Sole_Source.pdf

SOLE SOURCE JUSTIFICATION FOR

ACQUISITIONS UNDER THE SIMPLIFIED ACQUISITION THRESHOLD

1. In accordance with Federal Acquisition Regulation 13.106-1(b)(1), I hereby determine that the Official United States Department of Agriculture (USDA) Grading Stamps and Applicators listed on 12639518P0350 are available from only one source, and competition is precluded for the reasons indicated below. There are no substitutes available.

2. This acquisition is restricted to the following source:

Company: Herman Engraving, Inc.

Company Address: 4614 Cuming Street, Omaha, NE 68132 Company Point of Contact and Phone Number: Michael D. Hahn, President, 402-551-6622

3. Seventy-five (75) sets of Official USDA Grading Stamps and Applicators are needed. The vendor is required to finish and deliver 75 sets 21 weeks after award of contract.

Two companies submitted three designs for Official USDA Grading stamps and applicators.

Arkansas Tool and Die located in Little Rock, Arkansas, submitted 2 designs. Design 1 was made entirely from hard plastic and Design 2 was made with an aluminum head, brass stamps, and a plastic handle. Herman Engraving Inc. located in Omaha, Nebraska, submitted one design. Design 3 was made with an aluminum head, titanium stamps, and a titanium handle.

Each design was placed into a minimum 30-day trial in high volume plants to test stamp legibility, durability, applicator balance, ergonomics of the applicator, ease of cleaning, and stakeholder comments. All designs were reviewed by Agricultural Marketing Service (AMS), Livestock and Poultry (LP) Program, Quality Assessment Division (QAD) employees in the field and comments were solicited from employee and stakeholder users. The QAD management team reviewing the designs consisted of 5 managers with approximately 125 years of experience using grading equipment.

Design 1 was the least durable, demonstrated by the stamp lettering separating from the stamp and the stamp impression was not legible on rough fat surfaces.

Design 2 left a very good impression on the fat surface; however, at 27 ounces it was too heavy to use for any extended period. In one case, a stakeholder employee refused to use Design 2 due to the weight and the physical stress they experienced to their shoulder and arm after only 15 minutes of use. As a result, Design 2 was moved to another location to continue the testing. The brass stamps held up well with only minor nicks noted on the edges of the shield and lettering.

Design 3 has exceeded expectations in all categories and received the most positive comments from users. The stamp is very durable, and users are very impressed with the ease of use of this applicator. It is light weight, leaves a very good impression of the stamp on the carcass, lettering does not fill with fat, easy to use and clean. After several months use, with an average of 11,000 beef carcass sides stamped an average of 2 times each, 5 days per week (110,000 stamps placed per week or more); the applicator is undamaged and comments from QAD employees and Stakeholders are very positive.

Design 3, submitted by Herman Engraving, is the best value for the money when considering durability, weight, ergonomic stress for user, and received the most positive comments from QAD and Stakeholders testers. Design 3 is the unanimous choice among managers, field employees, and stakeholders. This design is expected to last for many years, with a 30+ year life expectancy in our estimation. The QAD Management team has reviewed the results of the testing and found that the titanium design was lighter in weight, stamps left a very legible imprint, durable, the lettering did not plug with fat, easy to clean and material is hard to damage and will meet or exceed the lifetime expectations.

Design 3 has an aluminum head, with two (2) sides that are slotted to accept a titanium Accepted as Specified Stamp and a titanium pop stamp. The aluminum head attaches to a titanium handle (with an approved grip). The titanium handle has a threaded collar that is pressed on and screwed into the aluminum head and then pinned securely into place. The stamps on the USDA applicator are held securely in place with a plate and screws with a total finished weight of under 16 ounces. Both sides of the individual stamper will be identified with a unique identifier for control purposes. The identify of each stamper will be populated using an alphanumeric sequence as follows: A1, A2… A9 then B1, B2… B9, and so forth.

4. The specific characteristics of the raw materials used limits the number of small businesses that can manufacture the stamps and applicators in-house. The control of the official grading equipment samples (in-house production), quality of delivered product, delivery timeline of the finished USDA stamps and applicators, and management oversight of production are factors that limit the availability to a sole source. To insure a 30-year service life of the stamps and to keep the stamps and applicator weight at or under 16 ounces for ergonomic and safety reasons, titanium is the material of choice. Titanium is extremely difficult to work with and requires a specialized manufacturing process, operator skill set, and equipment that many small business manufacturers are not able to provide without sub-contracting, which would raise the cost per unit and increase the timeline for delivery as well as increase the difficulty in maintaining control of the grading stamps. Only this suggested source can furnish those requirements and deliver the USDA Grading Stamps and Applicators on the timeline described above, to the exclusion of other sources. There are management representatives within a reasonable distance, who can inspect the equipment as it is being manufactured, meet with company management to answer any questions and make necessary adjustments, quickly and more efficiently than in another location or with another manufacturer.

5. Check and fill in all that are applicable:

The material or service must be compatible in all aspects (form, fit, and function) with existing systems presently installed. The current equipment is comprised of brass Accepted As Specified stamps and soft metal grading stamps, which the new Titanium stamps and applicator will replace and will coordinate, connect, or interface with the existing system by being a replica of the current stamps. This new applicator will phase out the current stamps and equipment, as it is over 40+ years old in design and no longer manufactured. The new stamp material will be more durable than the previous soft metal stamps and will provide QAD with the next generation of official USDA grade stamping.

A patent, copyright, proprietary data, or licensing agreement limits competition. The proprietary data are described as follows:

<Insert description>

These are "direct replacement" parts/components for existing equipment.

Other information to support a sole-source buy:

<Insert any additional information that supports this sole-source acquisition>

CERTIFICATION

I certify that statements checked and information provided above are complete and correct to the best of my knowledge. In accordance with FAR 13.106-1(b)(1). The facts of this acquisition preclude the use of full and open competition.

Dana Stahl Date Project Officer

Beverly Brown Date Contracting Officer