A12 JA ShotPeen-Waterjet_Redacted.pdf

Control No: ALC-J&A 20-0318 Contractor: Progressive Surface, Inc.

Program/Equipment: CNC Shot Peen Machines and Robotic Water Jet Strippers

FOR OFFICIAL USE ONLY

Version – June 2019

JUSTIFICATION REVIEW DOCUMENT

FAR SUBPART 13.5 SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS – SOLE SOURCE JUSTIFICATION AND APPROVAL

Program/Equipment: The Corpus Christi Army Depot (CCAD) has a requirement to procure Preventative Maintenance (PM), Calibration, and Emergency Repair(s) and Parts for four (4) Computer Numerically Controlled (CNC) Shot Peen Machines and three (3) Robotic Water Jet Strippers.

Authority: Simplified Procedures for Certain Commercial Items, 41 U.S.C 1901 as implemented by FAR Subpart 13.5.

Amount:

Prepared by:

Contract Specialist Date: 9 June 2020

Contracting Officer:

Contracting Officer Date: 9 June 2020

Technical:

Director of Infrastructure & Risk Management Date:

Requirements:

Chief, Equipment Maintenance Division Date:

Program/Equipment: CNC Shot Peen Machines and Robotic Water Jet Strippers

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

Program Manager:

X Chief, Equipment Maintenance Division

Program/Equipment: CNC Shot Peen Machines and Robotic Water Jet Strippers

FAR Subpart 13.5 Simplified Procedures for Certain Commercial Items – Sole

Source Justification and Approval

1. Contracting Activity: Army Contracting Command Redstone Arsenal Corpus Christi Army Depot (CCAD), Contracting Office (CCAM-ALC), 9035 Ocean Drive, Building 10, Mail Stop 18, Corpus Christi, TX 78419-5260.

2. Description of Action: CCAD, Directorate of Infrastructure and Risk Management, Equipment Maintenance Division, requests approval to award a 3 year Firm-Fixed-Price, Time-and-Materials/Labor Hour, Hybrid Firm-Fixed-Price and Time-and– Material new contract with Progressive Surface, Inc. (Cage 06EH8), 4696 Danvers Dr.

SE Ste. A, Grand Rapids, MI 49512-4077. The Government projects award for this action on June 2020 and fiscal year 2020. Army Working Capital Funds (AWCF) 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).

This action is a follow-on to contract W912NW-17-P-0010. That contract was not competed under authority 41 U.S.C. 1901, Simplified Acquisition Procedures, as implemented by FAR Subpart 13.5 Simplified Procedures for Certain Commercial Items FAR 13.501(a)(1) (ii). Paragraph, “Actions to Increase Competition” of the previous justification, stated: Market research is an ongoing effort. This requirement was published in CASL on 21 August 2015 and revised on 24 August 2016. The Contracting Office will continue to monitor the marketplace for future competition through the internet and contact with industry representatives. All future requirements will continue to be published in CASL. CASL is the Aviation and Missile Command’s (AMCOM) forecasting tool available to the Contracting community and is continued on the Competition Management Office’s home page.

Those actions were not accomplished due to Progressive Surface, Inc. being the original equipment manufacturer (OEM) and has proprietary rights to the software for the respective machines required to provide services. In addition, the CASL has been discontinued and is no longer in use. Attached is copy of the approved Sole Source Justification for W912NW-17-P-0010.

3. Description of Supplies/Services: This is a multiple year contract with a twelve (12) month base year and two (2) each 12 month option periods for 4 quarterly PM, calibration, and emergency repair(s) and parts for 4 shot peen machines and a semi-annual PM, and emergency repair(s) and parts on 3 water jet strippers.

Base Period: 1 Jun 2020 to 31 May 2021 Option Period 1: 1 Jun 2021 to 31 May 2022 Option Period 2: 1 Jun 2022 to 31 May 2023

Program/Equipment: CNC Shot Peen Machines and Robotic Water Jet Strippers

4. Authority Cited: Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 as implemented by FAR Subpart 13.5: Sole source due to proprietary rights.

5. Reason for Authority Cited:

a. Progressive Surface, Inc. Cage Code (06EH8), is the OEM and has proprietary rights to the software required for the shot peen machines and water jet strippers. The software code is integral to the operation of the equipment. Progressive Surface, Inc. is the only known source capable of providing the required support services that can satisfy agency requirements. Equipment audits require calibration and certification for flight safety programs that only Progressive Surface, Inc. can provide. Any other company would not have access to the equipment specifications or software; therefore, they would not be able to repair the equipment and ensure the systems mechanical, electrical hydraulic, measurement, control and software are performing as an integral system correctly. No other vender is authorized to perform services or maintenance on this equipment.

