LSJ_Hoist-16APR2025_Redacted.pdf

Control No:

Version – February 2017 maintenance, repairs, and emergency services for the rack and pinion hoist lifts installed on the tower. The hoists are for Government research and development, testing and evaluation , supporting a host facilities and ongoing projects. The hoists enable researchers to

The PAL tower is the primary structure consisting of a stairwell/stairway to the top, , an enclosed

, and The hoist system tower(s) is attached . There are and . Each hoist system tower has

Memorandum for Record – Limiting Competition at or below the Simplified Acquisition Threshold

1. Contracting Activity: Army Contracting Command, New Jersey (CCNJ-JA)

2. Description of Action: Hoist System Service and Maintenance for Precision

Armaments Laboratory, Tower Hoists

Nature: Follow-on Requirement

Contract Vehicle: Purchase Order Number: PANNWJ-25-P-0000 003421

Pricing/Contract Type: Fixed Price

Funds:

Name of Proposed Contractor(s) and Address:

Mid-American Elevator Company, Inc.

175 Prairie Lake Rd., Unit A East Dundee, IL 60118-9126 USA

CAGE: 07RJ8 / Unique Entity ID: HCUYDKGK51N3

Brand Name Buy: No

3. Description of Services or Supplies:

This effort supports the U.S. Army Combat Capabilities Development Command, Armaments Center, Munitions Engineering & Technology Center (METC) Fuze and Precision Armaments Directorate (FPAD), Precision Armaments Laboratory (PAL) Tower, located in The scope of this effort includes preventive service and

The continuous operation of these hoist systems in all weather conditions is a capability for DEVCOM-AC. Proper maintenance and timely repairs are for uninterrupted support . This requirement is for monthly performance maintenance inspections and repair services, and emergency calls.

Period of Performance: August 2025 through August 2028

Total Estimated Cost:

Base Year: August 2025 through August 2026 Estimated Dollar Amount:

Option Period 1 (Year 2): August 2026 through August 2027

Option Period 2 (Year 3): August of 2027 through August 2028

DEVCOM is requesting a Firm Fixed Price (FFP) contract for this effort. The pricing structure is justified due to the extensive history of the same work, providing a reliable basis for predicting the level of effort required. Additionally, the emergency repair needs for the tower have been consistent over the past few years, allowing for accurate forecasting of potential future risks and associated costs. The stability and predictability of maintenance needs support the selection of a Firm Fixed Price contract type, as it is considered a fair distribution of risk between the contractor and the Government. This pricing structure ensures that the contractor is incentivized to deliver the work efficiently, while providing the Government with cost certainty.

4. Authority:

FAR 13.106-1(b)(1): For purchases not exceeding the simplified acquisition threshold (SAT), only one source reasonably available, urgency, exclusive licensing agreements, brand name, or industrial mobilization.

5. Reasons for Authority Cited:

The PAL Tower Laboratory, is a specialized facility that requires expert maintenance services for its hoist systems. The unique configuration of the tower and hoists is necessitating knowledge and skills that are not commonly found in the broader commercial market.

Mid-American Elevator Company, Inc., the Original Equipment Manufacturer (OEM), is the sole provider with the required expertise, knowledge, and specialized training to effectively service the hoists.

The components of the hoists are custom-designed and require specialized training and expertise to service. The controllers and within the software used to control the hoists are also highly specialized, requiring intimate knowledge and expertise to properly maintain. Although commercial contractors might be capable of servicing individual components similar to those in the tower hoist systems, the and require specialized expertise that only the OEM can provide proper maintenance.

As a result of the above, Mid-American Elevator Company, Inc. is the only reasonable source that can provide the required maintenance services for the PAL Tower Laboratory, The unique requirements of the facility and the specialized expertise required to service the hoists make it unlikely that other companies could properly maintain them.

6. Publicizing Contract Actions: For FAR Part 13 actions, the public display and synopsis requirements of FAR 5.101 and FAR 5.203 apply and will be followed.

7. Market Research: A Sources Sought Notice (SSN) was published on 30 October 2024 with a response date of 19 November 2024. Mid-American Elevator Company Inc., the current service provider, did not respond to the SSN, despite their ongoing performance on contracts for these services since 2021. However, during conversations that took place during meetings, representatives from Mid-American Elevator Company, Inc. expressed their intent to respond to the forthcoming solicitation. Their previous statements at the and their ongoing performance suggest that they are still interested in providing the required services.

8. Other Facts: Previous Contracts are listed below:

a. Previous Contract:

(1) Contract number W15QKN-18-C-0065 was awarded on 25 July 2018 to Mid- American, Elevator Co., Inc. for a total awarded amount of for “Repairing the Precision Armaments Laboratory (PAL), Hoists”

(2) Competitive Status: Sole Source

(3) Authority: FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

(4) Previous Justification: USA Hoist Co. (now known as Mid-American Elevator Company, Inc.) is the only firm that possesses the proprietary rights to the original PAL hoist tower drawings, as they were the subcontractor on the original contract with prime contractor M.E.S., Inc., which is no longer in business.

(5) Prior contract for this requirement using full and open competition: N/A

(6) Unusual patterns in procurement history: N/A

(7) Circumstances justifying previous procurement and significant changes: N/A

b. Previous Contract:

(1) Contract number W15QKN-22-C-0088 was awarded on 20 September 2022 to Mid-American, Elevator Co., Inc. for a total awarded amount of for “Hoist System Service and Maintenance”

(2) Competitive Status: Sole Source

(3) Authority: FAR 13.106-1(b)(1): For purchases not exceeding the simplified acquisition threshold (SAT), only one source reasonably available, urgency, exclusive licensing agreements, brand name, or industrial mobilization

(4) Previous Justification: The maintenance for the hoists requires unique capabilities that only the Original Equipment Manufacturer, Mid-American Elevator Company, Inc. can perform. The PAL Tower is unique

The hoists supporting with the tower, unlike normal commercial elevators that can be serviced by any responsible elevator company.

(5) Prior contract for this requirement using full and open competition: N/A

(6) Unusual patterns in procurement history: N/A

(7) Circumstances justifying previous procurement and significant changes: Mid- American Elevator Company, Inc. is the only capable source that can provide the required maintenance and repair as they have proprietary rights to the original PAL hoist tower drawings, and possess the specialized expertise required to service the hoists. No significant changes were noted

9. Technical/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:

Date:

Title:

*Signature *In signing this document, I conferred with, and obtained facts from various technical experts within the

Precision Armaments & Intelligent Sensor Division

10. Contracting Officer Certification/Approval:

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable based upon Price Analysis techniques

February 2017 within the meaning of FAR 15.404-1(b)(1), including comparison to the independent government estimate (IGE).

I certify that this justification is accurate and complete to the best of my knowledge and belief, and that completing this purchase as a sole source is in the best interest of the Government. Additionally, I approve this justification to limit competition subject to the availability of funds and provided that the services or supplies herein described have otherwise been authorized for acquisition.

PCO APPROVAL

Typed Name:

Date:

Title:

Signature: