B 02.0 Sole Sourch for Monarch Lathe Rebuilds 614 80 Models - Updated_Redacted.pdf

SSJ No.: 20-26JA

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN

COMMERCIAL ITEMS IN ACCORDANCE WITH FEDERAL ACQUISITION

REGULATION (FAR) 13.5

On the basis of the following justification, I hereby approve the use of a sole source proposed contractual action pursuant to the authority of 41 U.S.C. 1901.

Procurement Request Number: N4523A22RC05581

Funding Document Number: N4523A22RC05581

1. Agency and Contracting Activity

Naval Sea Systems Command Contracting Activity, Northwest Regional Maintenance

Center/Puget Sound Naval Shipyard and Intermediate Maintenance Facility, Bremerton, WA proposes to enter into a sole source contract with firm Machines & Methods, Inc., 146 W. Lake

Sammamish Pkwy SE, Bellevue, WA 98008-5207 using simplified acquisition procedures for certain commercial items included in FAR subpart 13.5.

2. The nature and/or description of the action being approved.

This is a new commercial action to support the recapitalization plan of Shop 31; to bring the

Inside Machine Shop into a fully functional status as a part of the Fiscal Year 2022 plan to meet mission capacity needs. The plan includes replacement and repair of machine tools. This project rebuilds three Monarch lathes to bring them back to original factory condition. The contract type is firm-fixed price. There will be no option periods.

Product Service Code: J036 - Maint/repair/rebuild of equipment- special industry machinery

NAICS: 811310, Commercial and Industrial Machinery and Equipment

3. A description of the supplies and/or services required, including the delivery schedule and/or the period of performance (inclusive of all option periods), and the estimated dollar value of the acquisition:

Puget Sound Naval Shipyard requires a contract for the removal, transportation to and from OEM factory, re-manufacturing to as new condition, re-installation and testing of three Monarch engine lathes. The machines are over 50 years old with more than 67,000 hours of operation. Normal wear and tear has put these machines in a condition that requires them to receive a complete re-manufacture. The contractor shall provide all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision, and all other required items, materials, and non- personal services necessary to perform the re-manufacturing of one (1) each Monarch Lathe

Model 2516 series 80, serial number ; two (2) each Monarch Lathe Model 614, serial numbers and . The delivery period shall be nine months from date of award, estimated to be 18 August 2022 through 17 May 2023. Based on budgetary estimates, the estimated value for the firm-fixed price contract is $ . The funding is required for all work, inclusive of re-manufacture (or “rebuild”), rigging, transportation, and inspection of the three Monarch Lathes.

4. The statutory authority permitting sole source.

The procedures in 10 U.S.C. 2304(c) (1) IAW FAR 13.501(a)(1)(ii) and 41 U.S.C. 1901. The property or services needed by the agency are available from only one responsible source and no other type of service will satisfy the needs of the agency.

5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring use of the authority.

The Government requires a contract for the removal, transportation to and from OEM factory, re-manufacturing to as new condition, re-installation, and testing of three Monarch engine lathes.

Monarch Lathes L.P. is the Original Equipment Manufacturer (OEM) for the Monarch brand machines. It is necessary that these machines are rebuilt to the OEM standards and specifications.

Machines & Methods, Inc., is the only approved representative of Monarch Lathes L.P. in the

Pacific Northwest and has access to all the required OEM intellectual property. Additionally, Machines & Methods has the Electricians and Riggers to properly accomplish the installation, transportation and testing of this requirement at PSNS&IMF. Therefore, Machines & Methods is the only authorized representative within the Pacific Northwest to perform work on these machines and provides the Government with the most advantageous option to meet the needs of this requirement.

As a result, the Government is assured a high-quality functioning machine instead of allowing an organization without the specialized knowledge attempt to reverse-engineer components that may end up unsuitable, leaving the Government with non-functioning equipment. Further, choosing to contract through Machines & Methods enables the Government to obtain a warranty for the rebuilt equipment. If another vendor outside of an approved OEM representative was chosen, a warranty would be highly unlikely due to said-vendor lacking complete and accurate knowledge of the re-manufacture, unable to assure whether the work was accomplished correctly.

Contracting to the only authorized representative of the OEM, Machines & Methods, Inc., also complies with the Buy American Act.

6. A description of efforts made to ensure offers/quotes are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized on

Sam.gov (as required by FAR 5.2) and, if not, which exception under 5.202 applies.

Due to the considerations above, PSNS reasonably expects that it is not possible to consider another source for the re-manufacture of these OEM-lathes, should this solicitation be advertised.

A Notice of Intent to Sole Source will posted on SAM.gov and all interested sources will be given a fifteen day response notice. To date, no questions or responses that challenged the validity of the sole source justification have been made.

7. The anticipated dollar value of the proposed acquisition, including options if applicable, and a determination by the contracting officer that the anticipated cost to the government will be fair and reasonable. The dollar amount for this contract action will not exceed the statutory limitations for the use of simplified procedures under FAR 13.5.

This action includes the rigging and transportation from PSNS & IMF to the OEM facility site in

Sidney, Ohio. In addition to the return, transport, rigging, and the re-installation of the three lathes, as well as the NRTL inspection are associated costs. The approximate cost is

The Contracting Officer determines that the anticipated price to the Government will be fair and reasonable based upon historical pricing available, the Government independent estimate, supporting historical prices received from the contractor (if required), and other methods allowed under FAR 13.106-3 to make a determination of fair and reasonable pricing.

8. A description of the market research conducted and the results or the reason market research was not conducted.

Market research was performed on the internet via search engines, machine tool, and product directories to identify rebuilders. The Government also contacted builders for pricing data. The

Government only received a response from Monarch Lathes L.P., the Original Equipment

Manufacturer. Monarch Lathes informed the Government that it could provide the remanufacturing of the lathes but lacked in-house laborers to perform the other needs of this requirement. However, Monarch Lathes L.P. informed the Government that it does have one authorized representative in the Pacific Northwest that could accomplish all requisite actions, Machines & Methods, Inc. In conclusion, market research indicates that only Machines &

Methods, Inc. is capable of fulfilling this requirement in its entirety, as it’s the only authorized representative of the OEM in the Pacific Northwest.

9. Any other facts supporting the use of sole source.

N/A.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

None to date

11. A statement of any actions the agency will take to remove or overcome any future barriers to competition.

For the reasons set forth in section 5, PSNS & IMF has no plans at this time to compete future contracts for this OEM work on the Monarch Lathes. If another potential source emerges, PSNS & IMF will assess whether competition for future requirements is feasible.

Certifications and Approvals

TECHNICAL/ REQUIREMENTS CERTIFICATION (FAR 6.303-2(c))

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.

Requirements Generator:

Printed Name Code Signature Date

Contracting Officer:

Printed Name Code Signature Date