Redacted JA Atlas Copco.pdf

FOR OFFICIAL USE ONLY

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

I. Contracting Activity (J&A Coordination)

Contracting Activity: AFSC/PZIMA PR Number:

Program/ Project: Atlas Copco Compressors Preventative Maintenance service contract Estimated Contract/Program Cost:

II. Nature and/or description of the action being processed.

Justification & Approval (J&A) Amendment Note:

This J&A was originally signed on 12 March 2019, for a total acquisition cost of This requirement was solicited on 25 July 2019, under solicitation number FA8125-Q-A081. Atlas Copco Comptec (Atlas) submitted a quote of for five (5) years of Preventive Maintenance (PM) service on three (3) high pressure, high volume Atlas centrifugal air compressors supporting Tinker Air Force Base's engine test cells and shop. The original scope of work did not include the replacement of parts, which is required to maintain the machinery's optimal functionality. This J&A amendment is to accommodate the expanded scope of work and increase in the estimated contract cost, as previously mentioned.

76 CMXG/ENA requires a follow-on service contract for Atlas certified factory technicians to perform PM on three (3) high pressure, high volume Atlas centrifugal air compressors supporting Tinker Air Force Base's engine test cells and shop. This effort will be solicited as a Firm Fixed Price (FFP) commercial type contract. The period of performance for this requirement will be five

(5) years: One-year basic and four (4) one-year options. This is an individual J&A and not a bridge action. A sole source acquisition is expected with the only capable source, Atlas Copco Comptec LLC, Cage Code OL2D4.

Previous Contract: FA8125-15-C-0011 Date of Award: 11 February 2015 Period of Performance: 3 years Type of Award: Sole Source Expiration: 11 February 2018

III. Description of supplies/services required to meet agency needs.

The contractor will furnish all labor, materials, transportation and incidentals to facilitate PM of three (3) Atlas centrifugal process air compressors in accordance with (IAW) the PWS. Atlas is the Original Equipment Manufacturer (OEM) and possesses all proprietary technical data and expertise necessary to service the Government's machines. Atlas machines require periodic PM by factory certified technicians to ensure optimal performance and prevent damage due to every day usage. The estimated period of performance and value (including Options) for this service contract are depicted in the summary table below. Approval is being sought to procure a multiple year service contract from Atlas to repair and maintain Government machinery.

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

CONTRACT SUMMARY

PR Line Item 0001

Noun: Preventive Maintenance Item Description & Function: PM of three (3) Atlas centrifugal process air compressors IAW the PWS Type Appropriation:

Total estimated dollars for PR line item 0001:

CLIN Qty Unit Price Estimated Dollars Period of Performance 0001 1 Lot 15 August 2020 – 14 August 2021

PR Line Item 1001

Item Description & Function: PM of three (3) Atlas centrifugal process air compressors IAW the PWS

Total estimated dollars for PR line item 1001:

1001 1 Lot 15 August 2021 – 14 August 2022

PR Line Item 2001

Item Description & Function: PM of three (3) Atlas centrifugal process air compressors IAW the PWS

Total estimated dollars for PR line item 2001:

2001 1 Lot 15 August 2022 – 14 August 2023

YEAR CLIN QUANTITY UNIT PRICE

ESTIMATED

DOLLARS

ESTIMATED PERIOD OF PERFORMANCE

Basic Year 0001 1 Lot 15 August 2020 – 14 August 2021

Option Year - 1 1001 1 Lot 15 August 2021 – 14 August 2022

Option Year - 2 2001 1 Lot 15 August 2022 – 14 August 2023

Option Year - 3 3001 1 Lot 15 August 2023 – 14 August 2024

Option Year – 4 4001 1 Lot 15 August 2024 – 14 August 2025

TOTAL

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

PR Line Item 3001

Item Description & Function: PM of three (3) Atlas centrifugal process air compressors IAW the PWS

Total estimated dollars for PR line item 3001:

3001 1 Lot 15 August 2023 – 14 August 2024

PR Line Item 4001

Item Description & Function: PM of three (3) Atlas centrifugal process air compressors IAW the PWS Type Appropriation: 97 X 4930 Total estimated dollars for PR line item 4001:

4001 1 Lot 15 August 2024 – 14 August 2025

IV. Statutory authority permitting other than full and open competition.

AFFARS 5313.501 - 10 U.S.C. 2302b, Implementation of Simplified Acquisition Procedures (41 U.S.C. 1901)

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

Atlas is a leading manufacturer of air compressors and other commercial products serving various industries including the defense sector. Atlas Centrifugal turbocompressors, like those installed at Tinker AFB, are used to satisfy the need for large volumes of compressed air and are used particularly in the Fertilizer, Power Generation, Industrial Gases, Liquefied Natural Gas, Chemical and Defense industries. Atlas air compressors are technologically superior to industry competitors and proven to be extremely economical and efficient to use and maintain. Atlas's technical expertise and proprietary data however prevent any other company from being able to safely maintain and repair Atlas machinery.

