HMI_18-R-0019_justification_and_approval_R3__Redacted_Final_Redacted.pdf

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

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 1 of 6

NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action must be included in the staff package for approval of the instant J&A. This applies to J&A staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition: < $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

Contracting Activity: AFTC/PZI (Arnold)

Purchase Request / Local ID Number: F1EESF7303A101

Program / Project (and PE, if applicable): Upgrade Operator Control System HMI Cooling Water and Steam

Program Type (PEO or Other Contracting): Other Contracting

Authority: 6.302-1 – 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

10 May 2018

Project Lead / Program Mgr / Requiring Activity

Signature

Date

16 May 2018

Contracting Officer

11 Jun 2018

Chief of the Contracting Division

14 Jun 2018

Local Legal Reviewer

APPROVAL (AFFARS 5306.304(a) )

Date

03 Aug 2018

Competition Advocate Antonio J. Gonzalez, Col, USAF

GONZALEZ.ANTONIO.J.

March 2018 FOR OFFICIAL USE ONLY Page 2 of 6

I. Contracting Activity.

AFTC/PZI (Arnold) is the contracting agency and organizational activity responsible for this proposed contracting action.

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

This procurement package (FA9101-18-R-0019) includes system design and installation to upgrade the existing ABB Harmony Distributed Control System (DCS) and Human Machine Interfaces (HMI's) used to control the mechanical utilities at the Steam Plant A (SPA), Steam Plant C (SPC), Secondary Pumping Station (SPS), and Cooling Towers (CT) at Arnold Air Force Base, TN. This is a Justification for Other Than Full and Open Competition to award to ABB, Inc. 23000 Harvard Rd, Beachwood, OH, 44122-7234 as the only responsible source. This will be a new firm fixed price contract to ABB, Inc. to perform the work for the entire contract, which includes upgrading the servers and client computers in order to interface with the existing ABB Harmony DCS systems. The project includes a base CLIN and two option CLINs.

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

The existing servers and client computers are using an operating system that is no longer supported by the manufacturer. The Air Force (AF) accreditation requirements require upgrading to the Microsoft Office operating system (OS) 7 and then OS 10. The current system does not meet AF accreditation requirements to continue operations of Steam Plant A (SPA), Steam Plant C (SPC), Secondary Pumping Station (SPS), and Cooling Towers (CT). The existing ABB Human Machine Interfaces (HMI) application software is not approved to run on newer operating systems and must be upgraded to the current ABB software in order to interface with the existing ABB Harmony Rack I/O Distributed Control System (DCS) systems. Conductor is the existing HMI software that supports the installed DCS. The Government has an existing software agreement with ABB to upgrade software to Operations S+ which replaces Conductor. This project includes purchase of hardware, design, and integration services by ABB, Inc. to configure the licensed Operations S+ ver.2 software. The cooling water and steam utilities at Arnold Engineering Development Complex (AEDC)

The estimated value of this acquisition (including options) is . The period of performance for Base CLIN 0001 and if either or both option CLINs are awarded with the base CLIN is 400-calendar days after Notice of Award. The type of appropriation for this acquisition is 3600 funds. CLIN detail provided below:

Base CLIN 0001 Provide Control System for SPA - Contractor shall provide all engineering, detailed system design, procurement, programming, labor, field services, computer hardware, software, equipment, installation drawings and materials required to design, assemble, fabricate, factory test (at Contractor site), deliver, install, and commission a complete replacement upgrade for the existing ABB Harmony Rack DCS HMI located at AEDC SPA. Installation work is to be done at Arnold AFB, TN. Estimated value is .

Period of performance is 400-calendar days.

Option CLIN 0002 Provide Control System for SPS and CT - Contractor shall provide all engineering, detailed system design, procurement, programming, labor, field services, computer hardware, software, equipment, installation drawings and materials required to design, assemble, fabricate, factory test (at Contractor site), deliver, install, and commission a complete replacement upgrade for the existing ABB Harmony Rack DCS HMI located at AEDC SPS and CT. Installation work is to be done at Arnold AFB, TN. Estimated value is

. Period of performance if awarded separately is 400-calendar days.

