Sole_Source_Determination_-_X-Ray_Prev_Maint_Redacted.pdf

SOLE SOURCE DETERMINATION

1. Description of Supplies/Services to Acquire

The Defense Threat Reduction Agency On-Site Inspection Department (J3OS) requires an extended warranty/service and preventive maintenance contract for three Smiths Detection, Inc.

HI-SCANN 100100T-2is Security X-Ray systems.

2. Estimated Value

The estimated dollar value is per year for a total of for the base plus four option years.

3. Basis for this Action

The basis of this Sole Source procurement is that only one source is capable of satisfying this requirement due to the unique or specialized nature of the work. The maintenance to be provided for the X-Ray machines can only be performed by the manufacturer, Smiths Detection Inc., and technicians certified by Smiths Detection. Smiths Detection certifies and authorizes regional companies to service their X-Ray machines. Because Smith’s Detection requires any potential third party service providers be vetted and provided by them to ensure only Smith’s other equipment manufacturer (OEM)-certified technicians are used, any/all service provided, regardless of vendor, must be coordinated through Smith’s Detection to ensure the vendor is an authorized Smith’s Detection-certified service provider. There is only one certified/authorized source available in each region. Smiths Detection equipment is comprised of assemblies, subassemblies, and parts specifically designed, developed, and used in Smiths Detection products. They are the sole source provider for replacement parts in the United States for all Smiths Detection manufactured equipment. Additionally, Smiths Detection is the only service provider that carries a Safety Act Certification in the United States for Smiths Detection manufactured equipment.

In accordance with Federal Acquisition Regulation (FAR) Part 10, market research has been conducted for this acquisition. Comprehensive market research was conducted by reviewing historical acquisition information (review of recent market research results for similar or identical supplies/services), government and/or commercial databases for relevant information, and source lists for identical or similar items obtained from Government (Federal and State/Local), professional, and/or industry sources.

Other vendors contacted were not authorized and/or certified to conduct repair service on Smiths X-ray machines. Furthermore Smiths Detection Inc. holds a contract for these services with GSA under contract GS-07F-9597G, and a similar contract for these services with the Pentagon Force

Defense Threat Reduction Agency 8725 John J. Kingman Road MSC 6201

Fort Belvoir, VA 22060-6201

Protection Agency under contract HQ003414FDP02. Also found was a similar contract with the City of Chicago for these services under Requisition # 47418.

The vital capability of this equipment to support POE and Technical Equipment Inspections performed under the inspection protocol specified by the Treaty on Open Skies, New Strategic Arms Reduction Treaty (NST) and various other arms control treaties requires the services of certified field service engineers from an authorized company to perform maintenance, repair and radiation safety inspection surveys. J3OS requires this follow-on service contract by Sep 30, 2015. The current contract HDTRA1-10-C-0098 is scheduled to expire on Sep 30, 2015.

4. Actions to Take

DTRA will continue to monitor the market to determine if Smiths Detection reverses their sole source position for the maintenance and safety inspections of Smiths manufactured equipment.

DTRA will also continue to keep abreast of the Inspection Equipment industry to identify additional manufacturers of X-Ray systems when a technology refresh is required in order to promote competition.

Technical Certification

I certify that the data and information forming the basis for this determination are accurate and complete to the best of my knowledge and belief.

Project Manager

Contracting Officer Certification

I determine that the above circumstances of this contact action deem only one source reasonably available to satisfy the Government’s requirement.

8/25/2015

X Shreena Lyons Contracting Officer Signed by: LYONS.SHREENA.LORRAINE.1144950301