51949 - JA_FAR_Part_6_BEMT II_TR_FINAL-REDACTED V.4_Redacted.pdf

J&A Control No. ACC ORL JA 24-002 Justification Review Document for Other than Full and Open Competition - FAR Part 6

Program/Equipment: BASIC ELECTRONICS MAINTENANCE TRAINER II (BEMT II), Technical Refresh

Authority: 10 U.S.C.3204(a)(1) as implemented by FAR 6.302-1(a)(2)(iii)) - Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Amount:

Prepared by:

DSN:

Assistant Program Manager Date:23 October 2023 Email:

Contracting Officer:

Bengu Isguder DSN:

Contracting Officer Date:23 October 2023 E-Mail: bengu.isguder.civ@army.mil

Technical Representative:

DSN:

Lead Systems Engineer Date:23 October 2023 E-Mail:

Requirements Representative:

DSN:

Assistant Program Manager Date: 23 October 2023 E-Mail:

OCT 2023

Control Number: ACC ORL JA 24-002

Justification and Approval for Other than Full and Open Competition – FAR Part 6

1) Contracting Activity Army Contracting Command — Orlando (ACC-ORL)

Description of Action: The U. S. Army Program Executive Office Simulation, Training and Instrumentation (PEO STRI), Project Manager Training Devices (PM TRADE), Product Director Virtual Training Systems Mission Support (PD VTS MS) requests approval to award a new, sole-source, Firm Fixed Price (FFP) contract with Nida Corporation, a small business located at 300 S. John Rodes Blvd., Melbourne, FL 32904.

2) The Basic Electronics Maintenance Trainer Increment II (BEMT II) is an ACAT IV program that is funded by the TBWG Management Decision Package (MDEP) in the Training (TT) Program Evaluation Group (PEG). The BEMT II Technical Refresh effort will use Fiscal Year (FY) 24 thru 28 Other Procurement Army (OPA) funds for Technical Refresh of current systems and IT equipment. FY24 thru FY28 Operation and Maintenance Army (OMA) funds will be used for BEMT II Cybersecurity accreditation.

An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

3) Description of Supplies/Services: Basic Electronics Maintenance Trainer II (BEMT-II) Technical Refresh requirement is to bring the BEMT-II System to 100% capacity. The focus is placed on the three key training components: Student Training Console (Nida 130ST), Experiment Cards (EC), and Test, Measurement, and Diagnostics Equipment (TMDE) for delivering basic electronics training to U.S. Army Soldiers across all three components (U.S. Army Active Duty, National Guard, and Reserve) in the years 2024 through 2028.

Electronics maintenance is a critical skill, directly contributing to overall Army mission accomplishment. The BEMT II provides training in basic electronics, while saving institutions significant administrative expenses over live training alternatives.

The current BEMT II is a commercial off the shelf (COTS) product providing highly realistic training using scenarios which require the student to perform basic electronic tasks in a classroom environment including tests, diagnosis, and repair. BEMT IIs are currently utilized for more than 40 Military Occupational Specialties (MOSs) to include significant portions of basic Ordnance, Military Intelligence, Signal, Aviation, and Engineer electronics maintenance training. Students interface with a hands-on training station which replicates electronic components, to ensure competent skills have been achieved. Performance testing is accomplished during training courses utilizing the

BEMT II trainer at a reduced cost over the use of live components or equipment.

Students apply basic electronics maintenance techniques to actual equipment after mastering those techniques with the BEMT II.

BEMT II consists of an Instructor Operator Station (IOS), Student Training Station(s) (STS), associated test equipment, COTS computer, proprietary electronics console(s) (Nida 130ST), supporting experiment cards, soldering station, content server as applicable, proprietary computer aided instructional devices (CAI), and proprietary software, which has the capability for computer-based instruction, traditional text-based learning, and hands-on practical exercise training.

