MFR_Limiting_Competition_under_SAT_Feb26 v1_Redacted.pdf

CUI//SP-PROCURE//FEDCON

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

1. Requiring Activity: G2 Security Division

2. Contracting Activity: MICC Fort Eustis Det. Rucker, AL 36362

3. Description of Action: G2 Security Division Preventative Maintenance Contract for Destruction Devices at Fort Rucker, Alabama for the United States Aviation Center of Excellence (AVCOE).

Nature of Requirement: New Follow-on

Contract Vehicle: Purchase Order Number

Blanket Purchase Agreement (BPA) Order/BPA# against FSS Contract #______________________ Order against Multiple Award IDIQ Contract Order against a single award IDC Contract Modification to existing PO/TO/DO/Call Order

Pricing/Contract Type: Fixed Price Time & Materials/Labor Hours Cost Reimbursable Hybrid

Funds: Operations & Maintenance, Army (OMA) Other Funds: __________

FY: __26______

Name of Proposed Contractor(s) and Address:

Security Engineered Machinery, Inc.

5 Walkup DR Westborough, Massachusetts 01581-1018, United States

Brand Name Buy: Yes No

4. Description of Services or Supplies: Preventative Maintenance on the Disintegrator and Briquettor System will require the Contractor to perform preventative maintenance approximately three times per year. The Contractor will notify the Security Division of any potential problems with the destruction equipment which may include replacement belts, bolts, hydraulic fluids, filter tubes, blades, etc. and provide a cost estimate for the parts and labor. During maintenance, the Contractor will replace the disintegrator blades with sharp blades and once the old blades have been removed, they will have them sharpened and ready for the next maintenance visit. Specific tasks to be performed are listed in the Work Requirements section of the Statement of Work

(SOW).

Period of Performance: 1 Apr 2026 to 31 Mar 2033 Total Value: $ 251,238.47

Base Period: 1 Apr 2026 to 31 Mar 2027 Value: $ 29,397.36 Option Period 1: 1 Apr 2027 to 31 Mar 2028 Value: $ 31,309.96 Option Period 2: 1 Apr 2028 to 31 Mar 2029 Value: $ 33,349.17 Option Period 3: 1 Apr 2029 to 31 Mar 2030 Value: $ 35,523.53 Option Period 4: 1 Apr 2030 to 31 Mar 2031 Value: $ 37,842.05 Option Period 5: 1 Apr 2031 to 31 Mar 2032 Value: $ 40,491.02 Option Period 6: 1 Apr 2032 to 31 Mar 2033 Value: $ 43,325.38 FAR Clause 52.217-8 option: 1 Apr 2033 to 30 Sept 2033 Value: $ 21,662.69

Total: $ 272,901.16

5. Authority: Select the appropriate authority below:

FAR 12.102(a) For acquisitions valued at or below the simplified acquisition threshold

Or, FAR 8.405-6(a)(1)(i)(A) Urgency FAR 8.405-6(a)(1)(i)(B) Only One Source is Capable FAR 8.405-6(a)(1)(i)(C) Logical Follow-on FAR 8.405-6(b)(1) Brand Name

Or, FAR 16.507-6(b)(1) Unusual and urgent need FAR 16.507-6(b)(2) Only One Awardee is Capable FAR 16.507-6(b)(3) Logical Follow-on FAR 16.507-6(b)(4) Minimum Guarantee FAR 16.507-6(b)(5) – Statute Authorizes or Requires Purchase from Specified Source FAR 16.507-6(b)(6) – Satisfies Exception under FAR 6.103 FAR 16.507-7(b) Items peculiar to one manufacturer

6. Reasons for Authority Cited:

a. The acquisition is required to use a specific contractor because Security Engineered Machinery Company, Inc is the proprietary company for security equipment.

