SF 1013 SSJ Hydraulic Three-Roll Ink Mill Redacted.pdf

Treasury Standard Form – 1013 (Rev 5/18)

Prescribed by Treasury: DTAP 1013.501 Tracking No.

DEPARTMENT OF THE TREASURY

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

(INCLUDING BRAND NAME) ACQUISITIONS

Identification of the requiring activity and the contracting activity:

The requiring activity is the Production Division within the Bureau of Engraving and Printing (BEP) at the Western Currency Facility (WCF) and the contracting activity is the Office of the Chief Procurement Officer (OCPO) at the WCF.

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

The purpose of this sole source justification is to obtain approval to award a Firm Fixed Price purchase order to Buhler Technologies, Inc. for the purchase and installation of a fully hydraulic three-roll ink mill. The completion date for these items is within 12 months from date of award.

2.b Name of the vendor. Buhler Technologies, Inc.

2.c Requisition No.: 143012 2.d Bridge contract: ☐ Yes x No 2.e Brand name: ☐ Yes x No 3.a A description of the supplies or services required to meet the agency’s needs:

This acquisition is for the purchase and installation of one each fully hydraulic three-roll ink mill. This mill will replace a broken one that is no longer in commission at the WCF Ink Shop.

The new ink mill must have centrifugal-casted iron smooth polished rolls with an average surface roughness of Ra < 1 (micron). The active working length of each roll must be 1300 mm and 400 mm in diameter. The mill must be capable of processing up to 400 lbs of incoming high viscosity letterpress ink and up to 600 lbs of incoming high viscosity intaglio ink. The weight capacity requirements and dimensions make this ink mill substantially larger than the vast majority of ink mills that are manufactured or available in the market. Additionally, the mill must include incline configuration, an option consisting of a fill up device that operates to transfer the ink from the BEP supplied tub to the mill feed hopper in a safe manner, and in compliance with the weight and speed that the milling process requires.

Hands-on training is also required and it shall cover operations, maintenance, and safety.

Delivery and installation shall be completed within 12 months after award and shall include all subsystems and support equipment. A one year (12 calendar months) manufacturer warranty shall be included on all parts from the time the parts are installed on the system.

3.b Includes IT: ☐ Yes x No 3.c IGCE/Estimated dollar value:

The estimated dollar value is $498,600.00.

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

☐x 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:

i. The statutory authority that permits contracting without providing for full and open competition is FAR 6.302-1, “Only one responsible source and no other supplies or services will satisfy agency requirements.” Based on the findings of the market research http://www.gpo.gov/fdsys/granule/USCODE-2011-title41/USCODE-2011-title41-subtitleI-divsnB-chap19-sec1901 http://www.gpo.gov/fdsys/granule/USCODE-2011-title41/USCODE-2011-title41-subtitleI-divsnB-chap19-sec1903

Treasury Standard Form – 1013 (Rev 10/17)

Prescribed by Treasury: DTAP 1013.501 Tracking No.

completed by the COR and the contracting team, it has been determined that Buhler Technologies is the only company in the United States capable of fulfilling this requirement.

ii. Buhler Technologies was the only company that confirmed its capability to provide the ink mill to the specifications identified in the SOW.

iii. The manufacturer of the existing mill (Draiswerke, Inc.) is no longer in business and no other company in the United States was determined to be capable of manufacturing a fully hydraulic three-roll mill of this size and with the required capabilities. Due to the very unique specifications of the ink mill requested and the fact that there are very few entities (domestic or international) that procure/use ink mills of this type and size, there is an extremely limited number of sources worldwide that sell ink mills in the size/specifications identified.

iv. Charles and Son explicitly stated they are unable to fulfill the requirement and Molteni S.R.L. Battaggion Group is not registered in SAM, which is a requirement in order to be eligible for federal contract award.

v. Buhler, Inc. confirmed via e-mail that they do not have any authorized resellers or distributors for its 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:

A Sources Sought Notice was posted on SAM.gov on 17 June 2021 and it closed on 02 July 2021. The notice did not yield any responses.

