D and F - Consolidation Thermal Shop OM Plasma Gun and Hopper Parts IDIQ REDACTED Redacted.pdf

Consolidation of Requirements -- Determinations and Findings

Program: Thermal Shop Oerlikon Metco Spray Guns and Hopper Parts

F I N D I N G S

In accordance with the definition provided at FAR 2.101, �Consolidation or consolidated requirement� means a solicitation for a single contract, a multiple-award contract, a task order, or a delivery order to satisfy�

(i) Two or more requirements of the Federal agency for supplies or services that have been provided to or performed for the Federal agency under two or more separate contracts, each of which was lower in cost than the total cost of the contract for which offers are solicited; or

(ii) Requirements of the Federal agency for construction projects to be performed at two or more discrete sites.

While FAR 7.107-2(a) recognizes consolidating requirements may provide substantial benefits to the Government, further account is given to the potential negative impact upon small business participation. Accordingly, before actions are taken by an agency to consolidate requirements under a subsequent solicitation and/or contract award, accompanied by an estimated total dollar value exceeding $2 million, a written determination is required. IAW AFFARS 5307.107-2(a) � Consolidation, the Senior Contracting Official (SCO) is the authority to make the consolidation determination for actions exceeding $2 million.

Requirements: AFSC/PZIMC proposes to solicit a consolidation of the following listed requirements:

1. FA8132-20-P-0017 / ($94,694.60)

2. FA8132-20-P-0043 / ($107,463.76)

3. FA8132-21-P-0009 / ($12,133.70)

4. FA8132-21-P-0007 / ($517,695.07)

Background: The above contracts were competitively acquired. FA8132-20-P-0017 was awarded to (Lotus USA, Inc., Small Business) for Metco plasma guns and accessories. The period of performance for delivery was 30 days. FA8132-20-P-0043 was awarded to (Oerlikon Metco (US) Inc., Large Business) for Metco plasma gun and bundle. The period of performance for delivery was 30 days. FA8132-21-P-0009 was awarded to (Oerlikon Metco (US) Inc., Large Business) for Metco 3MB gun replacement parts. The period of performance was for delivery was 30 days. FA8132-20-P-0007 was awarded to (Oerlikon Metco (US) Inc., Large Business) for Metco spray gun/hopper parts (emergency). The period of performance was for 50 days. Further, additional purchases have been made utilizing the Government Purchase Card (GPC).

This consolidation will result in a competitively awarded single-source Indefinite Delivery-Indefinite Quantity (IDIQ) supply contract with a one-year basic and 2 one-year option periods. The estimated total for this Firm-Fixed-Price effort is

Year Estimated Amount Period of Performance (PoP) Basic $ 01 May 2022 � 30 April 2023 Option I $ 01 May 2023 � 30 April 2024 Option II $ 01 May 2024 � 30 April 2025

This effort has an approved brand name justification for simplified procedures for certain commercial items per AFFARS 5313.501.

. Oerlikon Metco Inc. is the original equipment manufacturer and has the only plasma spray gun that has a thorium-free material solution proven to have a longer service life than the conventional plasma spray gun due to special coating properties. The majority of the equipment in the

Thermal Shop are Oerlikon Metco brand. Based upon market research conducted and information received from , prices will be based off minimum quantity. Currently, the is utilizing the Government Purchase Card to fill the needs of the . This contracting vehicle will alleviate the redundancy of GPC purchases.

Discussion of Findings:

1. Describe the market research conducted.

The Government has conducted market research for all the manufactured supply parts included in this effort. Market research included internet searches as well as sending out vendor surveys to authorized Oerlikon Metco distributors. Many of these vendors were contacted to provide a rough order of magnitude quote to investigate the supportability of an IDIQ contract.

Additionally, previous contracts that supplied this equipment were reviewed for potential sources. This requirement will be synopsized via Contract Opportunities at sam.gov.

2. Explain any alternative contracting approaches that would involve a lesser degree of consolidation have been identified.

Alternative contracting approaches considered were partial consolidation or no consolidation. Partial consolidation would consolidate the current known requirements into one effort, leaving any new effort to be accomplished separately. Partial consolidation would reduce required government coordination and oversight and allow the contractor to introduce latitude and operational efficiencies while also reducing some of the PMXS�s communication and administrative concerns. Not consolidating and retaining individual purchase orders was also considered; however, this option provides no potential for additional efficiencies.

The above alternative contracting approaches are not in the best interest of the Government. Consolidating the purchasing of Oerlikon Metco spray guns and hopper parts would allow for utilizing one contract instead of multiple separate efforts.

Further, the effort of awarding, administering, and managing one contract instead of multiple contracts will not only be greatly reduced but there is potential to eliminate inefficiencies and reduce the amount of resources expended for both contracting and .

3. Evidence the determination has or will be coordinated with the agency's Office of Small Disadvantaged Business Utilization or the Office of Small Business Programs.

Evidence the determination has or will be coordinated with the agency�s Small Business office is shown by the Small Business Office Representative�s signature on this document.

4. Address any negative impact by the acquisition strategy on contracting with small business concerns that has been identified.

The previous separate contracts were relatively small/low dollar and were solicited as full and open competition. However, awarded to the OEM and were dissolved by SBSA. See below reasons:

If there was a Brand Name Justification and value was > $250k, the Non Manufacturer Rule (NMR) would apply.

The Name Brand Justification allows for only a large manufacturer, which in order to meet the NMR the Non-

Manufacturer (distributor) would have to provide the item manufactured by a Small Business (see FAR 19.505(c)(1)).

o Since this is not attainable (no small business manufacturer is available) a SBSA is not suitable for the requirement after the dissolution of the small business set-asides by the Small Business Office.

Current market research indicates the proposed combined effort is still well within the capabilities of small businesses and there is a reasonable expectation that two or more responsible offerors, would submit priced offers in response to the solicitation expressed requirement. Therefore, any negative impact to small business concerns as a result of consolidation should be minimal to non-existent.

5. Describe steps taken to include small business concerns in the acquisition strategy.

This proposed IDIQ contract will allow for either award to a large business or small business. If award is made to a large business, then a subcontracting plan will be required which will allow for small business participation within this effort.

Otherwise, awarding to a small business would alleviate any concern with the acquisition strategy.

Benefits.

The benefits of consolidation have a positive impact on the manpower, cost, schedule, quality and availability of supply to the warfighter. The impact drivers are:

Acquisition Cycle - Consolidation will give the United States Air Force an improved opportunity to shorten the acquisition cycle for Oerlikon Metco part contract activities. The time to accomplish market research, acquisition planning, solicitation, proposal evaluation, negotiation, and award can be greatly reduced by utilizing one Air Force acquisition team. It is estimated that 1,000 hours can be saved by eliminating multiple resources which include program managers, contracting officers, and contract specialists. With the increased dollar value, the procurement administrative lead time (PALT) has increased but overall document review by PZIMC will be reduced by this consolidation. When consolidated, the warfighter benefits by giving them a central point of contact to communicate their needs and expectations.

Quality - No quality issues have been identified with the current contracts that would point to future issues in a consolidated contract. Consolidation will allow for common oversight and provide a venue for improved communication should quality issues arise.

Terms and Conditions - The proposed IDIQ will improve the relationship between the contractor and Air Force supply chain by using consistent contract terms and conditions as opposed to multiple separate contracts that each contain a