REDACTED_J&A.pdf

Program/Item: Maintenance for Ingersoll Gantry Machining Center

Estimated Dollar Value: $450,000 Control Number:

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. CONTRACTING AGENCY: U.S. Department of the Army, Directorate of Contracting, Anniston Army Depot, Anniston, AL 36201-4199

2. DESCRIPTION OF ACTION: A solicitation resulting in a contract with Ingersoll Machine Tool Inc. to whom the solicitation will be restricted. The proposed contract is for unlimited on-call emergency repairs and an annual complete geometrical alignment of the Government owned Ingersoll Gantry Machining Center, Serial number 26930, Barcode Number G9225, AAP Number CD140019-0, located in Building 400. The proposed contract is for a one-year period and will include a provision for four option years. The estimated annual budgeted cost of the services is to be $90,000.00 per year for an estimated total of $450,000.00 for five years.

3. DESCRIPTION OF SUPPLIES/SERVICES: Provide on-call emergency service and annual geometrical alignment.

4. AUTHORITY CITED: 10 U.S.C. 2304(c)(1) - Only one responsible source as authorized by FAR 6.302-1.

5. REASONS FOR AUTHORITY CITED: As described in FAR 6.302-1(a)(2), procurement by other than Full and Open Competition is necessary because the Ingersoll Machine Tools Inc. (formerly Ingersoll Milling Machine Company) retains the proprietary rights to all technical, design and software data required to performnecessary repairs, alignments, and software licenses. The company known as Ingersoll Milling Machine Company filed for bankruptcy in April 2003. The company and all its intellectual property rights was purchased by IMTA Inc. and renamed to Ingersoll Machine Tools. The Ingersoll Milling Machine Company was the Original Equipment Manufacturer (OEM) of the machine. The Ingersoll CNC machine is a highly specialized gantry machining center, large enough to accommodate the U.S. Army M1 Abrams main battle tank and other armored combat vehicles. The machine and its accessories were designed and built by Ingersoll for Anniston Army Depot (ANAD) to meet ANAD’s mission requirements. There are six specialized Auxiliary Spindle Units (ASU) interfaced with the machining center to provide a computer aided manufacturing cell. These ASUs are highly specialized pieces of equipment built by Ingersoll. The technical/design data and software source code that would have to be provided to another source to perform this work is proprietary in nature. More importantly, Ingersoll holds all proprietary rights to the technical/design data and software source code for the equipment and will not delegate those rights or release the proprietary information to other sources. They have successfully performed these services on this machine in previous contracts.

6. EFFORTS TO OBTAIN COMPETITION: This procurement action will be synopsized in the Commerce Business Daily stating the intent to negotiate only with the Ingersoll Machine Tool Inc. and to encourage any firm that recognizes these items/services and can provide supporting evidence, including written permission from Ingersoll Machine Tool Inc. to use any proprietary data needed to perform the service described in the specification, to identify themselves. All qualified offerors will be considered. However it is determined that Ingersoll will retain all proprietary data for it’s own use and not release any technical data. Ingersoll has stated in a letter dated 10 October 2013 (attached) that they will not release any information regarding this piece of equipment to others and will retain ownership of their technical data. Also attached, a letter from the new Ingersoll Machine Tools Inc. stating that they now have ownership of all the intellectual property rights formerly owned by the Ingersoll Milling Machine Co.

7. ACTIONS TAKEN TO INCREASE COMPETITION: We will continue to conduct industry surveys to determine if there are developed products and services which meet the requirements for this type of service. All possible vendors must have written permission from Ingersoll Machine Tools stating that they can have access to Ingersoll Machine Tools proprietary data. Access to this data is required to properly service and maintain the equipment.

8. MARKET SURVEY: Ingersoll has been contacted and asked if they would consider releasing technical/design data. Ingersoll responded in a letter dated 10 October 2013 (attached) that they will not release any information regarding this piece of equipment to others and will retain ownership of their technical data. The letter also stated the data that was provided with the machine is for ANAD maintenance and operation only and shall not be divulged to others. The market survey has revealed that no other vendor has the capability to perform this service due to the highly specialized nature of the Ingersoll machine and the proprietary technical, design and software data.

