18-34940 Sole Source Justification-REDACTED.pdf

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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I. Contracting Activity.

This Sole Source Justification is to request authority Other Than Full and Open Competition supporting requirements generated for the Joint Oil Analysis Program (JOAP), and the Support Equipment & Vehicles Program Office (AFLCMC/WNZ), Robins AFB, Georgia. The contracting activity for this requirement is AFLCMC/WNKAB, Robins AFB, Georgia. The purchase request number for this effort is; FD2060-18-34940.

II. Nature and/or description of the action being processed.

Due to the circumstances described herein, the Support Equipment & Vehicles Program Office requests authority to acquire the repair services listed in this document using Other Than Full and Open competition as prescribed as prescribed by 10 U.S.C. 2302b, Implementation of Simplified Acquisition Procedures (41 U.S.C. 1901). This action will result in the award of a follow-on contract, which will be a Firm Fixed Price (FFP), Requirements IDC contract with a basic one-year plus four (4) one-year ordering periods. The ordering validity for this IDC is to be 5 years beginning 18 August 2019 through 17 August 2024.

This sole source requirement will be purchased from:

Spectro Scientific One Executive Drive, Suite 101 Chelmsford, MA 01824-0123

CAGE: 1BL81

Large Business

III. Description of supplies/services required to meet agency needs.

This requirement is for the continued repair and calibration of oil analysis spectrometers, NSN:

6650-01-415-1767, PN: OIL-M/N-W and Spectroil M/N maximizing their availability and operation for use by the Joint Oil Analysis Program (JOAP). Services will consist of telephone support, the shipment of parts, and on-site visits to inspect, repair, test and calibrate spectrometers used by the Air Force, National Guard, Air Force Reserve, and the United States Army and to return spectrometers to a serviceable condition.

The total estimated value of the acquisition is A 5% escalation factor was applied to the estimated unit price for each Out-Year Ordering Period. The basis for the estimated cost was derived from prices determined by the last period of the prior contract, FA851714D0021. This follow-on contract will be funded via Operations & Maintenance funds, or 3400 funds.

The best estimated quantities (BEQs) for this IDC is . These quantities were determined by extending current repair quantities and adding an additional per year to account for increasing failures due to the age of the spectrometers. The delivery requirements for this acquisition is two weeks after receipt of order (ARO).

As stated in Section II, the ordering validity of this IDC is five (5) years from 18 August 2019 through 17 August 2024. This J&A directly covers the validity period of this IDC through completion of all delivery/task orders as well as the intended scope of this acquisition to include any increase associated with the estimated BEQs beyond the maximum quantity stated.

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The Contract Line Item Numbers (CLINs) will be modified from the previous contract to better control the cost of on-site visits-separating travel from labor. The nominal Contract Line Item Numbers (CLINs) are as follows:

CLIN DESCRIPTION UNIT OF ISSUE

X001 Technical Support MO

X002 Parts LO

X003 Onsite Repair EA

X004 Travel CONUS LO

X005 Travel OCONUS LO

X006 Data LO

Table 1. Proposed Contract Line Items

PERIOD OF PERFORMANCE ESTIMATED COST BEQS FOR ON-SITE VISITS

Basic 18-Aug-19 to 17-Aug-20

OP 1 18-Aug-20 to 17-Aug-21

OP2 18-Aug-21 to 17-Aug-22

OP3 18-Aug-22 to 17-Aug-23

OP4 18-Aug-23 to 17-Aug-24

Total:

Table 2. Projected Cost of Services Contract

NOTE on Table 2. A 5% escalation factor was applied to each Out-Year ordering period.

This NSN was screened and assigned Repair Method Code (RMC)/Repair Method Suffix Code (RMSC) of R3/H. The RMC of three indicates that the equipment is to be repaired, for the second or subsequent time, directly by the actual manufacturer. The RMSC of H indicates the Government does not possess the data to contract repair with anyone other than the current source.

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

10 U.S.C. 2302b, Implementation of Simplified Acquisition Procedures in accordance with procedures of FAR 13.5, Simplified Procedures for Certain Commercial Items.

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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 agency's minimum needs can only be satisfied by the unique and highly specialized capabilities/ services available from Spectro Scientific, Inc. as demonstrated in the following paragraphs.

