A02 - USAARL 2B38 NUH-60 Simulator Cockpit Conversion - JA Sole Source_redacted.pdf

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Control Number: JA-24-07-1635

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Source Selection Information - See FAR 2.101 and 3.104-4

OCT 2023

Sole Source Justification and Approval

Under FAR 13.501

1. Contracting Activity: The Contracting Activity responsible for this action is the U.S.

Army Medical Research Acquisition Activity (USAMRAA) located at 808 Schreider Street, Fort Detrick, MD 21702.

2. Description of Action: The United States Army Aeromedical Research Laboratory (USAARL) requests a sole-source, firm-fixed price contract with SGB Enterprises, Inc.

(SGB), 24844 Anza Drive, Suite B, Santa Clarita, CA 91355. The Government projects award during the September 2024 timeframe utilizing fiscal year 2023

3. Description of Supplies/Services: USAARL requires the upgrade of their existing NUH-60 simulator to be the same model as the U.S. Army’s Flight School XXI (FSXXI) UH-60A/L simulators. The “Mike” model UH-60 is the standard for all Army units. This requirement includes all labor and materials needed to upgrade the current NUH-60 simulator cockpit to the “Mike” version and includes the necessary software programming and integration for the entire system to remain compatible with the current full motion RSI CV10R dome and existing software driven Image Generator seven (7) channel system. This requirement will provide USAARL with the exact simulator cockpit system in use at the FSXXI and in the general fleet of UH-60 helicopters. This upgrade is also required to modernize USAARL’s current simulator in order to maintain relevancy and align to the Army’s modernization focus on the future vertical lift.

Period of Performance: Twelve (12) months – commencing on 23 September 2024 and ending on 22 September 2025.

Total Estimated Value:

4. Authority Cited: 41 United States Code 1901 as implemented in Federal Acquisition Regulation 13.501(a)(1)(ii), sole source (including brand name) under the authority of the simplified procedures for certain commercial items.

Controlled by: Defense Health Agency (DHA) Controlled by: USAMRAA CUI Category: Source Selection Limited Dissemination Control: FED ONLY

CUI

Source Selection Information - See FAR 2.101 and 3.104-4

5. Reason for Authority Cited: SGB performed the most recent modification to the simulator in 2019 under contract W81XWH-18-P-0213, making it fully integrated with the existing proprietary image generation system (currently installed on the simulator).

a. Only SGB can meet the Government’s requirement to upgrade USAARL’s existing NUH-60 cockpit to the “Mike” version. SGB has the proprietary knowledge needed to modify the image generators currently in use at the FSXXI and USAARL. Further, SGB is fully-versed on all simulator display systems at USAARL, and has a long history of working directly on and upgrading the existing NUH-60 simulator visual display system. SGB has installed numerous upgrades on this simulator and has worked closely with USAARL to integrate the hardware into simulation scenarios that accurately portray real world flight dynamics.

b. The requirement for the USAARL NUH-60 simulator to be the same as the FSXXI NUH-60 simulator is of paramount importance. It is also prudent from a long-term sustainment viewpoint to leverage the enduring logistics (e.g. spare parts and maintenance expertise) associated with the robust FSXXI operations.

c. Alternatives: There are no known alternatives to the Government for upgrading USAARL’s existing NUH-60 simulator visual display system to be the same as the displays installed on the FSXXI UH-60M simulators from sources other than SGB. As previously stated, SGB has the proprietary knowledge and experiences working together on this simulator to perform this upgrade in the most efficient manner why mitigating the high cost and schedule risk associated with hardware and software integration efforts. There are no other sources in the marketplace capable of satisfying USAARL’s requirement.

6. Efforts to Obtain Competition: In accordance with FAR 5.2 - Synopses of Proposed Contract Actions, a Notice of Intent (NOI) to award a sole source contract was published on the www.sam.gov website on 05 July 2024 for 15 days. No responses were received in response to the NOI, by the due date specified.

