J and A - CMM.pdf

FOR OFFICIAL USE ONLY

Control Number: CCAM-ALC-J&A21-0670

JUSTIFICATION REVIEW DOCUMENT

FAR SUBPART 13.5 SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS –

SOLE SOURCE JUSTIFICATION AND APPROVAL

Program/Equipment: The Corpus Christi Army Depot is requesting the procurement of Preventative Maintenance, Calibration and On-site repairs for the Carl Zeiss Coordinate Measuring Machines

Authority: Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 (or 41

U.S.C. 1903 for Special Emergency Procurement) as implemented by FAR Subpart 13.5.

Amount:

Base Year (Begin May 2021) $XXX

1st Option Year (Begin May 2022) $XXX

2nd Option Year (Begin May 2023) $XXX

Total Estimated Price: Min $XXX / Max $XXX

Prepared by:

XXX

Contracting Officer:

Christopher Chapple DSN: 861-0511 Title: Contracting Officer Date:

Army Contracting Command-Redstone E-mail: Christopher.w.chapple.civ@mail.mil

Technical Representative:

Requirements Representative:

mailto:Christopher.w.chapple.civ@mail.mil

Digitally signed by

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

Program Manager:

Name: XXX Title: XXX

Signature: Date:

FAR Subpart 13.5 Simplified Procedures for Certain Commercial Items – Sole Source Justification and Approval

1. Contracting Agency: Army Contracting Command-Redstone (ACC-RSA), Corpus Christi Army Depot (CCAD), Contracting Office (CCAM-ALC), Corpus Christi, TX 78419-5260

2. Description of Action: The Corpus Christi Army Depot, Directorate of Infrastructure and Risk Management, Equipment Management Division, requests approval to award a new 3-year, firm-fixed price contract with Carl Zeiss Industrial Metrology, LLC, 6250 Sycamore Lane N, Minneapolis, MN. 55369-6310 (Cage Code 1DUR9). The Government projects award for 15 May 2021. Army working capital funds will be utilized.

3. Description of Supplies/Services: The ACC-RSA proposes to acquire the following items on an other than full and open competitive basis in support of the preventative maintenance, calibration, and on-site repairs to include parts, for the Carl Zeiss Coordinate Measuring Machines (CCMs). Orders will be issued against the resulting contract as requirements materialize for the following CMMs.

Bar Code

S/N

Model

G2862 137337 Accura-Mass

G9096 201003502226 Contura G2

M8726 200710501091 Contura G2

M8748 200710501136 Contura G2

M8801 200711501163 Contura G2

M0021 200406521398 Contura

M3576 200508521551 Contura 9801

R8020 990604880 Eclipse 550

M0022 115256 Prismo Vast

K9702 200406480221 Spectrum 700 M1505 200503480392 Spectrum

Estimated dollar value of the contract is as follows:

- Base Year (Begin May 2021) $XXX

- 1st Option Year (Begin May 2022) $XXX

- 2nd Option Year (Begin May 2023) $XXX

Total Estimated Price: Min $XXX / Max $XXX

4. Authority Cited: Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 (or 41 U.S.C. 1903 for Special Emergency Procurement) as implemented by FAR Subpart 13.5.

5. Reasons for Authority Cited:

a. The proposed acquisition requires use of the cited statutory authority because Carl Zeiss Industrial Metrology, LLC (Cage Code 1DUR9, 6250 Sycamore Lane N, Minneapolis, MN. 55369-6310) is the Original Equipment Manufacturer (OEM) and holds proprietary rights to the machine design and the operating software on CMMs located at CCAD. These CMM machines directly support CCAD’s Directorate of Engines Production, Directorate of MFG/Process Production and the Directorate of Powertrain production lines and are specifically programmed to measure the critical and unique types of aircraft parts used for that particular production line. Some of these machines are also programmed to handle other work center workloads within the Directorate when the need arises due to backlogs or equipment down time.

All of these CMM's are used on a daily basis and are valuable assets to meet the high parts process rate required for the demanding Engine and Powertrain completion schedules. If these CMMs fail due to inadequate maintenance and these critical aircraft parts cannot be measured, these parts cannot be produced by the production lines thus creating slips in CCAD’s production schedules and will create a negative impact to helicopter production. These 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 is performing as an integrated system. No other vender is authorized to perform services or maintenance on this equipment. Carl Zeiss Industrial Metrology, LLC is the only company with the capability of performing the required maintenance on the CMMs.

b. Alternatives: Since the machine design, the software on which the Zeiss CMMs run, and even the Zeiss machine service manuals are proprietary to Zeiss, there are no alternatives to restricting competition to Zeiss Industrial Metrology, LLC.

