase 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 this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid.

Essex Industries (19602) is the only source that has the data or the data rights necessary to manufacture the item. The approved source identified is the owner of their drawings and technical data rights. The Government did not buy their proprietary rights to produce a competitive TDP. Essex Industries (19602) has the engineering expertise and desire to perform all efforts required to provide the supplies identified in this certification.

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

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

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

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

7. I hereby determine that 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. 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. 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).

Items are not currently on a long term contract. Most recently, items were provided as one-time buys from approved manufacturer, Essex Industries (19602) and (83533). Dealers have also provided the items but have not done so since 2018. Buyer researched the buy history for the availability of previous J&A’s. Most of the one-time buys were below the simplified acquisition threshold and therefore a J&A was not required. A J&A was available for the long-term contract

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

SPM7MX-13-D-0132 (See attachment 4). On October 2, 2018, a “Sources Sought” notice was posted on FedBizOps to locate additional, potential sources of supply. No other sources responded to the Sources Sought Notice. An updated Sources Sought notice was posted on March 25, 2020 with a response date of March 30, 2020.

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

A market survey was conducted during: September 2018 – November 2018.

Total number of vendors contacted: 5.

-Avionics (1BRS6) -Kampi Components (7Z016) -Q-Mark, Inc (0LBH0) -Essex Industries (19602) -Statz Corporation (3WGD1)

Name of vendor contacted and responding: 2 -Essex Industries (19602), Small Business Manufacturer -Kampi Components (7Z016), Small Business Dealer

Techniques used to conduct survey: Market Survey questionnaires, review of buy history, Sources Sought notice, internet search on exact and similar items and email conversations with approved source.

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.

Summary of market information received:

-Review of buy history shows that items were primarily provided by Essex Industries (19602) and (83533) -Previous buys included dealers providing items of the approved sources. In some cases, surplus material was provided.

-Internet search did not find the exact items to be available to the general public.

- Essex Industries and Kampi Components are interested in a long-term contract.

However, Kampi stated that Essex quotes directly the Government.

-A contract length of

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

-Essex Industries stated that items are commercial but did not provide any supporting documentation. Kampi Components stated that it is unknown if items are commercial items. While Essex states the items are commercial, they provided no documentation to support that statement. The Contracting Officer did not find any evidence that these items are available for the general public or used by the general public. Accordingly, it is the Contracting Officer’s determination that these items are non-commercial.”

-Essex Industries will quote directly to the Government -Kampi Components was not contacted for updated market research because Essex plans to quote directly to the Government.

-On March 24, 2020, Essex Industries confirmed there were no changes to the previously submitted market research.

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

( X ) 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.

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)

- Essex Industries (19602)

- Kampi Components (83533)

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

(X) Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items

(X) Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items

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 $700,000, this signature serves as the approval.

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

__________________________________ 614.692.7780 March 27, 2020

Tracy L Holmes Contracting Officer Phone Date

Approval/Certification

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

Competition Advocate Phone Date Signature

APPROVAL REQUIREMENTS

(X) $700,000 to $13,500,000 Competition Advocate

Attachments:

1. NSN Information

2. Weapon System Pictures

3. Procurement History

HOPSON.LILLI

.A.1230127324

Digitally signed by

HOPSON.LILLI.A.1230127324

Date: 2020.03.30 12:48:04 -04'00'