Nida Corporation will provide engineering and technical management services for a technical refresh of the BEMT II. The proposed effort is a technology refresh through serviceability updates and the replacement of obsolete equipment. 1,132 student training consoles, Model 130ST, will be updated to ensure each system is operating at 100% capacity. Test Measurement Diagnostic Equipment (TMDE) hardware will be replaced that includes oscilloscopes, function generators, logic probes, digital multimeters and all required electronic experiment cards. Results from this tech refresh will be a modernized training console that has been updated from analog to digital. The proposed effort will extend the service life of the BEMT for at least 5 years.

The total value of is estimated for the life of the contract, including one base year and four one-year options; the contract will also include the option to exercise up to six-month extension under FAR 52.217-8 Option to Extend Services, which will be included in the evaluation of proposals.

The aforementioned requirement has a period of performance of January 15, 2024 to September 30, 2028 with FAR 52.217-8 option to extend services. The BEMT II Basis of Issue Plan for October 3, 2022 has a requirement to provide technical refreshment of

1,132 component level proprietary electronics console(s) (Nida 130ST). Estimated costs are shown below.

Period Value Start POP End POP

Base Period 15 Jan 2024 14 Jan 2025

Option Period 1 15 Jan 2025 14 Jan 2026

Option Period 2 15 Jan 2026 14 Jan 2027

Option Period 3 15 Jan 2027 14 Jan 2028

Option Period 4 15 Jan 2028 30 Sep 2028

FAR 52.217-8 1 Oct 2028 31 Mar 2029

Table 1: Proposed CLIN Descriptions and Estimated Costs

4) Authority Cited: 10 U.S.C. 3204(a)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(iii) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5) Reason for Authority Cited: The Government does not possess the technical data to competitively award this requirement due to the fact that BEMT systems are dependent upon the proprietary hardware and software privately developed by the Nida Corporation. Nida will not sell the rights to their instructional software, copyrighted lessons, technical documentation, or proficiency tests that were developed at private expense.

a. Background: The Training and Doctrine Command (TRADOC) has developed over 40 MOS Programs Of Instructions (POIs) based on the Nida Corporation’s 2000+ hardware and software lessons over the lifetime of the BEMT program.

The procurement of the BEMT system was awarded to the Nida Corporation and included proprietary hardware and software, copyrighted lessons, technical documentation, proficiency tests, as well as scoring and evaluation software.

Contract, W900KK-10-C-0035, was awarded on 16 July 2010, and it is Nida Corporation’s proprietary hardware, copyrighted instructional software, and their interdependence with existing Army POIs that makes this sole source procurement necessary. No other contractor’s hardware will work with Nida’s proprietary instructional software, no other contractor’s software will work with Nida’s proprietary hardware, and no other contractor is able to provide the software license and technical support to Nida’s BEMT system. Without Nida’s enterprise license renewal, the existing Army POIs would be rendered obsolete.

b. Alternatives: As described at FAR 6.302-1 (a)(2), when the supplies or services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for. Market Research did not identify additional source(s) to provide technical refreshment to the existing BEMT II to competitively award this requirement. Alternative proposed solutions provided a virtual training environment which is not compatible with the existing BEMT II. The virtual solution for the technical refreshment requirement would necessitate the Government to change how BEMT II is utilized today.

c. Justification: Per FAR 6.302-1(a)(2)(ii)(A), award to any source other than Nida will result in substantial duplication of costs to the Government in fulfilling the agency’s tech refresh requirements. Since BEMT II technical refresh upgrades the capability of the BEMT II, another source with virtual solution would be required to develop specialized hardware (Console), software, and courseware to replicate those that are already in use. The award of this contract on a sole source basis to Nida Corporation is in the best interest of the Government for the following reasons:

Virtual Solution:

The BEMT II currently provides a hands-on approach to training. The BEMT II Capabilities Production Document (CPD) requires continuation of hands-on training. As an alternative source, , proposed moving to a virtual training solution that requires replacement of the current BEMT II capability with Augmented Reality/Virtual Reality (AR/VR). Award of this contract to another vendor would not only not meet the hands-on training requirements, but it would prevent the reuse of current BEMT II components.

