SSJ_Redacted.pdf

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

March 2023 Page 2 of 6March 2023 Page 2 of 6

This Sole Source Justification (SSJ) is to request authority for Other Than Full and Open Competition supporting requirements generated for the 402 Commodities Maintenance Group (CMXG). The contracting activity for this requirement is Air Force Sustainment Center (AFSC)/PZIMA. The purchase request number supporting this contracting action is:

L5WC25.

Due to the circumstances described herein, the activity requests authority to acquire a lathe using Other Than Full and Open Competition as prescribed by 10 U.S.C. 3572, Implementation of Simplified Acquisition Procedures (41 U.S.C. 1901). This acquisition will result in the award of a new contract which will be Firm Fixed Price with the delivery to be 14 days ARO.

This (sole source) requirement will be purchased from the following vendor:

Vendor:

Ellison Technologies

OEM:

DN Solutions, LLC

This is a new commercial requirement. The Contractor shall provide all the tools, parts, materials, equipment, labor, transportation, training, and installation necessary to provide a PUMA2600LYB-II to the Commodities Maintenance Group (CMXG), in building 140 CNC Shop at Robins Air Force Base (AFB), Georgia.

The nominal Contract Line Item Numbers (CLINs) structure is as follows:

CLIN NOUN COST QTY U/I Unit Price Total Est Cost 0001 Equipment FFP 1 EA 0002 Tooling FFP 1 EA

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

March 2023 Page 3 of 6March 2023 Page 3 of 6

0003 Incidental Services FFP 1 EA

0004 CDRLS A001-A004 NSP 1 EA

Total:

DAFFARS 5313.501 - 10 U.S.C. 3572, Implementation of Simplified Acquisition Procedures (41 U.S.C. 1901)

This is an urgent sole source, commercial requirement to purchase a new lathe to replace unrepairable Hardinge lathe. The 402d Commodities Maintenance Group needs a CNC Lathe urgently as the existing Hardinge lathe is unrepairable. This leaves the CNC shop with a single lathe and work stoppage because it cannot handle all the current workload. Also, there is now a single point of failure.

If current lathe goes down, then we are at a complete work stoppage.

Currently several jobs are being held up due to lack of second working lathe as of 15 November 2024 and future jobs are projected to lapse. These jobs include:

Production is severely impaired due to the non-functioning lathe and on the verge of causing work stoppage. Labor hour costs for the work stoppages are approximately per month.

The current lathe is 18 years old with no traceable contract to disclose.

Contractor shall deliver the lathe 14 days ARO. Contractor will schedule maintenance and operator training with government POC after installation.

Due to the urgency of this purchase, only one contractor can provide the PUMA Lathe and competing this requirement would cause further production delays and the costs associated. This involves urgent and compelling circumstances. The CNC shop currently standardizes Fanuc controllers, so acquiring the puma lathe will minimize additional maintenance, training, programing and spare parts inventory.

It will also eliminate the need for a new post processor to convert Catia program files to the machine's native language. This lathe has also been verified to meet all of 402 CMXGs needs while competing brands fail to meet requirements in one or more areas (i.e.

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

March 2023 Page 4 of 6March 2023 Page 4 of 6

Conversational draft angles). Puma lathes are already compatible with our current tooling catalog ). Due to urgency of need, Ellison Technologies has the fastest turnaround time for machine delivery.

Contractor: Ellison Technologies (Cage 0A316)

The vendor was evaluated for their capability and was determined capable due to Ellison Technologies having the fastest turnaround time for machine delivery.

The OEM DN Solutions, LLC is capable, however, they indicated that they cannot meet the 14 day turnaround time and therefore this would be considered an unacceptable delay.

The overall cost of this acquisition will be negotiated in accordance with procedures in FAR Part 12 and FAR 13.106-3(a)(2) and include a statement of price reasonableness confirming the ultimate price to the Government is fair and reasonable. Additional pricing methodologies to negotiate fair and reasonable price may include reviewing publicly offered catalogs, comparison to historical contractor sales, and/or analysis of limited cost or pricing information provided by the contractor. In the event that limited cost or pricing information is made available, the Government's negotiation objective will be developed using local technical analysis and direct and indirect rate factors recommended by the Defense Contract Management Agency.

Market Research was conducted 17 Dec 2024 to 30 Dec 2024 in accordance with FAR Part 10.001 and

10.002. The Market Research Report was completed on 16 Jan 2025. The market research techniques used are as follows:

Market research was performed reviewing Dynamic Small Business Search (DSBS) and System for Award Management (SAM).Gov databases using North American Industry Classification System (NAICS) Code 333517, Machine Tool Manufacturing and keyword lathe looking for companies that could provide the PUMA Lathe. A review of small businesses to include 8(a), HUBZone, Service- Disabled Veteran Owned Business, and Women Owned Small Business was conducted in search of a company that could provide a PUMA lathe. This query resulted in 6 small businesses (see attached DSBS Query). All these small businesses offered machining service and not selling the lathe itself. In addition, GSA was also queried for any source that could provide the lathe which resulted in 2 small businesses and 1 large. The GSA vendor's lathes could not provide the PUMA lathe or similar product.

Mandatory Sources such as Ability One were considered but did not meet this requirement.

This will be awarded as a sole source contract due to the ability of the authorized vendor to deliver within an acceptable time frame and the capability of the equipment being offered (i.e., FANUC Controllers). The risks of further work stoppage are the main concern for the government. There were numerous vendors who could provide lathes; however, the lathes did not meet the requirement.

Competing brands fail to meet requirements in one or more areas (i.e. Conversational draft angles, FANUC controllers, etc.). The estimate provided by Ellison Technologies has not only provided the compatible lathe, they have the ability to deliver within 14 days after contract award.

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

March 2023 Page 5 of 6March 2023 Page 5 of 6

The lathe is considered a commercial item as defined in FAR 2.101. The lathe is used by both the military and the commercial aviation industry.

The market research concluded Ellison Technologies is the only vendor capable of fulfilling the Government's requirement. The OEM is not able to meet the 14 day delivery timeframe which is considered an unacceptable delay.

Primary NAICS: 333517, Machine Tool Manufacturing

Recommendation: Sole source to the following vendor:

Ellison Technologies

None.

See Section VI above.

The Government is unable to compete this effort without the Government suffering significant financial harm and potential work stoppages of second machine. The current plan to remove or overcome barriers to competition is to assess the current state of the lathes and replace at a time when there will be sufficient time to compete in the future.

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.

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.

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

March 2023 Page 6 of 6March 2023 Page 6 of 6