CUI 21R0010 Sole Source JA - Preaward.pdf

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

CONTROLLED UNCLASSIFIED INFORMATION

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NOTE: If a Justification was approved for the preceding acquisition, a copy of the approved Justification for the predecessor action must be included in the staff package for approval of the instant Justification. This applies to Justification staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor Justification will be used as a reference document by the approving official.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition: >SAT and < $750K > $750K and < $15M

Contracting Activity:

Department of the Air Force 509th Contracting Squadron 660 Tenth Street, Suite 222 Whiteman AFB MO 65305-5316

Purchase Request / Local ID Number: FA462521R0010

Program / Project (and PE, if applicable): SCADA Maintenance

Program Type (PEO or Other Contracting): Other Contracting

Authority: AFFARS 5313.501 - 10 U.S.C. 2302b, Implementation of Simplified Acquisition Procedures (41 U.S.C. 1901)

AFFARS 5313.501 - 10 U.S.C. 2304a, Special Emergency Procurement Authority (41 U.S.C. 1903)

Estimated Contract Cost (including options): $ Justification Type: Class Individual

COORDINATION ( AFFARS 5306.304(a))

APPROVAL (AFFARS 5306.304(a) )

Date

28 Jun 2021

Contracting Officer Tammie S. Clippert

509 CONS/PKA DSN 975-5425

Signature

CLIPPERT.TAMMIE.S.1141125660

2021.06.28 08:43:36 -05'00'

Controlled by: USAF Controlled by: 509 CONS CUI Category: PROCURE Distribution/Limited Dissemination Control:

Distribution Statement A: Approved for public release.

Distribution is unlimited.

POC: 2d Lt Wiktor Kedzierzawski, wiktor.kedzierzawski.1@us.af.mil

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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I. Contracting Activity.

Department of the Air Force 509th Contracting Squadron 660 Tenth Street Suite 222

WAFB, MO 65305

II. Nature and/or description of the action being processed.

The action to be processed is justification for the use of other than full and open competition due to the availability of only one responsible source. In this particular acquisition, HSQ Technology is the sole manufacture and proprietor of their software and systems. This software and system monitors and controls the Waste Water Treatment Plant, Water Plant, Electrical Generators, Transfer Switches, Electrical Systems, and Fire Suppression System to ensure that all of the services are running within the correct parameters. In order to solicit this requirement under Full and Open Competition, the entire infrastructure in which this system utilizes would need to be reconstructed. Doing so would cost an estimated $1.3 Million.

III. Description of supplies/services required to meet agency needs.

This requirement is to provide service and maintenance for the Supervisory Control and Data Acquisition (SCADA) System which is currently installed at Whiteman AFB in accordance with the Statement of Work. The SCADA system monitors and controls the Waste Water Treatment Plant, Water Plant, Electrical Generators, Transfer Switches, Electrical Systems, and Fire Suppression System. This is a service for a base year and four (4) option years.

IV. Statutory authority permitting other than full and open competition.

10 U.S.C. 2302b, Implementation of Simplified Acquisition Procedures (41 U.S.C. 1901)

IAW FAR 13.501(a)(1), "Acquisitions conducted under simplified acquisition procedures are exempt from the requirements in part 6."

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

This system must be serviced by HSQ Technology due to its proprietary nature. HSQ Technology is the only company trained to service and install their proprietary software and associated hardware. All of the software and a majority of the internal hardware for the current SCADA system is created by HSQ Technology and can only be maintained by this Contractor. Some items of the hardware such as power cables and SATA cables can be purchased off the shelf.

However, connecting these items ourselves could void any warranties. HSQ Technology has been selected for this service for several reasons: Whiteman AFB has a full complement of HSQ Technology systems and HSQ has proprietary rights to all software and associated hardware. Purchasing services through HSQ Technology will guarantee system performance, reliability, and security. Purchasing this service under Full and Open Competition would cause significant hardship to the Government and the internal systems that utilize the current SCADA system.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

Our agency contacted HSQ to verify if any other entities are certified to work on the company's software. Gus Jimenez, Direct of Projects and Operations for HSQ, responded to our agency on 19 May 2021 by stating, "For the software portion of our proprietary system, HSQ is the only source to install and develop our SCADA software." See "Email - Proprietary System". Additionally, market research via an Internet search revealed that only HSQ Technology is available to maintain their systems. CO has concluded that no other vendor will be considered for this procurement.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

This is a follow-on contract. The previous award, FA462517C0004, will be examined for prices. The nature of the requirement has not changed and prices should stay similar, within a margin of escalation commensurate with

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

April 2021 CONTROLLED UNCLASSIFIED INFORMATION Page 3 of 3April 2021 CONTROLLED UNCLASSIFIED INFORMATION Page 3 of 3 inflation. Nevertheless, COVID pandemic may have had adverse impact on the industry, necessitating a higher-than normal cost. Regardless, the contractor will bear the responsibility of demonstrating if such is the case.

Finally, it has been determined that the cost to replace the entire system and allow for Full and Open Competition would cost an estimated $1.3 Million costing the Government more than it would recuperate by issuing this requirement as a Sole Source.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

Our agency contacted HSQ Technology on 18 May 2021 to verify if any other entities are certified to work on the company's software. Spokesperson for HSQ confirmed that there are no other companies authorized to maintain HSQ's SCADA software. Independent market research did not reveal any information to the contrary. In fact, while there are other vendors who may provide their own hardware and implementation of SCADA, the product developed and produced by HSQ is entirely within the legal domain of HSQ. The requirement is not to replace the existing infrastructure; rather, it is to provide continued service.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

As previously mentioned, market research conducted confirmed that no other companies can provide the requested software and maintenance for the HSQ Technology software and systems.

X. List of any sources that expressed, in writing, an interest in the acquisition.

HSQ Technology

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

Efforts were made to find additional sources for procurement but due to the proprietary software, HSQ is the only vendor that can satisfy the requirement at this time. However, if and when HSQ decides to release proprietary rights for other vendors to maintain their systems then competition barriers will be removed. In addition, lifetime system costs can be evaluated to ensure continued stewardship of taxpayer dollars via competition if a new system is installed.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

N/A