MFR JA VMC SP470325Q0004_signed_Redacted.pdf

DEFENSE LOGISTICS AGENCY

CONTRACTING SERVICES OFFICE 6090

STRATHMORE RD.

RICHMOND, VIRGINIA 23297

MEMORANDUM FOR RECORD

SUBJECT: Justification for Other Than Full and Open Competition PR 7009440130 RFx SP470325Q0004 IPE Mechanicsburg

Background: The DLA Aviation Industrial Plant Equipment (IPE) facility at Mechanicsburg, PA has a requirement to add one (1) Vertical Machining Center to improve their mission capabilities, and to replace legacy equipment which is outdated and no longer supported by software updates. The estimated value of this requirement is $

The IPE Mechanicsburg facility is unique and has a critical role in the sustainment of United States Military Industrial Mobilization. Globally, IPE Mechanicsburg serves as the sole centralized repair and overhaul facility for Federally owned Capital Equipment Machine Tools. The machinery serviced at IPE Mechanicsburg has been strategically positioned throughout the globe, which is critical for sustaining industrial mobilization. Machines are shipped into IPE Mechanicsburg, fully overhauled, and then returned to the warfighter. In brief, the IPE Mechanicsburg facility is responsible for servicing machines used by the warfighter to support a wide range of ‘machinery’ in service.

The ‘machinery’ typically weighs greater than 2000lbs (1 ton), with a footprint no less than 4’x6’.

While the cost of freight in/out of IPE Mechanicsburg is substantial and ever-increasing, the resulting value of the services being performed exceed total associated costs by an order of multitude.

Machinery being serviced often has highly specialized capabilities, which are either unavailable on the open market, or the replacement cost is unreasonably high. The services provided by IPE Mechanicsburg are unique by virtue of being otherwise unavailable in the private sector or open market.

Market Research: The contracting officer has extensive personal knowledge of the machine tooling supply industry, attributable to 5 years prior work experience with an industrial supplier which specializes in machine tools. Initial market research was conducted through discussions with Josh Peters, who is the Technical POC for this requirement. During discussions with the technical POC the contracting officer recognized additional salient characteristics to be satisfied which are not specifically called out in the SOW; specifically, interchangeability of parts with existing machines in service at IPE Mechanicsburg, and legacy software which requires no additional training for employees. A brand name was not provided for most of components listed in the SOW because it would be too restrictive without guaranteeing interchangeability and backwards compatibility with any machine currently in service at IPE Mechanicsburg. Through discussions with technical POC, the contracting officer determined the requirements set forth in the SOW will be best fulfilled through restricting competition under the authority of FAR 13.106-1(b) Soliciting to a Single Source. Based on extensive personal knowledge, the contracting officer believes soliciting the requirement competitively will almost certainly result in seemingly endless discussions, and unreasonable delays because of supplier inquiries surrounding technical acceptability of alternate items and substitutions.

The contracting officer performed further market research through use of the internet. Official websites for a wide array of industrial tooling suppliers and industrial tooling manufacturers were reviewed.

The contracting officer determined the acquisition landscape for machine tooling and respective “authorized distributors” to be obscure. The existing purchasing landscape for new Vertical Machining Center (VMC) style machines as described in the SOW offers virtually countless different makes of VMC and tooling. There is little to no transparency surrounding ‘authorized resellers’, which presents