N3904021Q0039 Betts Lathe J A redacted.pdf

NCH 53.6-2

DEPARTMENT OF THE NAVY

PORTSMOUTH NAVAL SHIPYARD

PORTSMOUTH, NH 03804-5000

IN REPLY REFER TO

J&A Number: PL-2028 Code: 410/027

P.R.Number: N3904021RC10108

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command Portsmouth Naval Shipyard (PNS) Contracting Division (Code 410), Kittery, ME. The requiring activity is PNS Code 931 Inside Machining Division.

2. Description of the Action Being Approved

Award of a firm fixed price contract on a sole source basis for the upgrade and testing of one BETTS Lathe (Alpha EYW, SN E5220) including engineering and design work necessary to support those upgrades to Machine Tool Research, Inc. (MTR).

3. Description of Supplies/Services

The Contractor shall remove and replace the tailstock of the existing lathe (SN E5220) with a new tailstock. The new tailstock will increase the quill diameter from 7” to 12”, thus increasing center load capacity to 25 tons (50 ton work maximum). This upgrade will eliminate current restrictions, allowing PNS Code 986.1 Industrial Engineering, Process Improvement Branch on behalf of Code 931 (Inside Machining Division) to machine all shafts in our current production schedule. The Contractor shall perform all necessary engineering and design work, which will include a site visit to evaluate, measure, and compare the actual components to original drawings. The contractor will design and build a one piece, steel welded, tailstock quill housing. The contractor will also design and execute any modifications to ancillary items such as clamps, studs, and operator panel to accommodate the new tailstock.

Machine Tool Research, Inc. (MTR) owns and maintains the proprietary drawings and tooling required for this repair

J&A Number: PL-2 work. In correspondence with the Code 400 Contracting Office, dated November 19, 2020, MTR confirmed its OEM status, and provided supporting documents of its ownership.

(Enclosure 1.a).

The Independent Government Estimate (IGE) was prepared through market research discussions conducted by the requiring activity (Code 986.1) with the OEM (MTR). The total estimated value of this acquisition is $465,735.00 which will be paid through FY21 Operations and Maintenance funds. The estimate was derived from a market research quote received by Code 986.1. The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

4. Statutory Authority Permitting Other Than Full and Open

Competition

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1) or 41 U.S.C. 3304(a)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(2).

5. Rationale Justifying Use of Cited Statutory Authority

In accordance with FAR 6.302-1, only one source is capable of meeting the requirement. This authority permits limiting the number of sources solicited and to not use full and open competition for this requirement.

The drawings provided by the OEM are proprietary, and the use of those drawings by any third party has not been authorized. MTR is the OEM for this lathe. The basis is that MTR purchased the OEM rights to Betts in 1987. MTR provided documentation of ownership rights to the product lines of Farrell, Betts, Sellers, and Consolidated Machine Tool companies. As a result, MTR is the only company authorized to perform services on the equipment. (Enclosure

1. b and 1.c, provided SEPCOR). This ensures that the integrity and performance of the equipment is maintained, and critical precise specifications are met. There would be significant risk to the government in capacity and capability in shaft machining if any unauthorized contractors were to attempt refurbishment services on this mission critical equipment.

There is only one manufacturer/off-site repair facility with no dealers of this product, therefore only the manufacturer will be provided the opportunity to quote.

6. Description of Efforts Made to Solicit Offers from as Many

Offerors as Practicable

The Contract Specialist reached out directly to MTR for confirmation of OEM status. MTR confirmed OEM status and ownership of the Betts Lathe drawings on November 19, 2020 (Enclosure 1.a). As MTR is the OEM, and retains the rights to the drawings for this machine, no other sources are capable of performing the required repairs. The government does not have access to the drawings for this lathe or the new tailstock needed for this repair work. Without the drawings, a potential vendor could spend upwards to two years reverse engineering a design and performing the modification. This path would more than double the 40 weeks after receipt of award proposed by MTR.

A sources sought notice was posted on Beta.Sam.Gov in accordance with DFARS PGI 206.302-1 on March 10, 2021 to March 17, 2021, which received one response. This response was not from a vendor communicating repair capability but from a small business attempting to generate a sale of new equipment. There were no other responses.

7. Determination of Fair and Reasonable Costs

A determination of fair and reasonable price will be based on price analysis by the Contracting Officer of the contractor’s quotation and/or a comparison of previous pricing history, historical contract analysis, published price list of same or similar items, or any other reasonable basis, in accordance with FAR 15.404, prior to award.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5 and Paragraph 6, PNS Code 410 Contracting Division has no plans at this time to compete future contracts for the OEM services covered by this document. If another potential source emerges, PNS

Code 410 Contracting Division will assess whether competition for future requirements is feasible.

Contracting Point of Contact

Gisela Gauthier, Contract Specialist Email: gisela.gauthier@navy.mil Phone: 207-438-3874 mailto:gisela.gauthier@navy.mil

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 6.303-2(c))

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning data, including Acquisition Plan No. PL-2028, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

Signature Mark Lumino, Code 986.1 IE 207-994-0719 Date

REQUIREMENTS COGNIZANCE:

Signature Mark Lumino, Code 986.1 IE 207-994-0719 Date

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

Signature Mary Taylor, Code 100L 207-438-4920 Date

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(b)(12))

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

Signature Cody J. Grey, Contracting Officer, Code 410, 207-438-4845 Date

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as Competition Advocate for the Procuring Activity, 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)(1).

Signature Deana L. Manfredi, Supervisory Contracting Officer, Code 410 207-438-1630 Date

There is only one manufacturer/off-site repair facility with no dealers of this product, therefore only the manufacturer will be provided the opportunity to quote.