SSJ Haas Maintenance Jun 2021_Redacted.pdf

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

CONTROLLED UNCLASSIFIED INFORMATION

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NOTE: If a Justification was approved for the preceding acquisition, a copy of the approved Justification for the predecessor action must be included in the staff package for approval of the instant Justification. This applies to Justification staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor Justification will be used as a reference document by the approving official.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition: >SAT and < $750K > $750K and < $15M

Contracting Activity: 502d Contracting Squadron/JBKCA Joint Base San Antonio, TX 78150-4525

Purchase Request / Local ID Number: F3P3BD1099AW01

Program / Project (and PE, if applicable): N/A

Program Type (PEO or Other Contracting): Other Contracting

Authority: AFFARS 5313.501 - 10 U.S.C. 2302b, Implementation of Simplified Acquisition Procedures (41 U.S.C. 1901)

AFFARS 5313.501 - 10 U.S.C. 2304a, Special Emergency Procurement Authority (41 U.S.C. 1903)

Estimated Contract Cost (including options): $ Justification Type: Class Individual

COORDINATION ( AFFARS 5306.304(a))

Date

16 Jun 2021

Project Lead / Program Mgr / Requiring Activity

Signature

Date

23 Jun 2021

Installation Acquisition Flight Chief

APPROVAL (AFFARS 5306.304(a) )

Date Contracting Officer Vivian Fisher

502 CONS/JBKCA / 210-652-8596

Digitally signed by

FISHER.VIVIAN.1087

805529

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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I. Contracting Activity.

502d Contracting Squadron/JBKCA Joint Base San Antonio, Randolph, TX 78150-4525.

II. Nature and/or description of the action being processed.

Proposed sole source award to Phillips Corporation Federal Division (Phillips) for a new firm-fixed-price five-year Indefinite Delivery Requirements contract to provide Haas Automation (Haas) Machine Maintenance, and Calibration Services for the 502d Trainer Development Squadron (502 TDS).

III. Description of supplies/services required to meet agency needs.

The machines to be serviced are a critical component in the 502 TDS's unique and highly specialized mission to design, develop, create, and install complex devices used by flying, fighter, air mobility, technical, and aeromedical training operations throughout the AF and DoD, as well as partner Allied Nations (under Foreign Military Sales).

Under the contemplated contract, Phillips will provide five years (base + four ordering periods) of annual Performance Assurance (preventive maintenance) with Comprehensive Calibration Analysis, Reactive Services (unscheduled maintenance/repair) and Replacement Parts as needed for eight Haas machines (six Mills and two Lathes) and two Trunnion Rotary Table attachments.

Factory-trained technicians will conduct of all the major maintenance checks recommended by Haas to include Vibration Analysis, Drawbar Force Test, Geometry Inspection, and Renishaw Ball Bar Test.

O&M (3400) funds will be used for this effort. More than one fiscal year of maintenance is required as there is no feasible alternatives that the Government can use to promote competition during the anticipated 60 month period of performance.

The total estimated value of the acquisition is $ with a period of performance of 30 Sep 2021 through 29 Sep 2026 under the following contract line items:

Performance Assurance Reactive Services/Parts Total

CLIN 0001 CLIN 0002 (NTE)

Base Year

Year 1

Year 2

Year 3

Year 4

Grand Total

IV. Statutory authority permitting other than full and open competition.

AFFARS 5313.501 - 10 U.S.C. 2302b, Implementation of Simplified Acquisition Procedures (41 U.S.C. 1901).

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

This action is the re-procurement of an existing Phillips sole source repair/preventive maintenance contract to service

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

April 2021 CONTROLLED UNCLASSIFIED INFORMATION Page 3 of 4April 2021 CONTROLLED UNCLASSIFIED INFORMATION Page 3 of 4 the ten machines manufactured by Haas, a large business. Haas has designated Phillips, a small business, as the exclusive Government distributor of Haas machinery to include tools, parts, and associated factory certified services.

The estimated combined value of the existing machines is $ . The cost of replacing all the machines with new, to include shipping, slab prep, rigging, electrical, accessories, software, and training, is estimated to exceed

. Additionally it could take 7 personnel up to hours of training each to become fully proficient in the mechanics of any new machinery. Moreover the estimated hours of training would also result in a loss of at least 3,360 productive hours, a backlog of workload, and increase in overtime requirements. As Phillips is the only distributor, a repurchase of new machinery from manufacturers that have less restrictive dealership networks would be needed to facilitate competition. However, attempts to re-procure solely to obtain competition would cause unacceptable delays in fulfilling TDS's mission to design, develop, manufacture, and maintain training devices for AETC and other major commands. Finally, even new machines would at some point require routine maintenance and servicing to mitigate machine downtime, maintain machining accuracy, and maximize equipment life cycle.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

The acquisition will be publicized to the Governmentwide point of entry in accordance with FAR 5.201.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer will determine the anticipated cost to the Government as fair and reasonable by utilizing one or more of the price analysis techniques outlined in FAR 15.404-1(b).

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

FPDS-NG was searched for current and historical data specific to the maintenance of Haas machines, with results showing Phillips as the number one of the Top 10 Vendors for Haas machine maintenance. Additionally, a random review of awards for "mill" machine maintenance in general confirmed that OEMs (Original Equipment Manufacturers) usually limit the number of sources authorized to repair/maintain their machines. This preserves warranty terms, ensures the reliability and functionality of the equipment by certifying only those personnel who have been expertly trained in specific machine intricacies, and more importantly, secures the safety of the personnel responsible for operating the machines.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

N/A.

X. List of any sources that expressed, in writing, an interest in the acquisition.

Other sources were not sought due to Phillips being designated by Haas as the sole and exclusive provider of factory certified services.

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

Unless Haas terminates its exclusive dealer agreement with Phillips then future acquisitions for Haas preventive maintenance, parts, and repairs, will continue to be purchased through Phillips. Should Haas relax this agreement then the Government shall compete future acquisitions for similar requirements to all available resellers. Additionally, the Government will continue to evaluate future machinery acquisitions to ensure competition to the maximum extent practicable.

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.