Sole_Source_DSW700_Scanner_Crating_and_Uncrating_Final_28_March_2018.pdf

Justification For Other Than Full And Open Competition

1) Identification of the agency and the contracting activity

Agency:

United States Department of Agriculture (USDA) Farm Service Agency (FSA) Aerial Photography Field Office (APFO)

Contracting Activity:

United States Department of Agriculture (USDA) Farm Service Agency (FSA) Acquisitions Management Division (AMD) 2222 West 2300 South Salt Lake City, UT 84119

2) Nature and/or description of the action.

This requirement is for the crating and uncrating of Leica Geosystems Digital Scanning Workstation (DSW) 700 Photogrammetric Film Scanners equipment in support of the Farm Services Agency (FSA), Aerial Photography Field Office (APFO) relocation effort that is scheduled to take place within the next twelve months, from approximately April 1, 2018 through March 31, 2019. Leica Geosystems, Inc. is located at 5051 Peachtree Corners Circle, Ste 250, Norcross, GA 30092, phone +1 770-326-9500, DUNS: 019590731, CAGE Code: 35643. Leica Geosystems will provide the crating and uncrating services on a Firm Fixed Price basis, as enumerated in their Quotation Number 20728441, for a total of $201,625.00.

3) A description of the supplies or services required to meet the agency’s needs.

APFO has 13 DSW700 Photogrammetric Film Scanners that must be properly dismantled and crated for physical move from their current operating location at the Aerial Photography Field Office Building, at 2222 West 2300 South, Salt Lake City, UT 84119 to the Wallace F. Bennett Federal building (6th floor) at 125 S. State Street, Salt Lake City, Utah 84138. Once moved, the scanners must be uncrated and properly installed in a new location. These scanners are highly precise calibrated instruments sensitive to movement. The vendor will not be responsible for actual transportation services because these services will be completed by the APFO (or their designated contractor) that will provide physical transport services from the old to a new location;

however, the vendor will provide necessary oversight during the move.

4) An identification of the statutory authority permitting other than full and open competition.

This requirement falls in line with the FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements authority where services “may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in” either substantial duplication of cost to the Government that is not expected to be recovered through competition, or unacceptable delays in fulfilling the agency’s requirements. (See 10 U.S.C. 2304 (d)(1)(B) or 41 U.S.C. 3304 (b)(2).)

5) A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

Historically, Hexagon Group AB headquartered in Sweden and its divisions are the only authorized vendors of the DSW700 scanners and any associated upgrades and add-ons to that equipment. The sale and support of the DSW700 scanners has always been handled directly by Leica Geosystems and has never been contracted to third-party vendors or hardware integrators.

The only authorized sales channel in the United States for any DSW components is the Leica Geosystems Direct Sales Team.

13 Leica Geosystems DSW700 scanners that were installed at APFO are no longer being manufactured; however, necessary maintenance, warranty, spare parts and other support activities continues to be available from Leica Geosystems. Any failure to properly remove and package sensitive components may lead to either system failures or inability for the DSW700 scanners to operate and meet published performance specifications and productivity.

As described in the Hardware Maintenance and Warranty documentation, any maintenance work or upgrade performed by any group or individuals other than Leica Geosystems would immediately exclude the affected hardware from Warranty coverage. Any future repair or service needs required on the hardware would be undertaken at additional expense to the government.

Leica Geosystems operating practices for DSW700 scanners are covered under a current Customer Care Package (CCP) Agreement with APFO, and indicates that physical crating and uncrating of the system by Leica Geosystems personnel will maintain the integrity of the CCP obligations and commitments. Conversely, physical crating and uncrating of the DSW700 by persons other than Leica Geosystems personnel, will automatically void Leica Geosystems obligations under the CCP.

Controlling the maintenance and proper installation of DSW scanners is needed to ensure consistent performance of these highly-specialized analog film scanners. It is critical that these systems consistently meet or exceeds the specifications as well as assuring that all digital images produced on DSW scanners meet high standards for accuracy and color fidelity. The best solution for quality control and assurances of scanning consistency was to limit sales and support of the DSW scanners to divisions of Hexagon sales and support channels, such as Leica Geosystems.

6) A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies.

Subject DSW700 scanners were purchased over the course of several years The sole source justification and award notice for this requirement will be publicized on www.fbo.gov within 15 days of award.