There are three major cost impacts associated with not being able to re-use current BEMT components: Development of a new virtual training solution, Hardware Costs, and Software/POI Costs.

Hardware Costs: Moving to a virtual solution would require the use of a high-performance computer. This type of computer is approximately on General Services Administration Advantage price list, yielding for a total cost of approximately for the required 1,398 systems. Replacement of hands-on training console such as the Nida 130E console costs the Government each. Replacement of approximately 1,132 non-system-level trainer console units would cost the Government approximately

Software/POI Costs: Development of new training systems and no reuse of current BEMT II components, would require the Army to reconfigure the current software and POIs for all applicable MOSs. Based on similar virtual training devices, the development of the electronics maintenance trainer software is estimated at approximately for courseware development. Transition to a different system would cause an immediate need to update all current POIs, causing a delay before students could begin using the new training system, and require the continued use of the current BEMT II. The Army Enterprise License (AEL) for the current BEMT II would have to be renewed annually for approximately per year. The Army would also need to revalidate and approve over 40 replacement Program of Instruction (POI)s. In 2019, this effort was determined to require of labor valued at Adjusted for inflation at a 1.5% increase per year since 2019 to the current year, 2023, this figure becomes This cost would be in addition to the costs to procure and field a new product for BEMT program. There is inadequate program funding for this kind of effort, so sustainment of the current solution and providing technical refresh for the current BEMT II is the only viable option for the program at this time.

When combined, the estimated additional cost to move to a virtual solution would be approximately not including increased lifecycle cost of maintaining high performance computers and maintaining the BEMT Army Enterprise License (AEL) software licenses until the transition is complete. Per FAR 6.302(11)(A), award to another vender would result in substantial duplication of cost to the Government that is not expected to be recovered through competition.

Purchasing Government Purpose Rights (GPR):

Prior to the award of the current BEMT II contract (W900KK19C0040), the Government requested a Rough Order of Magnitude (ROM) estimate from Nida to procure Government Purpose Rights (GPR) for their proprietary technical data and computer software, which would enable the Government to use, modify, reproduce, release or disclose technical data or computer software related to Nida Corporation’s hardware, software, and courseware. The cost for the GPR ( ) was deemed unaffordable. In addition, the market research did not reveal sufficient number of available sources and product to provide the Government with sufficient confidence of the future competition. The Government was unable to justify the cost of GPR. This cost would be in addition to the costs to procure and field a new product for BEMT program.

There is inadequate program funding for this kind of effort, so sustainment of the current solution and providing technical refresh for the current BEMT II is the only viable option for the program at this time.

d. Impact: Awarding to another vendor would require a significant redesign of the system architecture. Introduction of a new source for this effort will result in increased and duplication of costs as this will require the development of new POIs for over 40 Army MOSs. The Army currently uses a COTS hands-on training approach and all POIs is written to this standard. Moving to a virtual solution would not only deviate from training requirements, it would duplicate efforts of the current modified COTS solution. Additionally, mission readiness will be affected as new learning curve related delays (for a new contractor) will lead to improper training and prohibitive costs due to duplication of efforts; all of which will produce unacceptable delays in fulfilling the agency's requirements.

A virtual solution does not provide the necessary direct physical interaction and fidelity (i.e., use of fine motor skills required for electronic component handling and repair). Virtual solutions would disrupt MOS training programs at which would result in a significant delay and increase in cost in the training of the MOSs using this training platform.

Nida's solution proposes the use of the existing BEMT II hands-on equipment and is considered the only source available with the unique capability to provide BEMT II technical refresh that meets the Army's requirements. There is no other source that can satisfy the Government’s requirement given the Government does not possess the technical data to competitively award this requirement due to the fact that BEMT systems are dependent upon the proprietary hardware and software privately developed by the Nida Corporation and currently Nida has not sell the rights to their instructional software, copyrighted lessons, technical documentation, or proficiency tests that were developed at private expense.

