JandA_24-019-JTEKT_ToyodaVerticalMill redacted.pdf

Control No: 24-019 Contractor: JTEKT Toyoda Americas Corporation

Supply: Vertical Mill Est Dollar Value:

JUSTIFICATION REVIEW DOCUMENT

FOR JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

Supply/Service: Toyoda Double Column Vertical Mill, Model S8316

Authority: 41 U.S.C. 1901

Prepared by:

Contracting Officer:

Technical:

Requirements:

John Jacobsen Contracting Specialist Email: john.e .jacobsen16.civ@army.mil

David D. DeAnda Procuring Contracting Officer Email: david.d.deanada2.civ@army.mil

DSN: 793-5149

DSN: 793-8554

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Legal Advisor:

Supply: Vertical Mill

Department of Army Justification and Approval for Other than

Full and Open Competition

Est Dollar Value:

1. Contracting Activity: U.S. Army Contracting Command - Rock Island (ACC-RI) Rock Island Arsenal, Rock Island, IL 61299-8000.

2. Description of Action: The Rock Island Arsenal - Joint Manufacturing and Technology Center (RIA-JMTC) requests a firm fixed price contract with JTEKT Toyoda Americas Corporation (Toyoda). ACC-RI projects award for

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

The United States Government (USG) competed the requirement prior to this action using full and open competition (Solicitation W519TC23R2024) which resulted in contract W519TC23P2265, dated 26 April 2023 for one mill, with no options.

3. Description of Supply: RIA-JMTC has a requirement for the contractor to provide and install a Toyoda model SB316 double column vertical machining center (mill) with Fugi Automatic Numeric Controls (FANUC) control. The mill will be used for production of armored vehicle components as well as other products requiring a highly rigid spindle for heavy cutting of armored steel components at high material removal rates. The mill will have a work parameter of 120.5-inches X-Axis travel, 63-inches Y-Axis travel, and 39-inches Z-Axis travel. The X, Y, and Z axes are all Linear. The X and Y axes represent movement across the build table where the Z axis represents the height from the table.

The mill is a fixed rail bridge machine designed for heavy cutting applications. This machine features roller guides, a hydraulic counterbalance system on the headstock, and a powerful spindle. These features allow for highly precise and accurate cuts without sacrificing speed.

The period of performance (PoP) is

4. Authority Cited: 41. U.S.C. 1901, as implemented by FAR 13.501 (a)(1 )(ii), Sole source under the simplified procedures for certain commercial items.

5. Reason for Authority Cited: As described in FAR 13.501 (a)(1 )(i), the Contracting Officer may conduct sole source acquisitions only if the need to do so is justified in writing and approved at the levels specified in FAR 13.501 (a)(2).

I

Contractor: JTEKT Toyoda Americas Corporation

Supply: Vertical Mill Est Dollar Value:

The proposed machine will be identical to the machine purchased in April of 2023.

General industry practice is that a machine manufacturer will not build a machine that will accept another manufacturer's machine programs. This is common industry knowledge that JMTC confirmed through discussions with machine builders as well as with vendors of the programming software (post processors). Programs written for one machine make and model would need to be decompiled and reprocessed to create a new program that would be functional in a machine built by a different manufacturer or for a machine built by the same manufacturer, but of a different model or control. It is also not reasonable for one machine manufacturer to create machine controls in the exact same configuration as those of another manufacturer.

The purpose of limiting competition is as follows:

a. Savings: The first purpose is to achieve financial savings to the USG. The financial savings are detailed further below in this justification.

b. Portability: The second purpose of limiting competition is to gain flexibility of workload.

Supply: Vertical Mill Est Dollar Value:

As stated above, one of the purposes of limiting competition is cost savings to the USG.

Supply: Vertical Mill Est Dollar Value:

6. Programming Interoperability Cost

Programmer Labor

Rate ($/hr)

Reprogram/ Reprocess

(hrs)

Action

Total Cost of Different Control

Prove-Out for Diff Machine

(hrs)

Supervisor Labor Rate

($/hr)

Request a Reprogram

(hrs)

Number of Changes

(per month)

Machine Life Expectancy

(yrs)

This is an extremely conservative number of changes. This equipment supports production of a multitude of programs including the Artillery, Armor and other critical programs.

Summary of Total Duplicative Costs: If RIA-JMTC solicits full and open competition, and a non-Toyoda mill is purchased, the total duplicative, irrecoverable costs (detailed above) are summarized:

Post Processor Software Costs Spare Parts Kit Programming lnoperability Cost Total

Supply: Vertical Mill Est Dollar Value:

The mill is designed for rigid heavy cutting and will support artillery production of M35 and M119 components. It will be used to support Main Battle Tank Systems steel components. It will also be used as necessary to support other programs such as the Armored Multi-Purpose Vehicle.

6. Efforts to Obtain Competition: ACC-RI shall publish the notices required by FAR

5.201. Because this is a sole source action, effective competition is not applicable due to potential resellers and authorized distributors of Toyoda products. The USG will achieve subcontracting competition by having the contract contain FAR clause 52.244-5, Competition in Subcontracting, which states that the contractor shall select subcontractors on a competitive basis to the maximum practicable extent.

7. Actions to Increase Competition: Because this requirement is a commercial off the shelf item, the USG anticipates taking no specific action to increase competition. No further subsequent acquisitions are anticipated.

8. Market Research: ACC-RI posted a sources sought notice to www.sam.gov from 07 December 2023 - 13 December 2023.

provided responses:

Supply: Vertical Mill Est Dollar Value:

Market research was also performed for this requirement on 13 December 2023, by reviewing past procurement history to determine that RIA-JMTC has no other equipment similar to the equipment required other than the equipment procured under W519TC23P2265 and that the most recent procurement represented a unique capability at the installation.

9. Interested Sources: To date, no other sources have expressed a written interest in this requirement.

IO. Other Facts

Procurement History: Phillips:

Contract: W519TC23P2265 Contractor: JTEKT Toyoda Americas Corp (CAGE 49696, a large business) Award Date: 26 April 2023 Competitive Status: Full and Open Award:

Two other vendors provided responsive quotes: Mazak:

Supply: Vertical Mill Est Dollar Value:

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.

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

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the USG for this contract action will be fair and reasonable. Prices will be determined fair and reasonable in accordance with FAR 13.106-2(b) and the Contracting Officer will utilize price analysis techniques such as (but not limited to): comparison of proposed prices with independent USG estimates and comparison of proposed prices with prices obtained through market research for the same or similar items or comparison of prices based on competition. Certified cost or pricing data will not be provided, as this action falls under exception FAR 15.403-1 (b)(3), when a commercial item is being acquired.

Date:

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David DeAnda Contracting Officer

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

Date:

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Supply: Vertical Mill Est Dollar Value:

Approval

Based on the foregoing justification, I hereby approve the procurement of a Toyoda Double Column Vertical Mill , Model SB316 on an other than full and open competition basis pursuant to the authority of 41 U.S.C.1901 , subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

Date: 3/13/24 JAMES.STEPHANIE.M o;g;1a11y s;gnedby

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S i gnature: BOOZER.1275435321 Oate: 2024.03.1312:08:06-06-00-

STEPHANIE M. JAMES

Competition Advocate