SAM.gov- Justification FAR Part 8 - Vertical Mills final_Redacted.pdf

CUI

JUNE 2025

FAR Part 8 Limited Sources Justification

1. Requiring Activity: United States Army Tank-automotive and Armaments Command (TACOM), Watervliet Arsenal.

2. Contracting Activity: The United States Army Contracting Command-Watervliet Arsenal (ACC-WVA) is the procuring activity for this action.

3. Description of Action: This action will result in a new Firm Fixed Price Delivery Order for two (2) new HAAS Vertical Mills with Phillips Corporation (LB). This procurement will utilize AWCF funding. The requirement will be awarded through GSA, and the total estimated dollar value is $600,000.00 ($300,000.00 each). This requirement is for the brand name HAAS Vertical Mills.

4. Description of Supplies/Services: This requirement is for two (2) each new brand name HAAS VF-5/50 Vertical Mills per Watervliet Arsenal Manufacturing Engineering Specification 08-25-3417.

5. Authority Cited: Title 41 U.S.C. §4106(c)(2) as implemented in FAR 8.405- 6(a)(1)(i)(B), Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

6. Reason for Authority Cited:

a. Background: The Apprentice Program is offered through Hudson Valley Community College, in which HAAS machines and controls are widely utilized. Since apprentices begin their training on HAAS machines, no additional “company” training is required, hence saving WVA and the US Government a substantial amount of funds.

Therefore, through streamlining training and learning for incoming apprentices, remaining with HAAS machines is a logical follow-on to the existing ongoing efforts.

Phillips Corporation is the only contractual supplier for all HAAS equipment and replacement parts to the U.S. Government.

b. Alternatives: There are no known alternatives since the employees are trained on the one brand of machines in the Apprentice Program.

c. Impact if not approved: If another brand of machine is procured, then employees would need to be retrained on the new machine, which would be a duplication of costs.

7. Efforts to Obtain Competition:

a. Effective competition: Competition is not anticipated for this acquisition since Philips Corporation is the only authorized distributors of HAAS equipment for the U.S. Government.

JUNE 2025

b. Subcontracting competition: Phillips Corporation is a large business. There are limited subcontracting opportunities in this sole source environment due to Phillips being the only authorized HAAS distributor. However, pursuant to FAR 19.702, small business concerns will have the maximum practicable opportunity to participate in contract performance consistent with its efficient performance.

8. Actions to Increase Competition: The Government will continue to survey the marketplace and review our acquisition strategy should additional information be received. Any information received will be considered to determine if a competitive acquisition should be conducted or to determine potential future requirements.

9. Market Research: Market Research was conducted and completed on 25 April 2025 by Justin Rowe, Equipment Specialist at the Watervliet Arsenal. Techniques used include internet searches and personal knowledge of the supplies/services of this type based on general knowledge acquired in the workplace. One supplier was found to be capable of providing the HAAS equipment through GSA, Phillips Corporation.

10. Other Facts:

a. Procurement history.

W911PT20F0570, 29 April 2020, $204,395.55, Mill, CNC, HAAS Part # VF-5/50XT, Phillips Corporation. This was awarded through GSA with limited competition. This price was determined fair and reasonable based historical pricing.

b. Other facts. N/A

11. Technical 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.

12. 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.

JUNE 2025

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated price/cost to the Government for this contract action represents the best value and will be fair and reasonable consistent with DoD Class Deviation 2014-O0011- Determination of Fair and Reasonable Prices When Using Federal Supply Schedule Contracts, dated March 13, 2014. This determination will be made using FAR 15.404-1(b)(2)(ii) Comparison of the proposed prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items.

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.