Option CLIN 0003 - Contractor shall provide all engineering, detailed system design, procurement, programming, labor, field services, computer hardware, software, equipment, installation drawings and

March 2018 FOR OFFICIAL USE ONLY Page 3 of 6 materials required to design, assemble, fabricate, factory test (at Contractor site), deliver, install, and commission a complete replacement upgrade for the existing ABB Harmony Rack DCS HMI located at AEDC SPC. Installation work is to be done at Arnold AFB, TN. Estimated value is . Period of performance if awarded separately is 200-calendar.

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

ABB, Inc. is the only responsible source who can perform the work. [FAR 6.302- 1 and 10 USC 2304(c)(1)].

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

ABB, Inc. has developed software that is compatible with the existing ABB Harmony DCS hardware.

Though there are several companies that have developed software that will interface with our installed ABB Harmony DCS hardware, they are marketed primarily as “migration” products where the user has legacy ABB Harmony hardware and is intending to eventually replace the existing ABB hardware with a new proprietary system. The estimate to replace the existing ABB hardware is . These other sources do not provide long term support for the required Microsoft patches and updates. Microsoft Patches must be tested with the software and software updates provided as Microsoft patches are applied. This ensures the Microsoft Patches do not affect the operation of the controls software.

A steam boiler is a pressure vessel and safe operations are critical. The Microsoft patches are required to be updated on computers running the software per the following: Air Force Instruction 17-101 Air Force Certification and Accreditation Program, Risk Management Framework Air Force Manual (AFMAN) 17-1203 Information Technology Asset Management (Chapter 1,3, and 4 for Software), AFMAN 17-1402 Air Force Clinger Cohen Act Compliance Guide National Institute of Standards and Technology Special Publication 800-53A Rev 4 Security Controls for Configuration Management and Software Support. If patches are not installed/applied, the controls cannot be operated on the AF network and the utility will be unable to support the testing mission at AEDC. All of the non ABB software products interface to the ABB hardware using non-secure legacy ABB serial devices that are no longer in production.

Other companies/sources would require detailed descriptions of every component (pump, valve, breaker, pressure, temperature, alarms, bad quality, etc.) on each graphic. While some companies can read the tag database, most would require a detailed breakdown of the embedded parameters (high and low alarms, range, etc.). With hidden graphics, this would come at an estimated cost to decode the current software, increased downtime, and cost to test the new software. The ABB software upgrade could be performed with a four day downtime at SPA.

A non ABB software would require three weeks of downtime for the steam plant to implement the new controls and test them with an estimated increased cost of . When the new controls were installed in the 1990s, it took three months to debug the systems. If software other than ABB is used, AEDC estimates the same three month time frame to debug. During that time frame, there is a risk of dropping steam and cooling water operations during mission critical testing. Additionally, utilizing software other than ABB is cost prohibitive (approximately in hardware costs alone), the retraining of operator personnel, and equipment integration issues.

An upgrade of the controls at SPC

March 2018 FOR OFFICIAL USE ONLY Page 4 of 6 and CT could manage a larger outage, but cannot handle risks of unreliable testing support during the estimated three month debugging process.

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

During initial market research, four vendors were contacted that advertise software as being compatible with the ABB Harmony Rack I/O DCS. Only two of those vendors expressed an interest in the application at AEDC. performed a site visit and realized they do not offer equipment that will interface with existing ABB equipment. Additionally, both interested vendors were found to be using the serial Computer Interface Units (CIU) which are no longer manufactured for sale as new parts. The serial interface cards are used because the new Ethernet CIU modules are encrypted for security reasons to only provide connection to the DCS using ABB software. The initial Sources Sought (FA9101-17-R-0073) was posted on Fed Biz Ops (FBO) under NAICS code 236210 in which three vendors responded (

) Research revealed that is a General and Mechanical Contracting Firm and after reviewing their capability statement and website, they do not appear to have the expertise needed for this requirement. Review of responses received revealed that the wrong NAICS code was used for the initial Sources Sought. An updated Sources Sought (FA9101-18-R-0019) was posted with the correct NAICS code of 334513 on FBO and three vendors responded.

