Tab 4 - JA final redacted signed ALT_COMPAD (CUI) r.pdf

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Attached to
4730011026067 Federal contract opportunity
Solicitation number
SPE7MX24R0007
Issued by
Defense Logistics Agency Land and Maritime

About this file

This document is a Justification for Other Than Full and Open Competition (J&A) for a federal contract opportunity. It provides the justification for awarding a contract on a limited/sole source basis.

The J&A cites several Acquisition Method Codes (AMCs) that restrict competition to specific approved manufacturers - Eaton Aeroquip, Meggitt North Hollywood, and Sikorsky Aircraft - due to their unique technical capabilities, proprietary data rights, and criticality to the intended weapon systems applications. The items were found to be commercial in nature based on market research. Sources Sought efforts identified Eaton Aeroquip, AAR Supply Chain, and Jamicia Bearings as potential vendors. The award is for a one-year base period with four one-year option periods, on a firm-fixed price basis. Pricing will be determined fair and reasonable through price analysis, as certified cost or pricing data is not required for commercial items. The total value of the acquisition exceeds $2 million.

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CUI

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION [ ]

[ X ] AMC 1. Suitable for competitive acquisition for the second or subsequent time.

[ B ] AMSC B. This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-100. Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. Although, by DoD-STD-100 definition, altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

For the item coded with an AMSC of B, the drawing(s) are source controlled with restricted limited rights. Eaton Aeroquip and Sikorsky Aircraft are the approved sources. Government does not have the rights to distribute the source control documents.

[ X ] AMSC C. 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 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 these items due to their weapon systems criticality. For these items with an AMSC of C, Eaton Aeroquip, Meggitt North Hollywood and Sikorsky Aircraft are the sources that are approved to manufacture the items. 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 weapons systems, including the Hawkeye Helicopter, Chinook Helicopter, E2/C2 Aircrafts and Blackhawk Helicopter, the military services have only approved the part numbers provided by Eaton Aeroquip, Meggitt North Hollywood and Sikorsky Aircraft. Eaton Aeroquip, Meggitt North Hollywood and Sikorsky Aircraft are the only sources that are trusted and approved by the military services. These items provided by Eaton Aeroquip, Meggitt North Hollywood and Sikorsky Aircraft meets the technical and quality requirements identified by the military services. Therefore, Eaton Aeroquip, Meggitt North Hollywood and Sikorsky Aircraft are uniquely qualified to supply these items.

[ X ] AMSC P. The rights to use the data needed to purchase this part from additional source(s) are not owned by the Government and cannot be purchased, developed, or otherwise obtained. It is uneconomical to reverse engineer this part. This code is used in situations where the Government has the data but does not own the rights to the data. 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.

Eaton Aeroquip is the source authorized to manufacture the item. Because the rights to use the data are not owned by the Government, item cannot be purchased, developed or otherwise obtained from additional sources. Eaton

DLA Land & Maritime Justification for Other Than Full & Open Competition

CUI

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION [ ]

Aeroquip has the engineering expertise to perform all efforts required to provide the supplies identified.

Therefore, Eaton Aeroquip is uniquely qualified to supply these items.

[ R ] AMSC R. 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.

Eaton Aeroquip and Meggitt North Hollywood are the sources that have the data or the data rights necessary to manufacture the item. Eaton Aeroquip and Meggitt North Hollywood are the owner of their drawings and technical data rights. The Government did not buy their proprietary rights to produce a competitive TDP. Eaton Aeroquip and Meggitt North Hollywood have the engineering expertise to perform all efforts required to provide the supplies identified in this certification. For this weapon systems, the military services have only approved the parts provided by Eaton Aeroquip and Meggitt North Hollywood .

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 day prior to solicitation opening date

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

(X) Dealers of the manufacturer will be solicited

(X) Solicitation will be posted on DLA Internet Bid Board System (DIBBS) for 30 days.

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 one-year base period and four 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. The total value of this acquisition is greater than the $2,000,000.00 threshold for Certified Cost or Pricing Data (CCPD). 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 2 – Procurement History). Buy history show that items were provided by Eaton Aeroquip (00624), Meggitt North Hollywood (79318), AAR Supply Chain (1Y249), Sikorsky Aircraft (78286). Buyer researched the availability of the J&A documents for the previously awarded contracts. A J&A was available for contracts SPE7MX-22-D-0106 and SPE7MX-19-D-0016. See Attachment 3, Previous Buys JA 0016 and Attachment 4, Previous Buy JA 0106

DFARS PGI 206.303 and 206.304 state that justifications citing the authority at FAR 6.302-1 to permit the use of other than full and open competition shall include a copy of a previous justification. Previous J&A’s attached

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

DLA Land & Maritime Justification for Other Than Full & Open Competition

CUI

SOLICITATION [ ]

Market Survey [10 U.S.C. 3204(e)(2)(D)]:

A market survey was conducted on/during August – October 2023.

Total number of vendors contacted: 3 Names of vendors contacted and responding:

Eaton Aeroquip (00624) – Large Business, Manufacturer AAR (1Y249) – Large Business, Dealer Jamicia Bearings (04836) Small Business, Dealer

Eaton, AAR and Jamicia Bearings all returned a completed questionnaire.

- 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.

Eaton Aeroquip

They stated the item is commercial.

Large Business Manufacturer They are willing to participate in a LTC.

AAR

They stated the item is commercial.

Large Business Dealer of Eaton They are willing to participate in a LTC.

Jamicia

Small Business Dealer of Meggitt They are willing to participate in a LTC.

- Types of information requested: 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.

CUI

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION [ ]

CLINs 0002, 0003, 0004, 0005 and 0006 were found commercial on previous contracts. CLINs 0002 and 0006 were found commercial under contract SPE7MX-22-D-0106. CLINs 0003, 0004 and 0005 were found commercial under contract SPE7MX-19-D-0016. No further determination is needed for those CLINs. Eaton also stated that these items are commercial. Eaton provided attachments with info from different websites selling various sizes and shapes that support the commercial determination. Attachments have CLIN 0001 item has been sold, leased, or licensed to the general public: or, has been offered for sale, lease, or license to the general public. The buyer located the item in online searches that revealed the public can purchase these items. An internet search using the approved part number for each item was conducted. There were no exact matches for the NSNs. Contracting Specialist also searched using each item’s nomenclature. Items with like nomenclatures were found commercially available for purchase from various companies. The results of the market research are evidence that items of these types are being offered for sale to the general public. (MR Memo Attachment 3 Market Research – Internet Search.) The Product Specialist was contacted and stated that all of these NSNs are determined commercial of a type.

To identify other possible sources, a Sources Sought notice was issued on SAM.gov. The notice was posted on August 24, 2023, with a response date of October 31, 2023. One vendor responded to this request, Manufacturer Cage 00624 Eaton Aeroquip.

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)

- Eaton Aeroquip (00624)

- AAR Supply Chain (1Y249)

- Jamicia Bearings (04836)

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

File details come from the government source that posted it. Updated .