KO Signed_25Q1711_JA_Redacted.pdf

CUI

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

FAR 6.302-1 (ONE OR LIMITED NUMBER OF RESPONSIBLE SOURCES)

SOLICITATION NO.: [SPMYM2-25-Q-1711]

DLA/Shipyard Land & Maritime Justification for Other Than Full & Open Competition (February 2025)

Source Selection Information – See FAR 2.101 and 3.104

Distribution/Dissemination Control: FED ONLY POC: [tricia.wintersteen@dla.mil]

Estimated Base Value: ___$610,000.00_______________

Estimated Total Value (Base + Options): ____$610,000.00______________

Maximum Contract Value: $610,000.00_______________

For Add-Ons, Value of Option Years Remaining: ___NA ______________

4. The statutory authority permitting other than full and open competition is 10 U.S.C. 3204(a)(1) as implemented by FAR 6.302-1.

5. The Government requires spare parts that are form, fit, and functionally interchangeable with those currently used on the supported end item or weapon system. The acquisition is restricted to the following source(s) of supply, which are the only source(s) known to have the capability of furnishing the required supplies and the only source(s) currently approved by the design control activity.

CAGE COMPANY NAME

32770 KATO ENGINEERING

The use of the authority at 10 U.S.C. 3204(a)(1) is based on: The Original Equipment Manufacturer (OEM) is:

Kato Engineering, Inc., 2075 W Howard Dr, North Mankato, MN 56003, (507) 625-4011, https://acim.nidec.com/generators/kato-engineering/, Designed, patented, and built the first four 400Hz Motor- Generators we used here at TRF to meet the Navy's technical requirements. The 400Hz Motor-Generators and its components are highly complex in design and are an integral part of an approved system configuration that was specifically designed to support the Trident Submarines during maintenance periods. Kato Engineering, Inc. no longer makes this 400Hz Motor-Generator in a NEMA 3R, weather-resistant enclosures as required by TRF. The 400Hz Motor-Generators to be ordered are from a different manufacture who still uses the Kato Engineering, Inc. 400Hz motor-generator with their own NEMA 3R, weather-resistant enclosures and control cabinet and will meet all the specific requirements we used here at TRF to support Submarines during maintenance periods. Other manufacturers cannot produce similar products because of our requirement for and industrial grade all weather 400Hz motor-generator. Our first two 400Hz motor-generators lasted almost 40 years, our last two 400Hz motor-generators have lasted over 17 years and are still going strong. Kings Bay bought some 400Hz motor-generators from a different company and they only lasted one year, it is very important that we buy an industrial grade all weather 400Hz motor-generator. Upon completion of the Manufacturing and testing of the 400Hz motor-generator, it must meet and interface with no deviation from form, fit, function or design, with the other system components. This can be met only if components are manufactured by Controlled Systems. Based on this rationale, proceeding with procurement of this requirement on a sole source basis to Controlled Systems is in the best interest of the Government.

6. The following efforts are being taken to ensure that offers are solicited from as many sources as practicable:

[X] The acquisition will be synopsized on or about ___ 6/23/25 for a period of _5__ days.

[ ] A synopsis exception cited in FAR 5.202 applies (Explain): __________________.

[X] Dealers of the approved source(s) will be solicited.

[ ] The solicitation will be posted to the DLA Internet Bid Board System for a minimum of _________ days.

[ ] Other (Explain): __________________.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable.

A price analysis will be conducted based on a comparison of proposed prices received in response to the solicitation and/or a comparison of proposed prices to historical prices paid. Certified cost or pricing data, when required by FAR 15.403-4, and data other than certified cost or pricing data, will be requested and obtained as necessary to establish a fair and reasonable price, and a cost analysis may be performed on the data submitted.

8. Market Research/Efforts to Obtain Competition:

Sources Sought Notice:

[X] A Sources Sought Notice was posted to Contract Opportunities on SAM.gov on __5/16-5/21 2025_ for a period of five business days and yielded the following results: _MCM Engineering, Inc., CAGE: 0RY20, VOSB indicated that they would quote on this requirement__

[ ] A waiver of the Source Sought Notice was approved by the HCA or designee on __________________ and is hereby attached.