CCAD maintenance teams do not have the specific training and certifications required to perform the PM, calibration, and emergency repair(s) and parts to the shot peen machines and water jet strippers. Access to certain levels of software and mechanical adjustments are proprietary. The continuing service from Progressive Surface, Inc. will ensure that all calibrations and certifications meet stringent specifications and commercial/industrial NADCAP certification.

Another manufacturer’s equipment, services, and parts would require the purchase of an entirely new operating system. As a result, the Government would incur substantial duplication of costs, which would not be recovered through the acquisition of another manufacturer’s operating system. The estimated cost to procure a new piece of equipment is estimated at approximately not to mention the software required to operate the equipment. This is based on market research performed by the contract specialist on the estimated costs for a new piece of equipment provided by Progressive Surface, Inc.

Competition is not feasible as Progressive Surface, Inc. is the OEM and has proprietary rights to the software required for the shot peen machines and water jet strippers. The time required to award a new contract and implement operating procedures would result in the inability of the Equipment Maintenance Division to repair and overhaul Blackhawk, Apache, Cobra, and Chinook helicopters, all of which have various parts and assemblies that are shot peened or water jet stripped for flight safety programs. The need for continuity of services is of utmost importance to the customers in the field risking critical mission support. It is vital for the operation of the shot peen machines and water jet strippers to be operational. This impacts the production and supply of helicopters to field support units and risk to Army readiness.

Program/Equipment: CNC Shot Peen Machines and Robotic Water Jet Strippers

b. Alternatives: There are no alternatives to restricting competition to Progressive Surface, Inc. The machine specifications, software, and manuals on which Progressive Surface, Inc. shot peen machines and water jet strippers operate are proprietary to Progressive Surface, Inc.

1. Suspend Operations: If operations are suspended, CCAD will not be able to accomplish its main mission of rebuilding helicopters for the warfighter. The shot peen machines and water jet strippers would not be able to repair and overhaul Blackhawk, Apache, Cobra, and Chinook helicopters, all of which have various parts and assemblies that are shot peened and water jet stripped for flight safety programs.

2. Use In-House Personnel/Expertise: CCAD maintenance teams do not have the specific training and certifications required to perform the PM, calibration, and emergency repair(s) and parts to the shot peen machines and water jet strippers.

Access to certain levels of software and mechanical adjustments are proprietary.

Utilizing in-house personnel/expertise is not a viable option.

3. Replace: The cost to replace the shot peen machines and water jet strippers, software, and the timeframe from procurement to install would be significant. CCAD has researched this option previously. To have a new Contractor replace equipment and software is estimated at There would be a lead time of six (6) to nine (9) months to have all equipment and software manufactured. The timeframe to award a new contract for the procurement, installation, and training of a new operating system would take approximately 12 months. CCAD would be without the shot peen machines and water jet strippers’ support for an estimated time of 12 months. This would be detrimental to CCAD’s mission and is not a viable option.

c. Delays in obtaining the required PM, calibration, and emergency repair(s) and parts for the shot peen machines and water jet strippers will jeopardize the operation of flight safety programs. If the Government does not procure these services, the flight of safety programs will experience catastrophic delays and work stoppages. These delays will tremendously impact the mission of CCAD in its ability to support the critical aviation needs to the warfighter.

6. Efforts to Obtain Competition: The Contracting Officer will publish the notice required by FAR 5.201 and any bids or proposals received shall be considered.

Subcontracting Competition: There are no subcontracting possibilities for this requirement.

7. Actions to Increase Competition: Progressive Surface, Inc. is the only known source for PM, calibration, and emergency repair(s) and parts of the Progressive Surface, Inc. shot peen machines and water jet strippers. Progressive Surface, Inc. is the OEM and holds proprietary rights to the design of machines and design of software.

There are currently no other known sources to maintain the machines. Market research is an ongoing effort within CCAD. This office will continue to monitor the marketplace for future competition through the internet and contact with industry representatives. Action

Program/Equipment: CNC Shot Peen Machines and Robotic Water Jet Strippers for improving or enhancing the competitive status of this service includes the continuous effort of publication in beta.sam in accordance with FAR Part 5.201.

