C14 - Redacted Brand Name Justification.pdf

Subj: SOLE SOURCE MEMORANDUM TO ACQUIRE SERVO VALVES FROM INDUSTRIAL SERVO HYDRAULICS (PN: 240-113D) Rework

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 (Contracts Department Code 02).

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

This action will award a firm fixed price purchase order pursuant to FAR 19.1506(b) to Industrial Servo Hydraulics, 17650 Malyn Blvd, Fraser, MI 48026 to rework the Airborne Mine Countermeasures (AMCM) Winch Servo Valves (PN: 240-113D). The Servo Valves are integral components which control winch systems necessary for AMCM operations.

3. A description of the supplies or services required to meet the agency’s needs (including the estimated value).

The following item is being acquired:

Item Unit Fee QTY Rework and test of AMCM Servo Valves $1,160.00 31

Certification documentation be provided separately for each serialized valve, verifying the valve meets original performance specifications.

Calibration and adjustments IAW Note 3 of NSWCPCD drawing 20485 Rev F.

The following listed servo valves be tested to pressure per Note 2 and preset as per

Note 3 of NSWCPCD drawing 20485 Rev F. S/Ns: 0385, 018, 028, 042, 061, 063, 073, 083, 090, 094, 096, 100, 101, 102, 104, 111, 137, 145, 149, 153, 161, 168, 187, 213, 272, 273, 277, 281, 284, I-10401, and I-10740.

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

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, this procurement is sole source for the following reasons. Industrial Servo Hydraulics is the only source of repair because of proven capabilities and capacities to perform the rework of the servos. NSWCPCD has a Source Control Drawing, 20485 Rev F, with which to purchase the valve from Atchley Controls, Incorporated, but no complete set of drawings for rework of the servo valves. The Atchley servo valve PN: 240-113D is now obsolete and rework is no longer performed by Atchley. Industrial Servo Hydraulics has created their own proprietary processes for reworking the servo valves and have reworked the valves previously. The government does not, as of yet, have a process created, nor available, on how to accomplish a rework of the valves to send to another vendor. This will cause the Government to incur substantial additional costs as follows:

Engineer to disassemble servo valve to learn internal requirements for rework. As well as put back together. 10 work days at 8 hours a day. This includes the potential time needed to refine the process as lessons are learned.

Technical Writer to write the process 5 work days at for 8 hours a day.

Configuration Manager to create a new document number and place it in CMPro for signature. 1 work day for 2 hours a day. The signature time in CMPRO will be another 5 work days.

The minimum total number of work days needed to complete this task would be at least 16 days and extra funding needed before the first servo is addressed. As such, the Government does not expect significant savings through competition and does expect significant and unacceptable delays that will negatively impact this requirement. It is not expected that these additional costs would be recouped by the Government. Therefore, it is in the Governments’ best interest to award on a sole source basis to Industrial Servo Hydraulics. Also, the additional time to bring an alternate source to be operationally ready is a huge detriment to program requirements, because the servo valves are a work stoppage item. The current amount of RFI servo valves is not sufficient to meet the required delivery dates.

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, Industrial Servo Hydraulics, Inc. is the only known company that currently has the in-house resident knowledge, facilities, and experience the Government’s needs.

7. 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, Industrial Servo Hydraulics is the only known company that currently has the in-house resident knowledge, facilities, and experience to meet the Government’s needs.