JandA_WVA_Hartchrom_Redacted.pdf

CMO Control #: 2012-122 10 USC 4544, Chrome Plating Service at Watervliet Arsenal

DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Army Contracting Command, Warren (ACC-

WRN)(WVA), Watervliet, New York, 12189

2. Description of Action: Under a Facilities Use/Tenant Use Agreement with the Arsenal Business & Technology Partnership (AP), Hartchrom Inc. of Al-bany NY (Hartchrom Inc.) has possession of Watervliet Arsenal’s (WVA) chrome plating facility. As a result of this tenant use agreement, the Govern-ment will award a new firm-fixed price service contract to Hartchrom to chrome plate cannon tubes in support of WVA production mission using Army Working Capital Funds (AWCF). The term of this contract is anticipated for 1 base-year period plus two 1-year option periods to be exercised at Govern-ment discretion.

3. Description of Services: Surface chrome plating services from Hartchrom

Inc. to chrome-plate WVA machined cannon and mortar tubes and associated components to

The total estimated value of this contract including all options is $15 Mil-lion.

4. Authority Cited: Authority Cited: 10 U.S.C. 2304(c)(3), Industrial Mobiliza-tion, as authorized by FAR 6.302-3.

5. Reason for Authority Cited:

a. As described by FAR 6.302-3(a)(2)(i), it may be appropriate, when necessary, to keep vital facilities or suppliers in business or make them available in the event of a national emergency.

b. WVA is the United States Army’s only fully integrated cannon man-ufacturing facility. The WVA manufactures major items, secondary items, repair parts for cannon and cannon-related hardware, towed and self-propelled artillery, recoilless rifles, mortars, and other re-lated ordnance.

c.

d. 10 USC 4544 is the current legal authority for performance of work by a non-Army entity at the facility, or performance of work by the facility for the entity, or sharing of work.

e. To reduce operation costs, WVA relied on the 10 USC 4544 prede-cessor to aggressively pursue commercial tenants interested in uti-lizing portions of the installation for commercial and/or military pur-poses. The contract with Hartchrom to chrome plate cannon tubes was one of the prototype private/public partnership contracts.

f. Under the authority of 10 USC 4544 and its predecessor, WVA pro-vides under-utilized assets to the Arsenal Business and Technology Partnership (ABTP), a not-for-profit entity, to market for pri-vate/public partnership development. Under this public/private pro-totype arrangement, Hartchrom entered into a long term, 20 year lease for exclusive use of the ~32,500 sq. ft. WVA chrome plating facilities. At the same time, Hartchrom entered into a contract with WVA to chrome plate cannon tubes.

g.

h.

i.

k. Awarding this contract to any other contractor would be contrary to the intent of 10 USC 4544. WVA entered into the Hartchrom con-tract to reduce operating costs by having a contractor perform the necessary tasks and then use the chrome plating assets for com-mercial purposes.

l. Finally, as indicated above, Hartchrom has a long-term exclusive use lease for the WVA chrome plating facility. To award this con-tract to another entity, Army Contracting Command Warren (ACC- WRN) (WVA) would have to either terminate that exclusive use agreement with Hartchrom and pay extensive termination costs, or award to another contractor with its own chrome plating facility. In either case, the costs would be prohibitive, due to duplication that would not be expected to be recovered due to competition.

6. Efforts to Obtain Competition: This action will be synopsized in the

FedBizOpps; however, due to Hartchrom’s long-term tenant use agreement gaining additional competition is not currently possible.

7. Actions to Increase Competition: Due to the Tenant Use Agreement, Hartchrom Inc. has possession / utilization of the chrome-plating facilities. In order for WVA to continue production of cannon tubes, the chrome-plating process must continue to be performed at the current location that Hartchrom Inc. occupies.

8. Market Research: Market research was performed via the Internet to identify prospective contractors, using an industry specific search engine for chrome-plating companies in the State of New York and surrounding area.

9. Interested Sources: At this date, no other firms have expressed written inter-est in utilizing the chrome plating facility at WVA.

10. Other Factors:

Past Procurement History:

Contract: W911PT-08-D-0001 Contractor: Hartchrom Award Date: 29 May 2007

Competitive Status: Non-Competitive Authority: 10 U.S.C. 2304(c)(3) Control Number: 07-06

Contract: DAAA09-02-D-3013 Contractor: Hartchrom Award Date: 1 September 2002

Competitive Status: Non-Competitive Authority: 10 U.S.C. 2304(c)(3)

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.

Typed Name: Raymond Gaston Signature: //s// Raymond Gaston Title: Chief, Production, Planning & Control Division Date: 12 March 2012

Requirements Certification: I certify that the supporting data under my cogni-zance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name: Thomas E Pond Signature: //s// Thomas Pond Title: Acting/Director of Operations Date: 14 March 2012

Fair and Reasonable Cost Determination: I hereby determine that the antici-pated cost for this contract action will be fair and reasonable based on cost/price analysis and required DCAA audit. Certified cost and pricing data will be re-quired.

Typed Name: James A. Denison Signature: //Signed// Title: Contracting Officer Date: March 14, 2012

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

Typed Name: James A. Denison Signature: //Signed// Title: Contracting Officer Date: March 14, 2012

Approval

Based on the foregoing justification, I hereby approve the procurement of Chrome-Plating Services for a period of 1 year with 2 option years, at an esti-mated value of $15,000,000 on an other than full and open competition basis pursuant to the Delegation of Authority 10-04 and the authority of 10 U.S.C.

2304(c)(3), as implemented by FAR 6.302-3, subject to the availability of funds, and provided that the services and property described herein have otherwise been authorized for acquisition.

Date:_13 Jun 12______ Signature: ____________________

HARRY P. HALLOCK

Principal Assistant Responsible for Contracting