Additionally, The Contract Specialist also reached out to multiple vendors that were provided by the COR (Charles and Son and Molteni S.R.L Battaggion Group) via e-mail, none of the companies were capable of providing the size Three-Roll Mill needed at WCF.

• Charles and Son stated it is not capable of providing the size Three-roll Ink Mill required by

WCF.

• Molteni is not eligible for this requirement because they are not registered in SAM and as of 9 Aug 2021, Molteni S.R.L. Battaggion is still not registered in SAM.

• The Manufacturer of the existing mill (Draiswerke, Inc.) is no longer in business.

In accordance with FAR 5.201(a), a notice of intent to award a sole source contract was posted on the Government Point of Entry on 18 Aug 2021. This notice afforded any prospective company the opportunity to submit a capability statement which would have been considered by the Government. However, the notice expired on 25 August 2021 without generating any submissions.

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

The Contracting Officer determines that the anticipated price will be fair and reasonable based on comparison to the IGCE as well as historical prices paid for same/similar items.

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:

The Market research was performed between Feb 15th 2021, and July 20th 2021. Other participants involved are as follows:

Prescribed by Treasury: DTAP 1013.501 Tracking No.

• Munasir Harhara: WCF Office of Production Engineering supervisor, Mr. Harhara will provide guidance and information related to similar acquisitions of a lab three-roll mill.

• Steve Davis: Provided guidance as an acquisition experienced resource within the OEP.

• Randall Wilson: Current supervisor for the WCF Ink Shop, including the management of the ink mills existing at WCF.

• Jeffrey Marthers: Plate printing Manager responsible for the WCF Ink Shop.

• Patrik Maeder: Representative from a mayor Ink mill manufacturing in the US.

The CS reviewed a similar requirement that the Eastern Currency Facility (ECF) has for an ink mill to determine if there were other alternatives that would meet WCF requirements.

The ECF ink mill requirement consists of smaller size rollers and has different specifications.

For instance, the WCF ink mill rollers must include an active working length of approximately 1300 mm and a diameter of approximately 400 mm which can only be provided by Buhler. In contrast, the length of the ECF ink mill rollers is approximately 355 mm (which is significantly smaller by approximately 945 mm) and the diameter is approximately 152 mm (248 mm smaller). Another difference between the two ink mills is reflected in the main drive power. For instance, the ECF ink mill motor only produces 5 horse power (HP) whereas the WCF ink mill motor must have the capability for variable power (approximately 101 and 50 HP). The COR confirmed the Ink Shop at the WCF cannot field the smaller size roller due to existing equipment already in place, the time and effort required to redesign the Ink Shop, and the costs associated with changing the infrastructure to accommodate a smaller ink mill.

The CS performed a search in the SBA dynamic search tool by searching the NAICS and entering the keywords. The search results did not display any small business that were capable of fulfilling the requirement.

The CS reviewed the Acquisition Gateway and the Treasury Mandatory Portal, but did not find viable sources capable of fulfilling this requirement.

A Sources Sought Notice was posted on SAM.gov on 17 June 2021 and closed on 02 July 2021. The notice did not yield any responses.

A Notice of Intent to award via sole source was posted on SAM 18 August 2021 and closed on 25 August 2021. The notice did not yield any responses.

There are only 3 manufacturers in the United States that provide ink mills, but Buhler Technologies is the only source that can supply the size needed at the WCF.

9.a Any other facts supporting this justification:

Not Applicable

9.b Attachments: Yes ☐x No

Prescribed by Treasury: DTAP 1013.501 Tracking No.

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

Buhler Inc.

13105 12TH AVE N

Plymouth, Minnesota 55441-4509, United States

CAGE:19621

DUNS: 006223705

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:

It is difficult for the Government to remove or overcome any barriers to competition given that there is a very small number of companies that provide this product due to the specifications required by BEP WCF. OCPO can encourage existing vendors to register in SAM.

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: Ely Pelayo

Signature: Ely J. Pelayo J Date:

rdan Digitally signed by Ely J. Pelayo Jordan Date: 2021.09.14 06:21:37 -05'00'

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: Jeremy O. Boggs Jeremy O. Boggs D

Signature: D

Date:

gitally signed by Jeremy O. Boggs te: 2021.09.10 08:51:57 -05'00'