PR_1300719434_SSJ_(2).pdf

21 May 2018

MEMORANDUM

Subj: SOLE SOURCE MEMORANDUM TO ACQUIRE HASS CINC MACHINE

REPAIRS FROM PHILLIPS CORPORATION (ERP# 1300719434)

1. Identification of the agency and the contracting activity, and specific identification of the document as a “Limited Source Justification.”

This is a sole source justification. Contracting activity is the Naval Sea Systems Command, Naval Surface Warfare Center, Panama City Division (NSWC PCD), 110 Vernon Avenue, Panama City, FL 32407-7001 (Contracts Division Code 02).

2. Nature and/or description of the action being approved.

This action will award a firm fixed price purchase order , on a sole source basis, to acquire repair services for four (4) HASS CNC machining centers from to Philips Corporation Federal Division, 7390 Coca Cola Drive, Hanover, MD 21076. The current CNC control boards and pendants have failed rendering the machines inoperable.

3. A description of the supplies or services required to meet the agency’s needs (including the estimated value).

The following repair services are required:

Repair HASS Vertical Work Center Model VF-3, Repair HASS CNC Lathe Model ST-10, Repair HASS Tool Room Lathe Model TL-1, Repair

HASS Tool Room Mill Model TL-2, This acquisition will be conducted using simplified acquisition procedures with a total dollar value above micro-purchase levels, but not exceeding the simplified acquisition threshold of $48,000. The Government’s minimum needs have been verified by the certifying technical and requirements personnel. This memo does not authorize acquisition for other requirements. The contract action will be funded with 2018 Operation and Maintenance Navy (OMN) Funds.

4. Identification of the justification rationale and, if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service 13.106-1

FAR 6.302-1 Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements,10 U.S.C. 2304(c)(1). This procurement is sole source for the following reasons. The HASS CNC machine tools are for use in fabrication of critical parts used in hyperbaric saturation systems and ancillary components used in support of these systems. NEDU currently uses only HASS U.S. manufactured CNC machines that are available and serviced through the parent company, Phillips Corporation Federal Division. Replacement components, circuit boards and other proprietary repair parts and technical personnel to conduct repairs can only be obtained from Phillips Corporation.

5. A determination by the ordering activity contracting officer that the order represents the best value consistent with FAR 13.106-1(b).

The Contracting Officer has determined that the order represents the best value and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the Government’s needs.

6. A description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted.

Extensive market research was conducted. No other venders were found to provide the proprietary parts and critical technical skills that Phillips Corporation can provide.

7. Any other facts supporting the justification.

Repairs are needed to utilize the approximately $750,000.00 machine tool investment and to fabricate critical diving and life support items.

8. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made.

As stated in paragraph 4 above, Phillips Corporation is the only company that can perform repairs on HASS brand CNC machinery.

TECHNICAL AND REQUIREMENTS REQUESTING OFFICIAL

I certify that the facts and representations under my cognizance, which are included in this justification, are complete and accurate to the best of my knowledge and belief.

CONTRACTING OFFICER REVIEW AND APPROVAL

I, as contracting officer for the contracting activity, have reviewed this justification and certify that the justification is accurate and complete to the best of my knowledge and belief.