6 MeV_JA_Redacted.pdf

Control No:

Contractor: VJ Technologies, Inc.

Program/Equipment: 6MeV X-ray Source and Relocation

Version –March 2017 FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

FAR SUBPART 13.5 SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS – SOLE SOURCE JUSTIFICATION AND APPROVAL

Program/Equipment: The Combat Capabilities Development Command – Armament Center (CCDC-AC) Six Million Electron Volt (6MeV) X-ray Source and Relocation of the current Three Million Electron Volt (3MeV) Source for the Building 908 Radiography Laboratory

Authority: Simplified Procedures for Certain Commercial Items, 41 United States Code (U.S.C.) 1901 as implemented by Federal Acquisition Regulation (FAR) Subpart 13.5.

Amount:

Prepared by: DSN:

Contract Specialist Date: 31 July 2020 Email:

Contracting Officer: DSN:

Contracting Officer Date: 4 August 2020 Email:

Technical: DSN:

Physicist Date: 4 AUG 20 Email:

Requirements: DSN:

Chief, Evaluation Laboratory Division Date: 4 AUG 20 Email:

Reviews: I have reviewed this justification and find it adequate to support sole source.

Program Manager:

Typed Name: DSN:

Signature: Date: 4 AUG 20

Branch Chief:

Typed Name: DSN:

Signature: Date: 14 August 2020

Division Chief (Acting):

Typed Name: DSN:

Signature Date: 14 August 2020

Program/Equipment: 6MeV X-ray Source and Relocation

Associated Director:

Signature Date: 17 August 2020

Legal Counsel:

Signature: Date: 17 August 2020

Program/Equipment: 6MeV X-ray Source and Relocation

FAR Subpart 13.5 Simplified Procedures for Certain Commercial Items – Sole

Source Justification and Approval

1. Contracting Activity: Army Contracting Command – New Jersey

2. Description of Action: The Combat Capabilities Development Command – Armament Center (CCDC-AC) requests a firm fixed price contract with VJ Technologies, Inc. The Government projects award for October 2020 and fiscal year 2020 Research Development Technology & Engineering funds will be used. 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: This requirement is for the purchase of a new High Energy Six Million Electron Volt (6MeV) computed tomography (CT) capability, to include the installation and integration of this 6Mev X-ray source. The 6MeV will need to integrate with the building interlock system, the existing collimator, manipulator, and imaging acquisition/analysis software, synchronize with the existing detector system, integrate the external trigger control with the acquisition station, connect to the facility E- Stop controls and additional radiation shielding to meet safety requirements if/as needed.

The one High Energy 6MeV CT source has the following specifications:

Flux Energy 6MeV Flux Output 6 Gy/min @ 1 m Focal Spot Size ≤ 1.3mm Electrical Power Supply Requirements 240 VAC

In addition, this requirement includes the movement, integration and training on the current Three Million Electron Volt (3MeV) source to the L2000 Bay in Building 908.

While the 3MeV source still works, the Original Equipment Manufacturer, Varian, no longer supports these 3MeV sources for repair. Since the Government only has replacement would become paramount. As part of this requirement, the existing 3MeVwill be moved to a different section of building 908, and will need to be integrated into existing hardware to form a complete system which will allow for 2 Dimensional (2- D) images to be created. In addition, the work on the 3MeVsource will include, but not be limited to: integration with the building interlock system, integration with existing collimator and acquisition software, synchronization with the existing detector system, external trigger control integrated with the acquisition station, connection to facility E-stop controls, and additional radiation shielding to meet safety requirements if/as needed. If upgraded shielding for the existing detector panel is necessary, shielding to be provided as part of the integration. An image acquisition workstation and software as required, as well as ring automation and acquisition synchronization.

Program/Equipment: 6MeV X-ray Source and Relocation

Prior to these tasks being completed a shielding study shall be completed by the contractor to ensure that the shielding in both areas of building 908 are sufficient for the use of both the 6MeV, and 3MeVsources. This requirement was directed by the to ensure that the shielding meets the standards as detailed in the applicable safety requirements of less than two milli-Roentgens per hour (2mR/hr) of ionizing radiation outside of the bay walls. Once this is all completed the contractor will be required to provide training on the use of both systems.

