E21 - Redacted JA.pdf

JUSTIFICATION AND APPROVAL

TO PROCURE USING OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity.

The Naval Sea Systems Command, Naval Surface Warfare Center, Panama City Division

(NSWC PCD).

2. Description of the Action Being Approved.

Award of a Firm Fixed Price contract on a sole source basis to Linder Industrial Machinery Company for the acquisition of Konecranes SMV4636-TC6 Reach Stacker in support of the U.S. Navy (USN). Linder Industrial Machinery Company is the exclusive authorized distributor for this equipment.

3. Description of Supplies / Services.

This procurement is for the award of a Firm-Fixed Priced Contract to acquire the following:

Item Part Number Quantity

Konecranes Reach Stacker TC6 SMV4636-TC6 Reach Stacker 1

The Government’s minimum needs have been verified by the certifying technical and requirements personnel. This memo does not authorize acquisition for other requirements. This acquisition will be conducted using simplified acquisition procedures with a total dollar value above micro-purchase level. All equipment will be delivered no later thirty (30) days after award of the contract.

4. Statutory Authority Permitting Other than Full and Open Competition.

10 U.S.C. 3204(a)(1) FAR 6.103-1(b) – Only one responsible source and no other supplies or services will satisfy agency requirements

5. Rationale Justifying Use of Cited Statutory Authority.

Konecranes is the only brand of reach stacker that will meet the Government’s needs for the following reasons.

The Naval Surface Warfare Center Panama City Division (NSWC PCD) is working to meet this requirement for containerized systems and, as a result, multiple programs across NSWC PCD have a requirement for rapid loading and unloading of containers, as well as the ability to quickly move and stack containers at NSWC PCD. Currently, NSWC PCD has one Konecranes TC5 reach stacker. The TC5 reach stacker is used across all projects on base. With the emerging shift towards containerized systems, an additional reach stacker is required to meet the rapidly increasing demand for this system while maintaining safety requirements. While using the TC5 system, it was discovered that many containers in transit are only partially full or completely empty. The TC5 reach stacker can stack up to 5 containers, but with the shift towards containerized systems, the need to stack heavier containers higher has emerged. Instead of using an oversized, fuel inefficient 45-ton machine to stack empty or light boxes 6-high, terminals can use the specialized 12-ton TC6 variant. This significantly reduces operational costs and optimizes fleet utilization. The "TC6" designation indicates a reach stacker capable of stacking containers 6-high. What makes Konecranes TC6 reach stackers unique is the blend of extended vertical stacking height with specialized capacity configurations, eco-efficient drivelines, and compact chassis designs.

While alternate brands of 6-high reach stackers are heavily built for fully laden containers, Konecranes introduced the SMV 128 TC6 specifically to target semi-laden and empty containers up to 12 tons. The Konecranes TC6 manages to engineer its 6-high capability without massively expanding the machine's physical footprint. For instance, the SMV 128 TC6 shares the exact same 5,000mm compact wheelbase as its 5-high (TC5) predecessor. This delivers elite stability at maximum heights while maintaining tight turning radiuses for narrow yard aisles.

Thus, the TC6 greatly increases the safety of civilian and military personnel working in the area.

The Konecranes TC6 specified in this procurement provides this ability as it can stack standard containers 6 high in a rapid and safe manner. Through the purchase of an additional Reach Stacker (TC6), the need for renting expensive cranes is eliminated and the time to wait for lifting equipment is significantly reduced. If the TC6 reach stacker is not acquired, it would cost the Government an additional $275,000.00 annually in the costly renting of cranes, lift equipment, and safety personnel. These costs were derived at the summation of crane operating, safety, and administrative personnel. It is not expected that these costs would be recouped through qualifying another source.

Multiple scientists, technicians, and engineers across the NSWC PCD campus have taken technical and safety training on the Konecranes Reach Stacker, TC5.

Purchasing alternate equipment to the TC6 would result in an additional $ in training costs and delay the Government 3-4 weeks of training time since the already provided TC5 training is sufficient for purposes of technical and safety training on the TC6.

The Konecranes Reach Stacker, TC5 was recently procured by NSWC PCD after soliciting competitive solutions. Only the Konecranes Reach Stacker, TC5 satisfied the Government’s requirement. This requirement for the TC6 variant provides additional capability needed by the Navy and the Navy is not aware of any other firm that can meet the enhanced requirements within the required 30-day delivery timeline.

Finally, by purchasing the Konecranes brand reach stacker, the Government can maintain consistency in maintenance and upkeep of the equipment as there is a single warranty source for the Government owned equipment. This will reduce complexity and labor costs in dealing with both maintenance and problems as they arise. Furthermore, any existing peripherals will be interchangeable, thus saving the Government in annual maintenance costs.

In summary, it is in the Governments’ best interest to purchase the Konecranes brand Reach Stacker.

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

This commercial procurement is valued below the $9 million threshold; therefore, it is authorized to utilize Simplified Acquisition Procedures (SAP) for certain commercial products and services in accordance with FAR Subpart 12.201-1. Linder Industrial Machinery Company, 1601 South Frontage Road, Plant City, FL 33563 (CAGE Code 1MJG4) is the only authorized distributor of Konecranes for the state of Florida.

7. Determination of Fair and Reasonable Costs.

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, Konecranes TC6 reach stacker is the only brand of stacker that will meet the Government’s needs. Linder Industrial Machinery Company is the sole regional authorized distributor for Konecranes. If an alternate source emerges NSWC PCD will assess whether competition for future requirements is feasible.