The OIL-M/N-W and Spectroil M/N Spectrometers are highly specialized and the primary instrument used widely by aerospace, and industry, to both monitor the condition of oils and to predict maintenance requirements. The spectrometers are able to detect and quantify the presence of elements that exist as small suspended particles dissolved in natural or synthetic petroleum based products. This information is used to monitor oil condition and identify abnormal engine wear with the ultimate goal of preventing potential equipment failure while also improving operational readiness. While there are several commercial vendors that perform a similar function as the OIL-M/N-W and Spectroil M/N, the Air Force, Army and Navy entered into a tri-service agreement in 1995 to create the Joint Oil Analysis Program (JOAP) which established, consolidated and coordinated the oil programs among the agencies. Strict requirements of the JOAP preclude the introduction of new equipment for substitution. The JOAP standardizes the analytical techniques, procedures, data collection, calibration standards and the instrumentation, or equipment utilized by the program. The JOAP utilizes trend tables to monitor the condition of aircraft world-wide and to predict maintenance requirements. The analysis from spectrometers must be able to be correlated amongst differing machines at differing Air Force and Army bases. The results from the spectrometer must also demonstrate repeatability; the same user should be able to analyze the same oil to produce the same results. The AF OAP creates correlation samples that are shipped to all locations monthly for testing on all spectrometers used by the Air Force world-wide. The tests performed on the monthly correlation standard are graded to determine if the spectrometer is producing valid results. The accuracy and repeatability of the data are paramount as the data is collected in a database managed by the AF OAP. Analysis of the data over time can identify if a trend is developing.

A requirement exists in Air Force Instruction 21-124, “Oil Analysis Program” stating that “oil analysis requires a centrally-managed program and the integration of AF OAP and JOAP plans”. Further, “oil analysis plans and operations are integrated (where practical) to provide: standard laboratory techniques, procedures, data, calibration standards, and analytical instruments. The present spectrometers (OIL-M/N-W and Spectroil M/N) have been in service by the Air Force OAP since 1995 and per Volume 2 of the JOAP manual, Spectro Inc. model M is the only approved spectrometer for use in the JOAP and eligible for JOAP certification. The OIL-M/N-W is calibrated monthly as part of a correlation requirement using oil standards created in an Air Force laboratory. Oil is gathered from aircraft after each flight, across the globe, and the analysis of that oil by the OIL-M/N-W spectrometer is captured in a database. Trend analysis of the oils samples is monitored, as well as the time since the last oil change, to monitor for indications for excessive wear, component failure or other conditions that may require maintenance actions. Trend tables are recorded in several tech orders, for each engine type used by the Air Force. All trend tables have been developed specifically using the OIL-M/N-W spectrometer.

Fortunately, a commercial version of the equipment (part number: OIL M/C-W) is also produced and currently available from Spectro Scientific. The two units use the same parts which ensure a steady supply of repair parts are available. The commercial and the military version differ only by the degree to which they are calibrated.

The Government does not possess any technical data associated with the OIL-M/N-W and Spectroil M/N Spectrometers to support full and open competition for repairs or to qualify new sources. Spectro Scientific is the designer and the Original Equipment Manufacturer (OEM) of the spectrometers and are the only source of repair with the knowledge, skill, engineering support, and proprietary data necessary to satisfy this requirement. Spectro Scientific has continued to decline to sell the technical data package (TDP) to the Government. The Government program team contacted Spectro Scientific

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W and Spectroil M/N spectrometers will be needed through FY24 and potentially beyond.

The second, a creation of the TDP for a test set of similar scope to the spectrometer found a TDP would cost and take approximately 24 months to create. Additionally development of the TDP for spectrometers would result in substantial risk as extensive testing and validation prior to being implemented for use to sustain spectrometers would be required. This risk is clearly illustrated by the length of time it is taking to develop the Field Lab 58M as demonstrated in the above paragraph.

There are further risks associated with pursing the development of a TDP such as; funding, scheduling and performance.

If a follow-on sole source contract cannot be awarded by August 2019, and the TDP is pursued, the best case scenario is 24 months before development occurs in which there will be more than a year's period where the Air Force and Army will not have the means to support repair of spectrometers. The Air Force typically samples 250,000 oil samples a year and analyzes them with the spectrometer.

Approximately twenty of those samples each year indicate a “T” code which is a condition requiring the removal of the aircraft from service and a teardown of the engine because the results of the oil sampling have identified a failure is imminent. If the Air Force's capability to sample and analyze engine oil is degraded due to spectrometers not being serviceable, the Air Force's mission capability to operate aircraft will subsequently degrade. Mission commanders will either have to decide to not fly aircraft, or they will have to accept unknown risks that could lead to loss of aircraft, and personnel.

Accordingly, Spectro Scientific Inc. 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 and unacceptable delays in fulfilling its requirements.

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

A Sources Sought (SS)/Request for Information (RFI) synopsis was posted to Federal Business Opportunities (FedBizOpps) on December 27, 2018 with a response date of January 29, 2019, under solicitation FA853319RSpectro. The SS/RFI requested responses from interested vendors that possess the expertise to meet qualification requirements for this effort. No potential offerors have responded to the RFI.

The requirement will be synopsized in FedBizOpps in accordance with FAR 5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis. Any source who responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential subcontracting possibility.

