FBO Copy.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

Contracting Organization -AEDC/PKE, Directorate of Procurement, Arnold AFB, TN 37389-1332.

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

This revised justification is to change the requirement from a requirements type contract to an indefinite delivery indefinite quantity type contract. The proposed procurement is for commercial off the shelf GE Intelligent Platforms complete line of Automation Hardware, Operator Interfaces, and Automation Software to be provided by General Supply & Services (GEXPRO), 7602 Woodland Dr. Ste 200, Indianapolis IN 46278-2715. These components will be procured utilizing a new firm-fixed-price indefinite delivery indefinite quantity contract. The contract will be for a total of five years, base of three years and one- two year option.

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS

The products required are GE Intelligent Platforms (GE IP) complete line of Automation Hardware (including PACSystems, PLC (Programmable Logic Controllers), Operator Interfaces, Distributed I/O), and Automation Software (including Proficy Machine Edition and Proficy HMI/SCADA – Cimplicity).

The estimated contract amount is $9,000,000.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 USC 2304(c), as implemented by FAR 6.302.

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)

A previous IDIQ contract for this material was awarded in 2003. That contract expires September 30, 2011. Only one responsible source exists for this material that will meet our requirements of cleanly interfacing with our existing infrastructure. This is highly specialized equipment with specific interfaces already tuned to work with our existing infrastructure. No other product is known to exist that would not require major rework on those interfaces and to the existing hardware and software. An alternative system would require a redesign and recapitalization of the networks and supporting infrastructure. Use of alternative equipment would lead to replacement of systems before their end of serviceable life and would require extensive testing to avoid incompatibilities with interfacing systems. Replacing the current system with another commercially available system would be an additional cost to the Government of approximately $2,269,648.00 in additional funds for the equipment. There would also be an additional cost of approximately $250,000.00 in additional man-hours to replace the existing equipment; and approximately $250,000.00 in additional man-hours of training for any replaced equipment. There would also be a requirement to have additional spare part inventory for another system. It is estimated to cost $200,000 to replace the current inventory of spare parts with another inventory of spare parts for another system. In addition to the additional cost for replacing the current equipment with an alternative, it is estimated to cost approximately $750,000 to redesign the existing interfacing systems to become compatible with an alternative hardware solution. Taking into consideration the above costs, changing control systems at this point would be an additional burden on the Government of approximately $3.7M.

Software Compatibility

Currently, GE’s Proficy Machine Edition software package is the standard development environment used for programming, configuration, and troubleshooting of our PLCs/PACs. This software is only compatible with GE IPs Automation Controllers. It is not capable of programming any other manufacturer’s controllers. Use of controllers from another vendor would force a migration to another software package, which would not be compatible with our existing equipment.

To aide in code reuse, as required by AFI 33-114 – Software Management, it is in the best interest of the Air Force to continue use of this software. Using another software package would require that existing code be re-written, extending schedules, and introduces more opportunity for coding mistakes. It would also lead to duplicate coding efforts when making changes to reusable code.

In Kind Replacements

Because modules (I/O, Communications, Processing, etc) from other manufacturers are not compatible with our current GE based Control Systems, we must buy exact part number replacement, or manufacturer approved alternative. No other manufacturers can provide compatible components, when replacements are needed due to failure. The estimated impact for migrating existing systems to an alternative hardware platform is expected to cost approximately $50M over the life of this contract. This is based upon an $11.5M estimate for the ETF Controls Upgrade Project to replace outdated controls hardware with newer GE hardware. Since the ETF Control System accounts for approximately 1/3 of the install base of GE hardware at AEDC, and does not include special modification that would be required if an alternative system was selected.

Reliance on Reflective Memory

Reflective memory is a high-speed shared memory technology that is extensively at AEDC. It is used frequently in control systems as a communication bus between processing elements, a method of passing data into data acquisition systems for recording and archival, and is used as an IO substitution device in our real-time hardware-in-the-loop simulation environment. GE IP is the only supplier known to sell Reflective Memory Devices that are compatible with GE IP’s VMI5565 series of products, for both VME and small form-factor programmable automation controllers. Using an alternative controller would force a major redesign of our current simulation environment, data systems, and communication methods between controllers.

Training

AEDC controls engineers, technicians, and other employees are already trained on the GE IP PLCs/PACs and software packages. Employees have used the products for years and are proficient in their use. Any alternative system will require a substantial re-training process, which would add additional costs. Lack of familiarity with an alternative control system would drive up troubleshooting costs and decrease overall system availability.

Spare Parts

An existing spare parts inventory exists for many of the GE IP components used at AEDC. This inventory is shared amongst users of multiple control systems. Because components from differing manufacturers are incompatible, a duplicate spare parts inventory would be required for the alternative system.

Sole Source

GEXPRO-Nashville is the only Tier 1 supplier available to sell to us, based upon geographic location. A Tier 1 supplier maintains a stocking inventory and an onsite automation specialist dedicated to supporting GE IP products.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

This acquisition will be synopsized as Intent to Sole Source to ensure no other vendors can provide these items. Market research will continue to ensure future acquisitions can be competed full and open.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

The Government will compare the proposed cost with the independently derived Government estimate and the last Government purchase for the same or similar item to determine the price will be fair and reasonable.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT

CONDUCTED

According to the Territory Manager for the equipment manufacturer, GE-IP has agreements with suppliers for distribution in a “served market area”. For the middle Tennessee area, the sole tier 1 channel partner is GEXPRO-Nashville.

Another vendor of GE IP products was contacted, and confirmed that only GEXPRO-Nashville could sell us the full line of products to be included in the contract.

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

OPEN COMPETITION

N/A

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

ACQUISITION

A synopsis of the intent to sole source was published on the Federal Business Opportunities web site to ensure no other sources can provide these type items to meet the requirements and no responses were received.

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

Market research will continue to ensure future acquisitions can be competed full and open. As the market changes, we will look for software that is compatible with multiple manufacturers’ equipments. We will continue to implement systems using open and/or industry standards, as product lines develop that utilize them.

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(b)).