Vertical Machining Center - JA Redacted.pdf

ACC-WVA

CMO Control Number: 2024-009

ACC-WRN FT 4293, 03 MAY 2018 Previous Edition is Obsolete Page 1 of 5

DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL FOR

OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Army Contracting Command – Watervliet Arsenal (ACC-WVA) is the contracting activity for this action.

2. Description of Action: This action is for a new firm fixed price (FFP) type contract with DMG Mori, DMG Mori Erie, 2400 Huntington Blvd., Hoffman Estates, IL 60192;

CAGE CODE 5FPN0; UEI # T6WMFHV6QN64, for the purchase, installation, and requisite training (operation and maintenance) for 1 DMU 85 monoBLOCK 5 axis vertical machining center. Contract number W911PT23P0179 was awarded on 20 September 2023.

3. Description of the Supply or Service Purchased This action is for a new firm fixed contract for one DMG Mori DMU 85 monoBLOCK 5 axis vertical machining center. This machining center will be factory-configured at Combat Capabilities Development Command- Armaments Center (CCDC AC) Benet Labs with manufacturing process and technology

The total award amount is $1,383,915.00.

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 USC 3204(a)(2), as authorized by FAR 6.302-2, “Unusual and Compelling Urgency.”

5. Reason for Authority Cited: As described in FAR 6.302-2, procurement by other than full and open competition is necessary to expedite this requirement. Per the Statement of Urgency from the Watervliet Arsenal (WVA) Program Management Division, Currently WVA is short on machining centers

ACC-WRN FT 4293, 03 MAY 2018 Previous Edition is Obsolete Page 2 of 5

Under normal procurement procedures using full and open competition, the standard Procurement Acquisition Lead Time (PALT) for this type of material would be 150 days. It would then take 356 days for delivery based on prior purchases of the similar machine from the contractor, totaling 506 days. Awarding to DMG Mori under urgency decreased the PALT to 43 days and delivery is 308 days, totaling 351 days, a decrease in 155 days.

That does not include any pre-award survey that would be required from any contractor who has not produced this item which would increase the lead time.

Additionally, WVA employees are already trained on DMG Mori machining centers because there are several currently used at WVA. Based on the past procurements, a delay of 2-3 weeks would occur for each of the manufacturing, maintenance, and planning departments if a different machine was procured to allow for additional training and familiarization of the new system, delaying normal operations by 6-9 weeks.

6. Efforts to Obtain Competition:

a. Effective Competition: Competition will be restricted to DMG Mori in this instance as it is the only manufacturer who can and are willing to provide a machining center on an expedited basis. Due to the urgency of this requirement, a synopsis and publication in the System for Award Management (SAM) will be waived in accordance with FAR 5.202(a)(2).

b. Subcontracting Competition: DMG Mori is a large business and submitted a subcontracting plan that is incorporated into the award, which included all the required clauses.

7. Actions to Increase Competition: Due to the urgency and demand for these cannons, no competitive procurement will be issued at this time.

8. Market Research: Market research was completed by a Benet Laboratory Mechanical Engineer on 11 September 2023. The techniques used were general knowledge acquired in the workplace, contact with knowledgeable people in the government and industry, use of source lists for identical or similar items, and review of catalogs. This includes attending the IMTS2022 and EASTEC2023 conferences. As a result, it was determined

ACC-WRN FT 4293, 03 MAY 2018 Previous Edition is Obsolete Page 3 of 5 there is one manufacturer capable of providing the vertical machining center that meetings the spec, DMG Mori. Additionally, the contract specialist completed market research by reviewing past procurements for the same item.

9. Interested Sources: No other sources were solicited due to urgency.

10. Other Facts:

Procurement History:

a) Procurement History:

1. Contract Number: W911PT23C0014 Award Date: 26 May 202 Nomenclature: Horizontal Machining Center Deliverable: 2 Each: DMG Mori Horizontal Machining Center, Model NHX-8000 Total Price: $5,472,378.00 Contractor: DMG Mori Federal Services Inc.

Competitive Status: FAR 6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements”, FAR 6.302-1(a)(2)(ii), Supplies may be deemed to be available only from the original source in the case of a follow-on contract. Specifically, FAR 6.302-1(a)(2)(ii)(A) Substantial duplication of cost to the Government that is not expected to be recovered through competition.

2. Contract Number: W911PT-21-C-0011, CLIN 0001 Award Date: 30 September 2021 Nomenclature: Horizontal Machining Center & Multi task milling Deliverable: DMG Mori NHX-8000 Horizontal Machining Center Price: $1,659,031 Contractor: DMG Mori USA, Inc.

Competitive Status: Sole Source Authority Cited: FAR 6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements”, FAR 6.302-1(a)(2)(ii), Supplies may be deemed to be available only from the original source in the case of a follow-on contract. Specifically, FAR 6.302-1(a)(2)(ii)(A) Substantial duplication of cost to the Government that is not expected to be recovered through competition.

3. Contract Number: W911PT18D0002 Award Date: 31 May 2018 Nomenclature: DuoBlock machining centers Deliverable: 12 each DMG MORI DMC 125FD DuoBLOCK machining centers Price: $25,410,000.00 Contractor: DMG Mori USA, Inc.

Competitive Status: Full and Open Competition. Only one offer received.

No unusual patterns have been revealed by a review of the procurement history.

ACC-WRN FT 4293, 03 MAY 2018 Previous Edition is Obsolete Page 4 of 5

4. Contract Number: W911PT-14-P-0141

Award Date: April 2014 Nomenclature: Horizontal Machining Center Deliverable: DMG Mori NHX-5000 Horizontal Machining Center Price: $2,324,350 Contractor: BOLDT Machinery, INC.

Competitive Status: Full and Open Competition

While this procurement was handled utilizing full and open competition, due to this initial investment and the facts detailed in the FY21 J&A and stated above, there would be substantial savings in terms of cost and duplication of effort to proceed with a sole source award for future procurements.

11 / 12. Technical Certification/ Requirements Certification: I certify that the supporting data under my cognizance, which are included in this J&A, are accurate and complete to the best of my knowledge and belief.

Name: Jason Foglietta Jr. Date: 11/16/2023 Title: Branch Chief MPD&I Signature: //signed//

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 based on the Independent Government Estimate. The Contractor will not be required to submit certified cost and pricing data because the proposed action will be a commercial procurement IAW FAR 15.403-1(b) (3).

Typed Name: Lauren Scripps Date: 28 Sept 2023 Title: Contracting Officer Signature: ///signed//

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

Typed Name: Lauren Scripps Date: 28 Sept 2023 Title: Contracting Officer Signature: //signed//