JA_Rev7_19M-512A-DI_Dial_Indicator_Calibrator_Upgrade_signed_4Apr19__Redacted.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

March 2018 Page 2 of 6

APPROVAL (AFFARS 5306.304(a) )

Date

09 Jul 2019

Competition Advocate Signature

March 2018 Page 4 of 6

Total 15 $

Upgrade Data requirements for Vision option to be purchased are as follows using 3400/O&M funds:

Year Qty Est Unit Price Est Subtotal Description FY19 8 Base Quantity (BV option) FY20 4 Option 1 (BV option) FY21 3 Option 2 (BV option) Total 15 (NSP= Not Separately Priced)

Based on the information provided by the vendor and the anticipated time of contract award in the current schedule, Mahr will not likely be able to deliver the initial quantity prior to the end of the fiscal year. However, the delivery lead-time exception allows agencies to use current year money to procure supplies that will not be used during the current fiscal year when (1) the agency currently requires the supply and (2) the delay is due to delivery lead-time. In this case, the PMEL (Precision Measurement Equipment Laboratory) requires and can use this upgrade immediately. Therefore, the Delivery Lead-Time Exception to the Bona Fide Need Rule applies because the vendor is unable to deliver the units within the current fiscal year.

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

10 USC 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) Part 6.302-1(a)(1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, and required by FAR 6.303-2(b)(4).

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

Only One Responsible Source FAR 6.302-1 - While not a follow-on contract, this acquisition is for the upgrade of highly specialized equipment. This acquisition is to procure replacements for outdated system components, update the system control software and extend the working life of the system for 10 years. The control system contains proprietary software and proprietary hardware interfaces. Only the OEM has the proprietary data required to accomplish full system integration, functionality, control, and communication.

Award to any other source would result in substantial duplication of cost to the government that is not expected to be recovered through competition. This upgrade will preserve and expand the currently used automated calibration programs and procedures while procurement of a new system would require development of a new set of programs and procedures. This is critical insofar as this is a large and critical PMEL workload. The total estimated price for both the regular upgrade and the option with a vision option is .

Based on market research, the total estimated price for new competitor's manual systems without a vision system option is to replace all 53 current manual systems. The Mahr vision system upgrade is to upgrade the 15 current manual systems. The competitor's total cost with the Mahr vision system upgrade would be to supply the PMELs with full capability. The acquisition strategy in this upgrade would save approximately over competitor's total cost and the Mahr vision system upgrade, while providing superior capability to the full replacement of regular systems. Other contractors develop and manufacture a similar system, but they cannot provide the vision capability component the U.S. Air Force will receive via the upgraded Optimar 100. This specific feature will reduce the total calibration time; thus, it will continue to save the USAF money over the standard's life.

Without this acquisition, the U.S. Air Force risks significant down time and increased calibration costs because future calibrations will have to be obtained from commercial calibration sources. Due to proprietary issues associated with the dial indicator calibrator and software, Mahr Federal would not sell the rights so another company could upgrade the calibrator.

Accordingly, Mahr Federal is the only firm capable of providing the supplies and services described in Section III above without the U.S. Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition.

March 2018 Page 5 of 6

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

A sources sought was posted for this requirement on FedBizOpps on June 21, 2017 and was open for 30 days. The sources sought yielded one response, Mahr Federal. The software is proprietary to Mahr Federal. To obtain competition, new dial indicator calibrator's would need to be purchased. Continual market research was performed to ensure that new units were not introduced into the market that would cost less than the upgrade or provide superior performance. Based on on-site vendor discussions, Internet research, trade show attendance and commercial catalog market research, there are not any other sources that can provide a new item that is a better value to the Government as of this document.

As required by FAR 5.2, the proposed contract action will be synopsized on FBO. We intend on posting this proposed contract action on, or around, 30 July 2019.

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

A cost analysis will be performed to determine if the proposed amount is fair and reasonable. Price analysis will be used to verify the overall price offered is fair and reasonable.

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

As described in Section VI of this document, market research, IAW FAR Part 10, was conducted by synopsis to advise industry of the proposed acquisition and to solicit inquiries from interested parties. Based on the results of this initial market research (conducted in 2017) the Air Force Technical Team determined that a system upgrade provides the best value to the government and no other vendor besides Mahr Federal Inc was found to be able to perform the upgrade as described in this Justification and Approval. This was initially a FY18 buy but no funding was received. The market research was then updated in FY19 to ensure that Mahr Federal Inc was still the only company that could fulfill the Air Force's requirement.

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

The required software necessary to operate the upgraded dial indicator calibrator is proprietary to Mahr Federal. The upgrade to the Optimar 100 by Mahr Federal will be able to satisfy customer requirements based upon the market research performed and the engineer's knowledge of the items to be procured. The component items are off the shelf so delays in delivery are not expected. There is no expectation that administration of this contract will be difficult.

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

Mahr Federal Inc 11144 Eddy Street Providence, RI 02905 POC: George Schuetz Phone: (401) 784-3100 E-mail: george.schuetz@mahr.com

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.

Mahr Federal Inc is the manufacturer of the original systems and this procurement is for the upgrade of 68 systems. It also involves proprietary software which the manufacturer is unwilling to release to another company. For this requirement there is no other action that can be accomplished to generate competition without a substantial duplication of costs. This procurement will provide the best value to the Government at this time. A sole source effort is required for the base quantities and option years to prevent significant downtime and increased calibration costs

March 2018 Page 6 of 6 due to proprietary data involved with the upgrade. We will pursue full and open once the calibrators reach their full life cycle.

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.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.