Mr. Roger Farris, OC-ALC/OBCA, contacted Mr. Robert "Bobby" Schadenfroh at Atlas in December 2017 by phone to inquire if Atlas would consider selling its technical data to the Government and was notified that Atlas's proprietary technical data was not for sale. Atlas further notified the Government that no other vendors possessed the certification, technical expertise and licenses to work on Atlas machinery. Work done by any company other than Atlas will void the warranty and put Government machinery at risk of being damaged. Any outside contractors will need proper certifications, licenses and knowledge of service maintenance requirements to perform PM on high pressure, high volume specialized Atlas centrifugal air compressors.

Atlas air compressors are critical to the mission and any damage to this machinery can cause significant work impact. Upon inquiring, Atlas notified that they will not sell their proprietary data and they have not certified any other company to work on their compressors. Use of an uncertified source for repairs will ruin the warranty on the compressor and the Government is at risk of damaging three compressors with combined value of $3.2 million dollars.

Since Atlas compressors are used by general public and other non-governmental entities, Atlas does periodic PM services for its machines industry wide. Atlas machinery installed at Tinker AFB is therefore considered commercial in nature and use of above authority is deemed appropriate.

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

The Government made several attempts to identify vendors capable of meeting this requirement. The Government utilized the Small Business Administration's (SBA) website and World Wide Web to search for vendors advertising its ability to work on Atlas Copco compressors. The search yielded the following two companies:

1) Atlas Copco Comptec LLC (Original Equipment Manufacturer)

46 School Road, Voorheesville, NY 12186-9608 | Cage Code: 0LD24

2) A.C.E. Compressor Parts & Service, Inc. (ACE)

245 KenTex Drive, Mayfield, KY-42066 | CAGE Code 6YND9

Government contacted ACE and they stated that they could perform the PM Service on Atlas machinery but they did not possess proprietary data or certification from Atlas to perform this service. Atlas was contacted and they stated that ACE did not possess the technical expertise to work on specialized high pressure & high volume centrifugal compressors like those installed at Tinker AFB. All warranty on the machines will be void by using an uncertified source. Other than the OEM no other company is currently qualified to do this service.

The Government will synopsize this requirement IAW FAR 5.201. The synopsis for this requirement will be posted to beta.sam.gov prior to the publication of the solicitation.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer will utilize price analysis techniques IAW FAR 13.106-3(a)(2), to ensure the price is fair and reasonable. Specifically, the Contracting Officer will compare the proposed price to the Independent Government Estimate as well as historical prices. The Contracting Officer will ensure that the items described herein are negotiated at a fair and reasonable price to the Government. The Contractor may be required to provide other than certified cost and pricing data.

The Defense Contract Management Agency (DCMA) may assist with analysis and inputs throughout the life of the contract.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

The Government conducted market research between 15 September 2017 and 12 December 2017. Market research was performed by searching the World Wide Web and Small Business Administration website for vendors capable of working on Atlas machinery. In addition, the Government contacted Atlas to inquire about other vendors capable of working on its equipment.

The market research yielded two companies: (1) Atlas Copco Comptec LLC, and (2) A.C.E. Compressor Parts & Service, Inc.

After speaking with Atlas (OEM), it was determined by the Government that only Atlas is currently capable of providing PM services required on Government machinery. ACE did not possess the technical expertise to work on specialized high pressure & high volume centrifugal compressors like those installed at Tinker AFB and the Government is at risk of damaging three compressors with combined value of $3.2 million dollars.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

There are no additional facts supporting the use of Other Than Full and Open competition.

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

X. List of any sources that expressed, in writing, an interest in the acquisition

1) Atlas Copco Comptec LLC 46 School Rd, Voorheesville, NY 12186-9608

2) A.C.E. Compressor Parts & Service, Inc. 245 KenTex Dr, Mayfield, KY 42066

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

The Government will continue its request for purchase of data rights and continue market research to identify new sources entering the marketplace for future contracts.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.