Period of Performance: Eight months after date of award Total Value:

4. Authority Cited: Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 (or 41 U.S.C. 1903 for Special Emergency Procurement) as implemented by FAR Subpart 13.5: Exclusive Licensing Agreements

5. Reason for Authority Cited: The proposed sole source acquisition citing “exclusive licensing rights” is the only viable option because VJ Technologies, Inc. is the only company currently capable of integrating the new equipment into the current CT system, and integrating the source into the current system. This includes the integration with the current data/image acquisition software, Vi3, which is proprietary to their company. This software is also used to control the manipulator associated with the overall CT system, which will continue to be used once the 6MeV has been installed, and integrated.

The Government currently owns Vi3 software, J Technologies conveyed in a letter to the government dated 12

August 2020 that they have changed their business model, and are no longer willing to provide support as a subcontractor. They further stated that they are willing to sell Vi3 software to other companies, however they are unwilling to sell it if it will be used for this project.

The alternative to procuring this effort on a sole source basis is to suspend operations until a new CT system that meets the Government’s requirements could be procured.

For the Government to source a new complete system would require approximately months to be back to their current operational level, and to complete. A breakdown of the costs associated with this is as follow:

Source, Linear Accelerator - Part manipulator/ collimator- up to New Software Development by offeror- Lab Radiographer’s Re-training time- Non-backward compatible data costs- Total -

Program/Equipment: 6MeV X-ray Source and Relocation

These costs were derived from work completed on previous contracts, , which included work of a similar nature.

The additional time required would be for installation, integration, training, and recreation of data that would not be compatible with the new system.

Installation/Integration – Training – Data Recreation – Total –

The installation/Integration, and training could be completed in conjunction with the data recreation.

The Government does not anticipate that competing this requirement would recoup these additional costs, and the time associated with bringing the lab back up to current operational capabilities. The impact to the multitude of programs of records supported is unacceptable to the Government

The Government does not currently have any in house personnel who could install, and integrate the new equipment with the existing equipment. Market research shows that several other Government organizations, to include McAlester Army Ammunition Plant, Blue Grass Army Depot, Strategic Weapons Facility – Atlantic, Letterkenny Munitions Center, American Ordinance -Iowa/ Iowa Army Ammunition Plant, Crane Army Ammunition Activity, and Hill Air Force Base have all required a commercial company to complete their installation/integration of same or similar equipment.

The minimum verified requirement of the Government is the purchase, installation, and integration of the new 6MeV Linear Accelerator, and the movement of the current linear accelerator, which is a 3MeV Linear Accelerator. A shielding study will need to be completed to ensure that the location for the 6MeV, and the new location of the 3MeV provide adequate shielding for use of both linear accelerators. It is expected that the current CT system will provide support for an additional . The Government’s requirement is to have the new system operational within to prevent break in testing by the non-destructive testing lab. The time required for the installation to be completed is . Once the installation is complete, it is estimated to take additional to

Once that is complete, receive final approvals for the system to be used for . This is the best case timeline, and takes into account that there is no other part of the system that will need to be replaced.

If this requirement were to be competed the Government would require approximately to complete this requirement. This is a result of the time required to purchase, install, and integrate the 6MeV; move the 3MeV; and complete training of personnel on the new equipment, and recreation of previously completed data that would no longer be

Program/Equipment: 6MeV X-ray Source and Relocation compatible with the new software. The requiring activity currently only has 8 months to complete this work, which is extremely complex in nature.

This requirement calls for the integration of the 6MeV with existing building interlock system, integration with existing collimator and data/image acquisition software, synchronization with the existing detector system, external trigger control integrated with the acquisition station, and connection to facility E-stop controls. The data/image software the Government currently has, Vi3, is proprietary to VJ Technologies, Inc. who has stated they will not provide to any other company nor are they willing to provide support as a subcontractor for another company. As a result, VJ Technologies, Inc. is the only company that could provide the integration with the Government’s existing software.

Failure to complete this work . This testing confirms a product’s quality and/or integrity (safety, lethality, ruggedness and survivability), and is used to verify claims of operational limits and prepare assets for reliable field operations.

This represents an unacceptable risk to the safety, and lives of Soldiers.