6) Efforts to Obtain Competition: In order to obtain competition, the requirement was synopsized via a Sources Sought Notice (SSN) and draft PWS/SOW/SOO on SAM.gov from 21 Aug 23 – 6 Sep 23, with two responses received: Nida Corporation and

. Both companies were small businesses.

provided a virtual solution, which will not meet the Army's requirement as discussed above. Additional research was conducted through internet searches for electronic maintenance trainers, and discussions with other agencies on their solutions. However, this research did not provide additional sources that could meet the Army's requirements. The Government will continue its' market research efforts during the pre-solicitation phase of this procurement to identify alternative sources.

In addition, in accordance with FAR 5.201, a synopsis with a Notice of Intent (NOI) to Award Sole Source was published on SAM.gov on 28 Sept 2023 identifying the

Government's intent to negotiate a new sole-source FFP contract to Nida Corporation.

The NOI closed on 20 Oct 2023 with no known replies or rebuttals.

a. Effective Competition: Based on the results of market research, effective competition is not applicable.

b. Subcontracting Competition: Nida is a small business and therefore is not required to submit a small business subcontracting plan. The appropriate clauses will be included in this contract that require use of competitive procedures when finding subcontracts.

7) Actions to Increase Competition:

In an effort to increase competition in the future, the Government will continue to refine requirements, clearly convey those requirements to potential offerors, allowing them to improve their products to meet the Government's requirements.

Prior to issuing the next BEMT contract, the Government will conduct market research to determine if the marketplace has evolved and if there is potential for a competitive award. If an alternate source is identified, the Government will revise its' strategy accordingly.

The Government will again seek GPR prior to executing the next procurement.

The fulfillment of the next BEMT requirement is anticipated to be -competed, as full and open, if the training requirements identified by TRADOC are updated to no longer explicitly require the proprietary test equipment manufactured by Nida Corporation; if there are funds provided to replace all the proprietary Nida Corporation test equipment that has already been fielded over the course of the BEMT program’s history; or if the Government purchases the GPR.

8) Market Research: Market research was conducted by Product Director Virtual Training Systems, Program Manager Training Devices in accordance with FAR Part 10.

The Market Research conducted was meaningful, complete, and current (within 18 months). The Market Research timeframe, techniques used, sources of information, and results are addressed below.

BEMT II Technical Refresh Market Research was conducted from November 2022 to October 2023. The Market Research techniques used:

a. Contacted knowledgeable people (Government and industry) in specific markets.

Mr. Paul Dillman met with Mr. Kevin Jones, Materiel Developer for U.S. Navy electronics maintenance on future requirements development at the Interservice/ Industry Training, Simulation and Education Conference (I/ITSEC) on 29 November 2022.

The BEMT II Assistant Program Manager met with Nida on 18 Aug 23 and inquired if they sold their system or rights to other vendors. The Chief Executive Officer Stated that they do not. Nida military Systems are only sold to the Military.

b. Attended trade shows, conferences, and symposia. Attended a U.S. Navy demo of a new electronic maintenance AR/VR trainer from 16 – 16 Aug 23 at Great Lakes Naval Training Center Government representatives and observed a Demo of the I3 SoarTech Virtual Training System (VTS) for Electronics training. I3 SoarTech VTS is a virtual system which was developed by two companies: i3 International and Soar Technology, Inc. (SoarTech). During the demo, Mr. Paul Dillman found out that Navy currently uses Nida systems, however, it intends to use the I3 SoarTech Virtual System in the future. The U.S. Army utilizes a hands-on training system approach to train their soldiers. Since both i3 International and SoarTech provides virtual products and services for training, they cannot satisfy the BEMT II (hands-on system) Technical Refresh requirement.

