REDACTED JUSTIFICATION AND APPROVAL.pdf

Control No: JA-20-Adel-435

Contractor : General Electric Company

Supply/Service: HEXCT X-Ray Upgrades

JUSTIFICATION REVIEW DOCUMENT

FAR PART 6 JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

Programs/Equipment: Completion of final modifications and upgrades of existing High Energy X-ray Computed Tomography (HEXCT) scanner system to become state-of-the-art Non-Destructive Evaluation (NDE) instrument.

Authority:

FAR 6.302-1 - Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Amount:

Prepared by: William H. Green Materials Engineer Date: 6/22/2020

Contracting Officer: Joseph Dellinger Date: 6/22/2020

Technical: William H. Green Materials Engineer Date: 6/22/2020

Requirements: Bryan M. Love Branch Chief Date: 6/22/2020

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

Program Manager:

Supply/Service: HEXCT X-Ray Upgrades

1. Contracting Activity: United States (US) Army Contracting Command – Aberdeen Proving Ground (ACC-APG), Adelphi Contracting Division (CCAP-SCA), 2800 Power Mill RD, Adelphi, MD 20783.

2. Description of Action:

Approval is requested to solicit for a new Firm Fixed Price (FFP) contract in support of the Materials Response and Design Branch (MRDB) within the Weapons and Materials

Research Directorate (WMRD) at the Army Research Laboratory (ARL) on the basis of other than full and open competition pursuant to the authority of FAR 6.302-1. The work is to be performed by General Electric (GE) Company, . The requested contract is for the final modifications and upgrades of the current Government-owned HEXCT Scanner

System located at ARL-APG. Fiscal Year (FY) 2020 US Army Research, Development, Test, and Evaluation (RDT&E) funding will be utilized for this effort.

3. Description of Supplies/Services:

The current HEXCT Scanning System located at ARL-APG was originally designed to scan palletized cargo for detection of explosive threats, and as such could not function as a general purpose Non-Destructive Evaluation (NDE) instrument capable of scanning a wide variety of materials and/or materiel while providing improved spatial resolution.

The original HEXCT Scanning System was designed to produce relatively fast, low resolution images of very large objects. It was modified under contract W911QX-16-C-

0033, which began the repurposement of the HEXCT system to a general high energy

NDE instrument providing significantly improved spatial resolution for a variety of materials and/or materiel of interest to ARL and the Aberdeen Test & Evaluation Center

(ATEC).

General Electric (GE) Company is the only responsible sourcecapable of executing the required upgrade modification.

Supply/Service: HEXCT X-Ray Upgrades

4. Authority Cited:

10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited:

The MRDB at ARL requires the final upgrade and modification of the existing HEXCT

Scanner System

GE Company is the Original Equipment

Manufacturer (OEM) of the HEXCT system and due to proprietary design knowledge of their technicians, this makes them the sole source vendor capable of modifying and upgrading the current system. The final modification to the HEXCT Scanner System is necessary to

. In addition, the HEXCT Scanner System will be dependent on the functionality of various

MRDB testing systems, since all these systems combine to provide an XCT and NDE capability that is in current use and required for work. The HEXCT scanner is its own system and the required upgrade and improvement will

. The MRDB, Materials Manufacturing

Science Division (MMSD), and ATEC, Applied Science Test Division (ASTD) jointly use the HEXCT Scanner System at ATEC ). Joint use of the HEXCT will be governed by a Memorandum of Agreement (MOA) signed by both parties and will be mutually beneficial for the mission objectives and assist in

Warfighter capabilities.

The objective of the final system upgrade modification of the HEXCT Scanner System is to

Supply/Service: HEXCT X-Ray Upgrades

. GE is the OEM of the current Government owned HEXCT Scanning System which was originally designed and delivered for the express purpose of inspecting palletized cargo. This is significant because it has a very high energized (6 Mega electron volts (MeV) or 9 MeV)

XCT scanning system, including an X-ray source, X-ray detectors, very high precision positioning equipment, and other custom scanning and data handling equipment. The current system is not a conventional X-ray or linatron source system for radiography. The design technology of the new multi flat panel solid state detector system installed under contract is proprietary to GE, as well as the application software that the scanner system operates on. The final upgrade performed by GE will include a series of hardware and software modifications and installations, testing of system changes, and training on the newly modified scanner system. Due to the inherent design technology possessed by GE, these modifications must be completed by the OEM to ensure full system functionality. Because the technology is proprietary to the OEM, alternative vendors do not possess the necessary proprietary software and hardware knowledge required to ensure system functionality and execution of the required upgrade modification in accordance with Government requirements.

