Limiting Competition Zeiss Software Maintenance_Redacted.pdf

Version � February 2017

Memorandum for Record � Limiting Competition at or below the Simplified Acquisition Threshold

1. Contracting Activity: Army Contracting Command Redstone Arsenal Corpus Christi Army Depot (CCAD), Contracting Office (CCAM-ALC) 9035 Ocean Dr. Bldg. 10, Mail Stop 18 Corpus Christi, TX 78419-5260.

2. Description of Action:

Nature: Follow-on Requirement Contract Vehicle: Purchase Order Number: AS6200-3122-3197 Pricing/Contract Type: Fixed Price Funds: Other Funds: Army Working Capital Funds, FY: 2023

Name of Proposed Contractor(s) and Address:

CARL ZEISS INDUSTRIAL QUALITY SOLUTIONS LLC

6250 SYCAMORE LN

MAPLE GROVE, MN 55369

Brand Name Buy: No

3. Description of Services or Supplies: This action is for the procurement of Zeiss Software Coordinate Measuring Machine software maintenance agreement (SMA). This software is utilized to capture exact, repeatable measurements to minute fractions of an inch that are required within the aeronautical industry to safely produce rotary wing aircraft components. The SMA provides comprehensive support with access to the latest software releases.

For Actions without Options:

Period of Performance: 31 July 2023_ to 30 July 2024_____ Total Value ___________

4. Authority: FAR 13.106-1(b)(1): For purchases not exceeding the simplified acquisition threshold (SAT), only one source reasonably available, urgency, exclusive licensing agreements, brand name, or industrial mobilization.

5. Reasons for Authority Cited: The Corpus Christi Army Depot (CCAD) has a requirement for a Carl Zeiss Industrial Quality Solutions LLC software maintenance agreement. This software is utilized to capture exact, repeatable measurements to minute fractions of an inch that are required within the aeronautical industry to safely produce rotary wing aircraft components.

Carl Zeiss Industrial Quality Solutions LLC has been identified as the only vendor capable of meeting the Government�s requirements due to the fact that this software is proprietary in nature and the Contractor owns all rights to the software and the support.

The only option available for use of another product is to replace the Zeiss Coordinate

Measuring Machines with another brand. This would require additional effort to replace all equipment and software as well as significant costs to the Government. It is estimated to cost up to $250K per day and cause a significant production delay in depot production work centers if this justification is not approved.

6. Publicizing Contract Actions: For FAR Part 13 actions, the public display and synopsis requirements of FAR 5.101 and FAR 5.203, apply and will be followed.

7. Market Research: In accordance with FAR Part 10, market research has been conducted for this action by Jonathan Rogers, IT Specialist/COR and Jennifer Salyers, Contract Specialist.

Contacted knowledgeable individuals in Government and Industry regarding procuring services of this type: Mr. Rogers learned from Ms. Trevino, CCAD IT Industrial Automation Branch, that there is still a valid requirement for the Zeiss CMM software maintenance agreement currently in place. The current action expires on 30 July 2023.

Mr. Rogers also learned from Ms. Kruger, that Carl Zeiss Industrial Quality Solutions LLC., owns the proprietary rights to the CMMs and the software. The Contractor does not provide products or support through distributors or resellers. The software maintenance agreement is the only option for receiving maintenance, support, patches and upgrades.

A CHESS statement of nonavailability was requested by Mr. Rogers on 2 February 2023 and approved on 3 March 2023.

Ms. Salyers issued a Request for Information (RFI) on Sam.Gov on 4 May 2023. No responses were received.

Ms. Salyers, reviewed Government and commercial databases for relevant information.

Previous action was also reviewed:

Contract Number: W912NW-22-P-0060 Contractor: Carl Zeiss Industrial Metrology LLC Description of requirement: Zeiss Software Maintenance Agreement Method of procurement: Sole Source Contract type: Firm Fixed Price Period of Performance: 12 months Total awarded amount:

Number of option periods: No option periods Number of Offerors: 1

8. Other Facts: NA

9. Technical/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.

10. Contracting Officer Certification/Approval:

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable based upon price analysis.

I certify that this justification is accurate and complete to the best of my knowledge and belief, and that completing this purchase as a sole source is in the best interest of the Government. Additionally, I approve this justification to limit competition subject to the availability of funds and provided that the services or supplies herein described have otherwise been authorized for acquisition.