SF 1013 - Protec Consumable Spare Parts_Redacted.pdf

DEPARTMENT OF THE TREASURY

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

(INCLUDING BRAND NAME) ACQUISITIONS

ACQUISITION TITLE: Consumable Repair and Spare Parts for Physical Vapor

Deposition (PVD) Systems

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

The requiring activity is the Office of Production Engineering, and the contracting activity is the Office of the Chief Procurement Officer (OCPO).

2.a Nature and/or description of the action being approved:

The purpose of this sole source justification is to obtain approval to purchase original equipment manufacturer (OEM) spare parts used for the Physical Vapor Deposition Machines (PVD) manufactured by Protec Surface Technologies (Protec) located at the Washington, DC (DCF) and Fort Worth, Texas (WCF) facilities.

2.b Name of the vendor. Protec Surface Technologies 2.c Requisition No.: TBD 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:

This requirement for the purchase of OEM spare parts for the WCF and DCF facilities. PVD spare parts shall be awarded under the Authority of 41 USC 253(c)(1), only one responsible source and no other supplies or services will satisfy agency requirements. (See Attachment A - Protec Spare Parts)

The spare parts for the PVD equipment, manufactured only by Protec, are required for the operation and maintenance, are highly specialized, and are required for replacement of the original part in the event of wear and tear to ensure operation of and startup of the equipment.

The spare parts required for this requirement are proprietary to Protec. In addition, Protec will only guarantee the equipment warranty performance if the parts utilized are Protec parts and the remaining parts are exactly as described on the spare parts list as the level of precision with obtaining the correct parts of the utmost important as one incorrect spare part could put the entire complicated systems at risk; therefore, to ensure the equipment meets equipment warranty and to not jeopardized BEP’s mission, it is most advantageous for the government to purchase these parts from Protec only.

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

The IGCE for this procurement is:

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:

The proposed contractor’s unique qualifications and the nature of the acquisition requires use of the authority cited as follows:

The proposed contractor developed and owns the propriety and patented hardware, software and algorithms that are used in the manufacture of the PVD Systems. Therefore, any changes that are required to the interworking of these machines must be done by Protec as they are the only source that can provide the expertise to guarantee no disruption in United States currency manufacturing.

Treasury Standard Form – 1013 (Rev 12/24)

Prescribed by Treasury: DTAP 1013.501

In addition, Protec maintains the design for these spare parts and has the capability to make the required parts in-house with the correct specifications. OEM parts are designed and manufactured specifically for the equipment, ensuring optimal fit and performance. Non-OEM manufacturers may not have the same level of expertise and specialized knowledge as the original manufacturer, which could lead to improper repairs or installations. Any attempt to use non-OEM parts will not only void any equipment warranty but may also damage the equipment which would lead to additional repair costs or a complete replacement of the equipment.

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:

In accordance with FAR subpart 5.2, a notice of intent to award a sole source contract under the authority of FAR subpart 13.5 was posted on the Government Point of Entry, SAM.gov on 02 April 2025 with a closing date of 16 April 2025. This notice afforded an opportunity for all responsible sources to submit a capability statement which would be considered by the Government. No responses were received.

Protec confirmed on 29 March 2025 that no distributors, small or large are used for the sell of their parts.

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

The Contracting Officer will determine the anticipated price(s) will be fair and reasonable based on an evaluation of other than certified cost or pricing documents received from contractor, a comparison of historical pricing, as well as the proposed prices with the Independent Government Cost Estimate (IGCE).

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 March 2025 and April 2025. The results of the market research supported the Government’s determination to obtain these services under a sole source basis. Refer to the SF 1010 Market Research Summary Report for specific details.

9.a Any other facts supporting this justification:

None 9.b Attachments: ☒ Yes ☐ No

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

None

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:

Not applicable, as described above, due to the unique qualifications and proprietary rights of the contractor, Protec is the only source that possesses the expertise necessary to ensure the spare parts used on the equipment is successful. Therefore, it is unlikely that BEP will be able to foster competition under this proposed contract action or any future action with proprietary restrictions which allow for uninterrupted US currency manufacturing. BEP will continually monitor the market for any additional available sources who support PVD Systems.

The Contracting Activity will continue to search the marketplace for potential sources by publishing acquisition forecasts. BEP will also continue to hold dialogue with Protec to encourage small business vendors to sell / distribute these spare parts.

As a result, approval of this sole source provides the Government the necessary time to complete the evaluation process and make a new award.

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: Erica Hemphill 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:

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: