JA PARASIM Life Cycle Support_Signed_Redacted.pdf

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PARASIM Parachute Simulator Life Cycle Support
Solicitation number
H9223925A0009
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This document is a Justification and Approval (J&A) for a sole-source contract for PARASIM® Parachute Simulator Life Cycle Support issued by the United States Special Operations Command (USASOC). The contract will be awarded to Systems Technology Inc. (STI), the exclusive manufacturer of the PARASIM® Virtual Reality Parachute Simulator, with a planned Blanket Purchase Agreement (BPA) from January 2025 through January 2030. STI is the sole provider due to multiple patents, unique system design, and specialized capabilities that include military parachute canopy modeling, installation, calibration, and training requirements.

Market research, including a Request for Information (RFI) on GSA e-Buy and internet searches, confirmed STI as the only vendor capable of meeting USASOC's specific needs. The contract is based on STI's GSA Advantage Schedule Contract 47QREA-22-D-000B, with previous contract history including support for U.S. Army Special Operations, SOCOM/CENTCOM, and the Air Force. In 2024, STI received a $3.8M SBIR Phase III contract for 17 parachute simulator systems. The justification emphasizes that no other manufacturer can provide the required military parachute canopies, terrain drop zone simulations, or comprehensive life cycle support for the PARASIM® system.

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FOR OFFICIAL USE ONLY - J&A No.

Page 2 of 4V1.3, 4 Dec 18

3. Description of Supplies/Services: (FAR 8.405-6(c)(2)(iii)) The requirement is for Systems Technology Inc. (STI) to provide parts to PARASIM® frames used by USASOC elements as part of a "Life Cycle Support." Systems, parts, and prices are based on STl's GSA Advantage Schedule Contract 47QREA-22-D-000B, contract period 14 December 2021 through 13 December 2026. USASOC Contracting intends to establish a BPA with a period of performance beginning in January 2025 through January 2030.

4. Authority Cited Permitting Limited Sources: (FAR 8.405-6(c)(1)(i)) (Identify the citation permitting limited sources. This section is normally the most detailed part of the justification. To assist you in preparing this justification, an introductory sentence for each of the FAR 8.405-6(a)(1)(i) circumstances for limiting sources are provided below.

FAR 8.405-6(a)(1)(i)(B), “Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.”

a. Patents - Multiple patents were found for STl's PARASIM®, including US Patent No. 6,000,942, Parachute Flight Training Simulator.

b. PARASIM® system has been approved by USASOC and is currently to

. also has modeled . The

c. The primary canopies (RA-1 and MC-6/T-11R) are

Th

This product knowledge is and a new product is not being requested.

d. Upgrades to the current PARASIM® system must come from the Original Equipment Manufacturer, Systems Technology, Inc. They do not utilize distributors or other service representatives. STI bids and services their contracts directly with PARASIM® certified personnel.

5. Efforts/Actions to Increase Competition: (FAR 8.405-6(c)(2)(viii)) In accordance with FAR 5.202(a)(11) a proposed contract action made under the terms of an existing Multiple Award Schedule Program contract that was previously synopsized in sufficient detail to comply with respect to the current proposed contract action. Paragraph 4, above, justifies why competition among all awardees is not possible for this acquisition.

Internet research revealed no vendors other than STI can provide PARASIM® upgrades, training and maintenance. STI provided numerous recent sole-source certification letters, as they are the sole proprietor of the system to provide upgrades, training and maintenance. The US Air Force also procures their parachute simulators from STI, both for special operations and pilot emergency ejection. Market research supports STI is the sole proprietor, with no authorized resellers/distributors. USASOC Technical Personnel and Contracting personnel will continue to work together and identify any new technology that may be developed to meet the future need of PARASIM® Life Cycle Support.

Additionally, within STI's GSA schedule (47QREA-22-D-000B) terms and conditions states the following:

PARASIM® Sole Source Statement

The PARASIM® Virtual Reality Parachute Simulator was created and patented by Systems Technology, Inc. and is exclusively made and manufactured by our company. To our knowledge PARASIM® is a unique design. PARASIM® products are sold directly by Systems Technology, Inc. and by authorized dealers throughout the world.

