JA CMO 2023-010 WVA Induction Furnace System Redactions marked_Redacted.pdf

extensive foundation work, both increasing the cost, delivery time, and risk to the Government. Foundation and other infrastructure work could impose costs of $500,000 and a year delay before installation can begin. The furnace company would provide information on what work is required, and WVA would contract out this work to a different company. Ajax Tocco has previous experience in integrating an Induction Furnace System with the Rotary Forge. This integration is vital to the initial heat treat operations. Another manufacturer would need to acquire information about the forge and develop a unique, one off system increasing cost and risk to the government. Ajax Tocco also offers unique maintenance training specific to their induction furnace system. This is important because it will decrease the lifetime cost of maintaining the furnace system.

Ajax Tocco is the only manufacturer that can provide this piece of equipment to the Government with minimal cost and technical risks. Another manufacturer would incur duplication of cost for the research, development, installation, production, and sustainment of the furnace system. These costs are not expected to be recovered through competition.

Competing this requirement would be of very high technical risk and cost to the Government. There is no guarantee that any offeror who proposes an unproven or tested furnace system would meet the Government’s performance requirement or have the compatibility with other machines within WVA. To assess the capabilities and compatibilities would require extensive testing, incurring addition costs and risks.

Having compatibility with the other machines is very important, as it provides workload flexibility and interoperability of equipment. A phase in period would be required to understand how the operation of new furnace system runs and how compatible it is with the other machines at WVA. An Induction Furnace System from Ajax Tocco would avoid these problems and it would be fully functional the day it’s installed.

6. Efforts to Obtain Competition:

a. Effective Competition: As described in section 5, this procurement requires a specific

Induction Furnace System that only Ajax Tocco is capable of providing, therefore this action will not be competed. This action will be synopsized in accordance FAR 5.201.

b. Subcontracting Competition: Ajax Tocco manufactures the induction furnaces in house with very limited subcontracting opportunities. However, Ajax Tocco will be required to submit a Small Business Subcontracting Plan with its proposal. The solicitation and resulting contract will include FAR clauses 52.219-8, "Utilization of Small Business Concerns"; 52.244-5, "Competition in Subcontracting"; 52.219-16, "Liquidated Damages--Subcontracting Plan";" and Defense Federal Acquisition Regulation Supplement (DFARS) 252.219-7003, "Small Business Subcontracting Plan (DoD Contracts)," to maximize small business opportunities and utilization.

7. Actions to Increase Competition: Ajax Tocco is the only known manufacturer of the Induction Furnace System to support this specific Army requirement. There are no future plans to procure this machine after this acquisition is complete.

8. Market Research: A Sources Sought Synopsis was posted on 22 Jul 2022 to SAM.

The only vendor to respond with interest to the Sources Sought Synopsis was Ajax Tocco Magnethermic Corporation. In addition, Market Research was performed via the internet, phone inquiries, and email in accordance with FAR 10.0002(b). An Equipment Specialist at WVA conducted the research in January 2022, by communicating with and researching the websites of Lindberg/MPH, Wisconsin Oven, and Surface Combustion, who are alternative vendors of Induction Furnace Systems. The research resulted in the determination that Ajax Tocco is the only manufacturer capable of supplying an Induction Furnace System that satisfies the technology used by the US Army for heating preforms via induction heating technology.

The market research also confirmed that the ability of a manufacturer to do the research and development necessary to manufacture an Induction Furnace System that meets the Governments requirements is necessary to prevent cost to all cannon tube programs. Ajax Tocco already produces a furnace system that is commercially available and there would be no duplication of costs with awarding them a contract as opposed to awarding to a new manufacturer who would be producing an unproven machine.

9. Interested Sources: To date no additional sources have written to express an interest.

10. Other Facts:

a. Procurement History: In FY1988, the Watervliet Arsenal procured a similar Induction Furnace System from Ajax Tocco, a custom model with the serial# 12- 9818. The contract number is not available at this time due to the age of the previous procurement.

11 / 12. Technical / Requirements Certification: I certify that the supporting data under my cognizance which are included in this J&A are accurate and complete to the best of my knowledge and belief.

Name: Gregory V Myers Date: 2 Nov 2022

Title: WVA Deputy Director of Production & Operations Signature: // GVM //

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 based on the Independent Government Estimate. The Contractor will not be required to submit certified cost and pricing data because the proposed action will be a commercial procurement IAW FAR 15.403-1(b) (3).

Name: Nicholas Ventresca Date: 2 Nov 2022 Title: Supervisory Contract Specialist Signature: // NV //

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

Name: Nicholas Ventresca Date: 2 Nov 2022 Title: Supervisory Contract Specialist Signature: // NV //