Morphix_Technologies_JA_Final_Fully_Executed.pdf

Justification for Other Than Full and Open Competition

Under 10 U.S.C. 2304 (c) (1)

Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by

Federal Acquisition Regulation (FAR) Subpart 6.3 and in accordance with the requirements of

FAR 6.303-1, the justification for the use of the statutory authority under FAR Subpart 6.3 is justified by the following facts and rationale required under FAR 6.303-1 as follows:

(1) Agency and Contracting Activity.

The Department of Homeland Security (DHS), United States Coast Guard (USCG), Shore

Infrastructure Logistics Center, Commercial Support Services Contract Operations Branch

(West), SILC-COCO-BSS-COB4, proposes to enter into a firm-fixed price multi-year IDIQ contract on the basis of other than full and open competition with the respective original equipment manufacturer (hereinafter referred to as “OEM”) of the Chameleon Chemical

Detection Equipment-Morphix Technologies.

(2) Nature and/or description of the action being approved.

The U.S. Coast Guard intends to enter into a firm-fixed price multi-year IDIQ contract with

Morphix Technologies based on only one responsible source available. The U.S. Coast Guard intends to order the aforementioned supplies at the beginning of the contract period. Morphix

Technologies is the only responsible source that can supply a chemical detector cassette kit compatible with the Chameleon armbands because it is the only source that can guarantee all chemical detectors are synchronized with one single shelf life and it is the only manufacturer that supplies kits that are compatible with USCG existing Chameleon Chemical Detection armband inventory. Although there are vendors that have the ability to supply Morphix Technologies chemical detection kit, said vendors are unable to guarantee supplies will be sent with a single synchronized shelf life; a mission support requirement. A sole source presolicitation notice was posted by the Contract Specialist on Fedbizopps from 29 November 2016 to 9 December 2016.

The notice announced the government’s intention to enter into negotiations on a sole source basis with Morphix Technologies under the authority of FAR 6.302-1. The Contract Specialist did not receive interest from any potential vendors. Because Morphix Technologies is the only source capable of providing a single synchronized shelf life, it is the only responsible source available.

Based on the aforementioned, this office intends to award a firm-fixed price multi-year IDIQ contract to Morphix Technologies. The anticipated value of the requirement, including base year and four option year(s) is $689,514.

(3) Description of Supplies/Services.

Morphix Technologies is the supplier of the Coast Guard’s inventory of over 6,000 Chameleon

Chemical Detection armbands, each created with the capability to support the insertion of up to ten (10) diverse chemical detection cassettes in each armband. The USCG CBRNE Mission

Justification for Other than Full and Open Competition

Support Program requires a chemical detection cassette kit produced by Morphix Technologies which has the capability of detecting the following highly dangerous chemicals:

1. Low pH

2. High pH

3. Sulfur Dioxide

4. Hydrogen Sulfide

5. Phosgene

6. Phosphine

7. Ammonia

8. Chlorine/Fluorine

Detection of the above eight chemicals is necessary and, the USCG Mission Support Program would like to purchase kits that detect ten chemicals because (1) it will provide additional protection to Coast Guard Members ; and (2) purchase of kits that detect ten chemicals could be more cost effective. The two additional chemicals detected with the ten chemical detection kit are iodine and hydrogen fluoride. The CBRNE has articulated that with each mission, USCG personnel enter unknown areas with absolutely no idea what type of dangers they will be exposed to. In order to better protect Coast Guard personnel from these unknown dangers, the unit would like to purchase the standard 10 chemical detector kit that is commercially available from Morphix. Adding these two detectors will add safety measures to help protect USCG personnel. In addition to protection, cost savings can also be achieved because Morphix currently produces kits that detect 10 chemicals for commercial use but does not commercially produce kits that detect 8 chemicals. This means that by requesting an 8 chemical detector kit instead of 10, Morphix would have to customize a kit specifically for USCG; in turn resulting in increased cost(s) to USCG.

