E01 FAR Part 13.5 J&A_Redacted.pdf

Control No:

Contractor: Phillips Federal Division

Program/Equipment: LVD/Strippit and OMax Equipment

Version – March 2017 FOR OFFICIAL USE ONLY

FAR Subpart 13.5 Simplified Procedures for Certain Commercial Items – Sole Source Justification and Approval

1. Contracting Activity: U.S. Army Contracting Command Aberdeen Proving Ground (ACC-APG) Tobyhanna Division Attn: CCAP-CCT Tobyhanna Army Depot 11 Hap Arnold Boulevard Tobyhanna, PA 18466-5100

2. Description of Action: Tobyhanna Army Depot (TYAD) requests a new, firm-fixed price contract with Phillips Federal Division, 7390 Coca Cola Drive (Suite 200) Hanover, MD 21076. The Government projects award for 1 June 2020. This will be a 5 year contract (1 Base year and 4 Option Years). Army Working Capital Funds (AWCF) will be used. The estimated value of the proposed action is

An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

3. Description of Supplies/Services: Quarterly and Annual Preventative Maintenance Services and Emergency Repair Services shall be performed for the OMax Water Jet bar code serial number , LVD/Strippit Turret Punch bar code serial number , LVD/Strippit Turret Punch bar code serial number

, LVD/Strippit Laser bar code serial number , LVD/Strippit Laser bar code serial number . The Government will furnish the replacement Coolant, Oils, and Fluids necessary for this service. The contractor shall inform the POC of what Coolant, Oils, and Fluids will be required for the scheduled visit.

The Government will dispose of waste Coolant, Oils, and Fluids. The contractor will be required to give the POC a completed checklist detailing results of inspections along with any recommendations.

Period of Performance: 1 June 2020 to 31 May 2021 Total Value: (Base Year)

Period of Performance: 1 June 2021 to 31 May 2022 Total Value: (Option Year 1)

Period of Performance: 1 June 2022 to 31 May 2023 Total Value: (Option Year 2)

Period of Performance: 1 June 2023 to 31 May 2024 Total Value: (Option Year 3)

Period of Performance: 1 June 2024 to 31 May 2025 Total Value: (Option Year 4)

Program/Equipment: LVD/Strippit and OMax Equipment

Version – March 2017 FOR OFFICIAL USE ONLY

Total Value

4. Authority Cited: Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 (or 41 U.S.C. 1903 for Special Emergency Procurement) as implemented by FAR Subpart 13.5:

Other: Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited: Tobyhanna Army Depot (TYAD) has a large machine shop; within the machine shop are many different machines that require specialized preventive maintenance services by authorized technicians. Of the five machines in this proposed action, four are manufactured by the LVD/Strippit Company and the OMax Corporation manufactures the other. Both of these companies have one authorized service provider, Phillips Corporation Federal Division. This is the sole and exclusive distributor of LVD/Strippit and OMax sheet metal fabricating machinery, software and related factory parts and service including service and maintenance contracts to the U.S.

Federal Government. Previous contracts were awarded to Strippit Inc and subcontracted to Phillips Federal Division. Strippit Inc. has moved away from subcontracting, new contracts must be awarded directly to Phillips Federal Inc. as the Prime Contractor. Due to the complexity and proprietary nature of the LVD/Strippit and OMax Machines, authorized service providers must be used to service and maintain this specialized equipment. Unauthorized parts and service would cause technical problems to include parts not meeting OEM specifications causing manufactured products not meeting quality standards, technicians not having the proper training to diagnose technical problems and the inability of the provider to obtain and install software updates. If this service is not provided it is certain that the affected machines will not be serviced as the manufacturer has recommended with authorized service technicians and OEM approved replacement parts. These machines will become inoperable and TYAD production will be affected. TYAD customers will not receive their orders on time as promised. TYAD customers are all the Branches of the Armed Services whose orders are critical to their mission of protecting our Nation.

