J and A Redacted.pdf

DEPARTMENT OF THE NAVY

PEARL HARBOR NAVAL SHIPYARD

AND INTERMEDIATE MAINTENANCE FACILITY

667 SAFEGUARD ST SUITE 100

JBPHH HAWAII 96860-5033

JUSTIFICATION AND APPROVAL

INREPLYREFERTO:

J&A Number: 025075 Code: 410.4 P.R. Number: TBD

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Pearl Harbor Naval Shipyard and Intermediate Maintenance Facility (PHNSY & IMF) Contracts Division C400.

2. Description of the Action Being Approved

a. Award of a contract on a sole source basis for preventative maintenance on two (2) Hankook Vertical Turning Centers (VTC).

b. VTC Original Equipment Manufacturer Information:

Panda Machine Tools, Inc.

Hankook America Corp.

1601 Atlantic Dr. Ste. 109 West Chicago, Illinois 60185-5177 Phone: (630)562-9240

3. Description of Supplies/Services

a. Provide on-site annual preventative maintenance (PM), provide PM reports, software upgrades, inspection and repairs, removal and disposal of replacement parts and materials on two (2) Hankook VTC’s.

b. The total estimated dollar value base plus option years:

$317,130.58

c. Period of Performance: 28 AUG 25 – 27 AUG 30 (Base + Four (4) Option Years)

The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

NCH 53.6-2 (4 Jan 2021 Update)

J&A Number: 025075

NCH 53.6-2

4. Statutory Authority Permitting Other Than Full and Open Competition

41 U.S.C. 1901 – Simplified Acquisition Procedures

5. Rationale Justifying Use of Cited Statutory Authority

Panda Machine Tools, Inc. (Hankook) has proprietary procedures, software updates, processes and equipment for all the VTC-125E machines installed at Pearl Harbor Naval Shipyard & Intermediate Maintenance Facility (PHNSY & IMF).

Hankook allows only their authorized engineers that have access to software or technical updates to perform the required preventative maintenance in order to avoid mistakes by other vendors that may result in machine technical issues, machine damage or safety concerns. There are other vendors that sell the same piece of equipment but are unable to provide the maintenance and software updates as required by the PWS. Therefore, Hankook is the only source of all parts, updates and authorized engineers required to perform preventative maintenance service.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable

Online market research found no other authorized vendors to provide the required services and parts identified in paragraph 3.a, for the reasons stated in paragraph 5.

During market research, two (2) vendors were found as authorized distributors of the equipment. Further inquiry regarding preventative maintenance service resulted with no response and a referral to Hankook

A search of mandatory sources and Interagency Contract Directory yielded no relevant results.

A Sources Sought was posted on 20 February 2025 with a due date of 28 February 2025 at 3:00 p.m. HST. The Sources Sought posting was used to verify if there were other vendors authorized to fulfill this requirement. The capabilities statements submitted by potential vendors were found to be insufficient in accordance with the PWS that was provided in the Sources Sought.

7. Determination of Fair and Reasonable Costs for contract <$750K)

Upon the basis of the above justification, I hereby approve, as Competition Advocate for the Procuring Activity, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 41 U.S.C.

1901.

Chief of the Contracting Office

Signature Name (Print) Date