JA Sole Source FAR Part 13.5_V250+v4 PDF CAFC approved(1)_Redacted v2.pdf

CUI//SP-PROCURE/FED ONLY

Control Number: MZA-C-J&A24-1895

Justification Review Document For Sole Source - FAR 13.501*

(*Format follows FAR 6.303-2, but modified to reflect FAR 13.5 procedures)

Program/Equipment: The Combat Capabilities Development Command (DEVCOM), Aviation and Missile Center (AvMC), Prototype Integration Facility (PIF) requires the upgrade of the Variable-geometry, Radial Outflow Compressor (VAROC) Air Dynamometer 250 for the Flexible Engine Diagnostics System (FEDS) to the V250+ Dynamometer.

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

Amount: The total estimated contract value is $994,337.

Prepared by:

Typed Name:

Title: Acquisition Analyst E-mail:

Contracting Officer:

Typed Name: Kevin Powell Title: Contracting Officer E-Mail: kevin.j.powell18.civ@army.mil

Technical Representative:

Title: Government Project Lead

Requirements Representative:

Title: Government Project Lead

Date: 22 August 2024

Controlled by: Army AFC DEVCOM AvMC PIF CUI Category: SP-PROCURE Limited Dissemination Control: FED ONLY

POC:

(b) (6)

(b) (6)

(b) (6)

(b) (6)

Reviews

I have reviewed this justification and find it adequate to support an exception to fair opportunity.

Government Project Lead:

Signature:

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

Legal Counsel

Signature:

(b) (6)

(b) (6)

Sole Source Justification and Approval Under FAR 13.501

1. Contracting Activity: Department of the Army, Army Contracting Command - Redstone Arsenal (ACC-RSA) Contracting Office (CCAM-MZA-C), Redstone Arsenal, AL 35898-5000.

2. Description of Action: The United States (U.S.) Army Futures Command (AFC) Combat Capabilities Development Command (DEVCOM) Aviation and Missile Center (AvMC) Prototype Integration Facility (PIF) requests approval to award a new, firm-fixed price (FFP) contract, on a sole source basis to Concepts NREC for the upgrade of the V250 Model Dynamometer (V250 Dyno) for use with the Flexible Engine Diagnostic System (FEDS) to the V250+. The Government projects award for Fiscal Year 2024 (FY

24) utilizing An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement (DFARS) 207.103(d)(i)(B).

3. Description of Supplies/Services:

The PIF upgrade of the current V250 Dyno to the V250+, for use at Army engine test facilities with the Flexible Engine Diagnostic System (FEDS), a turbo shaft engine test stand to test flight readiness status of engines, used by the Army to test Chinook T55- GA-714A (the 714A) engines.

The estimated total value of this requirement is $994,337.00

4. Authority Cited: Title 41 United States Code Section1901 as implemented in the Federal Acquisition Regulation 13.501(a)(1)(ii), sole source (including brand name) under the authority of the simplified procedures for certain commercial items.

5. Reason for Authority Cited: The proposed acquisition requires the use of the cited statutory authority for the procurement of the upgrade of the V250 Dyno to the V250+.

Due to the proprietary design of the V250 Dyno, there are currently no other identified vendors that have the capability to upgrade the V250 Dyno, or offering a similar product, that will meet the timeline for the FEDS requirement. As a result, the Government has not been able to identify any other sources with the capability to upgrade the V250 Dyno or similar product to meet the timeline for the FEDS requirement, and is estimated to take several years, if a different vendor product is used, there is no guarantee that it will interoperate with the FEDS.

Concepts NREC owns the proprietary rights to the V250 Dyno, the only known equipment which meets the design specifications to interoperate with the FEDS and the 714A engine. Concepts NREC has not authorized the Government access to its proprietary data, including its proprietary process and drawings, or the authority to allow any other sources to use its data necessary to upgrade the V250 Dyno; therefore, no other sources can compete for this award.

