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Control No. 2024-63

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

1. Contracting Activity: U.S. Army Mission and Installation Contracting Command (MICC)-Yuma Proving Ground (YPG), 301 C. Street, Bldg. 2100, Yuma, Arizona 85365.

2. Description of Action: YTC and WDTC request a new firm-fixed-price contract for a base year and two option years with Mallory Engineering, Inc 787 South 950 West, Woods Cross, Utah 84087. The Government projects award for November 2024 and fiscal year FY2025 Research, Development, Test & Evaluation funds (RDT&E) funds will be used, subject to availability. An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

3. Description of Supplies/Services: The systems at YTC and WDTC are environmental simulation chambers. These systems were upgraded to Mallory controls over the past 19 years, as new technology became available. The software operating the controllers is proprietary to Mallory Engineering and as such they have no licensed third parties to maintain, update, or modify the system controls. In accordance with the performance work statement, the contactor shall provide skilled technicians who are familiar with the operation and control systems of all 29 chambers at YTC and WDTC facilities. An annual preventative maintenance visit shall be conducted on each chamber.

The contractor shall ensure the Climatic and Rough Handling equipment with the chambers are maintained and repaired in the event of a malfunction at YTC or WDTC.

Each piece of equipment shall be regularly maintained through an annual service, software upgrade, and repaired in the event of an equipment malfunction.

This contract also includes periodic delivery of consumable supplies used by the equipment during testing. Examples of consumable supplies are Cylinders of 404A, SUV 85 and 134A specialty gases.

FAR Clause 52.217-8 - Option to Extend Services, will not be included in this contract.

Base Period: 07 NOV 2024 to 06 NOV 2025 Value: $1,177,875.00 Option Period 1: 07 NOV 2025 to 06 NOV 2026 Value: $1,190,721.00 Option Period 2: 07 NOV 2026 to 06 NOV 2027 Value: $1,208,308.00

Total Value: $3,576,904.00

4. Authority Cited: Simplified Procedures for Certain Commercial Items, Title 41 U.S.C. 1901 as implemented by FAR Subpart 13.5. Mallory Engineering Inc. is the sole proprietor for the existing software, it cannot be purchased or reproduced from another vendor.

5. Reason for Authority Cited:

a. Using National Instruments LabVIEW Development Software, Mallory developed custom application software for the environmental chambers. The software and hardware that has historically been utilized across all the environmental chambers is highly customized and proprietary to Mallory Engineering Inc.

Mallory Engineering has performed upgrades and repairs on the environmental chambers in the past and is intimately familiar with the custom mechanical systems, the custom software applications, and the network connectivity required by YTC. Network connectivity is essential for remotely monitoring the environmental chambers. A network connectivity capability is not currently available for WDTC’s environmental chambers and will be acquired through the contract that will replicate a similar setup which would provide Mallory accessibility to remotely connect to WDTC chambers to troubleshoot and prevent any associated travel fees for diagnosis of issues and allows the issues to be addressed quickly avoiding potential delays in tests.

It is important for the total downtime required to perform these services to be as short as possible in an effort to minimize the impact on the test mission. This involves a coordinated effort from other test centers and test organizations.

b. Alternatives.

1) Suspension of services: The impact of suspending services will eventually cause the software systems/subsystems to not function properly and lead to system failure. Test schedules for test customers would be delayed until repairs are performed, which would impact critical test missions and create undue additional cost. Therefore, this alternative is not viable.

2) Replace the Mallory controls and conduct a competitive acquisition: Due to the proprietary nature of the existing Mallory Engineering, Inc software and equipment, the only alternative is to competitively procure the system controls which would entail a system conversion with a new vendor estimated at a cost of approximately $1 million and therefore, not cost effective.

c. Additional Supporting Information.

1) The current contractor, Mallory Engineering, Inc has performed the upgrades and repairs and is the contractor most familiar with the custom mechanical system, software applications and network connectivity that is required for accessing the test chambers. The most recent contract expired 30 September 2024 and YTC and WDTC are currently experiencing a break in service.

2) Only Mallory Engineering has the proprietary software, engineering and experience necessary to fully understand the requirement. This requirement is highly specialized and crosses multiple fields such as HVAC, software coding, and

Engineering, and configuration of the environmental chambers. There are few if any similar businesses that can meet the degree of complexity required to perform this service.

3) This requirement is not “directed or mandated” by a higher level.

d. Impact if justification not approved: Any delay in the sequence/schedule of services performed on one of these environmental chambers will likely impact the test scheduling timeline of other test facilities involved on a particular test program and can ultimately affect multiple test programs. By not using Mallory for this service, the environmental chambers would shortly become non-operational due to the control software not in compliance with YPG Cyber Security Requirements. This is a mission critical contract that supports the developmental testing mission of YTC and WDTC. The systems at YTC and WDTC play a critical role in sequential environmental testing and lot acceptance testing of various munitions. Failure to approve this justification will impact critical testing missions at both Test Centers. The cost to the government would be more than $1 million for a new vendor to assume performance of this requirement to include the labor and materials, rewriting the software needed to control the chambers, and the additional downtime to reconfigure the chambers to work with a new vendor’s control systems.

6. Efforts to Obtain Competition: Mallory Engineering, Inc. is a small business for NAICS code 541512, and a subcontracting plan is not required. The incumbent contractor will be required to adhere to the limitations on subcontracting and obtain as much competition as possible for any part of the requirement that is subcontracted and give maximum opportunity to small businesses. The Contracting Officer published the notices required by FAR 5.201, and the techniques along with the results can be found in the Market Research Section below.

7. Actions to Increase Competition: Market research was conducted to determine if there were other companies in the trade space utilizing the same controls that are installed and maintained by Mallory Engineering. None were found. When the existing Mallory Technology becomes obsolete, is no longer covered by the manufacturer, and fails to meet our ATEC Network Enterprise Center guidelines, YTC and WDTC will pursue new equipment and software upgrades. For future competition, additional funding for system conversion would be required as other vendors in the market do not use the same control systems.

8. Market Research: At the close of efforts using GSA’s Market Research as a Service on 20 May 2024, there were seven companies who responded; all small businesses. A technical evaluation was conducted by the COR who stated all responses were specific to HVAC and didn’t show experience with coding or engineering. Each of the seven businesses primarily specializes in Information Technology (IT) computer systems, and none mentioned their competency for maintaining Heating Ventilation and Air Conditioning (HVAC) systems. Use of the SBA Dynamic Small Business Search engine on 10 June 2024, using “any state”, NAICS 541512, and “HVAC” as the keyword, Approval

Based on the foregoing justification, I hereby approve the procurement of environmental simulation chambers maintenance and repair services on a sole source basis pursuant to the authority of the Simplified Procedures for Certain Commercial Items, Title 41 United States Code Section 1901 as implemented by Federal Acquisition Regulation

13.5. The estimated value of the contract is $3.6 million for a three-year period of performance consisting of a base year and two option years, from approximately 7 November 2024 through approximately 6 November 2027. The approval is subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

SCOTT D. KUKES

Alternate Advocate for Competition U.S. Army Mission and Installation Contracting Command, JBSA Fort Sam Houston, TX

KUKES.SCOTT.DE

AN.1151934346

Digitally signed by

KUKES.SCOTT.DEAN.1151934

Date: 2024.11.01 10:29:40 -05'00'