C14 - Redacted Sole Source Justication.pdf

MEMORANDUM

SUBJ: SOLE SOURCE JUSTIFICATION MEMORANDUM TO ACQUIRE A 5-AXIS

MACHINING CENTER

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

This is a sole source justification. Contracting activity is:

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 order to the following:

Phillips Federal Corporation Federal Division (Phillips Federal) 7390 Coca Cola Dr Ste 200 Hanover, Maryland 21076-1937

Cage: 3MPQ0

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

The purchase is to acquire a 5-axis vertical mill (machining center) to meet Navy specifications for specialized fabrication and manufacturing of fleet assets to be provided to the warfighter, as described below.

Nomenclature Description Qty

UMC – 750SS Super Speed 5-Axis Vertical Machining Center; 30" x 20" x 20" (762 x 508 x 508 mm) with 630 x 500 mm integrated 2-axis trunnion rotary table:

- Platter Size: 24.8" x 19.7" (630mm x 500mm)

- Max Weight on Platter: 660 lb.

- B-Axis Tilt: +110/-35 degrees

- C-Axis Rotation: 360 degrees

- 40 taper spindle

- 30 hp (22.4 kW) vector drive, 12,000 rpm, 90 ft-lb @2000 rpm, inline direct-drive

- Electronic Thermal Compensation to compensate for the expansion and contraction of each linear axis.

- High-speed 30+1 side-mount tool changer with 2.8s tool change (avg)

- 1200 ipm (30.5 m/min) rapids

- Max Cutting 650 in/min (16.5 m/min)

- 75-gallon (284 liter) flood coolant system

- Cab Cool

- Controller Features:

- 15" color LCD monitor, Dynamic work offset (DWO) and Tool Center Point Control (TCPC), Media Display M-Code, M130 Graphic Dry Run, Self-Diagnostics, USB port, Memory Lock Keyswitch, Multi-Function Jog Handle, Wireless Intuitive Probing System, Second Home Button, Spindle Orientation, Macros, Coordinate Rotation & Scaling, Visual Programing System (VPS), Rigid Tapping, Advanced Pocket Milling, Tool Life Management, Background Editing, 1 GB On-Board Solid State Memory, Rotary-Axis Calibration Tool and Power Failure Detection Module

64GB 64 GB Expanded Memory 1 TAB Haas Through-Spindle Air Blast 1 CLNT-TNK-95G Haas 95-Gallon (360 liter) coolant tank equipped with a powerful 3/4 hp (0.6 kW) pump that flows 5.25 gpm @ 30 psi (19.9 L/min @ 2 bar)

P-COOL Programmable Coolant Nozzle 1

COOLANT MAINT

PACK

Coolant Maintenance Package 1

TSC1K Through-Spindle Coolant system 1 ACF Auxiliary Coolant Filter 1 08-0004A 20-Piece, CT40 Toolholder Kit, TSC 1 08-0185 130MM Self Centering Vise and Riser Kit 1 08-0198 ISO40-Taper Tool Cart, 40 Tool Capacity 2 CDF CONVEYOR Chip Disc Filtration Conveyor 1 HD HV-ISO-XFRMR Heavy-Duty Internal High-Voltage Isolated Power Transformer 1 HIGH PRESSURE COOL High-Pressure Flood Coolant System 1

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 acquisition will be conducted using simplified acquisition procedures with a total dollar value above micro-purchase levels, but not exceeding the simplified acquisition threshold of $250,000.00.

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) - Only one responsible source and no other supplies or services will satisfy agency requirements, FAR 6.302-1. The Naval Sea Systems Command, Naval Surface Warfare Center Panama City Division (NSWC PCD) Fabrication & Prototyping Shops (FPS) based upon the facts and representations below, intends to acquire, on a sole source basis, a 5-axis mill from Phillips Federal Division. This purchase is not suitable for full and open competition for the following reasons:

The FPS currently has multiple CNC machines (VF-8 Vertical Machining Center, TL-1 Hybrid

CNC Lathe, and TL-3B Hybrid CNC) manufactured by Haas, Inc which the FPS machinists and technicians are trained to operate and service. The purchase of the new 5-axis mill will maintain consistency with the existing machines on site. This purchase will offer the following advantages and cost savings:

• The FPS technicians are already familiar with Haas products, and are also familiar with the user interfaces, which are standardized across the family of products. Haas offers CNC UMC Productivity Improvement training geared towards teaching machinists how to operate the mill and familiarity with the user interface and application. The FPS machinists’ current familiarity with Haas interfaces and equipment negates the need for standardized training on the machine, which costs approximately $7,900. Therefore, the purchase of a Haas mill instantly realizes a $7,900 savings on the price of the machine.

• Typically, when FPS requires a factory-certified technician to service and/or repair equipment, the service fee to have a technician to arrive on site is approximately $1,800.

This is a standard fee paid, regardless of the manufacturer of equipment. Since the FPS utilizes multiple Haas machines, adding another one will realize a $1,800 savings every time a factory-certified technician is called in to work on multiple machines. The $1,800 trip charge applies only once, no matter how many machines the technician works on;

therefore, the FPS can leverage additional technician labor by using only Haas equipment. When the technician makes a trip to NSWC PCD, he/she can work on other Haas equipment, and no extra trip charges are needed for differing brands of equipment.

Service visits may be required two to three times per year, which equates to an ongoing yearly saving of approximately $5,400.

Phillips Federal is the only authorized distributor of Haas equipment. They are the only source that provides the 5-axis mill that meets the requirements of the NSWC PCD Fabrication and Prototyping Shops. As such, the government does not expect significant savings through competition and it is more advantageous to award on a sole source basis to Phillips Federal Division for the items listed in paragraph 3 above.

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.

This requirement will be synopsized on the Contract Opportunities website at sam.gov per FAR Part 5.2. No additional market research was conducted for the reasons discussed in paragraph 4 above, for any company other than Phillips Federal to provide the products.

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, Phillips Federal is the only source that can meet the requirement.