23-23-5220 SmartScopes JA - SAM posting_Redacted.pdf

ACC-WVA

Optical Gaging Projects (OGP) SmartScopes for WVA

a. Basic Training:

16 people x ($1,000/seat + $1,500 travel expense) = $40,000

b. Intermediate Training:

8 people x ($1,000/seat + $1,500 travel expense) = $20,000

c. Advanced Training:

2 people x ($2,000/seat + $1,800 travel expense) = $7,600

d. TOTAL DUPLICATED COST:

$40,000 + $20,000 + $7,600 = $67,600

PROGRAMMING INTEROPERABILITY COST: Due to the nature of production at the Watervliet Arsenal, inspection programs are routinely moved from one machine to another. To transfer workload from one OGP SmartScope to another takes approximately 20 minutes due to the commonality of the equipment and software. If this transfer would require moving a production run to a different manufacturer’s machine, the existing inspection programs would need to be rewritten using a different operating software. Approximately 35 programs currently reside on the existing machines under WVA jurisdiction. All of these have the potential to be used on a regular basis on the new SmartScopes in the coming year with an average programming time of 20 hours = 20 hours x 15 programs x $42.94 per hour x 3 machines = $90,174. These estimates are based on the programmer’s input on number of program changes per year and time it takes to do the changes.

PROGRAM MAINTENANCE: It is often necessary to make updates to existing programs as drawing revisions change. If multiple programs must be maintained to accommodate for different SmartScope software, SmartScope programmers must spend time updating redundant programs. It is estimated that a typical program update will take four hours. Assuming a minimum of one program is revised every three months. The cost saving of not having to update multiple programs is calculated as $42.94/hour x 4 hours/programs x 4 program/year = $687/year. Conservatively estimating the life of the equipment to be 10 years, the lifetime savings is calculated to be $687/year x 10 years = $6,870. These estimates are based on the average programmer wage, amount of time it takes to do the programming, and number of program updates per year. These are based on the input of the lead programmer.

TOTAL SAVINGS:

a. Training $67,600

b. Program Maintenance $90,174

c. Program Maintenance $6,870

d. Total $164,644

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).