Redacted Simplified Acquisition Sole Source Justification (FAR 13)_Redacted.pdf

Control No: JA-20-Adel-615 Contractor: MD Machinery, Inc.

Supply/Service: Hwacheon Machining and Turning Centers

FAR PART 13 SIMPLIFIED ACQUISITION JUSTIFICATION AND APPROVAL FOR

OTHER THAN

FULL AND OPEN COMPETITION

1. Contracting Activity: Army Contracting Command (ACC) Adelphi – Aberdeen Proving Grounds (ACC-APG), Adelphi Contracting Division, (CCAP-SCA), 2800 Powder Mill Road, Adelphi, MD 20783.

2. Description of Action: The U.S. Army Research Laboratory (ARL) Weapons and Materials Research Directorate (WMRD), Shops and Operations (FCDD-RLW-O), requests a commercial firm fixed price (FFP) sole source contract to MD Machinery, Inc., 1994 Conan Doyle Way, Eldersburg, Maryland, 21784, Cage Code: 486S9, for the procurement of one (1) Hwacheon-brand Machining Center Machine and one (1) Hwacheon-brand Turning Center. The Government projects award for September 2020 and fiscal year 2020 Army 6.2 Research Development Test & Evaluation type funds will be used for this effort

_X_ An acquisition plan is not required because this procurement either does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i), or is an R&D acquisition and does not meet the definition of services in 10 U.S.C. 2330(c)(2).

3. Description of Supplies/Services:

The request for contract is to procure one (1) Hwacheon-brand Machining Center Machine and one (1) Hwacheon-brand Turning Center distributed by the sole proprietor, MD Machinery, Inc. The system shall include the following:

Quantity one (1): Hwacheon M2 5AX 5-Axis Machining Center Machine o One (1) 31i-B5 Full 5-Axis Fanuc Control o Minimum X-Axis Travel of 29 inches o Minimum Y-Axis Travel of 25 inches o Minimum Z-Axis Travel of 19 inches o 500 milimeter (mm) working surface o German Bosch Rex-Roth Roller Guide Ways for High Accuracy o NSK Spindle Bearings and NSK Balls Screws for Longevity o CAT40 Big-Plus Spindle

Minimum spindle speed of 20,000 revolutions per minute (RPM) and maximum of 24,000 revolutions per minute (RPM) due to longevity

Spindle shall have Oil-Jet Lubrication o Minimum 50 horsepower (HP) o Minimum of 160 foot pounds (ft lbs) torque o Constructed using Meehanite Cast Iron o One (1) 30 Tool Servo Automatic Tool Changer (ATC) o Internal Rotary 5-Axis Must be Made by MMK Japan or equivalent for

Accuracy, Reliability and Dependability o Minimum Coolant Pressure 430 pounds per square inch (PSI)

Supply/Service: Hwacheon Machining and Turning Centers o Maximum power Requirement 65 kilovolt-ampere (KVA) o Minimum Machine weight 24,000 pounds (lbs) o Coolant tank capacity of 105 gallons or greater o Heidenhain Glass Scales on X, Y, Z Axis o Data Server for Program Storage and Drip Feed o Software for Advanced Machining: Artificial Intelligence Control System, Effcient Contour Control, Tool Load Detection System and Spindle Displacement Control System

Quantity one (1): Hwacheon Hi-Tech 230 Box-Way CNC Turning Center o One (1) Fanuc Control o Box-Guide Ways o 30 Degree Slant Bed o Y-Axis o Minimum 25 HP o One (1) Sub-Spindle o Minimum Cut Length of 22 Inches o Constructed using Meehanite Cast Iron o Main Spindle A2-6 Spindle Nose and include an 8" 3-Jaw Hydraulic Chuck o Sub Spindle A2-5 Spindle Nose and include an 6" 3-Jaw Hydraulic Chuck o Hinge Belt Type Chip Conveyor o BMT65 Live Tool System o One (1) 12 Station Turret All Live Tool Capable with 24 Position Index o Belt Type Main Spindle Motor Required for ease of maintenance o German Bosch Rex-Roth Ball Screws for High Accuracy o NSK Spindle Bearings for Longevity o Minimum Main Spindle Speed 4500 revolutions per minute (RPM) o Minimum Coolant Pressure 85 pounds per square inch (PSI) o Main Spindle Motor Torque must be 240 foot pounds (ft lbs) Torque or

Greater o Coolant Tank must pull out from front for Easy Cleaning without removing

Chip Conveyor o Y-Axis Stroke of +/- 2.30(4.60" Inches Overall) or Better o Max Cutting Diameter 15.50" Or Better o Manual Guide I Conversational Programming o Minimum Weight of 14,750 pounds (lbs) o

Delivery Date: 10 weeks after receipt of order (ARO) Total Value:

4. Authority Cited: 41 U.S.C. 1901(e)(2), implemented by FAR 13.501(a) -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited:

The U.S. Army Research Laboratory (ARL) Weapons and Materials Research Directorate (WMRD), Shops and Operations (FCDD-RLW-O), requires a new

