B03 BNJ_Redacted.pdf

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Procurement for Magnet Assemblies
Solicitation number
N0016725Q1051
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This document is a Sole Source/Brand Name Justification memorandum for a non-competitive procurement under the Simplified Acquisition Threshold (SAT). The Naval Surface Warfare Center, Onboard Tracking & Acoustic Vibration Systems Branch (Code 732) requires five (5) NS-15 Actuator Assemblies for technical support of PMS450X tasking, to be sourced exclusively from Electron Energy Corporation (EEC) in Landisville, PA. The justification is based on EEC's prior work and familiarity with the NS-15 actuator, having previously manufactured NS-15 magnet assemblies and invested approximately $20,000 in non-recurring engineering costs to understand NSWCCD's designs and manufacturing processes.

The document argues that awarding the contract to EEC is in the government's best interest, as they already possess the necessary jigs and fixtures for manufacturing, and switching to an alternative vendor would likely incur additional engineering costs. The procurement is specifically for the NS-15 Actuator Assemblies, which are proprietary actuators originally designed and built in-house at NSWCCD, but now requiring outsourced production. The solicitation is dated for 5/1/25, with the contracting officer digitally signing the justification on that date, citing authority under 10 U.S.C. 3204(c) to proceed with a non-competitive procurement.

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NSWCCD Sole Source/Brand Name Justification Under SAT Rev 4 Template Effective March 2025

MEMORANDUM FOR FILE

FROM:

CODE:

TO:

SUBJECT: SAP Non-Competitive Procurement Justification Memo

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.

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.

3. This memorandum is derived from Enclosure 3, Department of Navy Simplified Acquisition Procedures Guide (April 2018) and is only applicable to acquisitions under the SAT.

II. DESCRIPTION OF ITEM OR SERVICE

The Onboard Tracking & Acoustic Vibration Systems Branch, Code 732 of the Naval Surface Warfare Center requires QTY. 5 NS-15 Actuator Assemblies for technical support of PMS450X tasking. The estimate value of this procurement is

MANUFACTURER: Electron Energy Corporation ADDRESS: 924 Links Avenue, Landisville, PA 17538

PHONE: 717-898-2294

POC: Paul Elliott POC EMAIL: pelliott@electronenergy.com

III. BASIS FOR DETERMINATION FOR USE OF OTHER THAN FULL & OPEN COMPETITION

A. BRAND NAME:

Item required must be a brand name product, or feature of a product, particular to one manufacturer.

1. Restrictive Rights: The source has established proprietary rights, limited rights in data, patent rights, copyrights, or secret processes in the item or service required.

2. Exclusive Licensing Agreements: The item or service is only available from the Original Equipment Manufacturer (OEM).

3. Other Reasons: The Acoustic Noise & Vibration Lab (ANVL) of Code 732 at NSWCCD is primarily a research and development lab supporting programs such as PMS450X, PMS392, and others in the undersea community. Actuator design and characterization in support of fleet needs is a major tasking area of the ANVL.

The NS-15 is one of several proprietary actuators designed and built in-house at NSWCCD. However, the ANVL

NSWCCD Sole Source/Brand Name Justification Under SAT Rev 4 Template Effective March 2025 is not a production facility. Prototypes and limited production runs of custom-built actuators have been undertaken in the past, but NSWCCD C732 requires the outsourcing of production of these units to a vendor.

Electron Energy Corporation (EEC) has been awarded several magnetics contracts for C732 actuators including:

N0016724P0052, N0016723P0200, and N0016723P0022. Approximately 20k of non-recurring engineering (NRE) costs has been spent with EEC to familiarize them with NSWCCD designs and drawings, as well as to develop procedures and processes to expedite magnet assembly delivery. Furthermore, given the award of contract N0016723P0200 for QTY. 9 NS-15 Magnet Assemblies, EEC already possesses most of the required jigs and fixtures for manufacturing and assembly of the currently required NS-15 Actuators. Failure to award this contract to EEC and to an alternative vendor, will likely result in additional NRE costs to be expended to ensure the vendor’s ability to fabricate the required supply.

EEC currently has familiarity with the NS-15 actuator, having previously manufactured the NS-15 magnet assemblies, a major subcomponent. To maintain the integrity of the compatibility of manufactured subcomponents of the NS-15, it would be in the Government’s best interest to award this requirement to EEC

B. SOLE SOURCE (select all that apply)

1. Restrictive Rights: The source has established proprietary rights, limited rights in data, patent rights, copyrights, or secret processes in the item or service required.

2. 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.

3. Other Reasons:

C. LIMITED SOURCE (FAR 8.405-6):

Item required must be a brand name product, or feature of a product, particular to one manufacturer.

1. Restrictive Rights: The source has established proprietary rights, limited rights in data, patent rights, copyrights, or secret processes in the item or service required.

2. Exclusive Licensing Agreements: The item or service is only available from the Original Equipment Manufacturer (OEM).

3. Other Reasons:

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.

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