Caterpillar Parts

192 MSG/MSC VaANG Base Contracting Office has a requirement to purchase parts to repair a Caterpillar AA-320CL excavator, parts and labor valued at approximately $10,000.00. A firm-fixed-price contract is anticipated. These parts are required to repair a Caterpillar AA-320CL excavator with a depreciated value of approx. $125,625. The parts required are to repair a Caterpillar excavator model AA-320CL. Caterpillar has proprietary rights to its equipment and uses authorized dealers to sell parts. Proposed "equivalent" parts may be considered on a case by case basis, where they meet the quality, compatibility, and warranty requirements of Caterpillar equipment. This equipment is list priced in Caterpillar parts catalogs as well as those of comparable equipment manufacturers. Previously competed contract pricing supports this determination of fair and reasonable pricing. Market research determined Carter Machinery, Chesapeake, VA, is the Hampton Roads Caterpillar authorized dealer. Carter Machinery was contacted to determine whether they distribute to vendors who are authorized resellers of their products. Carter Machinery stated that Caterpillar parts are sold by authorized dealers with regional territory. Additionally, they verified that manufacturer warranties will not be voided if purchased through an authorized reseller, and everything available from Carter Machinery is accessible to authorized resellers. DETERMINATION IAW FAR 13.106-1 (b)(1) Soliciting from a single source for purchases not exceeding the simplified acquisition threshold are authorized under the following circumstances: (i) Contracting officers may solicit from one source if the contracting officer determines that the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, brand-name or industrial mobilization). (ii) Where a single source is identified to provide a portion of a purchase because that portion of the purchase specifies a particular brand-name item, the documentation in paragraph (b)(1)(i) of this section only applies to the portion of the purchase requiring the brand-name item. The documentation should state it is covering only the portion of the acquisition which is brand-name. I hereby determine that soliciting from one source is appropriate given the circumstances of the contract action, given the brand name requirement, and that only once source is reasonably available due to the exclusive territory dealer restrictions imposed by Caterpillar. The anticipated cost or price to the Government for this contract action will be fair and reasonable. The basis for this determination is anticipated to be price analysis and independent Government estimate. Certified cost or pricing data will not be required.