JA_18_Aug_15_Redacted.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

ARGUS ULTRASONIC SCANNING SYSTEM MAINTENANCE

18 August 2015

I. CONTRACTING ACTIVITY

Contracting Agency: AFSC/PZIOA

Organization Activity: 402 CMMXSS/MXDQBE

Purchase Request: F3QCCL5027A002

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED

Due to the circumstances described below, this activity will acquire the following new contract requirement using Other Than Full and Open Competition (OTF&OC) procedures:

a. Source:

Olympus Scientific Solutions Americas, Inc.

48 Woerd Ave, Suite 105

Waltham, MA 02453-3824

Cage Code: 1KY21

Large Business

b. Scheduled and non-scheduled maintenance of the Government owned ARGUS Ultrasonic

Scanning System permanently located in building 323 at Robins Air Force Base, GA.

c. In support of C-5, C-17, C-130, and F-15 aircraft workloads.

d. Type Requirement: Air Force

e. Special Features: Basic contract with four annual options

f. Period of Performance:

Basic Yr: 15 Sep 2015 - 14 Sep 2016

Option 1: 15 Sep 2016 - 14 Sep 2017

Option 2: 15 Sep 2017 - 14 Sep 2018

Option 3: 15 Sep 2018 - 14 Sep 2019

Option 4: 15 Sep 2019 - 14 Sep 2020

Total

Contract pricing arrangements are firm-fixed price (FFP) for maintenance services and Cost

Reimbursable for parts.

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET

THE AGENCY’S NEEDS

The requirement is for scheduled and non-scheduled maintenance of the Government-owned

ARGUS Ultrasonic Scanning System permanently located in building 323 at Robins Air Force

Base, GA. The ARGUS system detects delamination in composite skins and dis-bonds on honeycomb sandwich/layered parts for the C-5, F-15, C-130, and C-17. These parts include, but are not limited to, C-5 panels and F-15 speed brakes, ailerons, and other flight controls.

Services required include ARGUS system preventative maintenance, system and component calibration, motion controls, Panametrics software support, cleaning/lubricating system, and ultrasonic instrumentation. The Contractor shall furnish all labor, travel, parts, and material necessary to satisfy service requirements.

Appropriations 4930 will be used for this requirement.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND

OPEN COMPETITION

10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1. Only One or a Limited Number of

Responsible Sources, and No Other Supplies or Services will Satisfy Agency Requirements.

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE

QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES THE USE

OF THE AUTHORITY CITED ABOVE (APPLICABILITY OF AUTHORITY)

The ARGUS system is a highly specialized and complex system that uses high frequency, highly directional sound waves to measure material thickness, find hidden internal flaws, or analyze material properties in metals, plastics, composites, ceramics, rubber, and glass. Using frequencies beyond the limit of human hearing, ultrasonic instruments generate short bursts of sound energy that are coupled into the test piece, and the instrument monitors and analyzes reflected or transmitted wave patterns to generate test results.

The ARGUS system requires access to proprietary data for hardware and software for the purpose of maintenance, repairs, and upgrade services. Olympus Scientific Solutions Americas, Inc. is the Original Equipment Manufacturer (OEM) for the ARGUS system and owns the proprietary data for the system. Commercial product sheets, test data, qualification data, support manuals, or related data that defines the performance and manufacturing characteristics of the

ARGUS system are not available. Olympus is the only source with qualified OEM certified service/repair technicians, which assures a rapid response time and reduced system down time.

They have the required background experience/expertise, proprietary data, and spare parts availability for the system to meet the Government’s requirements.

Olympus Scientific Solutions Americas was contacted in June of 2014 and asked if they would be willing to grant the Government data rights as defined in DFARS 252.227-7013, Rights in

Technical Data -- Non-commercial Items. Olympus said they have serviced the ARGUS system since it was installed at Robins AFB in 1998, and that the Air Force has a complete set of operations manuals and parts list for the system. Additionally, the company stated they would http://www4.law.cornell.edu/uscode/html/uscode10/usc_sec_10_00002304----000-.html http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/Far/06.htm%23P77_9982 not share any information about their equipment with any other company or competitor.

To reverse engineer the maintenance data for the ARGUS would require a contract. Robins

AFB’s reverse engineering capabilities are limited to the 402d Avionics Maintenance Group.