This requirement is for Chameleon Chemical Detector cassette kit. These cassettes must be easily worn by the individual, require no power to operate, and detect chemicals in the air without the need for a liquid sample. The cassettes included in the kit must be synchronized with one single shelf life of twenty-four months and expire on the same day. The cassettes procured will be worn on the Chameleon armbands already in Coast Guard inventory. Shipment of kits will be based on FOB destination, in accordance with FAR 47.303-6. The estimated value of this requirement, including base year plus four option years is $689,514. The following is a breakdown of estimated annual usage and annual costs for the base and option year(s):

Estimated Annual usage Estimated Unit Estimated Annual Total

Price

Base Year: 4200 $29.71 $124,782.00

Option Year 1: 4200 $31.20 $131,040.00

Option Year 2: 4200 $32.76 $137,592.00

Option Year 3: 4200 $34.39 $144,438.00

Option Year 4: 4200 $36.11 $151,662.00

Total Value: $689,514.00

(4) Identification of the justification and the rationale.

The statutory authority permitting for other than full and open competition is 10.U.S.C. 2304(c)

(1) implemented by FAR Subpart 6.302-1, Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements. Morphix Technologies is the only responsible source available because no vendor is capable of guaranteeing a single synchronized manufacturer date and expiration date with a shelf life of twenty-four months; a USCG requirement. The 10 cassette kits with a guaranteed single synchronized manufacturer date and expiration date is not available on Morphix’s national distribution network nor on GSA schedules; therefore, this requirement has to be fulfilled through a sole source contract with

Morphix Technologies directly.

The kits available through the manufacturer’s national distribution network, GSA, and DLA are for kits with no guarantee of the manufacturer date and expiration date. Procuring this requirement without a guarantee would increase cost(s) because it would require constant monitoring and disposal of expired cassettes. For example, in the past, USCG purchased

Morphix Technologies cassette kits by and through Defense Logistics Agency (DLA). The shipments received from DLA required USCG personnel sort individual cassettes into armband kits. This process would take several hours depending on the number of cassettes with different dates. Due to this extra work, personnel work load increased; diverting personnel from other functions of their job(s). Due to this unnecessary burden, USCG changed its requirement, in part, by requiring a single synchronized manufacturer date and expiration date with a shelf life of

24 months. Procurement by and through Morphix Technologies for the chemical cassette kits will decrease costs and personnel management of the kits because the kits will be pre-sorted by type and expiration date, and will be ready for issue and immediate use. Morphix Technologies currently supplies USCG with its chemical cassette kits and because it is the only responsible source that can satisfy this requirement, this office intends to award a sole source contract to it.

For the foregoing reasons, procurement of chemical detector kits by and through Morphix

Technologies is justified.

(5) Demonstration that the nature of the acquisition requires use of the authority cited.

Morphix Technologies is the only known source for cassettes that fit USCG inventory of approximately 6,000 chemical detection armbands. While Morphix Technologies has several commercial distributors, both DLA and GSA cannot guarantee that the cassettes will be received with single synchronized shelf life. Morphix Technologies on the other hand is able to make this guarantee.

In prior years, the USCG utilized the DLA as a source for procuring Chameleon Chemical

Detection capabilities. Utilizing the National Stock Number (NSN), the USCG was able to procure the individual Chameleon Chemical Detector Cassettes. The cassettes were either individually issued to units or kitted at USCG warehouse facilities and then issued to units as kits. Due to DLA’s internal processes, the USCG was unable to receive the kits at a single time with equal shelf lives; thus, requiring the constant monitoring and rotation of expired cassettes at

USCG warehouse before distributing to individual units. Since then, the USCG has required a single manufacturer and expiration date of supplies received in order to reduce costs and promote efficiency.

The Contract Office made a good faith effort to procure the aforementioned through competition as evidenced by it posting the notice of intent to enter into negotiations on a sole-source basis under the authority of FAR 6.302-1to FedBizOpps.gov from 29 November 2016 to 9 December

2016. No interest was received from any potential vendors. Since no interest was received coupled with the fact that Morphix Technologies is the only known source that can guarantee a single synchronized manufacturer date and expiration date, it is the only responsible source in accordance with FAR 6.302-1.

Morphix Technologies exhibits an acceptable level of competency to perform these services.

Consequently, the contractor’s qualifications and record of good work performance under the current contract makes them an ideal candidate for the new contract.

(6) A description of the efforts made to ensure that offers are solicited from as many potential sources as is practicable.

The Contract Office made a good faith effort to procure the aforementioned through competition as evidenced by it posting the notice of intent to enter into negotiations on a sole-source basis under the authority of FAR 6.302-1to FedBizOpps.gov from 29 November 2016 to 9 December

2016. No interest was received from any potential vendors. The Contracting Office also conducted extensive market research on GSA and DLA to locate potential sources. Both DLA and GSA did not generate fruitful results because vendors could not guarantee a single synchronized shelf life; a requirement for this procurement. For the foregoing reasons, efforts have been made to solicit from as many potential sources.