The equipment is proprietary in design requiring a thorough vetting and training process to perform certified maintenance, warranty repairs, and precise calibration. Security Engineered Machinery Company, Inc Briquettors, Disintegrators, and Degaussers are not available through other manufacturers. Only OEM (original equipment manufacturer) parts are used in support of repairs to ensure reliability, proper function, and maintain OEM warranties. These parts are only supplied through Security Engineered Machinery Company, Inc.

Due to this the equipment is only allowed to have work done on it by Security Engineered Machinery Company, Inc. or their subcontractors; therefore, the service of the procurement and maintenance of the equipment must be completed by Security Engineered Machinery Company, Inc. If this is not approved, there would be a significant risk in allowing any 3rd party to service SEM equipment without certification.

Any after-market parts would nullify warranty on materials and workmanship and further present inoperability. The recommended type of service and maintenance required on SEM equipment is not something that a 3rd party could properly complete without certified training by OEM.

b. G2 Security Division Preventative Maintenance Contract for Destruction Devices at Fort Rucker value is estimated at $272,901.16 which is below the current FAR 2.1010; 41 U.S.C 1903 SAT threshold of $350,000. Due to the above cited reasons, the authority FAR 12.102(a) For acquisitions valued at or below the simplified acquisition threshold was used.

7. Publicizing Contract Actions: For FAR Part 12 actions, the public display and synopsis requirements of FAR 5.101(a) and FAR 5.101(d) do not apply due to the $ threshold, apply and will be followed, or do not apply due to an exception at FAR 5.101(b) ______________________.

Requirement to post justification in accordance with, FAR 6.301. FAR 8.405-6(b)(3), or FAR 16.507-6(f)(1) unless:

Action is NOT a brand name restriction and is under $350K, no posting required.

Action is a brand name restriction, under $20K, no posting required.

Action is a brand name restriction, over $20K. It will be redacted and posted with the solicitation.

Action is a brand name restriction over $20K but will not be posted due to the following exception:

FAR 6.301(e) FAR 8.405-6(b)(3)(ii)(A) FAR 8.405-6(b)(3)(ii)(B) FAR 8.405-6(b)(3)(ii)(C) FAR 16.507-6(f)(4)

8. Market Research: The requestor, as well as the contracting office, conducted Market Research; however, there were no other businesses capable of satisfying this requirement due to this acquisition being considered proprietary work of Security Engineered Machinery, Inc. Additionally in effort to obtain competition a Sources Sought Notice was posted to GSA MAS on 22 January 2026 and it closed on 2 February 2026.

No responses were received. A proprietary statement from the current contractor, Security Engineered Machinery Company, Inc., was received on 5 February 2026. A Notice of Intent to Sole Source was posted on SAM.gov on 18 February 2026. As a result of the posting no responses were obtained.

9. Other Facts:

a. Procurement history: This is a recurring Firm Fixed Price contract. Previous contracts were Firm Fixed Price contracts using FAR 13.5 ordering procedures on GSA e-Buy and acquired through the use of a Sole Source Best Value acquisition strategy. The destruction equipment was originally purchased in 2011. Since then, there has been only one vendor, Security Engineered Machinery Company, Inc, who has performed the maintenance on the destruction equipment. There have been no significant changes.

The SOW was revised from prior iterations to accommodate a 12-month base plus six 12-month option years.

b. Other facts.

The Contract Specialist received a proprietary statement from Security Engineered Machinery Company, Inc. on 5 February 2026. Additionally, this requirement is not within the scope of the GSA Area-Wide Contract No. GS-35F-005AA, held by Security Engineered Machinery Company, Inc. due to the expiration of the contract on 10 October 2027.

10. 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.

11. 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.

- GSA labor categories are used for each job description called out in the SOW and these are also used for the Independent Government Cost Estimate. An average rate across multiple GSA contracts is utilized to reach the IGE numbers. The current contract support is also used as a basis for increasing or decreasing the labor force and labor categories depending on the surveillance performed by the COR.

- At this time, there is no foreseen expectations that the prices will lower in the future workforce due to the price of labor for the talent and knowledge required to support all of the items in the SOW.

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.