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

The overall cost of this acquisition will be negotiated in accordance with procedures in FAR Part 12 and FAR 13.106-3(a) (2), and include a statement of price reasonableness confirming the ultimate price to the Government is fair and reasonable. Additional pricing methodologies to negotiate fair and reasonable price may include reviewing publicly offered catalogs, comparison to historical contractor sales, and/or analysis of limited cost or pricing information provided by the contractor. In the event that limited cost or pricing information is made available, the Government's negotiation

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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

Market research was conducted between December 2018 through to completion on 28 February 2019 in accordance with FAR Part 10.001 and 10.002. Market research techniques used are as follows:

As described in Section VI above, a SS/RFI was posted to FedBizOpps advising industry of the pending acquisition and soliciting inquiries from interested vendors. The SS/RFI was posted on 27 Dec 2018 under Solicitation Number FA8533-19-R-Spectro. There were no responses to the SS/RFI.

Queries were conducted within Government data bases and through various internet searches such as;

Google, IEEE Global Spec and Thomasnet. Search parameters used were; NSN, part number, type of item and class of equipment. Contact was made with companies such as Spectrotek and Moyer Instruments. Contacts at these companies were asked by the Government if they had the data, or a source of parts to complete repairs on the OIL-M/N-W spectrometer in which both companies responded no. Evaluations were made to determine the capability of these companies to conduct on-site visits to repair spectrometers. Both companies said they could not support travel to locations required to conduct on-site visits to locations either in the Continental United States (CONUS), or outside of the Continental United States (OCONUS). Emails as well as voicemails were communicated by the Government to other companies such as PerkinElmer Life and Analytical Sciences, Spectrum Technology and Consolidated Spectroscopy and Instrumentation LLC inquiring about their ability to support repair of the OIL-M/N-W spectrometer. The Government did not receive a call back, nor a reply to any emails from any of these companies.

A SBA Dynamic Small Business Search (DSBS) query was conducted utilizing North America Industry Classification System (NAICS) code 541330, engineering services, with keywords “spectrometer” and “spectography”. This query produced zero potential vendors. An additional DSBS query was made with NAICS code 811219, other electronics and precision equipment repair and maintenance with the same keywords. This query also produced zero potential vendors.

Spectro Scientific was also contacted to determine if there are any changes in the market for this equipment. There were no changes.

The OIL-M/N-W and Spectroil M/N spectrometer is considered a commercial item as defined in FAR

2.101. The OIL-M/N-W and Spectroil M/N spectrometer is a type of product used by both the military and the commercial aviation industry. OIL-M/N-W and Spectroil M/N spectrometer differ from Spectro Scientific, Inc.'s fully commercial line of products by the level of calibration required for the military's application. The hardware used to build both units is the same.

The market research concluded Spectro Scientific, Inc. is the only vendor capable of fulfilling the Government's requirement given their possession and access to the necessary proprietary technical data package to properly repair the required Spectrometers.

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

None.

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

See Section VI above.

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 Government does not possess the TDP to support full and open competition for the repair of the identified spectrometers. An inquiry to purchase the TDP from the OEM, Spectro Scientific, was sent on 28 January 2019. Spectro Scientific responded on 28 Jan 2019 declining any interest in selling the TDP to the Government. Currently, there are no vendors other than Spectro Scientific that can manufacture and repair this equipment. Vendors specializing in the repair of lab instrumentation were contacted. All advised that no one had the data to repair the OIL-M/N-W spectrometer.

The plan to break barriers to competition in the prior J&A included a tentative plan for the JOAP office to test and certify potential vendors that can provide both new buys and services with the intent to utilize the latest technology. The Oil Analysis Program did follow through on their plans by putting an effort in progress via the Small Business Innovation Research to develop the Field Lab 58M. The Field Lab 58M is to be the replacement for OIL-M/N-W and Spectroil M/N spectrometers in which it is anticipated to be awarded in FY20, fully fielded by FY21 and with the FL58M to be used side by side with the OIL-M/N-W and Spectroil M/N spectrometers while tables of correlation data are developed through FY23. Based on fulfillment of the prior plan, the current J&A does not require higher level approval in accordance with DFARS PGI 206.304(a) (S-70) (ii).

The current plan for this J&A to remove barriers to competition correlate directly to the development of the Field Lab 58M replacement. The Government will continue to sustain and operate the OIL-M/ N-W and Spectroil M/N spectrometers via this follow-on IDC with Spectro Scientific until the Government is sure the oil analysis can safely move to the FL58M only. If efforts to develop the Field Lab 58M are successful by FY2023, there will no longer be a need to repair the OIL-M/N-W and Spectroil M/N spectrometers via any future acquisition.

However, as all programs have risk, the Government will mitigate such risk by continuing to contact Spectro Scientific for the procurement of their proprietary technical data package prior to each ordering period of this IDC. Additionally the program team will continue to monitor the market for potential sources of repair for the current JOAP approved spectrometers.

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 his/her 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, Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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