did not respond to this updated Sources Sought. After reviewing responses received and subsequent phone conversations with the vendors stated they could not achieve the outage requirements and their solutions would not be cost effective in the long term for compliance with Accreditation required Microsoft Patches over the life of the software.

agreed they could not meet the Ethernet connection requirements.

stated it would take a much larger outage than four days to install and test their software and it would require extensive mining of the alarms and tags to ensure safety. For compliance with Microsoft patches per AF requirements, AEDC would have to pay for the full cost of testing the software and debugging the software with each patch and the cost with . ABB, Inc. can spread the testing and debugging costs across all the utility customers who utilize their off-the-shelf software. This results in a cheaper annual cost to AEDC for the 15 -20 year life of the software. The current software was installed 19+ years ago depending on the station. said after understanding the requirement, AEDC would be in the best interest of AEDC to go with the original vendor for this upgrade and that ABB has a niche in the evolution without obsolescence commitment that would keep critical applications operating.

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

This will be a negotiated sole source award and will utilize FAR 15.404-1(b) Price analysis for commercial and non-commercial items, to determine fair and reasonable in order to award.

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

An initial Internet search was conducted to identify potential vendors capable of providing software that would be compatible with the ABB Harmony Rack I/O DCS. There were four identified (one of the four vendor attended a site visit) and all were subsequently found not capable of meeting the Government's requirement.

A Sources Sought synopsis was posted to FBO on 20 June 2017 and closed on 19 July 2017. ABB, Inc. was contacted to notify them of the Sources Sought posting. Three vendors responded to the sources sought with their capability and willingness to fulfill the requirement. However, this Sources Sought utilized an incorrect NAICS code. A revised Sources Sought with the correct NAICS code was posted to FBO on 13 December 2017 with a close date of 11 January 2018. Three vendors responded and after thorough review/discussions with

March 2018 FOR OFFICIAL USE ONLY Page 5 of 6 the vendors, it was found that ABB, Inc. is the only company with the translation tools to seamlessly migrate from the old HMI to the new S+ Operations HMI and the only authorized integrator of the recommended S+ Operations HMIs. No company other than ABB, Inc. that responded to both Sources Sought had the ability to provide these upgrades to meet the requirements of the Government. Prior purchases and notices of previous intents to award sole source to ABB were reviewed. All of the previous actions for similar requirements resulted in a clear understanding of the government's requirement to use products that are only available through ABB, Inc. There were no products that any of the companies had at that time nor have there been any findings during market research to indicate any of the companies can provide that capability to date.

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

AEDC has invested hundreds of hours of training for operations, engineering, and technician support. ABB is the only known vendor that can provide a software solution with little risk and that will require minimal retraining. SPC and CT uses the same ABB hardware and software and is operated by the same operators as SPA. Also, installation by ABB will have minimal impact to testing and downtime because the system can be installed in parallel with the existing system until it is brought into operation.

The use of ABB would avoid the debugging period that requires increased manning and risk to support testing. The last time AEDC installed a totally new software in the 1990s, the debugging period took three months and utility support to testing was unreliable during that time. Also, ABB has the previous experience in developing and sustaining the AEDC Steam and Cooling Water DCS hardware and systems and would employ a consistent approach to systems and management methodology with the end goal of producing a reliable, sustainable, and supportable DCS.

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

There were five vendors that expressed, in writing, an interest in this project:

responded to the initial

Sources Sought which was posted with the incorrect NAICS code, but did not respond to the revised Sources Sought. After thorough review of written responses received from the revised Sources Sought with the correct NAICS code and discussions with it was determined these vendors were not capable of meeting outage requirements nor could they offer a cost effective solution.

also agreed that it would be in the best interest of AEDC to go with the OEM who has a niche in the evolution without obsolescence commitment which would keep critical applications operating. ABB, Inc. is the only vendor with the capability to perform the necessary requirements for this project.

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.

To keep current with potential sources for future upgrades or replacement to the existing ABB control systems, the Government will continue to perform market research by reviewing industry literature, through other solicitations, and vendor discussions.

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.

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XIII. Certification by the technical/requirements personnel.

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