JA Redacted 25PA009 HSI DPG 17June25.pdf

Control No.:

JUSTIFICATION REVIEW DOCUMENT

FAR 13.5 SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS

SOLE SOURCE JUSTIFICATION AND APPROVAL

Program/Equipment: United States Army Test and Evaluation Command (ATEC), Dugway Proving Ground (DPG) West Desert Test Center (WDTC), Data Science Division requires Hyperspectral Imager Systems (HSI) and accessories.

Authority: 41 United States Code §1901 as implemented in Federal Acquisition Regulation (FAR) 13.501 (a)(2)(ii), Sole Source, (including brand name) under the authority of the simplified procedures for certain commercial items.

Prepared by: Mark S. Pratt DSN: 520-2094 Contract Specialist Date:12/3/2024 Email: mark.s.pratt4.civ@army.mil

Contracting Officer: Paul E. Frailey DSN: 520-2587 Contracting Officer Date: 12/3/2024 Email: paul e frailey civ@army mil

Reviews: I have reviewed this justification and find it adequate to support sole source.

Date: See digital signature

Date: See digital signature

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

1. Contracting Activity: United States Army Mission and Installation Contracting Command (MICC) - Dugway Proving Ground, 5330 Valdez Circle, MS #1, Dugway Proving Ground, UT 84022-5001

2. Description of Action: United States Army Test and Evaluation Command (ATEC), Dugway Proving Ground (DPG) West Desert Test Center (WDTC), Data Science Division requests approval to award a noncompetitive Firm-Fixed-Price (FFP) supply purchase order to:

Telops, Inc. 100-2600 St-Jean Baptiste Avenue Quebec City (QC) Canada G2E 6J5

The Government projects award of this procurement by 30 June 2025, using Fiscal Year (FY) 2025 Research, Development, Test & Evaluation (RDT&E) funding. An acquisition plan is not required because this procurement does not meet the threshold in accordance with the Defense Federal Acquisition Regulations Supplement (DFARS) 207.103(d)(i)(B).

3. Description of Supplies/Services: The requirement is for the purchase and delivery of one Hyperspectral Imaging (HSI) system and accessories. The Telops equipment is an advanced infrared HSI system that measures the spectral signature of gaseous clouds as well as solid samples near or above ambient temperature in real-time. The HSI and computer must be operable in field conditions without the need for liquid nitrogen, external cooling devices, and fully operational outdoor environmental conditions from 20 degrees Fahrenheit to 110 degrees Fahrenheit. The HSI accessories are listed below:

*Wide Angle Telescope (.25x) *Narrow Angle Telescope (3.5x) Field-ruggedized controller for sensor control and data acquisition.

Telops proprietary “Reveal Detection and Identification” Analytical Software.

Telops HSI system tripod designed and engineered for the HSI camera system that adjusts in 3 dimensions and securely locks the camera in place.

Miscellaneous items to include cable kit, rugged transport case, and power adapter.

* The wide angle and narrow angle telescopes are specific to Telops and the HSI. The telescopes are lenses designed and incorporated into a mounting system that is interchangeable with other Telops telescope modules. These are only available from Telops.

Delivery date: Six months after award

4. Authority Cited: 41 U.S.C. §1901, as implemented by FAR 13.501(a)(2)(ii), sole source under the authority of the simplified procedures for certain commercial items.

5. Reason for Authority Cited:

a. Background. Telops Inc. is the Original Equipment Manufacturer (OEM) and owns all proprietary data and patent rights to its equipment. The WDTC Data Science Division purchased a long-wave hyperspectral imager system from Telops in 2019 through the Health and Human Services (HHS) under an unrestricted competitive acquisition which resulted in award of contract 75P00119P00098. This hyperspectral imager has been used in chemical field trial and laboratory settings successfully and integrated into the Data Science Division testing suite, making it a unique and critical piece of testing equipment needed that has not been found by any other vendor to date.

On 16 August 2021, two (2) additional hyperspectral imager systems were purchased from Telops under purchase order W911S6-21-P-0026 on a sole source basis. The authority permitting other than full and open competition was 41 U.S.C. Section 1901, as implemented by FAR 13.501(a), Test Program for Commercial Items for sole source commercial items using simplified acquisition procedures. The J&A (Control No. MICC 2021-81) was approved on 03 August 2021 by the Alternate Advocate for Competition.

The Data Science Division requires the Telops HSI to develop 3D-reconstructions of clouds. No other manufacturer's product is compatible with the existing hyperspectral imagers.

The acquisition of a third HSI is critical to the DPG’s mission success. DPG will be unable to obtain critical information on systems under test performance without a third HSI. Which, in turn will prevent the system’s ability to meet performance requirements and operational safety. Market Research has shown that there is no other manufacturer who is currently offering a system with equal or better capabilities. As stated above, there is no comparable system available. Even if there were, the probable cost to have such a system upgraded to the HSI capabilities for a one-off upgrade would: 1) be over the cost of the HSI, 2) require significant development effort, time, and integration with existing systems, and funding which would result in unacceptable delays in DPG test mission accomplishment.

b. Alternatives. Through market research techniques used, there has not been an alternative identified that could replace the Telops HSI that is currently integrated within the DPG WDTC.

c. Additional Supporting Information. The additional Telops HSI unit will be integrated into DPG’s analytical test system and operate concurrently with the existing Telops HSI equipment and software. Only Telops provides an HSI instrumentation capable of operating within the harsh environmental conditions needed at DPG. Telops

HSI includes a Long-Wave (LW) standoff imaging Fourier-transform spectrometer that -910 cm-1) and an interferometer with spectral resolution up to 0.25 cm-1. The minimum requisites of this requirement are listed in paragraph 3. The infrared HSI system measures the spectral signature of gaseous clouds as well as solid samples near or above ambient temperature in real-time. The HSI and computer must be operable in field conditions without the need for liquid nitrogen, external cooling devices, and fully operational outdoor environmental conditions from 20 degrees Fahrenheit to 110 degrees Fahrenheit. Additional HSI units are determined by the number of tests that require HSI.

