REDACTED Limiting-Competition.docx

Control No: W45N7V109900MA

Memorandum for Record – Limiting Competition at or below the Simplified Acquisition Threshold

1. Contracting Activity: Army Contracting Command – Redstone Arsenal – Corpus Christi Army Depot, Contracting Office (CCAM-ALC).

2. Description of Action:

Nature: Follow-on Requirement

Order #_______ against a single award IDC Contract Modification # _______ to existing PO/TO/DO/Call Order #________________

Pricing/Contract Type: Fixed Price Time & Materials/Labor Hours Cost Reimbursable Hybrid

Funds: Operations & Maintenance, Army (OMA) Other Funds: Army Working Capital Funds FY: 2021

Name of Proposed Contractor(s) and Address:

Phillips Corporation 7390 Coca Cola Drive, Ste 200 Hanover, MD 21076

Brand Name Buy: Yes No

3. Description of Services or Supplies: The 5KW and 6KW laser cutting machines are utilized by the Jigs and Fixture Shop to cut sheet metal for the manufacturer of specialized helicopter parts. The period of performance shall be one (1) base year and two (2) option years. The estimated value of proposed action for the base year is $XXXXX and a total of $XXXXXX for the base plus two option years.

Base Option Year

Total

Option Year 1

Total

Option Year 2

Total

Period of Performance is 36 months Total: $

4. Authority: FAR 13.106-1(b)(1): For purchases not exceeding the simplified acquisition threshold (SAT), only one source reasonably available, urgency, exclusive licensing agreements, brand name, or industrial mobilization.

5. Reasons for Authority Cited: Phillips Corporation Inc., Federal Division, is the sole and exclusive distributor of LVD Strippit sheet metal fabricating machinery, software and related factory parts and service, including service and maintenance contracts, to all United States Federal Government facilities. Phillips Corporation Federal Division, LVD Strippit certified Technicians can provide preventative and corrective maintenance for the Axel 5KW and Axel 6KW laser cutting machines.

The LVT Strippit 5KW Laser Cutting Machine process sheet metal that is further processed by the Cowling, Components, Sheet Metal, and the Crash Damage Shops, are used for TDY requirements outside of the depot, and support of airframe modification, repair, and overhaul programs. If the Contractor were to quit, CCAD employees would require additional technical training to maintain the LVT Strippit 5KW Laser Cutting Machine

6. Publicizing Contract Actions: For FAR Part 13 actions, the public display and synopsis requirements of FAR 5.101 and FAR 5.203, apply and will be followed.

7. Market Research: In accordance with FAR Part 10, market research has been conducted for this action by Julius Wilson – Requirer and Terry Clark – Contract Specialist.

The following techniques were used:

Personal knowledge of procuring services of this type; Mr. Wilson has been the Contracting Officer Representative (COR) for this requirement for several years. Prior to renewal of this requirement, market research is conducted to search the marketplace for other vendors. To date it has been determined this is sole source. The vendor is the original equipment manufacturer (OEM) and was the same company that installed the equipment at the depot that holds proprietary information and software.

Contacted knowledgeable individuals in Government and Industry regarding procuring services of this type: Mr. Wilson spoke to Jeremy Garcia, Chief Jigs and Fixtures Shop, CCAD (2/2021). Mr. Wilson discovered that the laser cutting machines is used for cutting metal for the manufacture of specialized helicopter parts. Further discussion revealed that Phillips Corporation is the only servicer of equipment (OEM).

Review of Government and/or commercial databases for relevant information: Mr. Wilson researched WAWF (2/2021) for prior service invoices and previous service contract (W912NW-20-P-0026) for cost and work performed.

On 02 July 2021, the Contract Specialist performed market research on the search engine Google to see if any other companies can perform the service. The sites listed suggest they may be able to, but it is unclear if they can or not and Phillips Corporation is the OEM. The link is as follows: https://www.google.com/search?q=contractors+to+perform+annual+preventative+maintenance+for+the+5KW+Laser+Cutting+Machine%2C+and%2C+the+6KW+Laser+Cutting+Machine.&ei=5xnfYJupBK-3qtsPws6SWA&oq=contractors+to+perform+annual+preventative+maintenance+for+the+5KW+Laser+Cutting+Machine%2C+and%2C+the+6KW+Laser+Cutting+Machine.&gs_lcp=Cgdnd3Mtd2l6EAwyBwgAEEcQsAMyBwgAEEcQsAMyBwgAEEcQsAMyBwgAEEcQsAMyBwgAEEcQsAMyBwgAEEcQsAMyBwgAEEcQsAMyBwgAEEcQsANKBAhBGABQxogBWIvIAWCe3AFoAHADeACAAQCIAQCSAQCYARqgAQGqAQdnd3Mtd2l6yAEIwAEB&sclient=gwswiz&ved=0ahUKEwjbuPiHxMTxAhWvm2oFHUKnBAsQ4dUDCA0#NWspf=1625233924637

8. Other Facts: Previous Acquisition History: W912NW-18-P-0005, W912NW-19-P-0010 and W912NW-20-P-0026.

9. Technical/Requirements Certification: I certify that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Typed Name: Scott Bryant

Title: Chief, Facility Engineering Management Division

Signature:

10. Contracting Officer Certification/Approval:

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable based upon price analysis.

I certify that this justification is accurate and complete to the best of my knowledge and belief, and that completing this purchase as a sole source is in the best interest of the Government. Additionally, I approve this justification to limit competition subject to the availability of funds and provided that the services or supplies herein described have otherwise been authorized for acquisition.

Typed Name: Christopher W. Chapple

Title: Contracting Officer

Signature:

Version – February 2017 image5.png image2.png image6.png image7.emf