6_FBO_Posted_Zip_Tube_JA.docx

F2DCCR-XXXXX

19 MAY 2015

COORDINATION AND APPROVAL DOCUMENT

Contracting Activity: AFSC OL:H/PZIOA Purchase Request Number: F2DCCR5167A001 Program Name: Zip Tube Material Delivery System Estimated Contract Cost:

Type Program: Other Contracting Authority: 10 U.S.C. 2304(c)(2), as implemented by FAR 6.302-2 Type J&A: Individual

COORDINATION:

JUSTIFICATION FOR OTHER

THAN FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY:

United States Air Force

OL:H/PZIOA

6038 Aspen Ave, Bldg 1289 NE Hill AFB UT 84056-5825 Contracting Officer: Richard J. Jensen Phone Number: 775-2216 PR Number: F2DCCR5167A001

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

A. Upon approval to use other than full and open competition procedures, the Air Force will issue a sole source contract to repair and upgrade the Zip Tube Material Delivery System located on Hill Air Force Base. This requirement is in support of Aircraft, Missiles, and Commodities production organizations and will be used for distribution of requested repair parts and materials at the base. A contract will be awarded to Aid Equipment company, 172 West 9400 South, Utah, 84070, CAGE Code 0BD90.

B. Contract Type and Structure: A supply/services contract to repair and upgrade the aforementioned material delivery system with an anticipated Firm-Fixed-Price arrangement will be issued. The estimated award date is 7-17-2015 with performance and delivery expected through 10-30-2015.

C. Type J&A: Individual

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED MEETING THE AGENCY’S NEEDS:

A. Under the contemplated contract, Aid Equipment Company will provide the following repair and upgrade services in sustainment of the Zip Tube material delivery system as stated in the respective SOW:

· Upgrade existing OPTO 22 control system with new GROOV-AR-1 hardware & PACPROECTPRO software to ensure compatibility is maintained.

· Replace existing turbine blower motors throughout the system. Variable speed frequency inverters are to be installed on each new motor to provide slow startup, speed control, & performance monitoring.

· Provide material carriers of improved design that is less weight and increased functionality.

· Upgrade all system carrier tracking sensors with new state of the art assemblies that provide all weather performance and sunlight resistant.

· Relocate receiver station in building 214 from 2nd floor to 1st floor MIC area. Provide necessary materials that enable tube system runs to accommodate the approved relocation travel path.

· Remove receiver station from building 39 and terminate tube runs and electrical controls as needed to maintain system functions.

· Inspect and repair all system diverters as needed to ensure travel alignments are correct and overall operational performance is maintained.

· Upgrade existing 42” monitor to display in real-time to ensure accurate visual tracking of carriers traveling to destinations throughout the system.

· Install a new PC, 21” monitor, mouse, & keyboard on master station.

· Contractor shall provide schematic diagrams and respective documentation of the electrical & mechanical characteristics of the system.

B. Estimated period of performance is projected to be 7-20-2015 to 10-30-2015. This is based on the number of work requirements to be accomplished.

C. This action is using AFLCMC/EZPAA appropriated funds.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN COMPETITION:

10 USC 2304 (c) (1) as implemented by FAR 6.302-1 - Only One Responsible Source 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 AUTHORITY CITED ABOVE (APPLICABILITY OF AUTHORITY):

A. The above authority was selected because this contract is for highly specialized technical services. Aid equipment is the only company that has a technical knowledge and operational understanding of the existing ZIP Tube material delivery system. The Zip Tube System was designed to meet specific application requirements and is unique only to Hill Air Force Base and is therefore a one of kind system. There are special application devices that have been designed and deployed into the system that are not standard to industry. Additionally, the control software is unique to system operational requirements. The Zip Tube System is unique in design, application, and operational characteristics and is the only material delivery system of its size and complexity in the world. The contractor that initially designed and installed the Zip Tube system discontinued business operations without providing applicable technical data or alternative support. Subsequently, Aid Equipment was contracted to provide upgrade/repairs to the system, which required reverse engineering. Consequently Aid Equipment developed technical data that is only available to them. Based on the aforementioned, Aid Equipment is the only company that currently possesses the system knowledge necessary to perform highly specialized upgrade and repairs to the exactness stipulated in the SOW. Additionally, no other company currently possesses the intricate knowledge of the ZIP Tube Systems operational characteristics and physical configuration throughout Hill Air Force Base’s infrastructure. Therefore, this acquisition requires performance of a highly specialized service.

