G16Zeiss JA Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND

COMMANDER, FLEEET READINESS CENTERS

47038 MCLEOD ROAD, BLDG 448

PATUXENT RIVER, MARYLAND 20670-1547

IN REPLY REFER TO

Ser F2552/22-027 13 June 2022

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

Commander, Fleet Readiness Center Patuxent River, MD

2. Description of the Action Being Approved

This justification and approval authorizes and approves on a sole source basis a contract between the Government and Carl Zeiss Industrial Metrology, LLC (Cage Code 1DUR9, 6250 Sycamore Lane N, Minneapolis, MN. 55369-6310) in accordance with 10 U.S.C.

2304(c)(l) and FAR 6.302-1. Only one responsible source and no other supplies or services will satisfy agency requirements. This effort will sustain the commercially available Coordinate Measuring Machine Systems (CMMs) for Fleet Readiness Center Southeast (FRCSE) at Naval Air Station (NAS) Jacksonville in support of the Depot Level Maintenance and overall NAVAIR fleet readiness. This procurement will be accomplished under FAR Part 12 and Subpart 13.5.

3. Description of Supplies/Services.

This effort is to acquire annual preventive maintenance, calibration and on-site repairs to include parts service contract for five (5) Zeiss CMMs located at FRCSE, NAS Jacksonville, Florida. The service requirement is defined in the Performance Work Statement (PWS) and will include an annual Software Maintenance Agreement (SMA) with American Association for Laboratory Accreditation (A2LA) Complete Calibration Service for one (1) 12-month base period and four (4) 12-month option periods. The five (5) CMM's located at FRCSE are used on a daily basis by the fleet and are valuable assets to support the high processing rate required to meet aircraft engine and powertrain production schedule/s. If the CMMs fail due to inadequate preventive maintenance, then critical aircraft parts cannot be precisely measured and produced by the production lines, thus creating delays in production schedules and will negatively impact fleet readiness.

Estimated Dollar Value

FY 22-23

Base Year 12-months

FY 22-23

Option 1

12-months

FY 22-23

Option 2

12-months

FY 22-23

Option 3

12-months

FY 22-23

Option 4

12-months

Total

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 2304(c)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

Carl Zeiss Industrial Metrology, LLC (Zeiss) is the Original Equipment Manufacturer (OEM) and holds proprietary rights to the machine design and the operating software on the five (5) CMMs located at FRCSE and is the only company with the capability of performing the required maintenance on the CMMs. No other vendor is authorized to perform services or maintenance on these CMM’s.

CMM machines directly support FRCSE Directorate of Engines Production, Directorate of Manufacturing/Process Production and the Directorate of Powertrain production lines and are specifically programmed to measure the critical/unique types of aircraft parts used. In addition, when the need arises due to backlogs or other systems/equipment down time, the Zeiss machines are programmed to handle work center products within other Directorates, such as Structural and Mechanical Production Directorate. Aircraft parts and components require precise measurements in which the Zeiss CMMs provide. Zeiss is the only company that can ensure the mechanical, electrical, pneumatic, measurement control and associated software performs as an integrated system to meet the precision required for critical aircraft parts.

Pursuant to FAR 6.302-1(a) (2)(ii)(A) and (B), Zeiss is the only company with the capability of performing the required maintenance on the Government owned CMMs that FRCSE utilizes.

Awarding to any other source would require substantial duplication of cost to the Government that is not expected to be recovered through competition and will result in unacceptable delays in fulfilling the agency’s requirements. If these services could not be procured, a competitive purchase of five (5) new CMMs would cost over $3,429,200.00, which is significantly more than estimate for this sustainment services requirement. The competitive purchase of new CMMs would also require an eventual sole source effort to service and maintain. Overall, competitively procuring CMMs with repair and maintenance services from a different vendor would adversely affect the Navy’s operational readiness by increasing the backlog of depot level maintenance.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

Market research was conducted using various methods to obtain current information in regards to availability and price. The Government does not own the proprietary data required to solicit more than one source. Market research has also verified there are no other vendors with compatible products that could be modified to meet the technical specifications required to support the parts manufacturing need for FRCSE. Market research confirmed that only Zeiss can provide the annual preventive maintenance, calibration and on-site repairs to include parts service contract for the five (5) Zeiss Coordinate Measuring Machine Systems (CMMs) located at FRCSE without additional costs and delays due to procurement.

In accordance with DFARS PGI 206.302-l(d), a sources sought announcement was posted to the sam.gov website on 28 February 2022 date with responses due on 15 March 2022. No responses were received. Therefore, in accordance with FAR 5.201(b), the intended sole source solicitation will be synopsized on the sam.gov website.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402, the Contracting Officer shall ensure that all supplies and services provided under this contract are procured at a fair and reasonable price. The Contractor will submit a formal price proposal with sufficient information to support the accuracy and reliability of the estimate. Zeiss‘s proposal will be reviewed by experienced technical analysts, cost analysts and contract specialists with the aid of necessary field pricing support. The Contracting Officer will utilize cost and price analysis as the basis for negotiating a fair and reasonable price.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in paragraph 5, the Government does not foresee procuring the propriety rights to compete future contracts for the Zeiss CMMs at FRCSE. If another potential source emerges, COMFRC will assess whether competition for future requirements is feasible.