7. Actions to Increase Competition: All future requirements will be handled on a case-by-case basis. If another potential source emerges in the marketplace that can meet the Government’s requirement, USAARL and USAMRAA will assess whether competition for future requirements is feasible.

8. Market Research: Market research conducted in accordance with FAR Part 10 was undertaken to ascertain 1) if the requirement meets the FAR definition of Commercial Product/Commercial Service; 2) if two or more small business exist that can meet the government’s requirements; and 3) if there is more than one source capable of meeting the governments requirements.

CUI

Source Selection Information - See FAR 2.101 and 3.104-4

Market research examined if the requirement meets the FAR definition of a commercial product, as specified in FAR Part 2, which is a product, other than real property, that is of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and (i) has been sold, leased, or licensed to the general public; or (ii) has been offered for sale, lease or license to the general public. Market research determined that the requirement does meet this definition and is commercially available; thus, commercial terms and conditions will apply.

Market research conducted in accordance with FAR Part 10 does not support that a minimum of two or more capable small businesses could potentially satisfy this requirement. Given the information above, this requirement is not appropriate for a small business set-aside.

Market research was conducted during the May/June 2024 timeframe and many suppliers of aircraft avionics and integrators were identified. However, no vendor other than SGB possess the unique/proprietary knowledge of past, current modifications, current software interfaces nor the opportunities to reuse existing hardware and software required to complete the conversion.

Given the information above, SGB is determined to be the only vendor capable of providing the services required to convert the existing Blackhawk simulator into a fully functioning, one of a kind “M” like UH-60 research simulator meeting the government’s requirements.

9. Interested Sources: No sources have written to express an interest in this acquisition. The synopsis required by FAR 5.201 was posted to www.sam.gov on 05 July 2024 allowing all interested sources to respond with a Capability Statement. No responses were received.

10. Other Facts:

a. Procurement history. Not Applicable – This is a new requirement.

b. Other facts. To summarize, the USAARL flight simulator was originally a UH- 60A/L device that has been heavily modified over the years for research purposes to sense, measure and collect data related to human machine interaction. SGB has been a substantial participant in each iteration of modification that has resulted in a flight simulator unlike any other simulator in the world. The USAARL flight simulator is a legacy system that is no longer produced and is so heavily modified with hardware overlays to make it operate as a glass cockpit (i-pad like interfaces with programmable instruments). Additionally, it requires proprietary software for the legacy system analog components to communicate with the glass cockpit (digital components). Lastly, it is a research device that represents significant capital investments over the years.

Intermeshed with these hardware and software interfaces are additional proprietary algorithms that capture the human machine interactions. The USAARL flight simulator

CUI

Source Selection Information - See FAR 2.101 and 3.104-4 will require sole source support until simulator end-of-life which could as far forward as 2030.

CUI

Source Selection Information - See FAR 2.101 and 3.104-4

11. Technical Certification:

I certify that the supporting data under my cognizance, which are included in the justification are accurate and complete to the best of my knowledge and belief.

12. Requirements Certification:

I certify that the supporting data under my cognizance, which are included in the justification are accurate and complete to the best of my knowledge and belief.

13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. This determination will be made using price analysis and an independent government estimate. In accordance with FAR 15.403(1)(b)(3), the Contracting Officer shall not require certified cost and pricing data to support any action when a commercial product or commercial service is being acquired.

CUI

Source Selection Information - See FAR 2.101 and 3.104-4

14. Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Reviews

I have reviewed this justification and find it adequate to support other than full and open competition.

CUI

Source Selection Information - See FAR 2.101 and 3.104-4

Approval

Based on the foregoing justification, I hereby approve the procurement of 2B38 Simulator Cockpit Conversion for an estimated value of $1,288,111.00 on an other than full and open competition basis pursuant to the authority of 41 U.S.C. 1901 as implemented by FAR 13.501, subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.