B. The ZIP Tube Program Office estimates award to any other company/vendor would result in unacceptable delays in meeting the ZIP Tube System requirements. The system currently services 11 buildings and associated production organizations which requires infrastructure of over 4 miles of tubing, diverters, blowers, and electronic controls in order to perform material delivery operations. For another company/vendor to accomplish requirements of the SOW would necessitate months of detailed study and evaluation of the system’s intricate configuration and operational characteristics. This would impose costly delays in operational down time, resulting in slowed material delivery to production organizations such as aircraft and commodities. The requirements of the SOW must be accomplished in a timely manner to minimize system downtime and mission impacts.

C. The ZIP Tube program office believes award to any other source would result in substantial additional costs to the government that is not expected to be recovered through competition.

D. Aid Equipment possesses a working knowledge and respective technical data such that they are the only company that can accomplish requirements of the SOW.

E. Accordingly, Aid Equipment is the only vendor capable of providing the services described in Section III above without the government experiencing unacceptable delays in meeting requirements of the SOW. This would result in impacts to aforementioned production organizations respective to delayed material delivery and increased delivery costs. It is essential repair and upgrade modifications to the ZIP Tube System be accomplished in the least amount of time possible so the system can be restored to full operation in the shortest time possible.

VI. DESCRIPTION OR EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE:

A. Sources Sought Synopsis: A Sources Sought announcement to repair and upgrade the Zip Tube Material Delivery System located on Hill Air Force Base was posted on FedBizOpps.Gov on June 2, 2015 with a response deadline of June 12, 2015. The results of the market research were nil determining there were no other sources capable of satisfying the agency’s requirements. The program office only knows of one company that can provide the needed services for pneumatic tube delivery system based on previously awarded contracting actions.

B. This requirement will be synopsized in FedBizOpps, as a notice of proposed contract action IAW FAR 5.201. If other sources express interest as a result of this synopsis or other actions, they will be listed in the official contract file.

C. Other Actions: None D. Qualifying Country Sources: None VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE:

The following steps will be taken to ensure that the anticipated cost of this acquisition will be fair and reasonable. The Contracting Officer will comply with the procedures and criteria contained in Federal Acquisition Regulation (FAR) under Subpart 15.4 - Contract Pricing; to include technical evaluations and comparison of previous Government and Commercial contracts for similar services as appropriate. Additional steps to ensure price reasonableness will be under the guidance of the Contract Pricing Reference Guides, jointly developed by the Federal Acquisition Institute and the Air Force Institute of Technology. The final step is to include the Price Negotiation Memorandum (PNM). This detailed documentation and justification of price reasonableness will be disclosed in the official PNM, to be prepared upon completion of negotiations.

VIII. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT CONDUCTED:

A. As described in Section VI above, in accordance with FAR Part 10, market research was conducted to determine if there were sources capable of satisfying the agency’s requirement. A Sources Sought announcement was posted on FedBizOpps.Gov on June 2, 2015 advising industry of the pending acquisition and soliciting inquiries from interested parties. The announcement was posted for ten days with a response deadline of June 12, 2015. Not one response was received further justifying why the requirement can only be satisfied by one responsible source.

B. Market research consisted of a review of previous contracts that had been synopsized in FedBizOps for repair and upgrade of the ZIP Tube System during the previous 14 years. The results concluded that AID Equipment has been awarded all previously competed contracts. It was determined there were no alternate sources for repair upgrade requirements respective to the ZIP Tube System. IAW FAR Part 10, the Program Management/Systems Engineering office has determined there are no other commercial services available.

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:

None

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:

Under the contemplated contract, the contractor will provide schematic diagrams and respective documentation of the electrical and mechanical characteristics of the system so that future efforts can be competed. Future ZIP Tube contract requirements will continue to be synopsized in FedBizOps in the event another contractor demonstrates the interest and ability to successfully perform system repair and upgrade projects. They will be considered for future requirements and therefore foster completion.

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)).

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