Okuma_JA_for_Anniston_2017-121-signed_-_Redaction.pdf

For Official Use Only (FOUO)

DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. CONTRACTING ACTIVITY: U.S. Department of the Army, Directorate of

Contracting, Anniston Army Depot, Anniston, AL 36201-4199

2. DESCRIPTION OF ACTION: Anniston Army Depot intends to award a new fixed price contract to Morris South in Birmingham, AL. The proposed contract is for unlimited on-call emergency repairs and an annual complete geometrical alignment of Government owned Okuma CNC Machine Tools located at Anniston Army Depot. The proposed contract will include a base year with two option years using Army Working Capital Funds (AWCF).

3. DESCRIPTION OF SUPPLIES/SERVICES: Provide on-call emergency service and annual geometrical alignment of various Governments owned Okuma CNC Machine Tools here at Anniston Army Depot (ANAD). The total estimated value for the base year will be $267,970. The total for base and two option years will be approximately $837,152.

4. AUTHORITY CITED: The statutory authority permitting other than full and open competition is 10 United States Code (U.S.C.) 2304(c)(1) as implemented in Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(iii)(A), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

5. REASONS FOR AUTHORITY CITED: Okuma is the Original Equipment

Manufacturer (OEM) Okuma retains the proprietary rights to all technical, design, and software data required to perform necessary repairs, alignments, and software updates, only allowing companies that they certify to perform maintenance and repair. Morris South is the OEM’s distributor and maintainer of the machines at ANAD and they manage the warranties for this equipment for Okuma. Okuma will not delegate those rights or release the proprietary information to sources other than those certified by their company. The Okuma CNC machines are complex machine tools with 2, 3, 4, 5 and 6 axis capability to fabricate replacement parts and components for the U.S. Army M1 Abrams main battle tank and other armored combat vehicles. The machines, with associated tooling and accessories, are a vital requirement to meet ANAD’s mission.

Should the Okuma machine be serviced by a non-certified distributor, the warranty will be voided. If this repair and maintenance effort is not awarded directly to the certified company, Morris South, then the 19 Okuma CNC Machines at ANAD would become irreparable and would require replacement. This would cause an estimated duplication of cost of $15.2M in Then Year 2017 (TY17) dollars.

6. EFFORTS TO OBTAIN COMPETITION:

a. Effective Competition: For the reasons stated in section 5 above this procurement will not be competed.

Commented [MTMT1]: OPSEC, reveals equipment vulnerability

b. Subcontracting Competition: Morris South is not a Small Business and will submit a subcontracting plan in response to the solicitation.

7. ACTIONS TO INCREASE COMPETITION: We will continue to conduct industry surveys of other vendors to determine if they have developed products and services which meet the requirements for the repair and maintenance of Okuma equipment. All vendors must have written permission from Morris South stating that they can have access to Okuma proprietary data. Access to this data is required to properly service and maintain this equipment.

8. MARKET RESEARCH: During the package preparation phase, the current vendor, Morris South, was contacted. They have provided a letter stating they are an authorized service provider of the OEM (Okuma). In addition, a Request for Information (RFI) was publically released on 25 August 2017 seeking sources for this effort. It closed on 1 September 2017. Two responses were received from this effort. The two vendors who responded were Tec-Masters and RV Global Solutions Inc. Both were found to be incapable of performing the work due to the lack of documentation showing that they are authorized by the OEM to perform work on their proprietary systems.

9. INTERESTED SOURCES: To date no other sources have expressed interest except those in section 8 above. A synopsis will be provided with the provided in accordance with FAR 5.201.

10. OTHER FACTORS:

a. Previous History: Procurement Contracts

Contract: W911KF-10-C-0012 Machine Procurement Contractor: P.M.C.

Competitive Status: FAR 6.302-1(a)(2)(iii) “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements” Award Date: July 1, 2010

Contract: W911KF-12-C-0004 Machine Procurement Contractor: Morris South Competitive Status: FAR 6.302-1(a)(2)(iii) “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements” Award Date: March 28, 2012

Contract: W911KF-12-C-0006 Machine Procurement Contractor: Morris South Competitive Status: FAR 6.302-1(a)(2)(iii) “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements” Award Date: March 27, 2012

Contract: W911KF-12-C-0017 Machine Procurement Contractor: Morris South

Competitive Status: FAR 6.302-1(a)(2)(iii) “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements” Award Date: June 21, 2012

Contract: W911KF-11-C-0006 Machine Procurement Contractor: Morris South Competitive Status: Small Business Set Aside Award Date: February 28, 2011

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.

Signature & Date: a/s/ Garry L. Hathorne (digitally signed version in PCF) Name: Garry Hathorne Title: Mechanical Engineering Technician

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.

Signature & Date: a/s/ Brian M Anderson (digitally signed version in PCF) Name: Brian Anderson for Mark Johnson Title: Chief, Equipment Support Division

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.

Basis for determination: Compared the effort IGCE to previous contract costs as well as to the cost analysis to replacement equipment. Certified cost and pricing data will not be required due to the exception listed in FAR 15.403-1(b)(3).

Signature & Date: a/s/ Morris T Gaddy (digitally signed version in PCF) Name: T. Morey Gaddy Title: Contracting Officer

14. Contracting Officer Certification:

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

Signature & Date: a/s/ Morris T Gaddy (digitally signed version in PCF) Name: T. Morey Gaddy Title: Contracting Officer

APPROVAL

Based on the forgoing justification, I hereby approve the procurement of a non-personal service agreement for Annual Alignment and On-Call Emergency Repairs of Okuma CNC Machine Tools contract, on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(1),as implemented by (FAR) 6.302-1(a)(2)(iii)(A), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements” provided that the services and property herein described have otherwise been authorized for acquisition. The total estimate dollar value for this procurement is $837,152.

X LaRuth Shepherd

Competition Advocate