SF 1013 - Suction Drum Replacement Parts - Redacted.pdf

DEPARTMENT OF THE TREASURY

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

(INCLUDING BRAND NAME) ACQUISITIONS

ACQUISITION TITLE: Suction Drum Replacement Parts

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

The requiring activity is the Bureau of Engraving and Printing (BEP), Office of Production Engineering (OPE)and the contracting activity is the Treasury Common Services Center (TCSC) Acquisition Services.

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

The purpose of this sole source acquisition is to obtain approval to purchase original equipment manufacturer (OEM) suction drum replacement parts for use on the Super Orlof Intaglio (SOI) press located in the Fort Worth, Texas facility (WCF). The procurement also includes options for up to three additional suction drum assemblies and associated spare parts to support future maintenance requirements and sustain manufacturing operations.

The anticipated period of performance for this contract is 30 September 2026 – 29 September 2030.

2.b Name of the vendor. Koenig & Bauer Banknote Solutions (K&B) 2.c Requisition No.: 165672 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 requirement encompasses the supply and delivery of a complete suction drum assembly along with related mechanical components. This procurement is essential for maintaining equipment reliability, mitigating the risk of unplanned downtime, sustaining production capacity, and supporting BEP's currency manufacturing mission.

The suction drum assembly serves as an essential element for these presses and has reached a stage necessitating replacement to maintain operational reliability and production efficiency.

Given the equipment’s specialized design and proprietary specifications, OEM components are imperative to ensure proper compatibility. This requirement supports ongoing manufacturing activities at WCF and is intended to mitigate risks of production interruptions resulting from equipment wear or failure. Additionally, the procurement aligns with BEP's long-term maintenance objectives by including option quantities to address future replacement needs.

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

The Independent Government Cost Estimate (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 require use of the authority cited as follows:

The Intaglio presses under Contract TEP-04-0032 were purchased on 27 September 2004.

Should BEP continue operations with existing equipment, there is a risk of having increased downtime on the press and the ability to produce quality production.

Treasury Standard Form – 1013 (Rev 12/24)

Prescribed by Treasury: DTAP 1013.501

K&B serves as the OEM for the required suction drum assembly and related components for this acquisition. These replacement parts are uniquely designed, engineered, and manufactured to integrate seamlessly with the current banknote production system.

It is essential that all components are fully compatible with the existing equipment’s specifications, mechanical interfaces, operational parameters, and performance standards.

Utilization of OEM parts is critical to ensure optimal fit, function, reliability, safety, and sustained operational efficiency.

Therefore, employing OEM parts and services is imperative for preserving equipment integrity, manufacturing consistency, and operational continuity while minimizing technical, scheduling, and performance risks.

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 09 April 2026 with a closing date of 24 April 2026. 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.

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

The Contracting Officer will determine whether 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

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 February 2026 and June 2026. Technical discussions were conducted with K&B to validate equipment compatibility, replacement requirements, scope, delivery schedules, and pricing.

The market research confirmed that the required suction drum assembly and associated components are proprietary OEM items specifically designed for BEP's banknote production equipment. No alternate manufacturers, distributors, or service providers capable of supplying equivalent components were identified. The results of the market research supported the Government’s determination to obtain these services on a sole source basis. Refer to the SF 1010 Market Research Summary Report for specific details.

9.a Any other facts supporting this justification:

No procurement history available.

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, K&B is the only source that possesses the expertise necessary to ensure the

Treasury Standard Form – 1013 (Rev 12/24)

Prescribed by Treasury: DTAP 1013.501 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: