B02.0 SOLE SOURCE SAT MEMORANDUM (Less than $250,000) _Redacted.pdf

MEMORANDUM FOR THE RECORD

(This is only applicable to acquisitions under the Simplified Acquisition Threshold. Acquisition using FAR Subpart 13.5 shall follow the special documentation requirements at FAR 13.501.)

Subj: USE OF OTHER THAN FULL AND OPEN COMPETITION FOR AN

ACQUISITION UNDER THE SIMPLIFIED ACQUISITION THRESHOLD

I. BACKGROUND:

1. FAR 13.106-1(b)(1)(i) states for purchases not exceeding the simplified acquisition threshold, Contracting Officers may solicit from one source if the Contracting Officer determines that the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, brand-name or industrial mobilization).

2. As required by FAR 13.106-3(b)(3)(i), this memorandum explains the absence of competition for this acquisition, as only one source will be solicited for this requirement (or for a portion of the requirement) and the requirement is not expected to exceed the simplified acquisition threshold.

II. DESCRIPTION OF ITEM OR SERVICE:

Provide a description of the item or service required, to include its intended use, the name of the required source or brand name, and the required delivery date/period of performance.

III. THE DETERMINATION FOR USE OF OTHER THAN FULL AND OPEN

COMPETITION IS BASED ON THE FOLLOWING (select all that apply):

A. _X_ ONLY ONE RESPONSIBLE SOURCE (select all that apply):

1. _X_ RESTRICTIVE RIGHTS. The source has established proprietary rights, limited rights in data, patent rights, copyrights or secret processes in the item or service required.

American Compressor Company will not release any proprietary design or manufacturing drawings to the Federal Government.

2. _X_ EXCLUSIVE LICENSING AGREEMENTS. The item or service is only available from the Original Equipment Manufacturer (OEM), or there is only one authorized distributor or technical representative for the OEM.

American Compressor Company is the only authorized service agency to perform major repairs and overhauls (rebuilds) on model 55H75 Highpacks. Their facility contains original replacement parts, tooling, machining and service technicians specifically trained to perform work necessary to return these Highpacks to new standard tolerances.

3. _X_ OTHER REASONS. Other reason not identified above. Provide details on mission impact if requirement is not solicited from only one source.

All replacement parts used during the compressor overhaul service must be manufactured per OEM technical specifications to include but not limited to correct machining dimensions; surface finishes, geometric tolerances, and selected manufacturing materials. Deviation from OEM required specifications would result in; premature failure causing damage to equipment, creating a safety hazard with could result in injury to personnel, inability to provide Naval Vessels with an adequate supply of high pressure air, and voiding of diver air certification due to contaminants. There are no available aftermarket parts that are interchangeable with this machine. Only direct OEM replacements parts from American Compressor Company shall be used during the compressor overhaul service. All work performed will be in accordance with the statement of work provided with the service contract. Overhaul service must be provided by the OEM manufacturer to guarantee that the compressor will function within the original designed specification/tolerances and overall performance without any needed modifications to the machine’s existing configuration, overall structure, or complete re-engineering of machine systems/components to try and possibly achieve OEM specifications with non OEM replacement parts. Overhaul service provided by OEM manufacturer will also include a 6 month/500 hour warranty covering defects in materials and/or workmanship. American Compressor will not release any proprietary design or manufacturing drawings to the Federal Government.

B. _X_ BRAND NAME. Item required must be a brand name product, or feature of a product, particular to one manufacturer. Discuss why you are precluding consideration of a product manufactured by another company. Describe how the particular brand name, product, or feature is essential to the Government’s requirements and why a “brand name or equal” purchase description cannot be used (see FAR 11.104). Describe how market research indicates other companies’ similar products or products lacking the particular feature do not meet, or cannot be modified to meet, the agency’s needs.

American Compressor Company is the only authorized service agency to perform major repairs and overhauls (rebuilds) on model 55H75 Highpacks. Their facility contains original replacement parts, tooling, machining and service technicians specifically trained to perform work necessary to return these Highpacks to new standard tolerances.

C. _X_UNUSUAL AND COMPELLING URGENCY. The supplies or services are of such unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals.

Urgent requirements are supplies or services that will result in a work stoppage, or are mission critical and the routine processing time would result in injury to the Government. The determination that the procurement for the above item/service is an urgent and compelling requirement is based on the following:

1.

2.

3. Explanation of why delivery/commencement of services by the date mentioned above is required: Explain the impact to the mission if the date above is not met, any special circumstances or conditions that exist which validate the requirement as “urgent,” estimated production lead time for the item, etc.

This service contract is requested in order to overhaul/refurbish existing machine asset to extend the useful life of this equipment instead of replacing the original asset at a cost to the Federal Government of approximately dollars.

All replacement parts used during the compressor overhaul service must be manufactured per OEM technical specifications to include but not limited to correct machining dimensions; surface finishes, geometric tolerances, and selected manufacturing materials. Deviation from OEM required specifications would result in; premature failure causing damage to equipment, creating a safety hazard with could result in injury to personnel, inability to provide with an adequate supply of high pressure air, and voiding of diver air certification due to contaminants.

4. If appropriate, include any additional pertinent information.

Currently, the shipyard internally lacks the specific expertise to overhaul this compressor. To elevate our maintenance technician's skills and abilities to the level of expertise that is possessed by the OEM manufactures technicians as well as purchasing the specialized tooling and equipment needed to perform this overhaul service is not economically valid as compared to purchasing this service directly from the OEM manufacturer. we see this service requires a sole source due to the required technical skilled, abilities, and equipment needed to complete this overhaul service. Throughout next year the High Pressure Air Maintenance technician's skills and abilities will be re-evaluated by the CTD program and other options will be explored.

IV. CERTIFICATIONS/APPROVALS:

A. Technical / Requirements Certification: I certify that the facts and representation under my cognizance which are included in this justification are complete and accurate to the best of my knowledge and belief.

Signature Name (Printed) / Phone # Date

Signature Name (Printed) / Phone # Date