6. Efforts to Obtain Competition:

a. Effective competition. Pursuant to FAR Part 5.201, a combined synopsis / solicitation outlining this requirement will be published in Beta.Sam.Gov on or about 8 January 2021. The plan for improving and enhancing the competitive status of these items includes publication in the Aviation and Missile Command (AMCOM) Competition Advocate’s Shopping List (CASL), in accordance with FAR Part 5.404. This requirement was initially entered into the AMCOM CASL on 30 January 2017 and revised on 30 January 2017. Any sources identified through the GPE will receive due consideration as required by law. This item was determined to be of a type sold commercially under FAR Part 12, therefore, it will be procured utilizing procedures set forth in FAR Part 12 of commercial items.

b. Subcontracting competition. Although a Subcontracting Plan is not required because it is under $700,000.00 (FAR 19.702(a)(1)), the contractor is expected to follow the requirements of FAR 19.702 and subcontract work associated with this contract when subcontracting opportunities exist. The Government will address contractor requirements in the solicitation and will include clause FAR 52.244-5.

7. Actions to Increase Competition: Market research is an ongoing effort within CCAD.

This office will continue to monitor the marketplace for future competition through the internet and contact with industry representatives. Action for improving or enhancing the competitive status of acquisition of this service includes publication in the AMCOM CASL, in accordance with FAR Part 5.404 and publication in FBO in accordance with FAR Part 5.201.

8. Market Research:

a. Market research was conducted in accordance with FAR Part 10 by XXX, Industrial Specialist, during the months of May 2020 and October 2020. The following techniques were used:

(1) Personal Knowledge in procuring supplies/services of this type;

(2) Contact with the following persons regarding the commercial nature of this

Requirement: Mr. Michael Berger, Technical Support, Midwest CMM Services on 14 September 2020; Miguel Zamorano, General Engineer, Corpus Christi Army Depot, May to September 2020, Stephen Smith, Sales Manager, Carl Zeiss Industrial Metrology, LLC. May 2020, and Mrs. Gloria Kruger, Aftermarket Client Specialist, Carl Zeiss Industrial Metrology, LLC. in August 2020 and Mr. Bernhard Baumeister customer and technical support manager in October 2020;

(3) Review of recent market research for contract W58RGZ-18-D-0078 which was for similar supplies/services to include preventative maintenance (PM), calibration, and repairs;

(4) Review of Government and/or commercial databases for relevant information

Included accessing www.midwestcmm.com, www.houstonprecision.com, www.cmmproducts.com, & www.zeiss.com;

(5) Interchange meetings with potential offerors were conducted via web inquiries requesting information from the potential offerors. Mr. Berger at Midwest CMM Services responded to the web inquiry on 14 September 2020 that Midwest CMM Services can provide complete PM and calibration to the Zeiss CMMs. No response to the web inquiry from CMM Products and no response from Houston precision. Mrs.

Gloria Kruger from Carl Zeiss responded that they can meet the government’s requirements at Carl Zeiss Industrial Metrology, LLC, and Mr. Bernhard Baumeister from Carl Zeiss also verified proprietary services that identified Zeiss as having proprietary service software known as TESO and CMM control which is identified as http://www.midwestcmm.com/ http://www.midwestcmm.com/ http://www.cmmproducts.com/ http://www.zeiss.com/ optimizing accuracy of the machine without any 3rd party providers. Only Zeiss has the rights and ability to utilize the proprietary service software’s for machine adjustment.

All Zeiss machine service manuals are also proprietary to Zeiss. Because the companies shown above do not have the proprietary service software, TESCO and CMM control that controls measurement adjustments to the CMMs, they will not be able to meet the calibration requirements of the PWS;

(6) Publication in the AMCOM CASL- Initial submission 30 January 2017 and

Revised on 30 January 2017.

b. Based on the results of the above research, Carl Zeiss Industrial Metrology, LLC. was identified as the only known source for this requirement. Pursuant to FAR Part 10.002(e) and FAR Part 12.101(a), it is determined that this requirement can be met by commercial items, commercial items with customary or minor modifications or non-development items, and the commercial item definition in FAR Part 2.101 has been satisfied. FAR Part 12 procedures will be used because these services are customarily used by non-government entities for other than government use.

9. Interested Sources: Notices required by FAR 5.201 shall be published and interested sources identified through synopsis will receive due consideration as required by law. A synopsis outlining this requirement will be published in Beta.Sam.Gov on or about 8 January 2021. Any potential sources, which required the solicitation, will receive the request for proposal. No sources were identified through the Sources Sought process in FBO.

10. Other Facts:

a. Procurement history:

(1) W58RGZ-18-D-0078-Awarded to Carl Zeiss Industrial Metrology, LLC on 24 May 2018 in the amount of $XXX for the repair, maintenance, PM and calibration on twelve

(12) CMMs at CCAD. POP was from 24 May 2018 to 23 May 2021, IDIQ contract 1st, 2nd, and 3rd ordering periods. This was a sole source acquisition. Total 3 year contract cost, $XXX

(2) W912NW-14-P-0210- Awarded to Carl Zeiss Industrial Metrology, LLC. On 22 July 2014 in the amount of $XXX for the repair, maintenance, PM and calibration on thirteen (13) CMMs at CCAD. Period of Performance was from 22 July 2014 to 21 July 2017, Base with two (2) option years. Total three (3) year contract amount $XXX. This was a sole source acquisition.

