Justification and Approval W911KF-21-Q-0050 HAAS Service.pdf

Item: Haas Service Estimated Cost: $512,521.66

For Official Use Only (FOUO)

DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: U.S. Department of the Army, Directorate of Contracting, Anniston Army Depot, Anniston, AL 36201-4199.

2. Description of Action: Anniston Army Depot intends to award a new sole source, Firm Fixed Price (FFP) contract for the preventive maintenance and unlimited on-call emergency repair of the Government owned Haas Computer Numerical Controlled (CNC) machines to Phillips Corporation Inc., Federal Division of 7390 Coca Cola Drive STE 200 Hanover, MD 21076. The proposed contract will be a base with four option years, and will utilize Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: Phillips Corporation Inc., Federal Division will provide all labor, material, parts, and equipment for preventive maintenance and emergency repairs to the Haas CNC machines located on Anniston Army Depot. The estimated cost for all the work is $512,521.66.

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 United States Code (U.S.C.) 2304(c) (1) as implemented in Federal Acquisition Regulation FAR 6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.” Specifically, FAR 6.302-1(a)(2), When the supplies or services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for.”.

5. Reason for Authority Cited As stated in the letter dated 1 January 2021 from Haas Automation, Inc., Phillips Corporation, Federal Division, is the sole and exclusive distributor of Haas CNC Machine Tools and any associated factory certified service, training, and applications work for United State Government facilities. Due to this, Phillips Corporation, Federal Division is the only company allowed to perform any services on the Haas CNC machine. The Haas CNC machine and components are warranted and must be worked on by certified technicians. If the repairs are performed by any other company the warranty will be voided.

6. Efforts to Obtain Competition:

a. Effective Competition: This procurement action will be synopsized on beta.sam.gov stating the intent to negotiate only with the Phillips Corporation, Federal Division and to encourage any firm that recognizes these items/services and can provide supporting evidence, including written permission from Phillips Corporation, Federal Division to use any proprietary data needed to perform the service described in the specification, to identify themselves. All qualified offerors will be considered.

b. N/A

For Official Use Only (FOUO)

7. Actions to Increase Competition: We will continue to conduct industry surveys of other vendors to determine if they have developed products and services which meet the requirements for this type of service. All vendors must have written permission from HAAS Automation, Inc. stating that they can have rights to the sole and exclusive distributorship authorized to Phillips Corporation, Federal Division to sell Haas CNC Machine Tools and Haas products to United States Government facilities as well as any and all service related contracts or maintenance agreements on Haas equipment.

8. Market Research: Phillips Corporation, Federal Division has been contacted and the market survey has revealed that the Phillips Corporation Inc., Federal Division, is the sole and exclusive distributor authorized to sell Haas CNC Machine Tools and Haas products to United States Government facilities. This includes any and all service related contracts or maintenance agreements on Haas equipment.

9. Interested Sources To date no other sources have expressed an interest in writing.

Additionally, the synopsis in the Contracting Data Base (CDB), explained in paragraph 6 above, will be used to identify any other qualified vendors.

10. Other factors:

Previous History:

Previous Contracts:

Contract Number: W911KF-16-C-0010 (Preventative Maintenance and Emergency repair) Contractor Name: Phillips Corporation Inc., Federal Division Competitive Status: Other than full and open competition Award Date: 11 April 2016

Contract Number: W911KF-11-C-0012 (Preventative Maintenance and Emergency repair) Contractor Name: Phillips Corporation Inc., Federal Division Competitive Status: Other than full and open competition Award Date: 10 May 2011

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.

Typed Name: Gary Hollingsworth Date: 29 March 2021

Title: Mechanical Engineering Technician Signature: _________________________

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 knowledge and belief.

Typed Name: Jonathan J. Lovvorn Date: 29 March 2021

Title: Chief, Equipment Support Branch Signature: _________________________

13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable.

Basis for determination: Compared the effort IGCE to previous contract costs as well as to the cost analysis that surveyed costs of maintenance and repair performed on similar equipment maintenance and repair. Certified cost and pricing data will not be required due to the exception listed in FAR 15.403-1(b)(3).

Typed Name: T. Morey Gaddy Date: __12 July 2021___________

Title: __Contracting Officer_________Signature: _________________________

14. Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Typed Name: T. Morey Gaddy Date: ___12 July 2021___________

Title: __Contracting Officer_______Signature: _________________________

APPROVAL

Based on the forgoing justification, I hereby approve the procurement of a non-personal service agreement for Annual Maintenance and On-Call Emergency Repairs of Haas CNC Machine Tools contract on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(1),as implemented by (FAR) 6.302-1(a)(2)(iii)(A), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements” provided that the services and property herein described have otherwise been authorized for acquisition.

Typed Name: T. Morey Gaddy Date: ___12 July 2021________

Title: ___Contracting Officer_____Signature: _________________________