8. Market Research: Market Research was conducted in accordance with FAR Part 10 from June 2019 through June 2020. The following market research techniques were used:

(1) Contact with knowledgeable persons in Government and/or industry regarding the commercial nature of this requirement and/or standard industry practice in this area of supplies/services:

(a) , , June 2019. Contact was made with to discuss the specific tasks performed on the PM and certifications required to perform those tasks on the shot peen machines and water jet strippers.

(b) , , June 2019. Contact was made with to provide his knowledge of the shot peen machines and scheduling for the PM on the equipment.

(c) , , June 2019.

Contact was made with to provide his knowledge of the water jet strippers and scheduling for the PM on the equipment.

(d) , June 2019.

Contact was made with to confirm the specific tasks required to perform the PM and certifications on the shot peen machines and water jet strippers.

(e) , April 2020. Contact was made with to discuss the shot peen machines and water jet strippers.

stated that the shot peen machines and water jet strippers operate by proprietary software, which is owned by Progressive Surface, Inc. Another Contactor could not perform the task requirements, due to the Contractor needing access to the proprietary software. A new company would have to come in and replace the equipment, since the equipment and software are proprietary. New piece of equipment to replace the existing equipment is estimated at . provided the estimated number and stated it would be due to the specialization and complexity of the equipment. He was unable to provide more detailed pricing without receiving a formal request for quote.

(2) Reviewed results of recent market research, or other similar contracts recently awarded, for similar or identical requirements:

W912NW-17-P-0010 – Shot peen machines/Water jet strippers – – awarded 27 October 2016

Program/Equipment: CNC Shot Peen Machines and Robotic Water Jet Strippers

W912NW-17-P-0010 – Option Period 1 – Shot peen machines/Water jet strippers -

W912NW-17-P-0010 – Option Period 2 – Shot peen machines/Water jet strippers -

(3) Queried Government, scientific, and/or business search engines: Progressive Surface, Inc. at https://www.progressivesurface.com

9. Interested Sources: To date, no other sources have written to express interest in the acquisition. Progressive Surface, Inc. is the only known source capable of providing the required services. The notice required by FAR Part 5.201 will be published on or about 28 June 2020 and interested sources identified through synopsis will receive due consideration as required by law. Any bids received will be considered.

10. Other Facts:

a. Procurement History:

W912NW-17-P-0010

(a) Award Date: 27 October 2016

(b) Awardee: Progressive Surface, Inc.

(c) Period of Performance: 27 October 2016 thru 26 October 2019

(d) Total Contract Value:

(e) Contract Type: Firm-Fixed-Price and Time-and-Material

(f) NAICS: 811310

(g) Sole Source to Progressive Surface, Inc.; Simplified Acquisition Procedures

W912NW-13-C-0024

(a) Award Date: 29 August 2013

(b) Awardee: Progressive Surface, Inc.

(c) Period of Performance: 30 August 2013 through 29 August 2016

(d) Total Contract Value:

(e) Contract Type: Firm-Fixed-Price

(f) NAICS: 811310

(g) Sole Source to Progressive Surface, Inc.; Simplified Acquisition Procedures

W912NW-12-P-0261

(a) Award Date: 1 March 2012

(b) Awardee: Progressive Surface, Inc.

(c) Period of Performance: 1 March 2012 through 28 February 2013

(d) Total Contract Value:

(e) Contract Type: Firm-Fixed-Price

Program/Equipment: CNC Shot Peen Machines and Robotic Water Jet Strippers

(f) NAICS: 811310

(g) Sole Source to Progressive Surface, Inc.; Simplified Acquisition Procedures

W912NW-08-C-0006

(a) Award Date: 1 March 2008

(b) Awardee: Progressive Surface, Inc.

(c) Period of Performance: 3 March 2008 through 31 December 2012

(d) Total Contract Value:

(e) Contract Type: Firm-Fixed-Price

(f) NAICS: 811310

(g) Sole Source to Progressive Surface, Inc.; Simplified Acquisition Procedures

Program/Equipment: CNC Shot Peen Machines and Robotic Water Jet Strippers

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.

Dir, Infrastructure & Risk Management

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.

Chief, Equipment Maintenance Division

Program/Equipment: CNC Shot Peen Machines and Robotic Water Jet Strippers

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: ☐ cost analysis ☒ price analysis ☐ should cost ☒ IGCE ☐ audit: ☐ other:

As part of this basis, certified cost or pricing data is not required because the item and/or services being acquired are considered commercial.

Contracting Officer

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

Contracting Officer