(3) W912NW-13-C-0020- Awarded to Carl Zeiss Industrial Metrology, LLC. On 3 July

2013 in the amount of $XXX for the repair, maintenance, PM and calibration on fourteen CMMs at CCAD. POP was from 3 July 2013 to 2 July 2014. This contract was awarded under Test Program for Commercial Items (section 4202 of the Clinger- Cohen Act of 1996) and the authority of the Services Acquisition Reform Act of 2003 (41 U.S.C. 428a) in accordance with Federal Acquisition Regulation (FAR) Part 13.501(a)(1)(ii), an acquisition under the authority of the test program for commercial items.

(4) W912NW-12-P-0578- Awarded to Carl Zeiss Industrial Metrology, LLC. On 13 June 2012 in the amount of $XXX for the repair, maintenance, PM and calibration on fourteen CMMs at CCAD. POP was from 13 June 2012 to 12 June 2013. This was a sole source acquisition.

(5) W912NW-11-P-0111- Awarded to Carl Zeiss Industrial Metrology, LLC. On 09 May 2011 in the amount of $XXX for the repair, maintenance, PM and calibration on fourteen (14) CMMs at CCAD. POP was from 22 June 2011 to 21 June 2012. This was a sole source acquisition.

(6) W912NW-10-P-0614- Awarded to Carl Zeiss Industrial Metrology, LLC. On 08 June

2010 in the amount of $XXX for the repair and maintenance on fourteen (14) CMMs at CCAD. POP was from 22 June 2010 to 21 June 2011. This contract was awarded under 10 U.S.C. 2304(c)(1), Only one Responsible Source as authorized by FAR 6.302-1, Only One Responsible Source and no other supplies/services will satisfy agency requirements.

(7) W912NW-09-P-0404- Awarded to Carl Zeiss IMT Corporation on 22 April 2009 in the amount of $XXX for the repair and maintenance on eleven (11) CMMs at CCAD.

POP was from 22 April 2009 to 21 April 2010. This was a sole source acquisition.

(8) W912NW-08-P-0336- Awarded to Carl Zeiss IMT Corporation on 24 March 2008 In the amount of $XXX for the repair and maintenance on eleven (11) CMMs at CCAD.

POP was from 16 April 2008 to 15 April 2009. This was a sole source acquisition.

(9) W912NW-07-P-0419- Awarded to Carl Zeiss IMT Corporation on 16 April 2007 in

The amount of $XXX for the repair and maintenance on eleven (11) CMMs at CCAD.

POP was from 16 April 2007 to 15 April 2008. This was a sole source acquisition.

(10) DAAH13-00-P-1449- Awarded to Carl Zeiss IMT Corporation on 27 June 2000 in the amount of $XXX for the repair and calibration of Government owned CMMs at CCAD. Delivery date was 7 July 2000. This was a sole source acquisition.

b. Acquisition Data Availability - All technical data for Zeiss CMMs is proprietary to Carl Zeiss Industrial Metrology, LLC. it is not economical for another business to try to compete for a competitive bid against a company who is the OEM of the CMMs.

c. Past procurement history reveals no significant changes or unusual patterns in contract awards.

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.

Name: Date:

Signature: XXX

12. Requirements Certification - "I certify that the supporting data under my cognizance which are included in this justification are accurate and complete to the best of my knowledge and belief."

Name: Date:

Signature: XXX

13. Fair and Reasonable Cost Determination - I hereby determine that the anticipated cost for this contract action will be fair and reasonable based on the use of various price analysis techniques in accordance with FAR 13.106-3, such as comparison of proposed prices with the prices obtained through market research for the same or similar items and comparison of proposed prices with the Independent Government Cost Estimate. Certified cost or pricing is not required when a commercial item is being acquired.

Name: Christopher W. Chapple Date:

Title: Contracting Officer

CHAPPLE.CHRISTOPHE Digitally signed by

R.WENDELL.10796344

CHAPPLE.CHRISTOPHER.WENDELL

Signature: 80

Date: 2021.01.14 14:38:41 -06'00'

14. Contracting Officer Certification - "I certify that this justification is accurate and complete to the best of my knowledge and belief."

Name: Christopher W. Chapple Date:

Title: Contracting Officer

Signature:

Digitally signed by

CHAPPLE.CHRISTOPHER CHAPPLE.CHRISTOPHER.WENDEL

.WENDELL.1079634480 L.1079634480

Date: 2021.01.14 14:39:06 -06'00'

.1079634480