Limiting-Competition-under-SAT_ACC.docx

Control No: W45N7V919200O9

Memorandum for Record – Limiting Competition at or below the Simplified Acquisition Threshold

1. Contracting Activity: Army Contracting Command Redstone Arsenal Corpus Christi Army Depot, Contracting Office (CCAM-ALC), 9035 Ocean Dr., Bldg. 10, Mail Stop 18, Corpus Christi, TX 78419

2. Description of Action:

Nature: New Requirement

Order #_______ against a single award IDC Contract Modification # _______ to existing PO/TO/DO/Call Order #________________

Pricing/Contract Type: Fixed Price Time & Materials/Labor Hours Cost Reimbursable Hybrid

Funds: Operations & Maintenance, Army (OMA) Other Funds: Army Working Capital Funds (AWCF)

FY: 2019

Name of Proposed Contractor(s) and Address:

MSC Industrial Direct Co Inc. (Cage Code: 4J007, Large Business) DBA MSC Industrial Supply Co 75 Maxess Road Melville NY 11747-3151

Tool Tech Industrial Machine & Supply Inc. (Cage Code: 1YWK7, Small Business) San Antonio, TX 78247-4350

Brand Name Buy: Yes No

3. Description of Services or Supplies: Brand name Assorted Metal Carbide Cutting Inserts. Inserts will not function with an equivalent insert. The Metal Carbide Cutting Inserts are ideal tools for many machining applications. The Inserts are used to cut parts at high temperatures because of impact and friction. Carbide cutting inserts are used for various shapes of tool holders and are selected according to the shape of the part and cutting mode. Turning, milling, and drilling are the three machining processes that carbide cutting inserts are used to support CCAD mission. During the turning operation, an external tool holder and internal boring bar produces round shaped workpieces on a lathe which causes the workpieces to rotate. During the milling operation, the tool rotates around the part on a milling machine. During the drilling process, a tool produces circular holds in the parts using either a milling or turning machine. They have an incomparable capability to efficiently remove metal across a broad range of applications. Carbide inserts have elevated performance and material success resulting in less rework therefore an increased productivity in meeting CCAD’s P2P production schedules for the Directorates of Engines, Powertrain, and Accessories and Rotor Blade. The ideal carbide insert for the machining application used is the one that provides predictable performance and the right results, at the best cost, while contributing toward a minimized tool inventory. New grades of carbide inserts are introduced continuously and contribute considerably to the improvement of production throughout the Directorate of Manufacturing. These carbide inserts were selected because of their board application for removing large amounts of material while sustaining a long tool-life resulting from its wear resistance and toughness from heat, corrosion, and abrasion.

Period of Performance: 30 Day after Receipt of Order Total Value:

4. Authority:

FAR 13.106-1(b)(1): For purchases not exceeding the simplified acquisition threshold (SAT), only one source reasonably available, urgency, exclusive licensing agreements, brand name, or industrial mobilization.

5. Reasons for Authority Cited: Procurement of the Metal Carbide Cutting Inserts from Kennametal will assure that the Machine Shop, Metal Manufacturing Branch, and Tool and Die Branch continue to meet production schedules to support CCAD’s mission objectives and productivity goals. Kennametal, Inc. is the leading manufacturer of carbide cutting inserts in their industry. There are two authorized Kennametal distributors in this region that CCAD uses to procure inserts. Carbide inserts and tool holders manufactured by Kaiser, Parlec, Iscar, and Sumitomo are also utilized to support CCAD. Carbide inserts must be purchased from the designated manufacturer as per their established tool holder part number. The inserts work as a matched set on tool holders and will not function with an equivalent insert.

6. Publicizing Contract Actions: For FAR Part 13 actions, the public display and synopsis requirements of FAR 5.101 and FAR 5.203 apply and will be followed.

7. Market Research:

Conducted by Keith Scoon, Requirer and Terry Clark, Contract Specialist (July – August 2019).

Contact with knowledgeable individuals in Government and Industry regarding the commercial nature of this requirement:

Dennis Terrell (Machine Shop Tool Room Supervisor) contacted on 01 July 2019, stated, “only one manufacture for the inserts meet the specification requirements, but there are 2 vendors that sell these inserts Tool Tech and MSC”.

Recent Market Research Review:

Review of market research conducted under BPAs W912NW-16-A-0001 and W912NW-16-A-0002 and market research conducted for all orders issued from the BPAs.

Review of Government and/or commercial databases:

Online sources searched were GSA, FEDMAIL, ILS and FEDLOG.

7/1/2019 - Checked if available in GSA Advantage, not available. (Online Source) 7/1/2019 - Checked if available in FEDMAIL, not available (Online Source) 7/1/2019 - Checked if available in ILS, not available (Online Source) 7/1/2019 - Checked if available in FEDLOG, not available (Online Source)

Other: Internet web search utilizing Google, as follows:

http://www.carbidedepot.com/AdvancedSearch.aspx http://www.carbidedepot.com/Inserts-C1.aspx

Researching these parts on the links above; it was found that not all these parts were listed and/ or the prices are higher than the quoted parts and they are not local vendors.

8. Technical/Requirements Certification: **See Brand Name Justification Memorandum, dated 13 August 2019.

9. Contracting Officer Certification/Approval:

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable based upon price analysis.

I certify that this justification is accurate and complete to the best of my knowledge and belief, and that completing this purchase as a sole source is in the best interest of the Government. Additionally, I approve this justification to limit competition subject to the availability of funds and provided that the services or supplies herein described have otherwise been authorized for acquisition.

Typed Name: Dawyn M. Martinez Date:

Title: Contracting Officer

Signature:

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