9. INTERESTED SOURCES: To date no other sources have expressed an interest in writing. Additionally, the synopsis in the CDB, explained in paragraph 6 above, will be used to identify any other qualified vendors.

10. OTHER FACTORS:

a. Previous History

Procurement Contracts

Contract: DAAC01-87-C-0082, Machine Procurement Contractor: Ingersoll Milling Machine Company Competitive Status: Full and open competition Award Date: 17-Feb-91

Contract: DAAC01-93-C-0010, ASU Procurement Contractor: Ingersoll Milling Machine Company Competitive Status: Other than full and open competition Award Date: 30 March 1993

Contract: DAAE24-99-C-5022, Control Retrofit Contractor: Ingersoll Milling Machine Company Competitive Status: Other than full and open competition Award Date: 7 June 1999

Maintenance Contracts

Contract No: DAAC01-90-P-2898, Maintenance (1-Oct-90 to 31-Dec-90) Contractor: Ingersoll Milling Machine Company

Award Date: 29 September 1990

Contract No: DAAC01-91-P-0967, Maintenance (11-Feb-91 to 30-Sep-91)

Award Date: 8 February 1991

Contract No: DAAC01-92-C-0050, 1-Year Maintenance

Competitive Status: Other than full and open competition Award Date: 31 August 1992

Contract No: DAAC01-94-C-0008, Maintenance (1-Dec-93 to 03-Nov-97) Contractor: Ingersoll Milling Machine Company

Award Date: 24 November 1993

Contract No: DAAC01-97-P-0418, Maintenance (1-Dec-97 to 30-Nov-98)

Award Date: 1 Dec 1998

Contract No: DAAE24-99-C-5028, Maintenance (1-Dec-99 to 30-Nov-04)

Award Date: 29 Sep 1999

Contract No: W911KF-09-C-0004, Maintenance (9-Feb-09 to 8-Feb-14)

Competitive Status: Other than full and open competition Award Date: 9 Feb 2009

Contract No: W911KF-14-C-0006, Maintenance (4-Feb-14 to 3-Feb-19) Contractor: Ingersoll Milling Machine Company

Award Date: 4 Feb 2014

b. Duplicate Cost/Effort:

(1) One duplication of cost would be to replace the Machining Center.

The procurement cost in 1993 was $6,732,045.00. The current estimated replacement cost as stated on the Army eFEM equipment record is $13,684,834.00

(2) Another duplication of cost would be to pay another source to do the research and development to repair and alignment procedures for a machine that they have no previous knowledge of. A cost and duration of this effort will be difficult to estimate due to the highly specialized nature of the machining center. ANAD has in the past established maintenance agreements with Ingersoll. Having another source perform the retrofit would hinder the timely resolution of maintenance issues causing delays in production.

11. TECHNICAL CERTIFICATION: “I certify that the supporting data under my cognizance which are included in the J & A are accurate and complete to the best of my knowledge and belief.”

NAME: DATE:

TITLE: SIGNATURE:

12. REQUIREMENTS CERTIFICATION: “I certify that the supporting data under my cognizance which are included in the J & A are accurate and complete to the best of my knowledge and belief.”

NAME: DATE:

TITLE: Chief, Equipment Support Division SIGNATURE:

13. FAIR AND REASONABLE COST DETERMINATION: I hereby determine that the anticipated cost or price 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 service.

14. ACQUIRING CONTRACTING OFFICER CERTIFICATION: “I certify that the supporting data under my cognizance which are included in the J & A are accurate and complete to the best of my knowledge and belief.”

NAME: DATE:

TITLE: Contracting Officer SIGNATURE:

APPROVAL

Based on the foregoing justification, I hereby approve the purchase of On-Call Emergency Repairs and Inspection/Alignment for Ingersoll Gantry Machining Center on an other than full and open competition basis pursuant to the authority of 10 USC 2303(c)(1), subject to the availability of funds, and provided that the services and property described herein have otherwise been authorized for acquisition.

NAME: DATE:

TITLE: Contracting Officer SIGNATURE:

Control Number: 14-0001