20RC00505_JA_final_serialized_Redacted.pdf

DEPARTMENT OF THE NAVY

PORTSMOUTH NAVAL SHIPYARD

PORTSMOUTH, NH 03804-5000 IN REPLY REFER TO:

J&A Number: PL-2007 Serial: 012

Code: 410 P.R. Number: N3904020RC00505

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command Portsmouth Naval Shipyard (PNS) Contracting Division (Code 410), Kittery, ME. The requiring activity is PNS Code 931 Inside Machining Division.

2. Description of the Action Being Approved

Award of a firm fixed price contract on a sole source basis for the repair and testing of one BETTS-BRIDGEFORD Lathe (Alpha BWN, SN E5551) including engineering and design work necessary to support those repairs to Machine Tool Research, Inc. (MTR).

3. Description of Supplies/Services

The Contractor shall remove and replace the headstock and tailstock of the existing lathe (SN E5551) with the headstock and tailstock from a Betts Lathe (SN E7672). The Contractor shall perform all necessary engineering and design work, which will include a site visit to evaluate, measure and compare the actual components to each other and original drawings. The contractor will also design and execute any modifications to ancillary items such as tool posts and steady rests to accommodate the new headstock and tailstock.

Machine Tool Research, Inc. (MTR) owns and maintains the proprietary drawings and tooling required for this repair work. In correspondence with the Contracting Office, dated August 07, 2020, MTR confirmed its OEM status and provided supporting documents of its ownership. (Enclosure 1.a).

The Independent Government Estimate (IGE) was prepared through market research discussions conducted by the requiring activity (Code 986.1) with the OEM (MTR). The total estimated value of this acquisition is and will be funded with FY20 Operations and Maintenance, Navy funding. The estimate was derived from a market research quote received by Code 986.1. The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

4. Statutory Authority Permitting Other Than Full and Open Competition

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1) or 41 U.S.C. 3304(a)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(2).

5. Rationale Justifying Use of Cited Statutory Authority

In accordance with FAR 6.302-1, only one source is capable of meeting the requirement. This authority permits limiting the number of sources solicited and to not use full and open competition for this requirement.

The drawings provided by the OEM are proprietary, and the use of those drawings by any third party has not been authorized. MTR is the OEM for this lathe. The basis is that MTR purchased the OEM rights to Betts in 1987. MTR provided documentation of ownership rights to the product lines of Farrell, Betts Sellers, and Consolidated Machine Tool companies. As a result MTR is the only authorized company to perform services on the equipment. (Enclosure 1. b and 1.c).

This ensures that the integrity and performance of the equipment is maintained and critical precise specifications are met. There would be significant risk to the government in capacity and capability in shaft machining if any unauthorized contractors were to attempt refurbishment services on this mission critical equipment.

There is only one manufacturer/off site repair facility with no dealers of this product, therefore only the manufacturer will be provided the opportunity to quote.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable

A Sources Sought notice was posted to Government Point of Entry (GPE) https://beta.sam.gov on August 06, 2020. The notice closed on August 11, 2020. No responses to the Sources Sought notice were received.

An internet search was conducted by the Contract Specialist using search terms “Betts lathe repair” on August 06, 2020.

The search identified a total of six (6) companies both large business and small business sources that made reference to Betts Lathes on their company websites. One company was based in the United Kingdom (Holroyd Precision Ltd, NCAGE: U18V3). Two responses were received on August 07, 2020 stating the companies do not have the capability (Kingsbury, Inc. CAGE: 75333) and Rako, Inc., CAGE: 6RMB7).

One company stated via telecommunications that they would review the Sources Sought notice (Dan’s Machine Tool, Inc.

CAGE: 74AD7) on https://beta.sam.gov. Two companies could not be found on System for Award Management (SAM) database at https://sam.gov/SAM, (Roberts Ball Screw Repair Service, Inc. and Yuba City Repair & Service).

The Contract Specialist also reached out directly to MTR for confirmation of OEM status. MTR confirmed OEM status and ownership of the Betts Lathe drawings on August 7, 2020(Enclosure 1.a). As MTR is the OEM and retains the rights to the drawings for this machine, no other sources are capable of performing the required repairs. The government does not have access to the drawings for this lathe or the new headstock needed for this repair work.

Without the drawings, a potential vendor could spend upwards to two years reverse engineering a design and performing the modification.

7. Determination of Fair and Reasonable Costs

A determination of fair and reasonable price will be based on price analysis by the Contracting Officer of the contractor’s quotation and/or a comparison of previous pricing history, historical contract analysis, published price list of same or similar items, or any other reasonable basis, in accordance with FAR 15.404, prior to award.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5 and Paragraph 6, PNS Code 410 Contracting Division has no plans at this time to compete future contracts for the OEM services covered by this document. If another potential source emerges, PNS Code 410 Contracting Division will assess whether competition for future requirements is feasible.

Contracting Point of Contact

Danelle Quinn, Contract Specialist Email: danelle.quinn@navy.mil Phone: 207-438-6588