REDACTED SOLE SOURCE JUSTIFICATION - OMAX WATERJET.docx

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-DSC) 9035 Ocean Dr. Bldg. 10, Mail Stop 18 Corpus Christi, TX 78419-5260.

2. Description of Action: New Requirement

Contract Vehicle: Purchase Order Number TBD Pricing/Contract Type: Firm Fixed Price Funds: Army Working Capital Funds FY: 2025 Name of Proposed Contractor and Address:

Sole Source to:

Phillips Federal Division (Cage: 3MPQ0, Small Business) 7390 Coca Cola DR STE 200 Hanover, MD 21076-1937

Brand Name Buy: Yes No

3. Description of Services or Supplies: One (1) Each OMAX MAXIEM 1530 system. Delivery Estimate: 180 Days ARO Total:

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: OMAX has been a pioneer and leader in waterjet technology for 30 years. CCAD has been utilizing a OMAX waterjets for over the past 15 years and the machines has been proven to be extremely reliable.

Good business practice mandates standardizing waterjet technology at the Depot for organizational inter-operability and is key to CCAD’s mission readiness. The cost savings that are achieved every year by utilization of the waterjet cutting system in lieu of cutting by torch and then grinding down to specification. Waterjet is also used to avoid the possibility of a work stoppage when production waterjet cutting machines are

CONTROL NO. DSC-LSJ25-1991

CUI

Version – February 2017 down for repairs by allowing production shops access to the machine for increased depot capability.

The Maintenance Services Branch are trained on the operation of the OMAX waterjet machine. Operators have been trained to perform periodic maintenance and calibration specific to the OMAX Waterjet. Procuring a different brand requires the ITB to be trained on new operating, maintenance, and software procedures.

The materials used by the OMAX have been tested to perform well in our design applications. If a different company was chosen, the ITB would have to retest the accuracy and performance to incorporate different tolerances in our existing designs.

Continuing with the OMAX brand ensures integration and compatibility with existing software (Insight & Control Center) and interchangeability of some maintenance items.

Existing annual maintenance contracts can be executed for all machines at the same time under the same contractor resulting in cost savings in comparison to hiring separate contractors.

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. This justification will be made available with the solicitation via sam.gov.

7. Market Research: Market Research conducted by Victor Moreno, Industrial Specialist and Terry Clark, Contract Specialist from 14 November 2024 – 20 December 2024.

Market research performed by Victor Moreno, Industrial Specialist, Joseph Trevino, Industrial Specialist, and Terry Clark, Contract Specialist from 14 November 2024 – 10 January 2025.

On 13 November 2024, Joseph Trevino, Industrial Specialist provided the market research estimate from the vendor, the Statement of Work (SOW), and the Sole Source Statement. The Industrial Tades Branch does a cost savings that are achieved every year by utilization of the waterjet cutting system in lieu of cutting by torch and then grinding down to specification. Waterjet is also used to avoid the possibility of a work stoppage when production waterjet cutting machines are down for repairs by allowing production shops access to the machine for increased depot capability.

During the market research the 1 vendor I found that meets all the needs of this requirement was as listed: 10/13/2024 - Phillips Federal Division.

The search of GSA website showed that only Phillips Federal Division is authorized as a distributor of OMAX/MAXIEM machines to the US Government. While commercially, there are other distributors, only Phillips can sell to the Govt.

The source sought was posted to SAM.GOV on 13 December until 20 December 2024. Two companies responded to the Request for Information (RFI). (WAFAA AL-ALAM Company - Cage: SQEN5, Large Company) & (Masharee Lulua Company - Cage: SKUK6 - Large Company). While both state they can sell, we are unsure if customs would allow shipment of equipment from Iraq. Also, does NOT state that US electrical codes will be met as Iraq has EU electrical standards. Both sources have not been determined capable meeting the Governments requirements.

Mr. Moreno researched other online sources I searched were GSA, Fed Mall, and FEDLOG.

11/14/2024 - Check if available in GSA Advantage, not available. (Online Source) 11/14/2024 - Check if available in FedMall, not available. (Online Source) 11/14/2024 - Check if available in FEDLOG, not available. (Online Source) On 14 October 2024 Mr. Moreno researched Phillips Federal Division website, cage 3MPQ0, Other than Small business. Only source for any Government OMAX procurements.

Similar Contracts in the past for CCAD: None On 13 December 2024 the Contract Specialist performed market research on Google and found the following companies listed KD Capital Equipment has a used 2019 model for sale, Revelation Machinery, Omax Waterjet can support this action through their federal distributor, Marshall Advanced Manufacturing Center uses the Maxiem 1530 at their lab at Marshall University and Tulane Maker Space, however none of companies are not listed in SAM.GOV and not authorized by the original equipment manufacturer to sell to federal customers.

https://www.google.com/search?q=OMAX+MAXIEM+1530+system&sca_esv=f406572c 760609c9&ei=bYRcZGuNqGkiLMPoZ3ugAc&start=10&sa=N&sstk=ATObxK5h9TTkhY DNNrfsk7FLlRxnAJcsyCWTGpB4bmtb5Uj2cukgdUjOkLh2IVjIOs6JO7Cn8IH4ucsKXmR sGJzrUq56qdrCmLlQ&ved=2ahUKEwihmdedt6WKAxUhEmIAHaGOG3AQ8tMDegQIC RAE&biw=1912&bih=922&dpr=1 Additionally, on 10 January 2025 the contract specialist called the manufacturer about the Omax Maxiem System model 1530 and spoke to the Government sales representative, John Hartley. Mr. Hartley informed the contract specialist that Phillip Corporation’s Federal Division is exclusive with Phillips Corporation, and they have all the GSA contracts. A review of the Phillips Corporation’s GSA Schedule shows the Maxiem model 1530 is not on their GSA Schedule.

8. Other Facts: N/A

9. Technical/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.

Chief, Infrastructure Purchasing Branch

10. 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.

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