SSJ - Okuma.pdf

Single Source Justification (Simplified Acquisition)

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 1 of 2

Section A: General Contract Information

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

Contracting Activity: OL:H/PZIMB

Project/Program Name: #7988 Rebuild Okuma Spindle

Purchase Request/Identification Number:

Estimated Contract Cost (including Options): $40,810.00

Section B: Description of the Supplies/Services Required

The requirement is for the 309th Maintenance Support Group (MXSG) and 309th Commodities Maintenance Group (CMXG) at Hill Air Force Base (HAFB) to provide a one-time service contract to evaluate, diagnose, repair and calibrate the Okuma CNC Machining Center model number: 0P3Z6 (PM/Asset # 009463) spindle unit, in building 510, to original equipment manufacturer (OEM) specifications. CMXG runs the machines but MXSG provides the maintenance on the machines. The Contractor shall provide all services, labor, material, parts, equipment, tools, software, documentation, travel, and resources necessary to bring the Okuma CNC Machining Center to full functionality.

In terms of the potential sustainment life cycle, there is a not likelihood for follow-on requirements since this is a one time repair.

Section C: Justification for Soliciting from a Single Source or Brand Name

Okuma America Corporation is the OEM for the spindle. Due to the proprietary nature, no other sources other than those approved by the OEM can provide for these services. Okuma America Corporation has identified Hartwig, Inc. as the only authorized vendor to service, repair, refurbish, install, and calibrate the spindles on behalf of Okuma America Corporation

Okuma America Corporation strategically chooses to provide Sales and Service to Customers through Distribution. They only provide service through Authorized Distribution partners. Hartwig is the sole provider for Okuma factory Parts and Service in our area as verified per Okuma in a sole source letter we received on March 13, 2020.

Section D: Efforts to Obtain Competition

Due to the nature of the CNC machines sales market, this brand and most others are sold through exclusive distributors. These distributors are assigned a geographic area to sell and service machines. It would be necessary to replace the machines at the end of the service life with a different brand to change Contractors for service. Replacement could exceed 5 million dollars for the three (3) Okuma CNC machines. Once a brand is purchased, factory trained maintenance is only offered through the sole provider. As stated in the letter dated 13 Mar 2020 from Okuma.

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 2 of 2

Section E: Steps to Preclude Future Single Source or Brand Name Awards

Currently there are not any personnel on base that can provide technical operating and maintenance support for the Computer Numerically Controlled (CNC) Okuma machines located in Bldg 510 at HAFB. There are no organic personnel that can complete the required service. Unless Okuma authorizes more distributors in this area, Hartwig Maintenance Company is the sole provider for Okuma. Accordingly, Hartwig is the only company capable of providing the services described above without the U.S. Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition. The Government also cannot buy the data rights as Okuma only provides the data to authorized distributors.

Section F: Contracting Officer's Determination

I have determined, in accordance with FAR 13.106-1(b)(1), that the circumstances of this contract action deem only a single source is reasonably available.

Date

05-May-2020

Typed Name and Rank/Grade of Contracting Officer

Hideo Mera/ GS-12

Signature of Contracting Officer

March 2018 Page of Section A: General Contract Information Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan?

Section B: Description of the Supplies/Services Required Section C: Justification for Soliciting from a Single Source or Brand Name Section D: Efforts to Obtain Competition Section E: Steps to Preclude Future Single Source or Brand Name Awards Section F: Contracting Officer's Determination I have determined, in accordance with FAR 13.106-1(b)(1), that the circumstances of this contract action deem only a single source is reasonably available.

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