B8 - Redacted Sole Source Justification.pdf

MEMORANDUM

Subj: SOLE SOURCE MEMORANUM FOR THE ACQUISITION OF MK104 FLOATS

FROM INNOVATIVE PROFESSIONAL SOLUTIONS

1. Identification of the agency and the contracting activity, and specific identification of the document as a “Sole Source Justification.”

This is a sole source justification. Contracting activity is the Naval Sea Systems Command, Naval Surface Warfare Center, Panama City Division (NSWC PCD), 110 Vernon Avenue, Panama City, FL 32407-7001.

2. Nature and/or description of the action being approved.

This action will award a firm fixed price purchase order, on a sole source basis, to Innovative Professional Solutions (IPS), 8317 Front Beach Rd Suite17D, Panama City Beach, FL 32407 under the WOSB Statue FAR 19.1506 MK104 Floats.

3. A description of the supplies or services required to meet the agency’s needs.

The following item is being acquired:

Item Qty MK104 Floats 4 MK104 Floats (Option 1) 10

The Government's minimum needs have been verified by the certifying technical and requirements personnel. This memo does not authorize acquisition for other requirements.

This initial purchase quantity of four will be funded with FY23 Operation and Maintenance, Navy (OMN) funds.

4. Identification of the justification rationale and, if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service. 10 U.S.C. 2304(c)(1), 10 U.S.C. 2304(d)(1)(B). Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements FAR 6.302- 1(a)(2)(iii)(B).

Pursuant to FAR 6.302-1, IPS is the only source that can meet the Government’s requirements for the following reasons. IPS has proven capabilities and capacities to manufacture the required MK104 Floats. IPS is a local company as there will be no shipping cost incurred by the government for delivery of the units. The manufacture of the floats requires fiberglass/epoxy laying and painting which is highly specialized. This specialize fabrication requires maintaining the required profile and weight as shown on the manufacturing drawing, 40811. IPS is the current Original Equipment Manufacturer (OEM) and is the only company that currently holds all fixtures for manufacture. IPS is also the original developer of the fabrication process and have successfully manufactured these floats to meet Government requirements previously. Additionally, IPS is also listed as the Approved Source of Supply on the manufacturing drawing listed above. The government does not have the Technical Data Package (TDP) for the required fixtures. Nor does the Government own the processes to accomplish the fabrication.

Furthermore, the cost to create the fiberglass processes would be as follows:

Engineer/Technical Writer to write the process 5 work days at $80/hour for 8 hours a day.

Total $3,200. This includes the potential time needed to refine the process as lessons are learned.

The cost to create the fixtures would be as follows:

Engineer to design a fixture for 6 work days at $80/hour for 8 hours a day. Total $3,840.

Machinist to machine the fixture for 6 work days at $80/hour for 8 hours a day. Total $3,840.

Materials for the fixture $1,000. This is a total of $8,680 and 12 work days. This includes the potential time needed to refine the fixture design.

In summary, the minimum total number of work days needed to complete this task would be at least 17 days and a grand total of $11,880.00 in extra funding needed before the first cutter assembly gets cleaned/machined. As such, the Government does not expect significant savings through competition and does expect significant and unacceptable delays that will negatively impact this requirement. Therefore, it is in the Governments’ best interest to award on a sole source basis to IPS.

5. A determination by the ordering activity contracting officer that the order represents the best value consistent with FAR 13.106-1(b).

The Contracting Officer has determined that the order represents the best value and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the Government’s needs.

6. A description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted.

For the reasons specified in paragraph 4 above, IPS is the only known company that currently has the in-house resident knowledge, facilities, and experience the Government’s needs.

7. Any other facts supporting the justification.

None.

8. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made.

As stated in paragraph 4 above, IPS is the only known company that currently has the in-house resident knowledge, facilities, and experience the Government’s needs.