Phillips_J&A_Redacted_Copy.pdf

Justification for Other Than Full and Open Competition

Under 41 U.S.C 1901

Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements

Procurement of Maintenance and Repairs for Industrial Machines

Solicitation Number: 70Z03819QK0000006

Pursuant to the requirements of the Competition in Contracting Act (CICA) and in accordance with the requirements of Federal Acquisition Regulation (FAR) Subpart 13.5, this justification is prepared under the authority of FAR 13.501. Use of FAR 13.501 is justified by the following facts and rationale using the format at FAR 6.303-2, modified to reflect an acquisition under the authority of Simplified Acquisition Procedures at 41 U.S.C. 1901.

(1) Agency and Contracting Activity:

The Department of Homeland Security (DHS), United States Coast Guard (USCG), Aviation

Logistics Center (ALC), Industrial Operations Division (IOD), Elizabeth City, North Carolina proposes to enter into a contract on the basis of other than full and open competition and presents this Justification and Approval for Other Than Full and Open Competition (J&A) for review and approval.

(2) Nature and/or Description of the action being approved:

The USCG, ALC, IOD seeks approval to award a contract on a sole-source basis for the procurement of preventative maintenance services to inspect, calibrate, and repairs as needed for a variety of industrial machines. There are several different machines that are used at ALC that require the services and the full list of the machines can be found in Tab 12 of the contract file.

The USCG intends to award a single firm-fixed price requirements contract to acquire the required services. This requirement is considered commercial in nature and will be procured utilizing the procedures listed in Federal Acquisition Regulation (FAR) Part 12, Acquisition of

Commercial Items in conjunction with FAR Subpart 13.5, Simplified Acquisition Procedures for

Certain Commercial Items.

The proposed contractor is:

Phillips Corp. DBA Federal Division

7390 Coca Cola Drive Suite 200

Hanover, Maryland 21076

The contract type: Firm fixed-price Requirements Contract

The total estimated contract value of this requirement is as follows:

Period Total

Base Year $89,500.00

Opt. Year 1 $92,245.26

Opt. Year 2 $95,012.61

Grand Total $276,816.37

Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements

Type of funding: Operations and Support (O&S)

Year of funding: Fiscal Year 2020. Fiscal year 2021 and 2022 will be used as appropriate for the funding of the additional option years.

Any other responsible source able to provide the brand name equipment listed herein will also be considered for award.

(3) Description of Supplies/Services:

The requirement is for the preventative maintenance, calibrations, and as needed repairs on a variety of machines. The full list of machines can be found in Tab 12 of the contract file. The maintenance and calibrations are annual services needed to keep the machines operational and reduce unscheduled downtime, prolong the life of the machine as a whole, and keep the production process running smoothly. All maintenance, calibrations, and repairs must be completed in accordance with (IAW) the Original Equipment Manufacturer (OEM) specifications.

(4) Identification of Statutory Authority Permitting Other Than Full and Open

Competition:

The statutory authority permitting other than full and open competition is 41 U.S.C. 1901(c), as implemented in FAR 13.501(a), "Sole source (including brand name) acquisitions."

(5) Demonstration that the Nature of the Acquisition Requires use of the Authority Cited:

Phillips Corp. is currently the sole and exclusive distributor of Hass and OMAX machines to include service related contract and maintenance agreements for United States Government

Facilities. Phillips Corp. also serves as a Haas factory Outlet (HFO) meaning they have access to instant on-shelf availability to an extensive inventory of service and maintenance parts. With

Phillips Corp. being an OMAX dealer, they have instant support to OMAX’s inventory of service and maintenance parts as well. Currently, there are 10 machines that are either Haas or

OMAX which accounts for one-third of the machines in the shop. These machines are working constantly and when they are not operational, it can affect the productivity of the Machine Shop.

Another advantage to working with one vendor to provide these services, is that it will limit the downtime of the machines and help to ensure is able to meet the needs of the Coast Guard.

(6) A Description of the Efforts made to ensure that offers are solicited from as many potential sources as is practicable:

Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements

This procurement was forecasted in the DHS-Acquisition Planning Forecast System (APFS)

Number F2019046744.

In accordance with FAR 5.201, the intent to contract directly with Stratasys, Inc. for the Fortus

F900 will be advertised on the Federal Business Opportunities (FBO) website as a combined synopsis solicitation under streamlined acquisition procedures for commercial items utilizing

FAR 12.6 and 13.5. Any responsible vendor may submit a quotation; all responsible offers will be considered. If any responses are received as a result of this solicitation, the file will be documented accordingly and the requirement competed among all eligible offerors.

(7) Determination by the Contracting Officer that the Anticipated Cost will be Fair and

Reasonable:

The Contracting Officer anticipates that the prices for this procurement will be fair and reasonable based on a price analysis utilizing a combination of price analysis techniques to include comparison of proposed prices to prices found reasonable on previous orders (FAR

13.106-3(a)(2)(ii)) and current published catalog prices (FAR 13.106-3(a)(2)(iii)).

(8) Description of the Market Research:

Market Research was conducted on May 29, 2019 along with additional research conducted on

June 25, 2019. In conducting Market Research, it was found that there are several companies that are able to service and repair CNC Machines like the ones used in the Industrial Machine Shop along with some that are capable of completing custom repairs and refurbishments to particular machines. While researching federal supply sources, there were no sources found to perform the maintenance on the variety of machines. The Original Equipment Manufacturer (OEM) has previously stated that they do not provide preventative maintenance on their machines. It has been found that Phillips Corp. is currently the sole and exclusive distributor of OMAX and Haas machines to include service related contracts and maintenance agreements for United States

Government Facilities. Letters to support this are included as Attachments One and Two under

Tab 3 of the contract file. It is also noted that only repairs that are performed by Haas certified technicians will be warranted. All maintenance, calibrations, and repairs are to be completed IAW

OEM specification

(9) Any other Facts Supporting the Use of Other Than Full and Open Competition:

When past solicitations have been posted for this requirement, there has only been one responsive offeror. The basis for this is that the OEM’s do not provide preventative maintenance on the machines. However, there is a section in the manual that is dedicated to the maintenance that the user performs. Also, due to the age of the machines, many potential vendors feel that they are unable to service the machines and that locating spare parts may pose a challenge.

(10) A Listing of Sources, if any that expressed, in writing, an Interest in the Acquisition:

Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements

To date there have been no other inquiries regarding this requirement. If any responses are received as a result of this solicitation, the file will be documented accordingly and the requirement competed among all eligible offerors.

(11) A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any

Barriers to Competition Before Any Subsequent Acquisition for Required Supplies or

Services:

As the industry continues to evolve, the ALC will continue to conduct market research for new entries into the marketplace that could foster a competitive environment.

Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements

(12) Contracting Officer’s Certification I certify that the data supporting the recommended use of other than full and open competition accurate and complete to the best of my knowledge and belief.

_XXXXXXXXX__________________________XXXXXXXX

Gary S. Woolard Date

Contracting Officer

(13) Technical / Requirements Personnel Certification

I certify this requirement meets the Government’s minimum need and that the supporting data, which forms a basis for this justification, is complete and accurate.

XXXXXXXXX____________________________XXXXXX

Peter W. Murray Date

Technical Representative

(14) Legal Review and Concurrence:

I have reviewed this justification and deem it legally sufficient.

XXXXXXX________________________________XXXXXXX

Allen LotzX

Legal Office

CG-LSC-9 Legal Office Date

(15) Approval:

XXXXXXXXX___________________________XXXXXXX

Gary S. Woolard Date

Contracting Officer