JA-26-Toby-0327_sUAS Motor Machine Approved 07012026_Redacted.pdf

CUI//SP-PROCURE//FEDCON

Control Number: JA-26-TOBY-0327

JUSTIFICATION REVIEW DOCUMENT

FAR Part 6 Justification and Approval for Other than Full and Open Competition

Program/Equipment: Advanced Manufacturing (AdvM) small Unmanned Aircraft Systems (sUAS) Motor Milling and Manufacturing Equipment at Tobyhanna Army Depot

(TYAD)

Authority: Title 10 United States Code (U.S.C.) §3204(a)(1) as implemented by Revolutionary Federal Acquisition (FAR) Overhaul 6.103-1(b), One responsible source.

Amount: $11.5 Million

Prepared by: Phone:

Date: 5/29/2026

Contracting Officer: Phone:

Date: 06/17/2026

Technical: Phone:

Date: 06/15/2026

Requirements: Phone:

Date: 06/17/2026

Controlled by: Army Controlled by: ACC-APG CUI Category: General Procurement and Acquisition Distribution Limited Dissemination Control: FEDCON POC: Brian Souter, Operating Capacity (FOC). Selecting Eurotech is essential because its advanced automation delivers equivalent production output using fewer machines.

Alternative solutions requiring more machines necessitate a larger facility footprint, which would result in an estimated one-time cost of $50,000 for 1,000

sq. ft. of additional floor space and negate the efficiencies of TYAD's planned layout. The Eurotech solution strictly fits within TYAD's physical space limitations while preserving crucial room for future expansion.

2. Fleet Commonality, Maintenance, and Sustainment:

TYAD currently possesses an established fleet of Eurotech CNC machines.

Introducing a different brand would break fleet commonality, creating operational inefficiencies, requiring significant retraining, and increasing the overall maintenance burden. Conversely, the Eurotech solution's lower machine count inherently reduces the ongoing maintenance burden, downtime, and lifecycle costs for TYAD. The quantifiable costs associated with duplicating efforts for a mixed-brand fleet include:

• One-time retraining for four employees, estimated at $32,000.

• A 4-month delay for implementation and retraining, resulting in a time-delay impact to the government monetized at $190,000.

• Ongoing annual costs, including an additional $573,000 for two extra employees required to manage a mixed-brand fleet, and $3,000 for additional service contracts.

3. Operational Flexibility and Future Capacity: The specific Eurotech combination of the 20mm Swiss Lathe and the Turning Center provides critical flexibility. This specific configuration best positions TYAD for advanced, flexible production work beyond just sUAS motors, ensuring the facility can adapt to future capability needs.

4. Total Quantifiable Impact: The total estimated dollar impact of selecting an alternative vendor is approximately $845,000 in the first year alone. Over a five-year period, the duplicated costs are estimated to be $3,137,000, which will not be recovered through new competition.

(costing $50,000 for additional space) and creating divergent maintenance pipelines that would increase recurring annual fleet management costs by $576,000 (as stated above in Summary of duplicated costs).

2. Use of In-house Resources: TYAD does not currently possess the organic manufacturing capability, specialized high-speed Swiss lathe machinery, or automated turning centers required to execute this high-precision micro-machining requirement internally.

3. Capacity & Throughput Constraints: To meet the program’s critical mission-essential throughput of units per month at FOC for sUAS motors, specialized multi-axis automation is mandatory. TYAD's existing in-house machine shop is fully committed to active depot-level repair and sustainment missions; attempting to absorb this high-volume production line would exhaust current organic capacity, create severe bottlenecking, and compromise the readiness of other high-priority U.S. Army Communications Electronics Command programs.

4. Alta Enterprises is the authorized representative and exclusive distributor of Eurotech products in Eastern Pennsylvania. Eurotech utilizes an authorized regional distribution model for all U.S. Government procurements, which is pricing-neutral compared to a direct manufacturer purchase as both channels build in identical baseline costs for training, service, and support. While some competitors offer centralized "direct" government channels, these divisions lack localized support structures and function less efficiently than a regional network. Procuring through Eurotech's authorized local distributor is operationally critical for the U.S Government, securing a guaranteed 24-hour on-site technical response time that minimizes production downtime on the sUAS motor line without the delay or cost of flying in a factory engineer

5. The selection of Alta Enterprises to support the Eurotech machining infrastructure is justified by the following operational and economic factors:

6. Infrastructure Continuity: TYAD has a well-established Eurotech machining infrastructure primarily supported by Alta Enterprises. This existing fleet has allowed TYAD to build a deep, robust baseline of internal expertise in specialized operations and maintenance.

7. Operational Disruption: Introducing unique, mixed-brand equipment into this established workflow would disrupt existing shop-floor operations and severely degrade technical continuity and mission readiness.

8. Non-Recoverable Lifecycle Costs: Open Market alternatives for this action would duplicate operational and training costs already invested, ultimately forcing TYAD to accept a solution with higher overall lifecycle costs that cannot be recovered through competition.

c. Impact/Risks if not approved: Disapproval would result in:

1. Significant program delays while the Government duplicates a costly comprehensive market intelligence-gathering process already completed by MxD. A transition to any alternative CNC vendor will introduce an immediate, non-recoverable four (4) month delay in establishing Tobyhanna Army Depot’s (TYAD) organic manufacturing capability. This four-month schedule slippage is the absolute minimum timeline required for the Government to duplicate the costly and comprehensive market intelligence-gathering, technical validation, and engineering compatibility assessments already completed for the Eurotech solution.

2. Duplicating the completed market survey and technical validation process for an alternative vendor will introduce an immediate four-month production capability delay at TYAD, directly violating the HQAMC high-rate manufacturing directive. This 120-day production freeze results in a severe supply bottleneck of critical sUAS components, directly decreasing combat mission readiness by delaying the fielding of tactical reconnaissance drones to deployed units. Ultimately, forcing frontline units to operate without these organic aerial assets in contested environments creates a critical intelligence gap, significantly increasing the risk to warfighter life, safety, and operational survivability.

3. TYAD suffering a loss of efficiency by having to operate and maintain a mixed-brand fleet, completely duplicating training, setup, and support expenditures.

4. Approving this justification is essential to maintaining fleet commonality and successfully meeting the Army's critical, increased production goals for the sUAS program.

7. Efforts to Obtain Competition: On 18 May 2026, the Tobyhanna Division contracting officer posted to the governmentwide point of entry a notice of intent to award a sole source contract to Alta Enterprises and invited interested parties to submit information regarding their capability to satisfy this requirement. To date, only Alta Enterprises responded, confirming that they are capable and willing to supply the machines for the requirement. No other responses were received to the notice of intent to award a sole source contract. The Contracting Officer has published the notices required by RFO 5.101 and any bids or proposals received shall be considered.

a. Effective competition: There is no competition anticipated for this acquisition.