6. Efforts to Obtain Competition: The Contracting Officer shall publish the notices required by FAR 5.201.

7. Actions to Increase Competition: Due to VJ Technologies Inc’s proprietary restrictions competition is not feasible for this requirement. In the future the Government will refresh the market research to determine if any future actions could be competed, and to ensure that subcontracting opportunities are identified, and utilized to the maximum extent practicable.

8. Market Research: Market research for this requirement was performed from October 2019 to July 2020 by the B.908 Radiography Laboratory of the Evaluation Laboratory Division. The following techniques were used:

Contacted knowledgeable people (Government and industry) in specific markets;

Conducted market surveys to obtain information from potential sources;

Queried Government databases; and Used Internet tools and performed Web searches.

The following Government/Commercial organizations, which use the same or similar type of equipment, were contacted as part of the Market Research:

a.

b. McAlester Army Ammunition Plant

c. Blue Grass Army Depot - Unknown d.

Program/Equipment: 6MeV X-ray Source and Relocation e.

f. Strategic Weapons Facility, Atlantic g.

h.

i. Letterkenny Munitions Center

j. Crane Army Ammunition Activity k.

l.

m. Hill Air Force Base

These organizations conduct non-destructive testing of a similar nature, and require the installation/integration of their systems through the use of a commercial company.

As a result of the communication with the organizations listed above, the following companies were identified as potential sources for this effort:

Multiple internet searches were also completed to determine potential sources for this requirement.

For replacement software several other companies’ software were looked at:

While these companies can provide three dimensional (3D) CT imaging acquisition software, none of this software will work with a high energy system. Further, none of these companies would be willing to alter their software to allow for it to utilize the existing images the Government created with Vi3 software.

Two sources sought notices were issued to support the market research, W15QKN-20- X-0BZ5, 4 June to 6 July 2020, and W15QKN-20-X-0CRH, 8 July to 15 July 2020.

A total of five companies responded to sources sought notice W15QKN-20-X-0BZ5, as listed below. No responses were received to sources sought notice W15QKN-20-X-

0CRH.

Program/Equipment: 6MeV X-ray Source and Relocation

- The offeror states that since they own the proprietary software already installed on our current 3 MeV system they are the only offeror that can perform this task. There is no reason to believe they cannot meet our goals.

- Cannot integrate into our current hardware/software as it is proprietary software which controls the hardware and data processing and image reconstruction.

- Cannot integrate into our current hardware/software as it is proprietary software which controls the hardware and data processing and image reconstruction.

- Cannot integrate into our current hardware/software as it is proprietary software which controls the hardware and data processing and image reconstruction.

- Cannot integrate into our current hardware/software as it is proprietary software which controls the hardware and data processing and image reconstruction.

Only one of these companies was determined to be capable of meeting the Government’s requirement, VJ Technologies, due to their proprietary Vi3 software. VJ Technologies has stated that they will not provide the Vi3 software to any other company for this requirement, nor are they willing to perform work as a subcontractor.

From the above list of companies that responded to the sources sought notices, the only company determined to be capable of meeting the Government’s requirement is VJ Technologies. This is due to the Government use of Vi3 software, to which VJ Technologies has exclusive licensing rights.

9. Interested Sources: See Paragraph 6 for the synopsis information. To date, no other sources have written to express interest in this acquisition.

10. Other Facts: This is a new requirement, there is no previous purchase history.

Program/Equipment: 6MeV X-ray Source and Relocation

11. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name: Date: 4 AUG 20 Title: Physicist

Signature:

12. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name: Date: 4 AUG 20 Title: Chief, Evaluation Laboratory Division, Signatu

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.

This determination will be made using the following: price analysis, Independent Government Estimate, and other than certified cost or pricing is will be requested if determined to be required. As a part of this basis, certified cost or pricing data is not required because the item and/or services being acquired are considered commercial.

Typed Name: Date: 5 August 2020

Title: Contracting Officer Signature:

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Typed Name: Date: 5 August 2020

Title: Contracting Officer Signature:

Program/Equipment: 6MeV X-ray Source and Relocation

Approval

Based on the foregoing justification, I hereby approve the procurement of 6MeV X-ray Source and Relocation of the current 3MeV Source for the Building 908 Radiography Laboratory on a sole source basis pursuant to the authority of the Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 as implemented by FAR Subpart 13.5, subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

BETH-ANN MENDELL Date: 21 August 2020 Advocate for Competition Army Contracting Command – New Jersey