(7) Determination by the Contracting Officer that cost to the government is fair and reasonable.

It is the Contracting Officer’s opinion that that the anticipated price offered will be fair and reasonable based on comparisons of the commercial published price lists by the OEM and cost comparison with the similar items in the commercial market place and analysis on other than cost and pricing data.

(8) Description of market research.

As previously discussed, the notice of intent was previously posted on FedBizzOpps.Gov without avail. Additionally, the USCG utilized various market research from other Government

Organizations.

Several different detectors were evaluated by the Research and Development Center (RDC); the only colorimetric detector fielded for pilot trials aboard different USCG platforms was the

Chameleon. The high sensitivity of the Chameleon Detector enables the user to detect the presence of a chemical once it goes over the permissible exposure level (PEL) established by the

National Institute for Occupational Safety and Health (NIOSH). Humans should not be exposed to chemicals which are over the PEL. Furthermore, exposure to a chemical that is over the

Immediately Dangerous to Human Life and Health (IDLH) level may cause fatalities. The

Chameleon Detector is capable of alerting the user once the presence of the chemical hits 50% of the IDLH level according to third-party testing employed by the US Government. This is the only detector that can be submerged in salt or fresh water for up to one hour and still work

(maritime environment). The gunners on the 25’RBS wear the Chameleon and are soaked by saltwater during missions since the gun mounts are outside the protection of the cockpit.

In October 2007, the Idaho National Laboratory published a document entitled “Emergency First

Responders Experience With Colorimetric Detection Methods,” which described various detection capabilities used by First Responders. The document explained the difference between the Chameleon detector and other popular detection capabilities used by local, state, and federal organizations.

From 2006-2008, the U.S. Marine Corps System Command (MCSC) conducted verification testing of the Chameleon passive chemical detector. The intent of this independent evaluation was to verify the vendor’s basic claims of sensitivity and interferon rejection for the initial array of sensor chemistries available. Results of various Marine Cops tests were documented in the following reports:

“Field User Evaluation Final Report for Marine Corps Systems Command on the

Chameleon Chemical Agent Detector,” Chemical Biological Incident Response Force

(CBIRF)

“Phase I Report for the Verification Testing of the Chameleon Passive Chemical

Detector,” Battelle Memorial Institute

“The Verification Testing Of The Chameleon Passive Chemical Detector (Phase II)”, Battelle Memorial Institute

The overall conclusion of this evaluation is that all cassettes responded as claimed by the manufacturer.

Additional market research revealed no other company produces a chemical sensor compatible with the Chameleon armband. Although Morphix Technologies produces each sensor and currently custom builds an 8 sensor kit for the USCG, it is more feasible to procure a 10 sensor kit because it is currently produced for commercial use by Morphix. The additional two chemical sensors will enhance chemical identification capability which will thereby provide additional protection to Coast Guard members.

(9) Any other facts supporting the use of other than full and open competition.

The Chameleon Chemical Cassette kits by Morphix Technologies must be brand specific because the USCG currently uses the Chameleon armbands. The Chameleon armband is manufactured by Morphix Technologies and only works in conjunction with cassettes made by

Morphix. All efforts have been made to find potential sources to satisfy this requirement.

Morphix Technologies is the only responsible source to meet this requirement as previously discussed.

(10) A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

As previously articulated, a notice of intent was posted to Fedbizopps on 29 November 2016 to 9

December 2016. No vendors expressed interest in the aforementioned requirement.

(11) A statement of actions, if any, the agency may take to remove or overcome any barriers to competition.

The USCG DOL-44 will continue to monitor new and emerging technologies in industry and work with the other military services to determine if any additional capabilities are developed that can be used for this purpose.

(12) Contracting Officer’s Certification.

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Wendy Culbreth Date

Contracting Officer

SILC-COCO-BSS-COB4

(13) Technical/Requirements Personnel Certification.

I certify that this requirement meets the Government’s minimum need and that the supporting data, which forms a basis for the justification, is accurate and complete.

CWO Mathew Baker Date

Technical Representative

USCG DOL-44

(14) Legal Review and Concurrence:

I have reviewed this justification and deemed it legally sufficient.

Date

LSC-9 Attorney

APPROVAL:

Wendy Culbreth Date