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Control No: (left blank until number is assigned by Competition Advocate in DOC)

Justification and Approval for Other Than Full and Open Competition Justification

1. Contracting Activity: Army Contracting Command – Warren ACC-WRN (ANAD)

2. Description of Action: Approval is sought in support of the issuance of a solicitation on a sole source basis to Vinyl (Vytek) Technologies, Fitchburg, MA, for laser engraving instrumentation systems (4 ea.). A Firm Fixed Price contract will be awarded to Vytek to purchase this sole source product. The period of performance for award is May 2015.

FY15 PA/WTCV will be used for this procurement action.

3. Description of Supplies/Services: Vytek will furnish and deliver portable laser engraving system with Input Power of 120V ac, 10A, 50/60Hz, FC-Compact with Proseries Scan Head Model # 61710PS1XY2-S4. Portable laser engraving system with Input Power of 120V ac, 10A, 50/60Hz. Total procurement quantity is of four (4) each total value $198,370.00.

4. Authority Cited: The statutory authority permitting this action is 10 U.S.C.

2304(c)(1), as implemented by FAR 6.302-1(a)(2”Only One Responsible Source and No Other supplies or Services Will Satisfy Agency requirements.” Specifically, FAR 6.302- 1(a)(2)(ii)(A).(See 10 U.S.C. 2304(d)(1)(A) and 41 U.S.C. 253(d)(1)(A).) Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in (A) substantial duplication of cost to the Government that is not expected to be recovered through competition, or (B) unacceptable delays in fulfilling the agency’s requirements.(See 10 U.S.C. 2304(d)(1)(B) or 41 U.S.C.253(d)(1)(B).)

5. Reason for Authority Cited: As described in 10 U.S.C. 2304 (c) (1) as authorized by FAR 6.302-1 “Only one or limited responsible source and no other suppliers or services will satisfy our requirements” is justified because Anniston Army Depot has a requirement for laser engraving M4 Carbine aluminum lower receivers in support of the M4 Product Improvement Program (PIP). In order to meet DA goals and schedules, the M4 PIP mission will double its rate starting in 3QFY16 thus the requirement for additional laser engraver systems. The M4 Carbine lower receiver is the serialized component of the weapon and it is imperative that dependable equipment is utilized to engrave the lower receivers. Vytek is the exclusive distributor of the FC-Compact with Proseries Scan Head Model # 61710PS1XY2-S4. Product Manager Individual Weapons (PM IW) has already invested $111,890 with the existing Vytek laser engraving systems. These costs are associated with approximately 812 hours of training including time spent putting together training guides, Operator’s manuals, maintenance guides, and Standard Operating Procedures (SOPs), as well as other external equipment. Additionally, $12,000 has been invested in fixtures and mounting devices to hold the weapon’s lower receiver in-place that were specifically designed and manufactured by the USG to integrate with the Vytek laser engraving system described. The fixtures and mounts were machined in order to fit the design of the current lasers, therefore, any model number change or change in laser engraver supplier would require redesign of the mounts, re-training, new support materials, knowledge and troubleshooting of two different systems, as well as additional cost. These costs are not expected to be recovered through completion. TACOM and Anniston Army Depot also have an urgency of need to ensure the laser machines are received NLT the end of CY2015 in order to ensure the team has sufficient time to complete all programming and set-up requirements prior to operational use starting 3QFY16. The laser engravers are required to complete the M4 PIP Modification Work Order (MWO) for a quantity of up to 483,000 carbines, completing up to 8,000 markings per month at various unit installations across the United States. It is critical the laser engraving machines are delivered by the required delivery date. Any delay beyond the required date will have significant, negative impacts on the Army’s readiness posture by leading to delays in modifications of the weapons that provides the most reliable, and maintainable weapons system to the Soldier.

Delayed fieldings will cause a total cost of $137,402.70 per month (to include personnel, travel and labor). New personnel and all training materials for new equipment will cost an additional $13,217.46 for 17 personnel. $12,000 for fixtures and mounting devices plus $137,402.70 (per month) for money loss for delayed fieldings plus $13,217.46 for new personnel and training materials plus an additional $137, 402, 70 for every month thereafter. The total overall impact of cost as delineated above equate to $274,510.16.

Further, an additional monthly added expense of $137,403 for each month resulting from delayed fieldings for the time it will take to adapt to different machinery. It is believed to be in the best interest and most cost effective manner for the Government to proceed with a sole source acquisition.

