x_JA_SPE7MC20R0020_Redacted.pdf

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Attached to
4810-01-206-4375, Valve, Solenoid Federal contract opportunity
Solicitation number
SPE7MC20R0020
Issued by
Defense Logistics Agency Land and Maritime

About this file

This justification document approved a sole-source contract award to Marotta Controls, Inc. for the acquisition of 774 solenoid valves totaling $774,900. The Defense Logistics Agency Land and Maritime issued solicitation SPE7MC20R0020 seeking the valves, designated by National Stock Number 4810-01-206-4375, for use on foreign military sales customers' frigate-class ships. Market research from September 2020 to November 2020, including a sources sought notice and survey, confirmed Marotta Controls as the only source able to provide the valves due to its exclusive ownership of technical data rights. The justification cited 10 U.S.C. 2304(c)(1) authority. Contract SPE7MC22C0005 was awarded to Marotta Controls on August 19, 2022.

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Justification for Other than Full and Open Competition Solicitation: SPE7MC20R0020

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

(AUG 2016)

ORIGINAL

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

2. The action being approved is the acquisition of supplies on other than a full and open competition basis.

3. The supplies required to meet the using activity’s needs are described as follows:

BRIEF DESCRIPTION NSN QUANTITY EST. VALUE AMSC

Valve, Solenoid 4810-01-206-4375 14 EA R

Estimated Total Value (no quantity price breaks included in procurement):

This is a firm fixed-price contract with no options under FAR Part 15.

This solenoid valve is specifically designed to stop, start, or change the flow of fluid by means of the magnetic action of an electric coil on a moveable core or plunger. This NSN is used on frigate-built class ships (a type of warship built for speed and maneuverability) for Foreign Military Sales (FMS) customers.

The current customer is Taiwan.

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

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

The approved source for this NSN is Marotta Controls, Inc. (99657) P/N 283149-0001. Per the product specialist, the data or rights to use the data needed to purchase part from additional sources are not owned by the Government and it has been determined that it is uneconomical to purchase them. Marotta Controls is the only source that possess the unique design capability, engineering skills, and manufacturing knowledge to produce this part to the required quality standards. The only known source with the technical data or rights to the technical data needed to manufacture this item is Marotta Controls, and the Government does not have rights to the technical data.

The last technical review of this item was 05/17/2021. All current technical information was validated as complete and accurate. No additional sources of supply were identified. This item is not a good candidate for reverse engineering, per the product specialist of record.

5. The use of the authority cited below:

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

The use of the authority cited is based on:

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.

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

Sources Sought notice posted on beta.SAM.gov from 09/02/2020 to 09/09/2020. No responses were received to the sources sought notice.

The acquisition will be synopsized on beta.SAM.gov on or about 09/08/2021 and will be posted for 15 days.

At the completion of the synopsis period the requirement will be solicited on the 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. Negotiations will be conducted to address price as well as delivery. Certified Cost and Pricing Data (CCPD) will not be required however data other than CCPD will be requested. Examples of data other than CCPD that might be requested are an informal cost breakdown, information on materials, packaging, testing. It is anticipated that the price will be determined fair and reasonable based on other than CCPD analysis and negotiations.

8. Market Research/Efforts to Obtain Competition:

Market Research was conducted from 09/02/2020 to 11/16/2020.

a. Techniques Used to Conduct Market Research

1. Past procurement review of NSN

2. Data classification (SAP) industrial supply values / characteristics review

3. Sources Sought notice posted on beta.SAM.gov from 09/02/2020 to 09/09/2020. No responses were received to the sources sought notice.

4. A Market Survey was sent via email to one contractor from 09/02/2020 to 11/16/2020.

The contractor was chosen based on it being the approved source and the only awardee since 2003.

There is no procurement history available in Records Management. Although there is history in Haystack, the only two DLA procurements were made in Mechanicsburg and no information could be found beyond a contract number. The remaining procurements between 2003 and the present were made to other organizations, such as the U.S. Navy to which we have no access. No response was received to the market survey despite multiple attempts to obtain a completed one by the buyer. Attempts included additional email requests and telephone messages during that time.

5. The NSN was reviewed in Haystack to look at technical characteristics, weapon system information, procurement history and item name code information. The Acquisition Specialist also verified the part is not on a GSA schedule. An internet search of the part number and NSN revealed no publicly available information for this part beyond what is available in WEBFLIS. Based on the lack of publicly available part number information and the information available in SAP it is the contracting officer’s determination that this item is not commercial.

b. Market Survey

1. Total number of vendors contacted: One (1) via email.

2. Types of information requested: delivery, quantity sensitivity, price break availability, commerciality, business size, business type, FOB information, etc.

3. Name of vendors responding to the Sources Sought and Market Survey and summary of information received: No response was received to the market survey despite multiple attempts to obtain a completed one by the buyer.

A previous J&A is unavailable. DLA L&M Columbus has no history of procuring this item, any previous contracts and historical documents are unavailable to the buyer, and there is currently no historical information available in Records Management.

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. The Government does not own the rights to the data needed to purchase this part from additional sources.

10. A listing of sources, if any, indicating an interest in the acquisition is: None.

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

As previously mentioned in #4 in the discussion on why this item is only available from one source, this item is not a good candidate for reverse engineering, per the product specialist of record.

The solicitation contains DLAD Procurement Notes:

L04 – Offers for Part Numbered Items 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.

Contracting Officer

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature

APPROVAL REQUIREMENTS

$700,000 to $13,500,000 Competition Advocate

SHEARER.MARY.E.1

250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2022.04.20 16:01:52 -04'00'

SECRIST.JULIANA.

M.1230216297

Digitally signed by

SECRIST.JULIANA.M.1230216297

Date: 2021.08.26 10:06:44 -04'00'

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