7) A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

Leica Geosystems provides FSA-APFO the same pricing as its other United States customers, which is essentially their catalog pricing, and is considered fair and reasonable.

8) A description of the market research conducted (see Part 10) and the results or a statement of the reason market research was not conducted.

Leica Geosystems has been a provider of precision instruments and digital systems in support of customer photogrammetric and geospatial content acquisition and compilation workflows for almost 100 years; including but not limited to legacy aerial film and current generation digital sensors, photogrammetric and image processing software systems. The DSW product line has been part of the Leica Geosystems branded offering since 1992.

Leica Geosystems, and legacy companies, is the original manufacturer of the Leica Geosystems branded DSW products, including the thirteen (13) DSW700 systems installed and operational at the APFO. The DSW700 is the last product model of the family of six generations of DSW products. USDA has owned and operated DSW scanner products since 1996, and along with guidance and assistance from Leica Geosystems, migrated to the current DSW700 installed base.

While the product line is no longer in manufacture, Leica Geosystems has continuously provided Customer Care Program (CCP), covering maintenance support and upgrade services for these products, including continuity of coverage for APFO over the past 7 years.

The DSW700 customer support and service team operates within the Geospatial Content Solutions (GCS) group of Leica Geosystems, which by itself is one of the single largest users of its own systems. This long history of operational experience from film to digital, provides an organizational depth that is available to the DSW700 service team to help understand and support USDA with its film archive and scanning mission. Based on the above, no additional market research was conducted.

https://www.acquisition.gov/far/current/html/Subpart%205_2.html#wp1107980 https://www.acquisition.gov/far/current/html/Subpart%205_2.html#wp1107990 http://www.fbo.gov/ https://www.acquisition.gov/far/current/html/FARTOCP10.html#wp266706

9) Any other facts supporting the use of other than full and open competition:

a. Explanation of why technical data packages, specifications, engineering descriptions, statements of work, or purchase descriptions suitable for full and open competition have not been developed or are not available.

Leica Geosystems does not authorize or train any third-party organizations to independently provide customer service and support for the DSW700 scanners in the United States and does not offer spare parts to third parties. If another party is utilized for these services, the scanners will be rendered inoperable and will not be covered by the maintenance agreement. Due to the limited availability of these spare parts, they may not be obtainable through Leica Geosystems without the maintenance agreement.

b. When 6.302-1 is cited for follow-on acquisitions as described in 6.302-1(a)(2)(ii), an estimate of the cost to the Government that would be duplicated and how the estimate was derived.

It is not possible for other providers to deliver the same services as the use of other providers would void the maintenance agreement. It is not in the best interest of the government to purchase new scanners in lieu of obtaining the required services from the same manufacturer, Leica Geosystems.

c. When 6.302-2 is cited, data, estimated cost, or other rationale as to the extent and nature of the harm to the Government.

The government’s intent is to continue with the use of available equipment until said equipment and associated services are obsolete because replacing available equipment would cost the government around $45K per unit (to include crating and shipping) plus necessary upgrade cost at $80K per unit totaling to $1.7M in initial investment to replace 13 scanners. This would also require between 12 to 18 months for solicitation preparation, response preparation, proposals evaluation, and subsequent development of machines to meet unique government’s requirements.

10) A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

It is not possible for other providers to deliver the same services, as the use of other providers would void the maintenance agreement. It is not in the best interest of the government to purchase new scanners machines in lieu of obtaining the required services from the same manufacturer at this time, Leica Geosystems. Replacing the existing scanning equipment might be an option in the future; however, the government has the current need to obtain the required services from the existing provider in order to fulfil the government’s need and that need must be met.

https://www.acquisition.gov/far/current/html/Subpart%206_3.html#wp1087543 https://www.acquisition.gov/far/current/html/Subpart%206_3.html#wp1087543 https://www.acquisition.gov/far/current/html/Subpart%206_3.html#wp1086879

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

There is not likely to be a subsequent acquisition for these services, as the relocation of these scanners is a one-time event.

Requirements/Program Office:

I certify the facts and representations under my cognizance included in this justification form are complete and accurate basis for the justification.

Signature Date Lori J. Uhlhorn, Business Manager, FSA-APFO

Contracting Officer:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Signature Date Michelle C. Jardine, Contracting Officer, FSA-APFO