(b) (4)

The FEDS Program Office made efforts to purchase the proprietary data from Concepts NREC throughout the last decade, but the request did not materialize. The FEDS team made efforts to reverse engineer a Dynamometer but received push-back from the Concepts NREC because the PIF personnel and its contractors have had access to the data for very limited purposes and cannot reverse engineer the V250 Dyno and simultaneously ignore that knowledge.

6. Efforts to Obtain Competition: The Government PIF FEDS team conducted Market Research for the procurement of a V250+ enhancement as detailed below in paragraph eight (8). In accordance with DFARS 205.205-71, DFARS 206.302-1(d), and DFARS Procedures, Guidance, and Information (PGI) 206.302-1(d), a Sources Sought Notice, ID PANSRA_11145, was published on SAM.GOV on 17 June 2024 and closed on 27 June 2024 for a total of ten days. One interested source responded, . PIF personnel contacted and it acknowledged that it had no access to Concept NREC's proprietary drawings and data, and did not have any relationship whatsoever with Concepts NREC, which has not authorized the Government to use its proprietary data nor will it allow any other source to utilize its proprietary drawings and process as previously stated in paragraph five. A synopsis will be publicized as required by FAR 5.201, and any bids or proposals received will be considered.

7. Actions to Increase Competition: PIF personnel continually conduct market research to evaluate and ensure maximum competition is obtained for emerging technologies to provide capability for the Warfighter at the lowest possible cost to the taxpayer and the PIF customers. The PIF, as part of the DEVCOM AvMC, receives nearly all its funds on a reimbursable basis and always look for emerging technologies and prototypes to save its customers money. As future requirements for the FEDS and VAROC Air Dynamometers, including new technology, become known or new services or products become available, market research will be conducted to fully ensure competition for future procurements to the extent possible.

As stated previously in paragraph five, the proprietary data owned by Concepts NREC is not available to support full and open competition, and the Government does not have any access to the required data to compete this requirement for upgrade of the V250 Dyno. The PIF personnel tried to acquire the proprietary data and reverse engineer a Dynamometer, but those attempts did not successfully materialize.

Should a new source acquire the authorization to use the necessary proprietary data from Concepts NREC, the new source can compete in future procurements. There are no actions that the Government can take at this time to allow for a competitive acquisition.

8. Market Research: In accordance with FAR Part 10 and DFARS 210.001, meaningful Market Research was conducted by the Acquisition Analyst and Government Project Lead for the PIF FEDS team. Market research was conducted within the last 12 months and methods included the following: (a) personal knowledge in procuring hardware of this type; (b) contacting knowledgeable persons in Government during May 2024, to including FEDS Logistics Specialists and FEDS subject matter experts; (c) publication of a formal request for information in the form of a sources sought notice issued on 17 June 2024 for a total of 10 days on sam.gov; and, (d) review of Government and commercial databases for relevant information during May 2024 (General Services Administration Advantage database in May 2024).

This market research did not find any sources other than the OEM, Concepts NREC, who can perform this requirement. As previously noted in paragraph 6, a Sources Sought Notice, ID PANSRA_11145, was published to SAM.GOV on 17 June 2024 and closed on 27 June 2024, to which no positive responses were received. Any interested source is not viable because it has no access to the proprietary data necessary to enhance the design of a V250 Dyno. The Government will issue a combined synopsis and solicitation IAW Far 5.203 upon approval of this J&A and approval of the DD Form 2579.

The PIF FEDS team researched other vendors' websites, such as for similar parts, but no other source can perform this requirement because it cannot provide a V250 Dyno with the required specifications to interoperate with the FEDS.

Concepts NREC owns the proprietary rights necessary to upgrade the V250 model dynamometer to the V250+ as supported by the fact that only one vendor, Concepts NREC, submitted a quote.

9. Interested Sources: In accordance with DFARS PGI 206.302-1(d), a Sources Sought Notice was published, but no positive responses were received. Concepts NREC owns the proprietary rights to the V250 Dyno and has the capability to perform this requirement for upgrade to the V250+.

10. Other Facts:

a. Procurement history: This is the first procurement of its kind.

b. Other facts. N/A