Redacted_Limiting-Competition-under-SAT__5-30-18.pdf

Version – February 2017

Memorandum for Record – Limiting Competition at or below the Simplified

Acquisition Threshold

1. Contracting Activity: U.S. Army Contracting Command (ACC) – New Jersey, Joint Armaments, Picatinny Arsenal, NJ 07806-5000.

2. Description of Action:

Nature: New Requirement Follow-on Requirement

Contract Vehicle: Purchase Order Number __TBD_________________________

Blanket Purchase Agreement (BPA) Number _______________

Order/BPA# _______ against FSS Contract #_____ _________

Order #___________ against Multiple Award IDIQ Contract Name or #______________

Order #_______ against a single award IDC Contract

Modification # _______ to existing PO/TO/DO/Call Order

Pricing/Contract Type: Fixed Price Time & Materials/Labor Hours

Cost Reimbursable Hybrid

Funds: Operations & Maintenance, Army (OMA) Other Funds: ________

FY: RDT&E 2018-2019

Name of Proposed Contractor(s) and Address:

EOS of North America, Inc.

28970 Cabot Drive, Suite 700 Novi, MI 48377-2978

Brand Name Buy: Yes No

3. Description of Services or Supplies: The Armament Research, Development, and Engineering Center (ARDEC) Armament Software Engineering Center (SEC), requires multi-year service and maintenance support for an EOSM70 direct metal laser sintering machine, to ensure reliable and consistent operation to support mission requirements.

This acquisition will also include the option to purchase a refurbished Fiber Laser Model

YLR-200-SM-EOS.

Base Period: Twelve (12) Months from date of award Value: $ 40,500 Option Period 1: Twelve (12) Months from date of award Value: $ 38,500 Option Period 2: Twelve (12) Months from date of award Value: $ 36,500

Option Period 3: Twelve (12) Months from date of award Value: $ 34,500 Option to Purchase: Fiber Laser Model YLR-200-SM-EOS Value: $ 53,000

Total: $203,000

4. Authority:

FAR 13.106-1(b)(1): For purchases not exceeding the simplified acquisition threshold (SAT), only one source reasonably available, urgency, exclusive licensing agreements, brand name, or industrial mobilization.

5. Reasons for Authority Cited:

a. EOS of North America, Inc. (EOS) is the Original Equipment Manufacturer (OEM) of the EOSM270 machine requiring maintenance. As per letter received from EOS dated 1 December 2017, EOS does not authorize third parties to perform any service or maintenance on its equipment. All such work must be performed by authorized EOS personnel. The performance of any work on any EOS equipment by non-EOS personnel will void the equipment warranty. Therefore, EOS is the only responsible source considered for the upkeep and maintenance services of the EOSM270 direct metal laser sintering machine.

b. EOS is the only source that provides replacement parts for all the EOS equipment, emergency repairs and regular preventative maintenance. EOS does not use or authorize any third parties to perform service with these parts.

If this effort is not awarded to EOS, the Government expects to incur duplication costs of $710,000 to establish an equivalent capability. The duplication costs would consist of the purchase of a new laser machine, training for ARDEC employees on how to use the new laser, and a maintenance package for four (4) years.

Machine: $550,000 Training: $ 10,000 Maintenance: $150,000 Total Cost: $710,000

6. Publicizing Contract Actions: For FAR Part 13 actions, the public display and synopsis requirements of FAR 5.101 and FAR 5.203 do not apply due to the $ threshold, apply and will be followed, or do not apply due to an exception at 5.202.

7. Market Research: Market research performed confirms that the services required must be completed by EOS and that no third party contractors are authorized by EOS to maintain and service the equipment. Mandatory Sources of Supply, Federal Strategic

Sourcing Initiatives and Government Wide Area Contracts were reviewed via internet search and it was determined EOS does not have any pre-established Government contracts.

8. Other Facts: N/A

9. Technical/Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name: Matthew Clemente Date: May 7, 2018 Title: Mechanical Engineer Signature: // signed //

10. Legal Concurrence:

Typed Name: Peter Giella Date: 21 May, 2018 Title: Legal Counsel Signature: //signed//`

11. Contracting Officer Certification/Approval: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable based upon a price analysis between the proposed price and the Independent Government Cost Estimate (IGCE).

I certify that this justification is accurate and complete to the best of my knowledge and belief, and that completing this purchase as a sole source is in the best interest of the Government. Additionally, I approve this justification to limit competition subject to the availability of funds and provided that the services or supplies herein described have otherwise been authorized for acquisition.

Typed Name: Christina A. Makhijani Date: 21 May 2018 Title: Contracting Officer Signature: //Signed//