Sole Source Justification-redacted TM-1P Mill.pdf

NSWCCD Sole Source/Brand Name Justification Under SAT Rev 3 Template Page 1 of 3 Effective February 2023

MEMORANDUM FOR FILE

FROM: Angie Han

CODE: 618

TO: Code 02

SUBJECT: Sole Source/Brand Name Justification / Limited Source Justification for Use of Other than Full &

Open Competition for an Acquisition under the Simplified Acquisition Threshold (SAT)

I. BACKGROUND

1. FAR 13.106-1(b)(1)(i) states for purchases not exceeding the simplified acquisition threshold, Contracting Officers may solicit from one source if the Contracting Officer determines that the circumstances of the contract action deem only one source reasonably available.

2. FAR 8.405-6(b)(1) states Brand name specifications shall not be used unless the particular brand name, product, or feature is essential to the Government’s requirements, and market research indicates other companies’ similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet, the agency’s needs.

3. As required by FAR 13.106-3(b)(3)(i), this memorandum explains the absence of competition for this acquisition, as only one source will be solicited for this requirement (or for a portion of the requirement) and the requirement is not expected to exceed the simplified acquisition threshold.

4. This memorandum is derived from Enclosure 3, Department of Navy Simplified Acquisition Procedures

Guide (April 2018) and is only applicable to acquisitions under the SAT.

II. DESCRIPTION OF ITEM OR SERVICE

The NSWCCD’s Additive Manufacturing (AM) Project Office, Code 618 requires a new contract to purchase

Phillips Corporation provided Haas manufactured TM-1P 3-axis mill with high speed machining, 64GB expanded memory, and 8 M-codes. The required delivery date is 30 September 2024.

MANUFACTURER: Haas Automation, Inc

ADDRESS: 2800 Sturgis Rd, Oxnard, CA 93030

PHONE: 805-988-6980

DISTRIBUTOR: Phillips Corporation

ADDRESS: 7390 Coca Cola Drive, Suite 200, Hanover, MD 21076

PHONE: 410-564-2900

ESTIMATED TOTAL PRICE: $52,591.65

III. BASIS FOR DETERMINATION FOR USE OF OTHER THAN FULL & OPEN COMPETITION

NSWCCD Sole Source/Brand Name Justification Under SAT Rev 3 Template Page 2 of 3

☐ A. BRAND NAME:

Item required must be a brand name product, or feature of a product, particular to one manufacturer.

☐ 1. Restrictive Rights: The source has established proprietary rights, limited rights in data, patent rights, copyrights, or secret processes in the item or service required.

☐ 2. Exclusive Licensing Agreements: The item or service is only available from the Original Equipment

Manufacturer (OEM).

☐ 3. Other Reasons:

☒ B. SOLE SOURCE (select all that apply)

☐ 1. Restrictive Rights: The source has established proprietary rights, limited rights in data, patent rights, ☒ 2. Exclusive Licensing Agreements: The item or service is only available from the Original Equipment

Manufacturer (OEM), or there is only one authorized distributor or technical representative for the OEM.

Phillips Federal is the only authorized distributor for the OEM, Haas. See attached Letter, Haas, Phillips Sole

Distributor for Haas, 10 Jan 2023.

☒ 3. Other Reasons:

Reference Material Change Recommendation, signed December 11, 2023, the USMC will need to modify the

Haas manufactured TM-1 mills of the legacy SEMS facilities for use in its replacement Advanced Integrated

Mobile Machine Shop (AIMMS) facilities. Upgrade involves purchasing and integrating wire arc additive manufacturing (WAAM) hardware and software into the TM-1 mill to create a hybrid WAAM manufacturing system capable of both subtractive and additive manufacturing.

Code 618, as the subject matter expert for additive manufacturing, requires a hybrid WAAM system at the

NSWCCD ahead of the AIMMS fielding for research, development, test, and evaluation (RDT&E) purposes.

Code 618 needs to limit this mill purchase to the Haas manufactured brand and model of mill in order to perform

RDT&E on a similar system to the one that will be installed in AIMMS. Code 618 is purchasing the TM-1P model, which is the same as the TM-1 with slight upgrades, to make the RDTE efforts easier.

If the same brand/model of product cannot be purchased, then a replacement mill would need to be found for the

AIMMS program. Each mill costs about $50,000, and the AIMMS program has an authorized acquisition objective of 24 facilities. This would result in a $1.2M cost to procure alternative mills, but there would be additional labor costs to identify, test, and evaluate a new mill.

NSWCCD Sole Source/Brand Name Justification Under SAT Rev 3 Template Page 3 of 3

☐ C. LIMITED SOURCE (FAR 8.405-6):

Item required must be a brand name product, or feature of a product, particular to one manufacturer.

☐ 1. Restrictive Rights: The source has established proprietary rights, limited rights in data, patent rights, ☐ 2. Exclusive Licensing Agreements: The item or service is only available from the Original Equipment

Manufacturer (OEM).

☐ 3. Other Reasons:

IV. CERTIFICATIONS & APPROVALS

A. Technical/Requirements Certification: I certify that the facts and representation under my cognizance, which are included in this justification, are complete and accurate to the best of my knowledge and belief.

Angie Han / Engineer / 301-318-4312 7/2/2024

Customer/Requestor Signature

Name / Title / Phone Date

Scott Ziv / Acting Branch Head / 301-

2044573 7/2/2024

First Line Supervisor Signature Name / Title / Phone Date

B. Certification/Approval per FAR 13.501: Upon the basis of the above justification, I hereby approve the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c).

Contracting Officer Signature Name / Title / Phone Date