Supply/Service: Hwacheon Machining and Turning Centers commercial, FFP contract with MD Machinery, Inc. for the purchase of the Hwacheon M2 5AX 5-Axis Machining Center and Hwacheon Hi-Tech 230 Box-Way CNC Turning Center. The Machining Center is multi-functional, with the ability to carry out an elevated number of mechanical operations, such as milling, boring, threading, and drilling with the ability to move and cut in five different directions. The Turning Center creates rotational parts by cutting away unwanted material. Both of these machines will support ARL’s Long Range Distributed & Cooperative Engagments (LRDC) Essential Research Program (ERP)by providing a multitude of machining tasks required within ARL’s other essential research programs such as Cross Functional Team (CFT) programs, including the Next Generation Squad Weapon (NGSW). Use of these machines will drastically reduce the amount of set-up and manufacturability time by utilizing less operations to generate a product. M2-5AX is built from three dimensional (3D) Finite Element Method (FEM) analysis, and the software components are specifically created in-house by Hwacheon to increase the machine's productivity and process speed by utilizing the A-axis Stroke (Tilting) and C-axis Stroke (Rotary) 360 degrees of rotation. The Hi-Tech 230 Box-Way CNC Turning Center provides more reliable machining performance based on upgraded specifications. It also provides greatly enhanced user convenience and maintainability.

Market research determined that Hwacheon is the sole manufacturer that can provide a product capable of fulfilling the Government’s minimum specifications; however, based on Hwacheon's letter of exclusivity, they have one authorized reseller for Hwacheon products for the state of Maryland, MD Machinery, Inc. The required equipment is to be purchased through the authorized reseller. The Hwacheon products are the only machines found that are rigid and stable enough to handle steel plates weighing up to 1,000 pounds (lbs) while still producing specification requirements of complex geometry’s with accuracy to .0002 of an inch, which is a Government requirement as it minimizes tolerance differentials that will affect testing. The machines rigidity and stabilization results from a combination of many of the salient characteristics above including the material it is composed of, the machine size, and the various parts, including German Bosch components. To procure machining and turning centers from a different manufacturer would result in a duplication of cost to the Government of over $100,000.00 as well as over ten (10) years’ of process development. Originally, the Government was making multiple set-ups in multiple machining centers. Now the machining processes can be reduced to a single machine with less set-ups as these machining centers contain new technologies and capabilities the shop has not had before. Hwacheon is the only manufacturer that produces a Machining Center and Turning Center that meets the Governments aforementioned unique specifications. As the only authorized reseller in the territory, MD Machinery, Inc. is the only source that cansatisfy the Government’s requirements.

6. Efforts to Obtain Competition:

A synopsis of this requirement was posted to FedBizOps from 1 Sep 2020 through 8 Sep 2020 to provide notice of the Government’s intent to pursue a sole source acquisition strategy with MD Machinery, Inc. At the time of the announcement closing, no vendors responded expressing interest. In addition to the announcement, the Requiring Activity’s market research consisted of reviewing other market research efforts for similar

Supply/Service: Hwacheon Machining and Turning Centers purchases, internet searches, and discussions with , who is the Engineering Technician, Team Lead of the WMRD Machine Shop, that is a subject matter expert (SME) within ARL’s WMRD located at Aberdeen Proving Ground. Based on the summary of discussion, including a consensus from internet searches, the conclusion of market research confirmed that MD Machinery, Inc. is the only source that offers a product that can meet Government requirements.

It was determined that it is not possible to compete this procurement due to the compatibility and proprietary capabilities of the requirement. However, should effective competition become known by the Contracting Officer based from the publication of a synopsis notice required by FAR 5.201, any bids or proposals received shall be considered.

7. Actions to Increase Competition:

The proposed source, MD Machinery, Inc. occupies a very specialized niche, and currently there are no other vendors capable of providing the required Hwacheon Machining and Turning Centers that fulfills the Government’s requirements. ARL will continue to monitor the market, conduct internet web searches, and participate in consultations with knowledgeable Government and industry personnel to help locate alternative manufacturers that can provide Machining and Turning Centers that provides the fifth (5th)-axis and live tooling machining capabilities and specification requirements.

If WMRD discovers that another manufacturer and/or authorized reseller could provide a reliable alternative with a high confidence of compatibility, ARL will not hesitate to purchase the system competitively.

8. Market Research:

, Engineering Technician, Team Lead of the WMRD Machine Shop, with over forty (40) years of experience in this field and , Engineering Technician and Team Lead with over sixteen (16) years of experience in this field, conducted market research in April 2020 to identify sources capable of meeting ARL’s requirements.

Market research techniques included discussions with Government and industry SMEs

), and internet searches (https://www.mdmachinery.com, hwacheonusa.com, hasscnc.com). Haas CNC was identified as a potential source, however the company was unable to provide machines that are rigid or stable enough to produce specification requirements of complex geometry’s with accuracy to .0002 of an inch. In addition, no other sources utilized the Government's required conversational language computer numerical control (CNC), FANUC. Hwacheon is the manufacturer of the aforementioned centers and has identified MD Machinery as their sole authorized reseller. The required equipment is to be purchased through the authorized reseller to ensure the warranty is not voided and all technicians servicing the machines are knowledgeable on the proprietary programming language the centers utilize.

9. Interested Sources:

Supply/Service: Hwacheon Machining and Turning Centers

A notice of intent to sole source was submitted to FedBizOpps on 1 Sep 2020 through 8 Sep 2020 under Solicitation number, W911QX-20-Q-0225 by the Contracting Officer as required by FAR 5.201. During that posting period and thereafter, no sources have challenged the sole source or expressed interest in fulfilling the requirement.

10. Other Facts:

a. Procurement History

Not applicable; first time buy.