sole source justification v1.docx

MEMORANDUM FOR FILE

SUBJECT: Non-Competitive Procurement Justification Memo for Actions Under SAT

I. BACKGROUND

1. FAR 13.106-1(b)(1)(i) states for purchases not exceeding the simplified acquisition threshold, Contracting Officers may solicit from one source if the Contracting Officer determines that the circumstances of the contract action deem only one source reasonably available.

2. FAR 8.405-6 allows for limiting sources for orders or BPAs under Federal Supply Schedules under certain circumstances or for items peculiar to one manufacturer

3. As required by FAR 13.106-3(b)(3)(i), FAR 8.405-6(a)(1), or FAR 8.405-6(b)(2), this memorandum explains the absence of competition for this acquisition, as only one source will be solicited for this requirement (or for a portion of the requirement) and the requirement is not expected to exceed the simplified acquisition threshold.

II. DESCRIPTION OF ITEM OR SERVICE (Include manufacture/sole source name and address.)

The NSWCCD requires the purchase of calibrated Anderometer electronics including a specialized Anderon analyzer and Anderon Calibrator, along with auxiliary components. NSWCCD’s existing Anderometer is no longer OEM calibrated and requires the replacement of its calibrated measuring equipment in order to do assessments to determine the true vibration values of precision ball bearings.

Manufacturer: Sugawara Laboratories Distributor: Denkei Corporation Americas Address: 300 N. Martingale Road, Suite 515, Schaumburg, IL 60173

III. BASIS FOR DETERMINATION FOR USE OF OTHER THAN FULL & OPEN COMPETITION

· A. BRAND NAME. The item required must be a brand name product, or feature of a product, particular to one manufacturer.

· 1. Restrictive Rights. The source has established proprietary rights, limited rights in data, patent rights, copyrights, or secret processes in the item or service required.

· 2. Exclusive Licensing Agreements. The item or service is only available from the Original Equipment Manufacturer (OEM).

NSWCCD SAP Non-Competitive Procurement Justification Memo Effective April 2025

· 3. Federal Supply Schedule (FSS) IAW FAR 8.405-6(b).

· 4. Other Reasons.

☒ B. SOLE SOURCE. (select all that apply)

The market for Anderonmeter sensors, analyzers and calibrators is extremely limited. Commercially, three known sources exist for Anderonmeter hardware and software: SKF Austria, Denkei Corporation Americas and Precision Devices Inc. NSWCCD currently utilizes SKF Austria based anderonmeter hardware and software, SKF Austria is a foreign based company with two domestic distributors: Jamaica Bearings Group and SKF USA. A prior submitted SAP attempted calibration and/or repair work for NSWCCD’s vibration transducer calibrator SKF MEA14B. From November 2023 to November 2025, this submitted SAP hit a dead end as Jamaica Bearings refused to conduct any repair work, and SKF USA failed to respond emails throughout 2025 regarding this request. These actions made it impractical to continue with solely SKF Austria for basis of traceable calibration with regards to anderometer hardware.

Precision Devices, Inc was contacted, after an onsite visit they relayed to TPOC their company could not support calibration efforts or purchase of standalone anderometer electronics. The only other known commercial source of Anderometer products is Sugawara Laboratories based in Japan. Sugawara has capability to provide calibrated anderonmeter products and calibration services through domestic distributor Denkei Corporation.

Sugawara’s anderonmeter products are the only viable source of calibrated anderometer products due to the other two anderometer sources ruled out as explained above. Sugawara develops products with traceability to Japanese national standard, which in turn has international traceability to ISO.

· 1. Restrictive Rights. The source has established proprietary rights, limited rights in data, patent rights, copyrights, or secret processes in the item or service required.

☒ 2. Exclusive Licensing Agreements. The item or service is only available from the Original Equipment Manufacturer (OEM), or there is only one authorized distributor or technical representative for the OEM.

Sugawara Laboratories is the OEM for its Sugawara brand of products. Ref Email, Denkei, 14Nov2025, Denkei Corporation Americas is the exclusive U.S. domestic distributor of Sugawara products and services.

☒ 3. Other Reasons.

If the requirement is not solicited from only one source, NSWCCD faces the risk of accepting nonconforming bearings with excess noise due to false vibration measurements. Nonconforming material can generate excess noise in operation, possibly leading to late deliveries on bearings, putting lives and equipment at risk. Soliciting from this one source ensures prompt, accurate vibration measurements to a traceable national standard.

· 4. Federal Supply Schedules (FSS): IAW FAR 8.405-6(a)(1)

· a. An urgent and compelling need exists, and following the procedures would result in unacceptable delays;

· 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; or

· c. In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order or BPA must not have been previously issued under sole-source or limited-sources procedures.