SF 1013 - JA for FAR 13.5 Sole Source_OEM Technical Training for KB Equipment Notice_Redacted.pdf

DEPARTMENT OF THE TREASURY

SF 1013 - JUSTIFICATION & APPROVAL FOR FAR SUBPART 13.5 SOLE SOURCE

(INCLUDING BRAND NAME) ACQUISITIONS

ACQUISITION TITLE: OEM Technical Training for K&B Printing Equipment

Treasury Standard Form – 1013 (Rev 12/24)

Prescribed by Treasury: DTAP 1013.501 Tracking No.

1. Identification of the requiring activity and the contracting activity:

Bureau of Engraving & Printing; Manufacturing Directorate; Office of Currency Manufacturing DC Currency Facility (DCF) & Western Currency Facility (WCF) and Office of Chief Procurement Officer 2.a Nature and/or description of the action being approved:

The purpose of this sole-source justification is to obtain approval to establish a Blanket Purchase Agreement (BPA) with Koenig & Bauer Banknote Solutions SA for OEM technical training on printing equipment currently installed and operating at BEP facilities. Individual BPA calls will be issued on a firm-fixed-price basis. The anticipated ordering period consists of one 12-month base period and three 12-month option periods.

2.b Name of the vendor. Koenig & Bauer Banknote Solutions SA 2.c Requisition No.: 164613-001 2.d Bridge contract: Yes No 2.e Brand name: Yes No 3.a A description of the supplies or services required to meet the agency’s needs:

The proposed acquisition is for Original Equipment Manufacturer (OEM) technical training on Koenig & Bauer Banknote Solutions SA (K&B) printing equipment currently installed and operating at Bureau of Engraving and Printing (BEP) facilities. The requirements include Apprentice/Basic Training, Continuous Learning, Maintenance Training, and Inspection/Data and Image Collection Systems Training.

The training is required to support new employees, BEP's apprentice program, and continuing technical education for experienced personnel responsible for operating, maintaining, troubleshooting, and supporting the installed equipment.

3.b Includes IT: Yes No 3.c IGCE/Estimated dollar value (include period of performance breakdown):

The IGCE is inclusive of a Base year and (3) twelve-month option periods.

4. Identification of the authority being used (Check the box that applies):

41 U.S.C. 1901 – Simplified acquisition procedures.

41 U.S.C. 1903 – Special emergency procurement authority.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited:

Koenig & Bauer Banknote Solutions SA (K&B) is the Original Equipment Manufacturer (OEM) of the printing equipment currently installed and operating at BEP facilities. K&B developed and owns proprietary and patented hardware, software, algorithms, technical information, and associated intellectual property incorporated into and used to operate and support this equipment.

The required training is specific to K&B's equipment platform and requires specialized technical knowledge of the equipment, its operating characteristics, maintenance requirements, software, diagnostic functions, and associated proprietary systems.

Market research conducted by the Government identified K&B as the only source possessing the requisite OEM technical knowledge and proprietary resources necessary to provide the training required. No alternative source was identified that demonstrated the capability to provide the required level of OEM technical training.

Treasury Standard Form – 1013 (Rev 12/24)

Prescribed by Treasury: DTAP 1013.501 Tracking No.

Accordingly, K&B is the only source reasonably available to satisfy the Government's requirement.

6. A description of efforts to ensure that offers were solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by FAR subpart 5.2 and, if not, which exception under FAR 5.202 applies:

The Government conducted market research to identify potential sources capable of satisfying the requirement. Market research included review of prior acquisition history and recent market research for similar requirements; consultation with knowledgeable Government and industry personnel; and review of Treasury Mandatory Sources and applicable Acquisition Gateway sources.

The Government also published a Notice of Intent to Award Sole Source on SAM.gov on August 14, 2026, with responses due August 28, 2026, providing interested responsible sources an opportunity to submit capability information demonstrating their ability to satisfy the requirement. No responses were received that demonstrated the technical capability and access to the proprietary technical resources necessary to satisfy the Government's requirement.

Based on the market research conducted and the results of the SAM.gov notice, the Government determined that K&B is the only source reasonably available to satisfy the requirement.

