2021-080 JA-Kolene W911KF-22-C-0005.pdf

For Official Use Only (FOUO)

CMO Control Number: 2021-080

DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. CONTRACTING ACTIVITY: Army Contracting Command-Anniston Army Depot (ANAD) Anniston, AL 36201-4199, is the procuring activity for this action.

2. DESCRIPTION OF ACTION: ACC-ANAD intends to award a new Firm-Fixed Price (FFP) contract to Kolene Corporation, 12890 Westwood St., Detroit, MI 48223. The proposed contract is for preventative maintenance and emergency repairs of one (1) Kolene Molten Salt Bath Cleaning System located in building 474 at ANAD. The proposed contract will include a base year with four (4) option years, and will utilize Army Working Capital Funds (AWCF).

3. DESCRIPTION OF SUPPLIES/SERVICES: The Government requirement is for on-site preventive maintenance and emergency repair services for the Kolene Molten Salt Bath Cleaning System including all labor, equipment, special tools, materials, documentation, transportation, schematics, common tools of the trade, and any other items necessary to provide the required support. This requires the contractor provide trained personnel with the necessary expertise to perform all required technical support and on-site preventive and emergency corrective maintenance services on the Kolene Molten Salt Bath Cleaning System. The total contract value including the base and four

(4) option years will be $704,530. The Requirements Office conducted an IGCE and these estimates were reached based on the labor rates from the current contract plus inflation and the additional cost of possible repair parts for each year.

AUTHORITY CITED: The statutory authority permitting other than full and open competition is 10 United States Code (U.S.C.) 2304(c)(1) as implemented in Federal Acquisition Regulation FAR 6.302-1 “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.” Specifically, FAR 6.302- 1(a)(2)(iii) 6.302-1(a)(2)(iii) For DoD, NASA, and the Coast Guard, services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in-

(A) Substantial duplication of cost to the Government that is not expected to be recovered through competition.

4. REASONS FOR AUTHORITY CITED: Kolene Corporation is the Original Equipment Manufacturer (OEM) of the Kolene Molten Salt Bath Cleaning System. Kolene Corporation retains the proprietary rights to all chemical formulations and equipment design, required to perform the necessary preventative maintenance and repairs. Kolene Corporation will not release nor are they willing to sell the proprietary information, due to the proprietary information being considered a trade secret. The Kolene Molten Salt Bath is a complex cleaning system that affects multiple reciprocating engine programs. The reciprocating engine programs are a vital requirement to meet Anniston Army Depot’s mission. Should the cleaning system be serviced by a non-certified distributor, any remaining warranty will be voided by Kolene. If this repair and maintenance effort were not awarded directly to the certified company, Kolene Corporation, the cleaning system at ANAD would become irreparable and would require replacement. ANAD’s Directorate of Production Engineering (DPE) estimated replacement cost at $11,407,552. Having this service/ repair contract in place will save the Government an estimated value of $10,703,022 over the five-year span. Avoiding an estimated downtime for up to a year if system has to be replaced.

5. EFFORTS TO OBTAIN COMPETITION:

a. Effective Competition: For the reasons stated in section 5 above, this procurement will not be competed. The notices required by FAR 5.201 will be published, and any proposals received, will be considered by the Government.

b. Subcontracting Competition: This contract does not meet the subcontracting plan threshold at FAR 19.702(a) of $750,000.00, therefore a small business subcontracting plan is not required.

6. ACTIONS TO INCREASE COMPETITION: The Government will continue to conduct industry surveys of other vendors to determine if they have developed products and services which meet the requirements for the repair and maintenance of the Kolene Molten Salt Bath Cleaning System. All vendors must have written permission from Kolene Corporation stating that they can have access to Kolene Corporation proprietary data. Access to this data is required to properly service and maintain this equipment.

7. MARKET RESEARCH: Kolene Corporation was contacted and has provided

Anniston Army Depot with a proprietary letter stating the following, Kolene® KLC™ is a unique product developed, manufactured and owned by Kolene Corporation.

Its composition is confidential and Kolene has not licensed any other party to produce this product nor is it offered for sale.

A Sources Sought Notice was posted to beta.SAM.gov on 09 Feb 2021, and closed on 24 Feb 2021. There was one response from J and K Solutions, LLC, 1331 Louis Street, Albert Lea, MN 56007. J and K Solutions, LLC, is unable to provide Anniston Army Depot with Kolene® KLC™ product due to Kolene Corporation not offering Kolene® KLC™ for sale.

8. INTERESTED SOURCES: To date, other than the contractor who responded to the SSN, no other contractor has written to express interest in this requirement.

9. OTHER FACTORS:

a. Procurement history:

Bethea, Ellen R TAAN Kolene is indeed a SB for this NAICS, however this NAICS is not appropriate for maintenance service. I am using NAICS 811310 and per sam.gov representations Kolene is not a SB for this NAICS.

(1) Contract numbers and dates of the last several awards.

Contract Number: W911KF-12-V-0052

Kolene MSB PM and Emergency Repairs Award Date: 13 Dec 2011

Contract Number: W911KF-16-C-0007

Kolene MSB PM and Emergency Repairs Award Date: 23-Mar-2016

(2) Non-Competitive procurement history.

Sole Source Procurement

(3) Authority previously used for less than full and open competition.

10 U.S.C. 2304(c) (1) - Only one responsible source as authorized by FAR 6.302-1.

(4) Summary of paragraph 7 of the previous procurement justification.

Due to proprietary source code, programming, and design safety elements no attempt to identify competing entities was conducted.

(5) No prior awards were accomplished by full and open competition.

(6) No unusual patterns were revealed by the procurement history.

(7) Previous procurements have been justified due to the proprietary nature of source code, programming, and design safety elements. There have been no significant changes in the proprietary nature of source code, programming, and design safety elements associated with the performance of the required contract.

10. Technical Certification:

I certify that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Signature: Jonathon Lovvorn Date: 8 July 2021 Name: Jonathon Lovvorn Title: Chief, Equipment Support Branch

11. Requirements Certification:

I certify that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Signature: John Rogers Date: 8 July 2021 Name: John Rogers Title: Chief, Equipment Maintenance Division

12. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable.

Basis for determination: Compared the effort IGCE to previous contract costs as well as to the cost analysis to replacement equipment. Certified cost and pricing data will not be required due to the exception listed in FAR 15.403-1(b)(3).

Signature: Heather P. Robinson Date: 12 July 2021 Name: Heather P Robinson Title: Chief, Production Contracts Division

13. Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Signature: Heather P. Robinson Date: 12 July 2021 Name: Heather P Robinson Title: Chief, Production Contracts Division

APPROVAL

Based on the forgoing justification, I hereby approve the procurement of non-personal services contract for preventative maintenance and emergency repairs of one Kolene Molten Salt Bath Cleaning System on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(1),as implemented by (FAR) 6.302- 1(a)(2)(iii), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements”. This procurement is subject to the availability of funds and provided the services herein described have otherwise been authorized for acquisition. The total estimated value of this acquisition is $704,530.

X Laruth Shepherd Command Advocate for Competition