C14 Redacted SSJ.pdf

MEMORANDUM

SUBJ: SOLE SOURCE MEMORANDUM TO ACQUIRE LCAC VIPER 2E –BALANCING

KITS FROM TECHNOLOGY FOR ENERGY CORPORATION

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. The 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, on a sole source basis, to Technology for Energy Corporation, (CAGE 3X699), 10737 Lexington Drive, Knoxville, TN 37932-3294 for the acquisition of LCAC & LCAC100 Propeller and Lift Fan Assemblies. The LCAC & LCAC100 Machinery, like all high speed rotary components, must be balanced periodically to maintain safe stress levels within components during operation. The propeller and lift fan systems require highly specialized equipment that’s capable of capturing unique balance coefficients for each rotor and then utilize that data for a sufficient balance solution. The equipment must also have a simple setup and procedure in order to be effectively used by technicians or sailors who have no background expertise. This requisition is to obtain the subject components in order to support balancing activities of the LCAC & LCAC100 Propeller and Lift Fan assemblies at NSWC PCD.

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

The requirement is to purchase the following:

Manufacturer Part Number Description Quantity Z4041-LCAC-SSC-UPG Upgrade, Balancing Kit Viper-2E 4

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.

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.

Pursuant to FAR 6.302-1, this procurement is sole source for the following reasons. Technology for Energy Corporation (TEC) is the original equipment manufacturer and the only provider of the balancing kits. The LCAC & LCAC100 Propeller and Lift Fans are highly unique rotary systems that require equipment specialized in balancing. The Viper 2E Kit is provided by Technology for Energy Corporation has been deemed as the only COTS system, preapproved by NAVAIR, which has the capability to adequately balance LCAC & LCAC100 rotating systems.

The Viper 2E is specifically designed for the end user; sailors and technicians by utilizing simplified setup processes and equipment installation. Alternative manufacturer’s balance systems were explored and were not successfully demonstrated. If the balance equipment were to be sourced by another manufacturer, additional time and expense would be necessary to design and develop equipment that is compatible with the existing LCAC & LCAC100 Propellers and Lift Fans. That extra time and expense would eclipse any foreseeable savings realized by using another part provided by a different manufacturer. Therefore in the interest of time and money, it is imperative that these Viper 2E kits are acquired from TEC as soon as possible.

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, reoccurring costs, special features, administrative costs, engineering and redesign 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.

No additional market research was conducted for the reasons stated in paragraph 4 above. This requirement will be synopsized in the government point of entry SAM.gov because it is estimated greater than $25,000.00.

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 made.

As stated in paragraph 4 above, Technology for Energy Corporation CAGE – 3X699 is the only source that can meet this requirement.