7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable:

The Contracting Officer will determine price reasonableness prior to award through price analysis, including comparison of the proposed pricing to the Independent Government Cost Estimate (IGCE), historical pricing for similar OEM technical training, and other relevant price information available to the Government. Negotiations will be conducted as necessary to establish fair and reasonable pricing.

8. A description of the market research conducted (see FAR part 10) and the results or a statement of the reason market research was not conducted:

Market research was conducted by the Contracting Officer and Program Office between November 2025 through August 2026. The results of the market research supported the Government’s determination to obtain these services under a sole source basis.

The Government reviewed prior acquisition history and recent market research for similar requirements; consulted knowledgeable Government and industry personnel; reviewed Treasury Mandatory Sources and applicable Acquisition Gateway sources; and reviewed prior BEP acquisitions involving OEM technical training, including Contract 2031ZA24C00498 and training provisions associated with Awards 2031ZA25C00002 and 2031ZA24D00009.

9.a Any other facts supporting this justification:

BEP currently operates K&B printing equipment in support of its mission. BEP requires recurring technical training to train new employees, support its apprentice program, and maintain the technical proficiency of experienced personnel responsible for operating and supporting the equipment.

BEP does not possess the internal capability to provide the required level of OEM technical training. Continued access to technically accurate and current training specific to the installed equipment is necessary to maintain personnel proficiency and support continuity of operations.

Prescribed by Treasury: DTAP 1013.501 Tracking No.

A similar effort was awarded via Contract 2031ZA24C00498 but only included Operator Training for Intaglio. This new effort anticipates four training programs: Apprentice/Basic, Continuous Learning, Maintenance Training, and Inspection/Data and Image Collection Systems.

9.b Attachments: Yes No

10. A listing of sources, if any, that expressed, in writing, an interest in the acquisition:

A synopsis of proposed contract action was posted on the GPE on August 14, 2026, requesting that parties express their interest in writing to the Contracting Officer. The notice response period remains open through August 28, 2026; results will be incorporated into this justification upon closing.

11. A statement of the actions, if any, the Requiring Activity or Contracting Activity may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required:

The Contracting Activity and Requiring Activity will continue to conduct market research for future acquisitions to identify additional sources capable of providing the required technical training. Future market research will include consideration of authorized third-party training providers, licensees, or other sources that may obtain the technical capability and access to proprietary information and resources necessary to satisfy BEP's requirements.

To the extent practicable, the Government will also evaluate whether portions of future training requirements can be satisfied competitively without adversely affecting technical accuracy, equipment operation, safety, or mission requirements.

12. Certifications and Approvals:

12.a Program Office certification (Requiring Activity). I hereby certify that any supporting information and data provided, which form the basis for this justification, are accurate and complete to the best of my knowledge and belief.

Name: Date:

Signature:

12.b Contracting Officer certification and approval. I hereby determine the circumstances of this acquisition support the justification to acquire the item(s) on a sole source (including brand name) basis under the authority of FAR subpart 13.5. I also certify this justification is accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the authorized contracting officer for this acquisition, I hereby approve this justification.

Name: Date:

Signature:

13. Additional Reviews and Approvals (As applicable):

13.a Bureau Chief Information Officer or Authorized Designee (for IT requirements that are over $5 million, but not exceeding $75 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification. (Note: The Bureau CIO may delegate their authority for proposed contracts over $5 million, but not exceeding $15 million to the Associate Bureau CIO(s).)

Name: Date:

Prescribed by Treasury: DTAP 1013.501 Tracking No.

Signature:

13.b Advocate for Competition (if over $750,000, but not exceeding $15 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the Advocate for competition, I hereby approve this justification.

Name: Date:

Signature:

13.c Head of the Procuring Activity or Authorized Designee (if over $15 million, but not exceeding $75 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the head of the procuring activity or authorized designee, I hereby approve this justification.

Name: Date:

Signature:

13.d Treasury Chief Information Officer (for IT requirements that are over $75 million).

I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification.

Name: Date:

Signature:

13.e Senior Procurement Executive (if over $75 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, as the senior procurement official, I hereby approve this justification.

Name: Date:

Signature: