Justification (W91ZLK-20-Q-0075)_Radiation Sources_Redacted.pdf

Control No: JA-20-TEN-614 Contractor: JL Shepherd & Associates (JLSA)

Program/Equipment: Radiation Sources Reload

Version –March 2017 FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

FAR SUBPART 13.5 SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS –

SOLE SOURCE JUSTIFICATION AND APPROVAL

Program/Equipment: Purchase and Reload of Radiation Sources for CECOM Directorate for Safety

Authority: Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 as implemented by FAR Subpart 13.5.

Amount:

Prepared by: Burton Cummings DSN:

Health Physicist Date:

Email:

Contracting Officer: David A. Humfleet DSN: 443-861-4735 Contracting Officer Date:

Email: david.a.humfleet.civ@mail.mil

Technical: Burton Cummings DSN:

Health Physicist Date:

Email:

Requirements: Burton Cummings DSN:

Health Physicist Date:

Email:

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

Program Manager:

Program/Equipment: Radiation Sources Reload

Version – March 2017 FOR OFFICIAL USE ONLY

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

1. Contracting Activity: Army Contracting Command – Aberdeen Proving Ground (ACC-APG), 6565 Surveillance Loop, Bldg 6001, Aberdeen Proving Ground, MD 21005

2. Description of Action: CECOM Directorate for Safety requests a firm-fixed-price, contract with JL Shepherd & Associates (JLSA). The Government projects award for September 2020 and fiscal year 2020, Operations and Maintenance, Army (OMA) funds will be used.

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: CEOM Safety requires the purchase delivery and on-site reload of five (5) each CS 137 radiation sources compatible with the JL Shepherd Gamma Calibrator, Model 81-14Q as follows:

1 each – 164 Curie radiation source 1 each – 5.2 Curie radiation source 1 each – 200 mCi radiation source 1 each – 25 mCi radiation source 1 each – 1 mCi radiation source

Completion Date: 01 June 2021 (2 months to obtain license and 6 months to secure transport and complete installation)

Total Value:

4. Authority Cited: Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 as implemented by FAR Subpart 13.5 based upon manufacturer proprietary specifications.

5. Reason for Authority Cited:

In 1996 the CECOM Directorate for Safety (CECOM-DS) purchased a JL Shepherd & Associates (JLSA) Gamma Calibrator that contains five radioactive Cesium-137 sources that allow for calibration of Army Radiac’s (Cesium-137 has a half-life of 30 years. Half-life is the time required for the radioactive source to decay to one-half of its original value). Due to the half-life, the sources have decayed to a point where they are no longer strong enough to satisfy calibration requirements.

The radioactive sources are licensed by the Nuclear Regulatory Commission (NRC). JL Shepherd & Associated has a license issued by the NRC that allows them to sell and perform the installation of the Cesium Sources. The products required to execute the successful reload of CECOM-DS’ existing systems are proprietary to JLSA. JL Shepherd is the only responsible source to perform this service.

The JLSA Gamma Calibrator is licensed by the Nuclear Regulatory Commission and must be used for radioactive source replacements.

Once the sources have been reloaded, the Gamma Calibrator will be usable for the next 20 years. No additional period of performance will be required.

Program/Equipment: Radiation Sources Reload

Version – March 2017 FOR OFFICIAL USE ONLY

Currently, there are no other alternatives as these products are regulated by the Nuclear Regulatory Commission (NRC) and are proprietary to JLSA. JL Shepherd and Associates is the manufacturer of the Gamma Calibrator and licensed by the NRC to perform the source replacement for their device. Currently, JLSA does not utilize resellers or distributors for their products.

6. Efforts to Obtain Competition:

The Contracting Officer shall publish the notices required by FAR 5.201.

7. Actions to Increase Competition:

Subject matter experts within the CECOM Directorate for Safety are continuously monitoring the industry for alternative sources for meet their operational requirements. Due to the highly regulated nature of these products, products within the industry are proprietary to the manufacturer to ensure quality and safety compliance. These systems and products are manufactured to function for decades only requiring one (1) or (2) reloads within the systems lifecycle. This has been confirmed by several manufacturers within the industry. As such, alternative sources will not be viable until the CECOM-DS’ existing equipment reaches its end of life. The required reload will provide operational support of this equipment for the next 20 years.

When the next reload is required, CECOM-DS will require an entire system refresh which will provide alternative manufacturers the opportunity to compete for the new requirement.

Until the system refresh is required, CECOM-DS will continue to monitor the industry for new technological advances that will provided additional benefit to the Government.

8. Market Research:

Supplemental market research was conducted by the Contracting Officer in August 2020.

Sources researched include the internet searches utilizing Google and Bing search engines, SBAs Dynamic Small Business Search and historical Government contracts.

Online Market research using the Google and Bing search engines found that several manufacturers of gamma radiation sources. These manufacturers include the following:

- JL Shepherd & Associates (CAGE: 29345; Small)

- Hopewell Designs, Inc. (CAGE: 1K8W0; Small)

- Mohawk Industrial & Nuclear Supply, Inc. (CAGE: 8P823; Small)

- Nordion (Canada), Inc. (CAGE: L0392; Large)

- Source Production & Equipment Company (CAGE: 0RS57; Large)

Although market research found several potential sources, due to the strict federal regulatory requirements, manufacturers of radiation source material and equipment are proprietary.

Findings also show that it is not a common practice for the manufacturers to utilize distributors/resellers. Communication with industry leaders confirmed these findings.

Representatives from Hopewell Designs confirmed that only the manufacturer of the Government’s existing equipment can replace the exhausted radiation sources due to the proprietary nature of the equipment. The existing system is good operational condition and replacing it at this time would result in the loss of the investment (dollars and man hours) the Government has put into it. These market research findings support CECOM Directorate of Safety’s claim that only JL Shepherd & Associates can meet the proprietary requirements needed.