They only reverse engineer avionics commodities for obsolete parts or non-commercially available avionics parts. A contract to reverse engineer the maintenance data for the ARGUS system would take approximately six months to accomplish, and the time after contract award for a contractor to reverse engineer the data is estimated to be another six to nine months.

In addition to a contract for reverse engineering the maintenance data, a contract would be required to accomplish the maintenance and repair of the ARGUS system. There are no organic resources capable of accomplishing the work required at Robins AFB. We do not have OEM certified, factory-trained available resources qualified to perform preventive maintenance and repair on the system. The mechanics in our organization only perform maintenance and repair on depot industrial plant equipment, not advanced ultrasonic scanning equipment. Based on similar requirements, a basic year with four option years contract to compete for maintenance of the ARGUS system would take six to nine months to accomplish at an estimated cost of $800K to $1M.

. With the proactive maintenance the system has received so far, it is not expected to need replacement until 2022 (25 years).

. These figures are based on recent information provided by the vendor. It is a standard practice within the industry, that systems such as this be repaired, maintained, and inspected by the OEM and their certified technical representatives to ensure that the highest standards of performance and quality are maintained. By obtaining the previous specialized maintenance and repair service contracts with Olympus Scientific Solutions for this system, the

Government has preserved and extended the life of the ARGUS and prevented the system from becoming obsolete.

While there are other manufacturers of ultrasonic scanning systems, those companies do not have knowledge of the proprietary data for the Olympus ARGUS system. Olympus is the OEM for this sophisticated equipment and no other source has access to the proprietary data needed to perform maintenance and repairs. Without the current service for preventive maintenance and emergency repair, failure of the system could occur and a work stoppage would result. Based on the above, award to any other source would result in significant delays and substantial duplication of costs.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE

This requirement will be posted on the Federal Business Opportunities (FedBizOpps) web page, citing conditions that preclude Full and Open Competition.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE

The Contracting Officer will determine that the anticipated cost to the Government is fair and reasonable (FAR 6.303-2(b) (7), and will negotiate the contract price according to procedures in FAR Part 12.

Olympus Scientific Solutions Americas, Inc. will provide a proposal based upon the prescribed product requirements/description.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS

NOT CONDUCTED

Market Research, in accordance with FAR Part 10, was conducted to determine whether changes have occurred that offer potential solutions other than that provided by Olympus Scientific Solutions

Americas Inc. Market Research was completed in October 2014 and findings were arrived at using

Internet searches and Dynamic Small Business Search queries.

Market Research was conducted via Internet searches using the terms “service for Panametrics advanced gantry robotic ultrasonic scanning system”, “authorized service provider Panametrics”, and

“Panametrics Olympus NDT service providers”. The Internet searches yielded zero results.

Additionally, a Dynamic Small Business System query was performed for NAICS code 334516 with keywords of “ARGUS”, “Ultra”, “Ultrasonic scanning”, and “robotic Scanning” for 8(a), HUBZone, Service Disabled Veteran Owned Business (SDVOB), Woman Owned Small

Business (WOSB), and Small Disadvantaged Businesses with the following vendor profile results:

Economic Group Firms Found Capability

8(a) 1 No

HUBZone 1 No

Service-Disabled Veteran Owned Small Business 0 No

Woman-Owned Small Business 2 No

Small Disadvantaged Business 1 No

Total Query Results 5 No

The results of the Market Research indicated there are no firms, other than Olympus Scientific

Solution Americas, Inc. that can provide the required services.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION

None.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE

ACQUISITION

See Section VI above.

http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/10.htm

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

The ARGUS Ultrasonic Scanning System is a complex system that requires access to proprietary data for the purpose of maintenance, repair, and upgrade services. Market

Research was conducted to determine whether changes have occurred that offer potential solutions other than that provided by Olympus Scientific Solutions Americas Inc. The results of the Market Research indicated there are no other companies that are currently capable of providing the required services.

Olympus Scientific Solutions Americas Inc. is the only source of maintenance, repair, and support services for the present ARGUS system. However, the present system is expected to require replacement by 2022. When a replacement system is required with a subsequent maintenance service agreement, then competitive barriers will be removed and they will be obtained through full and open competition using the commercial market.

XII. CONTRACTING OFFICER’S CERTIFICATION

The contracting officer’s signature on the Coordination and Approval Document evidences that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief (FAR 6.303-2(b)(12)).

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

As evidenced by their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete (FAR 6.303-2(c)).

http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/06.htm http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/06.htm