6. Market Research: (FAR 8.405-6(c)(2)(vi)) A Request for Information (RFI) was posted on GSA e-Buy from 24-28 March 2025 with only Systems Technology Inc, (STI) providing a response. STI is the creator and Original Equipment Manufacturer (OEM) of the PARASIM® Virtual Reality parachute simulator and associated modules, accessories, and software options. STI’s response included a sole source letter and GSA price list as of March 2025.

Market research revealed the items are available on GSA Schedule 47QREA-22-D-000B through STI. Previous acquisition history indicates that STI has provided life cycle support for the PARASIM® to U.S. Army Special Operations Command under H9223919A0003 from Sep 2019 through Sep 2024; also task order H9223918F0037, UNICOR life cycle support to JRTC (Department of Justice contract DJU-04500500594), life cycle support to SOCOM/CENTCOM (contract H9227718F0005), and the Air Force life cycle support for the PARASIM's (task order FA460816FA0D9 and FA460820F0107) off of STI's previous GSA contract GS-02F-0043L. In 2024, STI also received a $3.8M SBIR Phase III contract award for 17 systems at the US Air Force SERE Parachute Ejection and Bailout for PARASIM® at their AETC HQ command (contract

Page 3 of 4V1.3, 4 Dec 18

F1XT-TR40-05-A-001).

On 03 July 2024 Systems Technology, Inc. provided the Government a Sole Source Proprietary Memo and will be placed in the contract file.

A search of the Internet revealed supports that STI is the sole source provider of the PARASIM hardware and software components. STI holds all patent, proprietary and engineering rights to PARASIM®. Another parachute simulator manufacturer, Quantum 3D/Halvesan (Turkish parent company), was discovered in a Google search; however they do not provide the USASOC required military parachute canopies, localized real-world terrain drop zones, or provide life cycle support specifically for PARASIM®.

7. Interested Sources:

Systems Technology, Inc., 13766 S Hawthorne Blvd, Hawthorne, CA 90250-7010

8. Other Facts Supporting the Justification: (FAR 8.405-6(c)(2)(vii)) USASOC units are currently using the STl's products/services since they are the only vendor who can meet the installation, calibration, and training requirements associated with the PARASIM® parachute simulator.

9. Technical and Requirements Certification: (FAR 8.405-6(c)(2)(x))

(This should be signed by a Requiring Activity Official (RAO) at a level commensurate with the ultimate approving authority:

a. If it does not require USSOCOM Agency Advocate for Competition approval, then an RAO commensurate with the Chief of the Contracting Office.)

b. If the AAC or Head of Contracting Activity (HCA) must approve, then the RAO must be an 0-6 or equivalent.

c. If the Senior Procurement Executive (SPE) must approve, then the RAO must be at the level of Program Executive Officer, Director, Commander, Chief of Staff, or equivalent.)

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.

10. Fair and Reasonable Cost Determination: DFARS 216.505-70(d)(3)) I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. The KO will utilize a price analysis based upon the IGCE, previous BPA, or GSA schedule pricing.

CONTRACTING OFFICER SIGNATURE IN SECTION 11 BELOW ALSO SERVES AS THE PRICE FAIR AND REASONABLENESS DETERMINATION IN

THIS SECTION.

11. Contracting Officer Certification: (FAR 8.405-6(c)(2)(ix))

I hereby certify that this J&A is complete and accurate to the best of my knowledge and belief.

Legal Review: (SOFARS 5601-1)

I have reviewed this document and find the J&A legally sufficient to support other than full and open competition:

Page 4 of 4V1.3, 4 Dec 18

Procuring Activity Authority for Competition (PAAC) Approval: (SOFARS 5601-1)

I have reviewed this document and find the J&A adequate to support other than full and open competition:

File details come from the government source that posted it. Updated .