The Telops HSI has been integrated within the WDTC Data Science Division beginning in 2019 and has been a critical component of the division’s capability during required tests.

Due to the results of only receiving one response to the sources sought posted on SAM.gov and additional market research that did not identify another viable replacement, the contracting officer made the determination to solicit only one source. If there would have been feasible competition discussions would have been made to determine the impact to complete full and open.

d. Impact if justification is not approved. Disapproval of a noncompetitive purchase order will result in the Data Science Division having a decreased ability to provide the level of support consistent with ongoing and future test programs. A competitive solicitation and award to any other contractor would limit the effectiveness of the existing testing suite currently utilizing Telops HSI, increase the procurement lead time and result in duplication of efforts to field-harden another manufacturer’s system(s), as detailed in paragraph 5.b. above. Any potential minimal savings the Government might gain through competition would not be expected to be recouped and would minimize the return on investment of the significant amount of Government funds, time, and resources which have been invested in the DPG analytical test system. All these outcomes contribute to a less efficient testing capability and the risk of impacting the outcomes and data collected from various test missions.

6. Efforts to Obtain Competition: The Contract Specialist published the notices required by FAR 5.201 and any bids or proposals received shall be considered. Market research is conducted annually by the WDTC Data Science Division through attending trade shows, internet searches, telecom discussions with other potential vendors, and surveying the marketplace. These efforts have resulted in no other sources of another ruggedized long-wave hyperspectral imager systems with the required specifications needed.

a. Effective Competition: Because this is a sole source action, effective competition is not applicable.

b. Subcontracting Competition: In accordance with FAR 19.702, all negotiated acquisitions expected to exceed $750,000 require the contractor to submit an acceptable subcontracting plan. The Contracting Officer (KO) will request the plan be submitted with the vendor’s quote/offer. The KO will ensure that the contractor obtains as much competition as possible for any part of the requirement that is subcontracted and gives maximum opportunity to small businesses. If the Contractor states there are no subcontracting opportunities, upon submission of its quote/offer, the KO shall complete a Determination and Finding for No Subcontracting Opportunities which must be approved one level above the KO and placed in the paperless contract file.

7. Actions to Increase Competition: The Data Science Division continually conducts market research by attending trade shows, internet searches, telecom discussions with other potential vendors, and surveying the marketplace. This is a sole source action due to the need to integrate with proprietary equipment. The Data Science Division monitors emerging new technologies or new system development as potential solutions to satisfy this need. If a new viable solution becomes available, the Data Science Division will initiate advance planning around future requirements using competition to the maximum extent possible.

8. Market Research: Market research was conducted in accordance with Defense Federal Acquisition Regulation Supplement DFARS 213.501(a)(i), and DFARS Procedures Guidance and Information (PGI) 206.303-2(b)(i)(A). A sources sought notice was posted to the Contract Opportunities on the System for Award Management (SAM.gov) website on 19 November 2024 for 15 days to seek possible alternate products. One response was received from Telops with a capability statement of their product.

9. Interested Sources: To date, no other sources have expressed interest in the proposed action.

10. Other Facts:

a. Procurement history listed below.

Contract number: 75P00119P00098 Vendor: Telops Award date: 03 May 2019 Competitive Status: Sole Source Authority cited: FAR 13.501(a)(1)(ii)

Contract number: W911S621P0026 Vendor: Telops Award date: 26 May 2022 Competitive Status: Sole Source Authority cited: FAR 13.501(a)(1)(ii)

b. A justification was prepared to support the previous sole source procurement, W911S621P0026. A summary of the contents of paragraph 7 of the justification for that procurement is identical to the current actions to increase competition. A Sources Sought was posted for previous purchases as well as the current purchase. No other sources have been identified that satisfy the required capabilities of this requirement.

c. The need for additional HSI units was determined necessary to support the increase in testing. There have been no significant changes in the marketplace as Telops is still the only vendor that can provide an HSI unit proven to be able to withstand the harsh conditions at DPG.

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.

Date: See digital signature

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.

Date: See digital signature

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. This determination will be made using price analysis techniques in accordance with FAR 13.106-3(a)(2). As a part of this basis, certified cost or pricing data is not required because the item and/or services being acquired are considered commercial and the following exception applies: FAR 15.403-1(b)(3).

____________________________________ Date: See digital signature Paul E. Frailey Contracting Officer

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

____________________________________ Date: See digital signature Paul E. Frailey Contracting Officer

FRAILEY.PAUL.ELW

OOD.1298118757

Digitally signed by

FRAILEY.PAUL.ELWOOD.1298118

Date: 2025.05.07 09:04:43 -06'00'

FRAILEY.PAUL.ELWOO

D.1298118757

Digitally signed by

FRAILEY.PAUL.ELWOOD.1298118757

Date: 2025.05.07 09:05:10 -06'00'

Approval

Based on the foregoing justification, I hereby approve the procurement of a Hyperspectral Imaging (HSI) system and accessories on a sole source basis pursuant to the authority of Simplified Procedures for Certain Commercial Items, Title 41 United States Code § 1901 as implemented by Federal Acquisition Regulation 13.501. The estimated value of the contract is $1.0 million with delivery six months after contract award. The approval is subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.