23-23-5220 SmartScopes JA - Final- Redacted.pdf

ACC-WVA

Optical Gaging Projects (OGP) SmartScopes for WVA

DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND

OPEN COMPETITION

1. Contracting Activity: Army Contracting Command – Watervliet Arsenal (ACC- WVA), 1 Buffington Street, Watervliet, NY 12189-4000 is the procuring activity for this action.

2. Description of Action: This action is for a new firm-fixed-price type contract for the purchase of three (3) brand name Optical Gaging Projects (OGP) SmartScope SP 663 Systems. Award is projected for the third quarter of FY24. This action will be funded with

3. Description of Supplies/Services: This requirement is for three (3) OGP SmartScope SP 663 systems per WVA Equipment Engineering Specification # 23-23- 5220 to include delivery and installation. The estimated unit cost as document in the IGCE and based on market research is $234,666.67 for each system, for a total dollar value estimate of this procurement action of $704,000.00.

4. Authority Cited: The statutory authority permitting other than full and open competition is Simplified Procedures for Commercial Items, 41 U.S.C. 1901, as implemented by FAR 13.5 and specifically FAR 13.501(a)(2) Sole Source (including brand name) Acquisitions.

5. Reason for Authority Cited: Procurement by other than full and open competition is necessary because there is no other brand name equipment that meets the requirements of the specification and Government’s needs without incurring a substantial duplication of cost that will not be recovered through competition. OGP is the Original Equipment Manufacturer (OEM) of this SmartScope System.

Compatibility with existing machines within the Watervliet Arsenal (WVA) is essential to provide workload flexibility, portability of programs, interoperability of equipment, and overall cost savings to the Government. The Watervliet Arsenal currently utilizes an OGP SmartScope system for Quality Operations. Procuring the same machine will allow the Government to save costs on training, program maintenance, and software maintenance.

TRAINING: Watervliet Arsenal inspection personnel are already trained on OGP SmartScopes, including the software (ZONE3). Introducing a new SmartScope software would require WVA personnel to be trained on its use. The WVA would need to train 16 people to varying degrees of proficiency (8 basic, 6 intermediate, and 2 advanced), which is the WVA standard for number of QC personnel needed for inspection needs.

The costs listed below are based on the training costs of the last time WVA sent operators out for training. It is estimated that the WVA would incur the following duplicated costs for each type of class:

Procuring another brand name equipment would cause the Government to incur a substantial duplication of cost estimated at $164,644.00. Because this duplication of cost amounts to approximately 23.4% of the estimated procurement value of $704,000.00, it is unlikely the Government would recover these costs through competition. SmartScope purchasing is sporadic and happens in multiples. These items from OGP are essential to the Government’s requirements, and other companies’ similar products, do not meet and cannot be modified to meet, the agency’s needs without the Government incurring a substantial duplication of costs.

6. Efforts to Obtain Competition:

a. Effective Competition: For the reasons stated in paragraph five above, competition will be limited to the brand name of OGP SmartScope identified in paragraph three. The notices required by FAR 5.201 will be published and all responsible sources may submit a capability statement, quotation, or proposal which will be considered by the Government.

b. Subcontracting Competition: All known suppliers of OGP are small businesses, therefore a subcontracting plan is not anticipated.

7. Actions to Increase Competition: No action can be taken to increase competition at this time due to the brand name OGP SmartScopes being the only products that are compatible with existing machines within Watervliet Arsenal (WVA) and the substantial duplication of cost that would result if using a different product from another company.

8. Market Research: OGP SmartScopes are essential to the Government’s inspection requirements and market research indicates that other companies’ similar products lacking the compatibility with OGPs software, do not meet, or cannot be modified to meet, the needs of Watervliet Arsenal.

Market research was accomplished by communicating with the Metrology Group at Watervliet Arsenal, who is responsible for all inspection devices at the facility. Further market research was gained by the Equipment Specialist’s personal knowledge with the last procurement of inspection equipment utilizing OGP software.

Market research was completed by the customer on 27 September 2023 to find vendors capable of supplying or manufacturing the variety of required OGP SmartScopes Equipment per WVA Specification #23-23-5520. Market research techniques consisted of contacting vendors of equipment identical to the desired type, internet research, and general knowledge acquired through experience. Based on the market research, Quality Vision International, Inc. and R.G. Loewenguth & Co., Inc, both small businesses, were found to be interested in supplying the name brand OGP Smartscope equipment. After a review of both vendors, the customer was able to determine both contractors capable of supply the requirement because they are authorized distributors.

A Sources Sought Synopsis was published to beta.SAM.gov on 23 Oct 2023 to 30 Oct 2024. One response was yielded from United Tech Logistics. After review by the customer, it was determined they are not capable of providing the brand name equipment because they are not an authorized distributor. As mentioned above in paragraph 5, other products are not compatible with the existing machines. Sources Sought Synopsis’ issued for prior requirements for the same or similar machines yielded no additional interest.

9. Interested Sources: A Sources Sought Synopsis was published to beta.SAM.gov on 23 Oct 2023. One response was yielded from United Tech Logistics. After review by the customer, it was determined they are not capable of providing the brand name equipment. Sources Sought Synopsis’ issued for prior requirements for the same or similar machines yielded no additional interest. To date, no other sources have written to express an interest other than noted in section 8 above.

10. Other Facts:

a) Procurement History:

1. Contract Number: W911PT23P0072 Award Date: 26 April 2023 Nomenclature: OGP SmartScope SP663 Deliverable: 1 Each OGP SmartScope SP663 Price: $223,435.00 Contractor: Quality Vision International Inc.

Competitive Status: Other than Full and Open Competition Authority Cited: FAR 13.501(a)(2) Sole Source (including brand name) Acquisitions.

No unusual patterns in procurement history. The circumstances justifying this procurement remain the same as the prior acquisition noted; the modernization and standardization of inspection operations, including the transition of all existing SmartScope programs between machines.

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.

Typed Name: David R Blot Date: 10-May-24 Title: Production Planning, Supervisor Signature: //DB//

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 price analysis. Certified cost or pricing data will not be obtained IAW FAR 15.403- 1(c)(3).

Typed Name: Lauren Scripps Date: 10 May 2024 Title: Supervisory Contract Specialist Signature: //LAS//

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: 10 May 2024 Title: Supervisory Contract Specialist Signature: //LAS//

Approval

Based on the foregoing justification, I hereby approve the brand name procurement of three (3) OGP SmartScope SP 663 as described in Equipment Engineering Specification # 23-23-5520, in the estimated total amount of $704,000.00, on an other than full and open competition basis pursuant to the statutory authority of 41 U.S.C.

1901, as implemented by FAR 13.501(a)(2) Sole Source Acquisitions, subject to the availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Lauren Scripps Contracting Officer