6. Efforts to Obtain Competition: The Contracting Officer shall publish the notices required by FAR 5.201 and any proposals received shall be considered. A Request for Information (RFI) was posted to the to https://beta.sam.gov/ site for a two week period to solicit any potential bidders. There were no responses to the RFI.

7. Actions to Increase Competition:

(a) No action will be taken to increase competition.

(b) Subcontracting Competition: The solicitation and subsequent contract will contain the FAR clauses 52.219-8, Utilization of Small Business Concerns and FAR 52.244-5, Competition in Subcontracting

Program/Equipment: LVD/Strippit and OMax Equipment

Version – March 2017 FOR OFFICIAL USE ONLY

8. Market Research: Market research for this requirement was conducted by the TYAD Contracting Officers Representative (COR) during the period of January 2020 through March 2020 by reviewing information available on the internet and previous similar purchases. Previous contracts were researched showing the only OEM authorized vender available is the Phillips Federal Division. Previous contracts were awarded to Strippit Inc and subcontracted to Phillips Federal Division. Strippit Inc. has moved away from subcontracting and new contracts must be awarded directly to Phillips Federal Inc.

as the Prime Contractor. Internet searches did not yield any additional contractors. A Request for Information (RFI) was posted to the to https://beta.sam.gov/ site for a two week period to solicit any potential bidders. There were no responses to the RFI and no additional contractors were identified. Historically the LVD/Strippit and the OMax Corporation have used the Phillips Federal Corporation as their exclusive government service contract provider. Market research has confirmed that the LVD/Strippit and the OMax companies use the Phillips Federal Division as their exclusive distributor of LVD/Strippit and OMax sheet metal fabricating machinery, software and related factory parts and service including service and maintenance contracts to the U.S. Federal Government. Both LVD Strippit and OMAX Corporations were contacted and supplied letters stating that Phillips Corporation Federal Division is the sole distributor and service provider for LVD Strippit and OMAX equipment. (See PCF A02 LVD Strippit Exclusive Dealer Agreement Letter and A02 Exclusive Distributor OMAX)

9. Interested Sources: Phillips Federal Division is the only authorized service provider for the LVD/Strippit and OMAX machines. An RFI that was posted to https://beta.sam.gov/ produced no interested vendors. To date, no other sources have written to express interest in the acquisition.

10. Other Facts: Previous contracts were researched showing the only OEM authorized vender available is the Phillips Federal Division.

a. Procurement History.

Contract number, awarded Contractor: W25G1V-15-P-1908 Strippit Inc.

Description of requirement: Preventative Maintenance on Laser Cutting Machines Method of procurement: Sole Source Contract type: FFP Period of performance: 21 July 2015 thru 20 July 2017 Total awarded amount:

Number of option periods: 1

Contract number, awarded Contractor: W25G1V-18-P-0676 Strippit Inc.

Description of requirement: Preventive Maintenance and Emergency Repair on two Laser Cutting Machines Method of procurement: Sole Source Contract type: FFP Period of performance: 16 July 2018 thru 15 July 2019 Total awarded amount:

Program/Equipment: LVD/Strippit and OMax Equipment

Version – March 2017 FOR OFFICIAL USE ONLY

11. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name:

Title: Inventory Management Specialist

12. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name:

Title: Supervisor Logistics and Supply Division

Program/Equipment: LVD/Strippit and OMax Equipment

Version – March 2017 FOR OFFICIAL USE ONLY

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable.

This determination will be made using the following: X price analysis cost analysis X IGCE audit: other:

As a part of this basis, certified cost or pricing data is not required because the item and/or services being acquired are considered commercial.

Typed Name:

Title: Contracting Officer

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Typed Name:

Title: Contracting Officer

Program/Equipment: LVD/Strippit and OMax Equipment

Version – March 2017 FOR OFFICIAL USE ONLY

Approval Based on the foregoing justification, I hereby approve the procurement of Preventative and Emergency Services for the LVD/Strippit and OMAX Laser Jet Machines on a sole source basis pursuant to the authority of the Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 as implemented by FAR Subpart 13.5, subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

Contracting Officer