c. Used Internet tools and performed Web searches. http://www.abilityone.gov/;

https://www.unicor.gov/; https://www.gsa.gov/;

https://spcs3.kc.army.mil/asaalt/procurement/StrategicSourcing/Home.aspx;

https://chess.army.mil/ - Required service is not available through these sources.

d. Issued Sources Sought Notice (SSN) and draft SOW on SAM.gov; and when appropriate, in technical/scientific journals and business publications.

o SSN posted 21 Aug 2023 – 6 Sep 2023 on Sam.gov, where an alternative virtual solution was proposed. The Government's research into the proposed virtual solution from determined their solution to replace existing training consoles, experiment cards and TMDE will not meet the technical refresh requirement. The response from Nida was reviewed and found to meet the Government’s requirements.

Nida proposed replacement of Test, Measurement, & Diagnostic Equipment (TMDE) and real circuits. Nida’s response to the SSN provided information on exactly what the Government requires for the BEMT II Technical Upgrade. Their response meets all BEMT II hardware and software requirements. An award to any source other than Nida will result in both substantial duplication of costs to the Government in fulfilling the agency’s tech refresh requirements.

o Synopsis posted on 28 SEP 2023 – 20 Oct 2023 on Sam.gov and had no known replies or rebuttals.

o Prior to awarding the current BEMT II contract (W900KK-19-C-0040), a SSN was posted on 31 May 2017 and a NOI to award a sole source contract to Nida Corporation was posted on FedBizOpps on May 7, 2018

i) W900KK-14-C-0028: Period of Performance 1 Sept 2014 – 31 Aug 2019.

Software support contract awarded in FY14 to cover the continued use of the BEMT software within the U. S. Army. This effort encompassed the procurement of software license and technical support for the BEMT enterprise. This effort also renewed the Authorized Equipment List for the BEMT training software, and as such, allowed unlimited use of the BEMT software throughout the United States Army. This contract was awarded on a sole-source basis as approved by J&A PEO STRI 14-016. The authority for sole source award was FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. Market research conducted for this procurement did not identify alternative sources that would provide for competition. In addition, the J&A included that the training requirements for the BEMT are dictated by the requirements identified in the POIs that are established by TRADOC. Those POIs explicitly state that the Nida Corporation manufactured test equipment is to be used for completing the training for that particular MOS.

ii) W900KK-12-C-0059: Fielding contract awarded in FY12 to cover the assembly, integration, upgrade in technology, installation, checkout, system relocation and delivery of the BEMT. This effort encompasses the installation and configuration of software onto government furnished equipment (GFE) and peripherals, site staging, along with new equipment training. This contract was awarded on a sole-source basis as approved by J&A PEO STRI 12021. The authority for sole source award was FAR 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements. Market research conducted for this procurement consisted of re-evaluating the capabilities of five companies that responded to a SSN for contract W900KK-10-C-0035, which was awarded in FY10. In this approved J&A, it was determined that no new solutions existed that would meet the BEMT training requirements associated with those requirements.

iii) W900KK-10-C-0035: Fielding contract awarded in FY10 to cover the assembly, integration, upgrade in technology, installation, checkout, system relocation and delivery of the BEMT. It refreshed GFE computers and peripherals that were in use. It ensured BEMT classroom re-locations resultant from Base Realignment and Closure movements were operational and ready for training at each new location in accordance with move schedules. This contract was awarded on a sole-source basis as approved by J&A PEO STRI 10-012. The authority for contracting without providing for full and open competition used was the authority for sole source award was FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. Market research conducted for this procurement consisted of querying companies at Interservice/industry Training, Simulation and Education Conference 2009 regarding their compatibility with the existing BEMT systems. This market research concluded that, while several companies had their own proprietary systems and lesson plans, none were developed and approved for use with the current BEMT POIs.

iv) W900KK-08-C-0027: Fielding contract awarded in FY08 to cover the assembly, integration, installation and delivery of the commercial off-the-shelf BEMT based on the