6. Efforts to Obtain Competition: A competitive, commercial procurement was awarded to Vytek for the initial procurement of lasers. No further efforts for competition are being completed for this procurement based on the expected duplicated costs mentioned above that would be incurred should another manufacturer’s machine be utilized. Therefore, the government is seeking a sole source procurement to Vytek. Product Manager Individual Weapons (PM IW) has already invested $111,890 with the existing Vytek laser engraving systems. These costs are associated with approximately 812 hours of training, including time spent putting together training guides, Operator’s manuals, maintenance guides, and Standard Operating Procedures (SOPs), as well as other external equipment. Additionally, $12,000 has been invested in fixtures and mounting devices to hold the weapon’s lower receiver in-place that were specifically designed and manufactured by the USG to integrate with the Vytek laser engraving system described

7. Actions to Increase Competition: No action have been made to increase competition as this is a sole source procurement in an effort to avoid duplicate costs, as well as meet Department of the Army schedules.

8. Market Research: A price availability check was issued by TACOM WRN on 1 July 15 in which five (5) companies responded: Schmidt Marketing Systems one each 50 watt quoted at --------, Pinnacle Automation one each 30 watt quoted at --------, LNA Lasers Technology one each 50 watt quoted at -----------, Rofin Laser Markers one each 50 watt quoted at -----------, Vytek Laser Systems one each 50 watt quoted at -----------.Our findings show that Pinnacle Automation has the best price but not the wattage that is required. The three remaining Schmidt Marketing Systems, LNA Lasers, and Rofin Laser Makers are not cost effective.

9. Interested Sources: Vytek Laser Systems Fitchburg, MA 01420 Phone: -----------, LNA Laser Technology Pawtucket, RI Phone: ------------ Schmidt Marketing Systems Niles, IL 60714 Phone: ------------, Rofin-Baasel Plymouth MI 48170 Phone: ------------, Pinnacle Automation Waterford, MI 48329 Phone: ------------

10. Other Facts: Codesource has supplied several pieces of equipment for Anniston ArmyDepot over the years that supports requirements for production operations.

Equipment was obtained through Codesource as Sole Source for those purchases as well.

a. Procurement history. Reasonable efforts to retrieve the following items from computer records, contract files, competition advocate office files or other sources are expected:

(1) Contract numbers and dates of the last several awards.

A Firm-Fixed Price Competitive award for this type equipment was purchased under Solicitation Number W52P1J13R0031 to Vytek located in Fitchburg, MA. Contract Award Number W52P1J-13-P-0011 was awarded on April 12, 2013 for a purchase amount of $198,920.00

(2) Competitive status of these actions.

Competitive

(3) Authority previously used for less than full and open competition

N/A

(4) If a justification was prepared to support the procurement made before this one, a summary of the contents of paragraph 7 of the justification for that procurement and an explanation of the results.

N/A

(5) If any prior award was accomplished by full and open competition, a detailed explanation of the changed circumstances.

N/A

(6) An explanation of any unusual patterns which may be revealed by the history, e.g., several consecutive, urgent buys.

N/A

(7) If a justification was prepared to support the procurement made before this one, briefly describe the circumstances justifying the buy and whether there have been any significant changes.

Vytek is the only manufacturer of the FC-Compact Model # 61710PS1XY2-S4. The additional machines are required in order to ensure the modification of Army carbines can be fully completed within DA timelines. It is imperative the machines are received NLT CY2015 to ensure the TACOM/ANAD have adequate time to program and set-up machines and other required equipment (fixtures) in time for mission operations

b. Acquisition data availability. Explain why technical data packages, specifications, engineering descriptions, statements of work or purchase descriptions suitable for full and open competition have not been developed or are not available. Describe actions taken or planned to remedy this situation.

N/A

c. Unusual and compelling urgency. When FAR 6.302-2 is cited, provide data, estimated cost or other rationale to explain the nature and extent of the injury to the Government. If the delay associated with the requirement for first article testing is the principal reason for not awarding the contract on a full and open basis, clearly describe the reasons that first article testing is required on this procurement and why other means of assuring quality are not being used.

N/A

d. Subcontracting competition. In single source situations, address efforts to be taken by the Government to assure that the prime contractor obtains as much competition as possible in its subcontracting.

N/A

11. Technical 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.

Name: Signature: //S// Title: Date:

12. 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.

Title: Date:

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. Determination was made using an independent government estimate to determine a fair and reasonable price. As part of this basis, the certified cost or pricing data will not be required due to the exceptions in FAR 15.403 based on procuring a commercial item.

Title: Contracting Officer Date:

14. Contracting Officer Certification: This certification shall be made by the contracting officer who will sign the contract resulting from this justification and approval.

Include the following statement:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Title: Contracting Officer Date:

COORDINATION:

Competition Advocate (DOC) Signature: //S// Date:

Legal Officer Signature: //S// Date: