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This is a Sole Source to Phillips Corporation. Reason for the Sole Source please see the attached justification.

The Naval Surface Warfare Center, Panama City Division, (NSWC PCD), Panama City, FL intends to award a firm-fixed price purchase order to the following vendor:

Phillips Federal Corporation Federal Division dba Phillips Federal

7390 Coca Cola Dr Ste 200

Hanover, Maryland 21076-1937

Cage: 3MPQ0

Procurement is for 5-Axis Vertical Machining Center in support of the Fabrication & Prototyping Shops (FPS), as follows:

The Naval Sea Systems Command, Naval Surface Warfare Center Panama City Division (NSWC PCD) Fabrication & Prototyping Shops (FPS) based upon the facts and representations below, intends to acquire, on a sole source basis, a 5-axis mill from Phillips Federal Division. This purchase is not suitable for full and open competition for the following reasons:

The FPS currently has multiple CNC machines (VF-8 Vertical Machining Center, TL-1 Hybrid CNC Lathe, and TL-3B Hybrid CNC) manufactured by Haas, Inc which the FPS machinists and technicians are trained to operate and service. The purchase of the new 5-axis mill will maintain consistency with the existing machines on site. This purchase will offer the following advantages and cost savings:

• The FPS technicians are already familiar with Haas products, and are also familiar with the user interfaces, which are standardized across the family of products. Haas offers CNC UMC Productivity Improvement training geared towards teaching machinists how to operate the mill and familiarity with the user interface and application. The FPS machinists’ current familiarity with Haas interfaces and equipment negates the need for standardized training on the machine, which costs approximately $7,900. Therefore, the purchase of a Haas mill instantly realizes a $7,900 savings on the price of the machine.

• Typically, when FPS requires a factory-certified technician to service and/or repair equipment, the service fee to have a technician to arrive on site is approximately $1,800. This is a standard fee paid, regardless of the manufacturer of equipment. Since the FPS utilizes multiple Haas machines, adding another one will realize a $1,800 savings every time a factory-certified technician is called in to work on multiple machines. The $1,800 trip charge applies only once, no matter how many machines the technician works on; therefore, the FPS can leverage additional technician labor by using only Haas equipment. When the technician makes a trip to NSWC PCD, he/she can work on other Haas equipment, and no extra trip charges are needed for differing brands of equipment. Service visits may be required two to three times per year, which equates to an ongoing yearly saving of approximately $5,400.

Phillips Federal is the only authorized distributor of Haas equipment. They are the only source that provides the 5-axis mill that meets the requirements of the NSWC PCD Fabrication and Prototyping Shops. As such, the government does not expect significant savings through competition and it is more advantageous to award on a sole source basis to Phillips Federal Division for the items listed in the table above

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