Redacted Limiting-Competition-under-SAT_ACC Metal Spray PM.docx

Control No: DSC-SS25-2232

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

1. Contracting Activity: Army Contracting Command Redstone Arsenal Corpus Christi Army Depot (CCAD), Contracting Office (CCAM-DSC) 9035 Ocean Dr. Bldg. 10, Mail Stop 18 Corpus Christi, TX 78419-5260

2. Description of Action:

Nature: Follow-on Requirement Contract Vehicle: Purchase Request Number: AS44A0-5182-5084 Pricing/Contract Type: Fixed Price Funds: Army Working Capital Funds FY: 2025

Name of Proposed Contractor(s) and Address:

Oerlikon Metco (US), Inc.

1101 Prospect Ave.

Westbury, NY 11590-2724 (Cage Code: 01FK3, Large Business)

UEI: GHD9DLPS2SB9

Brand Name Buy: No

3. Description of Services or Supplies: Preventative Maintenance and Calibration services to support Corpus Christi Army Depots six (6) Metal Spray Booths for the following Equipment Listing:

Equipment Listing:

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: Justification for the purchase of preventative maintenance and calibration services for the six (6) Oerlikon Metco Metal Spray Booths is based on the necessity to supplement the current maintenance support at CCAD for maintaining and keeping this equipment fully operational and to insure any production down-time is minimized to the greatest extent possible.

HVOF and Plasma spray systems (Metal Spray Booths) from Oerlikon Metco are highly specialized and complex systems that require access to proprietary data for the purpose of calibrating the system’s operating controllers. Oerlikon Metco Inc. is the original equipment manufacturer (OEM) and as the OEM for the HVOF and Plasma systems, owns the proprietary software ladder logic data for the controllers. Oerlikon Metco is the only source for this data and is the only one capable of the precise calibration to exact tolerances required to control operating sequences and ensure the equipment is capable of producing highly accurate repeatable coatings. Oerlikon Metco’s proprietary calibration procedures are developed by the engineers who designed the equipment.

Not following prescribed procedures or precisely duplicating Oerlikon Metco’s methods will impact the validity of the calibration. Oerlikon Metco, Inc. is the only source that has the technical knowledge and proprietary engineering data to provide 100% of the required services.

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: Market research has been conducted in accordance with FAR Part 10 by Joseph Trevino, Industrial Specialist (May 2025) and Terry Clark, Contract Specialist (July 2025).

The following techniques were used:

Frank Medrano, Metal Spray Branch Chief (5/2025), researched for online solution possibilities but found that no other entities could provide service due to OEM's proprietary rights for this equipment.

Mr. Trevino performed an Internet search and reviewed SAM in May 2025.

On July 6, 2025, the Contract Specialist reviewed the previous contracts W912NW-22-P-0093, and W912NW-20-P-0010 along with all the modifications in PCF.

Mr. Trevino obtained a statement from the OEM confirming the proprietary rights requirement to be able to perform required maintenance and calibrations on these machines (5/25).

The sole source company is Oerlikon Metco (US) Inc.,1101 Prospect Ave., Westbury, NY 11590-2724 (Cage Code: 01FK3, Large Business).

8. Other Facts: Previous Contracts:

· Contractor Name: Oerlikon Metco (US) Inc.

· Cage Code: 01FK3

· Small Business Socioeconomic Categories of the Awardee: N/A

· PIID: W912NW-22-P-0093

· NAICS: 811310

· SIZE STANDARD: $11,000,000

· CONTRACT TYPE: FFP

· PERIOD OF PERFORMANCE: 25 Nov 2022

· END OF PERFORMANCE:24 Nov 2025

· TOTAL CONTRACT VALUE: $100,048.00

· SUBCONTRACTING HISTORY: NA

· ADDITIONAL DETAILS: NA

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.

Chief Infrastructure Purchasing Branch

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.

Contracting Officer Version – February 2017