DnF for OTFOC - Versaprobe.doc

DETERMINATION & FINDINGS FOR OTHER THAN FULL & OPEN COMPETITION

(ACTIONS SAT AND BELOW)

1. DESCRIPTION OF PROPOSED PROCUREMENT: one (1) year service contract with three (3) option years for the Government-owned Versaprobe III X-Ray Photoelectron Spectrometer (XPS)

2. PROPOSED CONTRACTOR/MANUFACTURER:

Physical Electronics Inc.

18725 Lake Drive E

Chanhassen, MN 55317-9384

CAGE Code: 3NYF6

3. ESTIMATED TOTAL VALUE:

Base: $42,802.20

Option yr 1: $47,558.00

Option yr 2: $49,936.00

Option yr 3: $52,433.00 Total: $192,729.20

4. STATUTORY AUTHORITY PERMITTING CONTRACTING WITHOUT PROVIDING FOR FULL AND OPEN COMPETITION: The statutory authority permitting sole source is 41 USC 1901(e), implemented by FAR 13.106-1(b)(1)(i):

_X_ Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

___ Unusual and Compelling Urgency

___ Industrial Mobilization; Engineering, Developmental, or Research Capability; or Expert Services

___ International Agreement

___ Authorized or Required by Statute

___ National Security

___ Public Interest

5. JUSTIFICATION FOR THE AUTHORITY CITED ABOVE:

The item(s) listed in section one above is available from only one source and competition is precluded for reasons indicated below. There are no substitutes available.

___ Compatibility: The item(s) must be compatible in all aspects (form, fit, and function) with existing systems presently installed. Describe the equipment you have now and how the new item/service must coordinate, connect, or interface with the existing system:

__X_ Proprietary: A patent, copyright, or proprietary data limits competition. The proprietary data are described as follows:

___ Experimental Continuity: The item(s) must be consistent with prior materials in order to ensure experimental continuity. Describe the conditions that necessitate the use of experimental continuity:

___ Warranty: Purchasing item(s) from another manufacturer/provider would void existing warranty. Provide a brief explanation for the use of this reason and the impact that would occur if the item was purchased from another manufacturer/provider:

___ Direct Replacement: These are “direct replacement” parts/components for existing equipment and no substitutes exist.

_X_ Other reasoning to support a sole-source buy:

The Energy Conversion Branch (FCDD-RLA-GC) within the Army Research Directorate (ARD) at the DEVCOM-Army Research Laboratory (ARL) requires a one (1) year service contract with three (3) option years for the Government-owned Versaprobe III X-Ray Photoelectron Spectrometer (XPS) to ensure optimal operation of the equipment. The service contract shall consist of repair, calibration and scheduled annual preventative maintenance (PM) visits to service the Versaprobe III XPS at Adelphi Laboratory Center (ALC) in Adelphi, MD. Physical Electronics Inc, is the Original Equipment Manufacturer (OEM) of the VersaProbe III XPS used for ongoing research purposes. Due to the proprietary nature of the instrumentation, the repair service must be carried out by the OEM. Due to the complexity and mission-critical usage of the Versaprobe III, adequate repairs cannot be performed using any other manufacturer in the commercial marketplace. Additionally, any replacement parts required for the Versaprobe III in the future will only be available through the OEM. Even when a piece of equipment is out of warranty, any usage of non-original parts will negate the warranty that is provided by the OEM parts when a major rebuild is completed on a piece of equipment. OEM parts are designed to match precisely for this highly technical system.

The XPS supports the Energy Sciences Competency within ARD by providing an extremely versatile analysis technique for materials made and tested at ARL. As such, a service contract is required to provide repair services for systems which break and to perform preventative maintenance. Estimated repair costs for systems within the XPS which are not consumables, but will likely need repair within the next year, would cost more than the one-year service contract. The XPS in question is also providing support for researchers with collaborative research with ARL who do not have the capability at their home institutions. Without this service contract ARL would have to pay for any replacement equipment and the repair services since no personnel on-site is capable of the repairs. With this in mind, it is imperative that a maintenance contract is secured for the XPS in order to limit any disruption in the machine’s functioning and contribution in support of ARD’s mission.

Market research included speaking with knowledgeable Subject Matter Experts (SMEs) and reviewing the market research conducted for the current service contract in place (W911QX-20-P-0048). Market research found only one (1) company, Physical Electronics Inc., that is capable of meeting the mission needs. Due to the complex and proprietary nature of the mechanical and electrical systems employed in the XPS, only Physical Electronics Inc. can provide service on the instrumentation. Physical Electronics is the only source that has access to the proprietary design information and large inventory of original equipment components needed to perform the maintenance/repair of the components and circuitry of the systems and return them to OEM specifications. Because some components on the XPS are from third party sources but integrated by Physical Electronics to the XPS, other technicians would be unfamiliar with the arrangement and specifications of these components and could therefore not properly service the instrument. Physical Electronics is also the company currently providing service to the Government’s XPS.

If this contract is not awarded, it will severely harm current ARD missions and programs and lead to unacceptable delays (many months to years) in the accomplishment of mission objectives. Furthermore, to procure services from a different manufacturer will require the replacement of the XPS currently used by ARD as no other service vendor, aside from the OEM, is capable of providing the required service. The purchase of a new XPS would result in a substantial duplication of cost to the Government (~$750K) not expected to be recovered through competition. Due to the aforementioned, Physical Electronics Inc. is the only source that will satisfy the Government’s requirements.

6. FAIR AND REASONABLE PRICE DETERMINATION:

It has been determined that the anticipated cost to the Government will be fair and reasonable and that approval of this recommendation is in the best interest of the government. This justification is accurate and complete to the best of my knowledge and belief.

Template last updated 4/23/2018