Market Survey:

[X] A market survey was conducted on/during __5/23/2025________________.

Names and CAGE Codes of vendors contacted: _MCM Engineering, Inc., CAGE: 0RY20, VOSB;

Controlled Systems, CAGE: 0M4E9, WOSB; and Williamsville Resources II Inc., CAGE: 8BKZ8, WOSB, TEXAS HUB, SBE.

Names and CAGE Codes of vendors responding: _MCM Engineering, Inc., CAGE

0RY20________________.

Summary of information received relevant to sourcing (i.e., dealer/manufacturer; intended manufacturing source): _MCM Engineering is planning to quote on this. They will be using the KATO motor generator and fabricating and testing the weatherproof enclosure. They are estimating 12-13 months for delivery due to KATO manufacturing._________________.

[ ] A market survey was not conducted due to: __________________.

Procurement History:

[X] A review of procurement history for potential manufacturing sources other than those listed above Section 5 above yielded the following results (If none, so state): _Award SPMYM2-24-P-1172 for same item was purchased April 2024 .

General Internet Search:

[ X] A general internet search for potential manufacturing sources other than those listed above Section 5 above yielded the following results (If none, so state): Kato is the sole source manufacturer of this machine.

No other manufacturers were found. There are small business vendors who are capable of taking the Kato motor generator and then manufacturing the weatherproof enclosure.

[ X ] Other (Explain): _The end user provided information on the market research they completed as follows- Market research consisted of reviewing historical contracts, interactions with industry participants, and input from government subject matter experts. Further market research was not conducted because only one company to date has the required industrial grade all weather 400Hz motor-generator required by TRF for the reasons discussed above, for any company other than Controlled Systems to provide the required part. They also contacted Kato Engineering, Georator, Horlick, and MCM Engineering.

9. A listing of sources, if any, indicating an interest in the acquisition is (If none, so state):

CAGE COMPANY NAME

ORY20 MCM ENGINEERING

10. The following actions are being taken to overcome barriers to competition before any subsequent acquisition is made:

[X] The solicitation contains DLAD Procurement Note, L04 Offers for Part Numbered Items, which describes the process for submitting an alternate offer on the current procurement and requesting evaluation of an alternate product’s technical acceptability for future procurements of the same item. (All AMSC codes EXCEPT AMSC B)

[X] The solicitation contains DLAD Procurement Note, L22 Restriction of Alternate Offers for Source Controlled Items, which advises Offerors who are interested in qualifying their product for purposes of future acquisitions that they must contact the design control activity specified on the source control drawing. (AMSC B only)

DLA Land and Maritime encourages vendors that may be interested in becoming an approved source, even if there is not an active solicitation, to contact the DLA Land and Maritime Source Approval Monitor at DSCCAO- SAR@dla.mil for additional information on the steps required to submit a Source Approval Request Package for evaluation.

[ ] Other (Explain): _______________________.

In accordance with DFARS PGI 206.303-2, [ ] A copy of the previous justification from contract __________________ is attached.

[ ] A prior justification is not available since all prior acquisitions were under the Simplified Acquisition Threshold.

[ ] The Contract Specialist could not locate the prior J&A for contract __________________.

I certify that statements checked, and information provided above, are complete and correct to the best of my knowledge and do not contain classified information. I understand that the processing of this sole-source justification precludes the use of full and open competition.

Signature Activity (Technical Cognizance) Date

Title

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief. If not exceeding $750,000, this signature serves as the approval.

Contracting Officer Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature Date

Head of the Contracting Activity (HCA) Date Signature

Senior Procurement Executive (SPE) Date Signature

APPROVAL REQUIREMENTS

6/25/25

Material Expeditor 25D/340

[X] Up to $750,000 Contracting Officer

[ ] Over $750,000 to $15,000,000 Competition Advocate

[ ] Over $15,000,000 to $100,000,000 Head of Contracting Activity (HCA)

[ ] Over $100,000,000 Senior Procurement Executive (SPE)

Attachment(s):

Prior J&A (if applicable) Original J&A (if an addendum)