B01-JNA_21P0023_20210920_Redacted.pdf

For All Actions At or Below the Simplified Acquisition Threshold FAR Subpart 13.1

Control No: 2021-015-I

Version – February 2017

Memorandum for Record – Limiting Competition at or below the Simplified

Acquisition Threshold

1. Contracting Activity: 414th Contracting Support Brigade, RCO-Italy

2. Description of Action:

Nature: Follow-on Requirement

Contract Vehicle: Purchase Order Number W912PF21P0023

Pricing/Contract Type: Fixed Price

Funds: X Operations & Maintenance, Army (OMA) FY: 21

Name of Proposed Contractor(s) and Address:

Security Engineered Machinery Co., Inc.

5 Walkup Drive PO Box 1045 Westborough MA 01581 United States 508-366-1488

Brand Name Buy: No

3. Description of Services or Supplies: The contractor shall provide all personnel, equipment, supplies, transportation, tools, materials, supervision, and other items and non-personal services necessary to perform SEM Medium Disintegrators Service Maintenance. The contractor shall maintain the SEM Medium Disintegrators - Model 22/5-VK in accordance with established professional standards, and procedures of Original equipment manufacturers (OEM) for the Property. The contractor shall conduct Preventive Maintenance (PM) and related services to sustain the systems and prevent service interruptions. The contractor shall perform all corrective maintenance, including adjustments, repairs, and/or replacement of hardware required to restore SEM Medium Disintegrators - Model 22/5-VK to optimum working conditions. The contractor shall immediately report any required adjustment or repair of the systems hardware identified by the contractor to the COR. The contractor shall maintain all records or reports of contractor services for the duration of the contract and provide two hard copies and a digital pdf copy (emailed) to the Contracting Officer Representative (COR) to ensure all requirements are completed. Records shall be provided within 5 days of the completed maintenance and inspections. All work requests for services shall be documented and signed by the contractor, reflecting the status of each system before and after the work

Control No: 2021-015-I

Version – February 2017 is completed. Ensure all CLINs and associated estimates are accounted for in the appropriate year and total value.

Period of Performance:

Base Period: 20 SEPT 2021 to Sept 19 SEPT 2022 Option Period I: 20 SEPT 2022 to Sept 19 SEPT 2023 Option Period II: 20 SEPT 2023 to Sept 19 SEPT 2024

4. Authority: FAR 13.106-1(b)(1): For purchases not exceeding the simplified acquisition threshold (SAT), only one source reasonably available, urgency, exclusive licensing agreements, brand name, or industrial mobilization.

5. Reasons for Authority Cited: SEM disintegrators are proprietary in design and not available through other manufacturers. Only SEM (OEM) parts are utilized on these systems to ensure correct functionality and are only supplied by SEM. SEM is the only qualified company to complete certified maintenance and repairs and to provide full reporting on system upkeep as evidenced by the proprietary letter provided by the manufacturer SEM titled “SVC-022 Technical Service Plan.”

6. Publicizing Contract Actions: For FAR Part 13 actions, the public display and synopsis requirements of FAR 5.101 and FAR 5.203 apply and will be followed.

7. Market Research: The original Market Research provided by the requiring activity did not capture a complete analysis of the true market as only SEM maintenance and SEM branded replacements were being considered in the initially submitted analysis.

Additional market research was conducted by both the contracting and requiring activity.

IAW Army Regulation 380–5 Security; Army Information Security Program, the National Security Agency (NSA) publishes an Evaluated Products List (EPL) of authorized paper disintegrators. The only comparable model to the SEM Model 22/5 Disintegrators is the Whitaker Brothers Business Machines, Inc. Datastroyer 310 and two Datastroyer machines would cost approximately $92K not including additional costs factors below:

1. Shipping cost of over 5,200lbs for the re-procurement of new machines;

2. Procurement of two sound enclosures to replace SEM sound enclosures;

3. Shipping costs for new sound enclosures;

3. 3-year Preventive Maintenance Agreements;

4. Manufacturer SME OCONUS travel costs for installation and training;

5. Removal and disposal of (2) SEM 22/5 Disintegrator Kits (Contracted);

6. DPW Electrical Work Order;

7. Downtime.

Based on this information, it is in the best interest of the government to procure the maintenance and services for the existing SEM systems currently in place. Additionally, Control No: 2021-015-I

Version – February 2017 a preponderance of the parts and services provided under this maintenance and service order are open market items not currently available under their GSA schedule, therefore the procurement approach changed from a FAR Subpart 8 requirement to FAR Subpart 13 requirement after submission of the requiring activities acquisition package.

8. Other Facts: SETAF-AF SEM Medium Disintegrators - Model 22/5-VK previous service maintenance contract with the same manufacturer expired Sept 2019 (PoP-Sept 2016-2019) and was not restarted last year due to COVID-19 and the inability to travel from CONUS to OCONUS. Failure to validate, and thus procure, this request will result in a negative impact to G3 COIC and Command capability for Classified Material Destruction. Security is a command function.

9. Technical/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.

10. Contracting Officer Certification/Approval:

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable based upon price analysis from previous prices paid for same/similar type services, as this is an annual follow on requirement. I certify that this justification is accurate and complete to the best of my knowledge and belief, and that completing this purchase as a sole source is in the best interest of the Government. Additionally, I approve this justification to limit competition subject to the availability of funds and provided that the services or supplies herein described have otherwise been authorized for acquisition.