A03_ JA Sole Source (V1.3 03-15-2023) Performance Assurance Services for CNC Equipment.pdf

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Attached to
Performance Assurance Services for CNC Equipment Federal contract opportunity
Solicitation number
M67004-23-Q-0070
Issued by
United States Marine Corps

About this file

This justification and approval document outlines a sole source contract award to Phillips Corporation Federal Division for performance assurance services for CNC equipment. The contract will have a one-year base period and four one-year options, with an estimated total value of $452,000. Phillips Corporation holds proprietary distribution rights as the sole authorized distributor of factory certified service for HASS and OMAX machines. Market research found no other suppliers that could satisfy the requirement. The services will maintain CNC equipment at the Marine Corps Logistics Base in Albany, GA in a high state of operational readiness. A determination of fair and reasonable pricing will be made by comparing quotes to an independent cost estimate and historical contract pricing. The activity does not plan to eliminate proprietary rights but will reassess future similar requirements to allow competition if possible.

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JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

J&A No. 15016

1. Contracting Activity.

Marine Corps Logistics Command, Contracts Department Albany, GA.

2. Description of the Action Being Approved.

This new requirement is for the award of a sole source contract for performance assurance services for CNC equipment in support of Production Plant, Marine Corps Logistics Base, Albany, GA.

3. Description of the Supplies/Services.

The performance assurance services offered by Phillips Corporation Federal Division are required to maintain HASS and OMAX CNC equipment in a high level of operational status. The vendor will provide all personnel and equipment necessary to perform maintenance on the items listed within the performance work statement.

The estimated total value of the actions covered under this J&A is as shown in Table 1 below. This will be a Firm Fixed Price contract with an option to exercise four option years (OY) with a total estimated price of $452,000 as shown in Table 2 below.

Table 1 - Estimated Dollar Value

Base Year OY1 OY2 OY3 OY4 Total

NWCF $86,000 $88,000 $90,000 $93,000 $95,000 $452,000

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 3204(a)(1); Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

Phillips Corporation Federal Division’s partnership with both Hass Automation, Inc. and Omax Corporation establishes them as the sole source distributors of certified Original Equipment Manufacturer (OEM) level services needed to maintain the machines in accordance with their recommendations.

J&A No. 15016

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

Phillips Corporation Federal Division provided letters from the OEM to the requiring activity that established them as the sole authorized distributors of HASS and OMAX factory certified service contracts to Government entities. Upon receipt of the letters, market research was conducted using online mandatory and suggested sources such as abilityone.org, GSA.gov and FPDS.gov. Resulting from the research was the verification of Phillips Corporation Federal Division’s authorized and sole source distributorship rights.

7. Determination of Fair and Reasonable Cost

A determination of Fair and Reasonable will be made by the comparison of a quote from Phillips Corporation Federal Division to the Independent Government Cost Estimate and historical similar industry contracts that were reviewed while conducting market research.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, the activity has no plans at this time to eliminate the use of proprietary distribution rights to fulfill future requirements for the types of services covered by this document; however, Marine Corps Logistics Command will reassess competition for future requirements similar in nature to determine if they can be met by non-proprietary means and thus allowing for competition.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein are complete and accurate to the best of my knowledge and belief.

Technical/Requirements Cognizance:

Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined that this Justification is legally sufficient.

Signature Name (Printed) Phone No. Date

CONTRACTING OFFICER CERTIFICATION

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

Signature Name (Printed) Phone No. Date

2023-08-10T10:59:01-0400
RICE.THOMAS.H.1530357402
Name Printed: Thomas H.Rice
Phone No: 229-639-8487
Date: 8/10/2023
2023-08-10T15:41:52-0400
DRONE.ROBERT.J.1070079280
Name Printed_2: Robert Drone
Phone No_2: 229-639-7096
Date_2: 10 Aug 2023
2023-08-10T13:59:46-0400
ECHAVARRIA.CHRISTOPHER.LAUREYS.1465551999
Name Printed_3: Christopher L. Echavarria
Phone No_3: 229-639-6747
Date_3: 8/10/2023

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