. Contracting with GE to execute this final upgrade modification will ensure continued system functionality based on the proprietary design technology possessed by the OEM and their technicians and as a result no other source is capable of satisfying Government requirements.

6. Efforts to Obtain Competition:

Effective competition is not anticipated for this procuremented based on the market research performed (See Section 8), however a formal Synopsis was posted to the GPE with a notice of intent to sole source to GE. The posting returned no results of interested parties stating they could satisfy the Government’s requirements. Due to the proprietary design technology of the HEXCT Scanning System, GE is the only source that possesses the inherent technological expertise to execute the required system upgrade modification. The complexity of the system design makes this required upgrade modification prohibitive to alternative vendors due to the inability to ensure system functionality, continuity, and compatibility with past, current, and future test data.

7. Actions to Increase Competition:

Supply/Service: HEXCT X-Ray Upgrades

To date, no other vendor has been identified that has the ability to upgrade and modify the system to meet all of the Government’s specifications. The Government will continue to conduct market research to increase competition by attending conferences/exhibitions, conduct internet research, and maintain open discussion with industry experts. Continued oversight of the HEXCT Scanning System marketplace will allow for Government requirements and future developers to stay knowledgeable about the best and most advanced technologies available. The GE HEXCT Scanning System design is proprietary to the OEM and pursuing this action competitively would require GE to grant competitors and other sources access to their proprietary knowledge and data rights relevant to the HEXCT system. GE is currently the only provider that has the capability and compatibility to perform the required upgrades to the Government’s system. With that being said, as the HEXCT Scanning System industry continues to advance the Government will continue to monitor this market to ensure all evolutions in system technology are taken into consideration in future procurements.

8. Market Research:

Market Research was performed January 2019 through June 2019 by William H. Green, Materials Engineer at the Manufacturing Science and Technology Branch with over 30 years in NDE/Non Destructive Testing (NDT) and Materials Characterization/Evaluation experience. Market research was conducted by querying Government-wide databases of contracts and other procurement instruments, searches in the General Services administration (GSA) General Supply Schedule, review of published RFIs and technical publications and journals, reviews of catalogs and other product literature published by manufacturers, and internet searches.

e. Research found that GE Global Research is the only offeror capable of satisfying the requirements. Market research resulted in five (5) alternative offerors that currently produce XCT systems, however each offeror has their own techniques and processes for designing and building such systems; Varian Medical

Systems (VMS), North Star Imaging (NSI), VJ Technologies, Nikon, Advanced Research and Applications Corporation/Rapiscan.

VMS manufactures products for medical, security, and industrial imaging, including x-ray tubes, linear accelerators (linacs), detectors, and imaging software. VMS produces specialized imaging software and hardware for advanced digital medical imaging systems. The VMS x-ray detectors and imaging software will not be compatible or functionally usable with the existing 9 Mega electron Volt (MeV) HEXCT Scanner

System. VMS will not be aware of specific and proprietary GE Global Research’s methods or components of the HEXCT Scanner System, which will require the complete

Supply/Service: HEXCT X-Ray Upgrades replacement of the system that is compatible with VMS, as opposed to a simple modification and upgrade. Therefore, VMS is unable to meet the Government’s requirement.

NSI manufactures three-dimensional (3-D) x-ray CT and two-dimensional (2-D) digital radiography systems with x-ray energies up to 450 kilo electron Volts (keV). NSI typically provides a solid state flat panel or linear diode array detector in their systems, which is not compatible with the high energy (9 MeV) detector system in the the existing HEXCT

Scanner System. The NSI imaging software will also not be compatible with the HEXCT system software, which will be modified and added to within the proprietary GE Global

Research’s imaging software application framework. NSI will not be aware of specific and proprietary General Electric methods or components of the HEXCT Scanner

System, which will require the complete replacement of the system that is compatible with VMS, as opposed to a simple modification and upgrade. Therefore, NSI is unable to meet the Government’s requirement.

VJ Technologies (VJT) develops and manufactures a line of automated, manual, and turnkey x-ray inspection systems, historically focusing on 2-D digital systems combined with low energy x-ray sources (< 250 keV). Recently, VJT partnered with the Fraunhofer

Research Institute in Germany, to design and provide 3-D x-ray CT systems. The

VJT/Fraunhofer x-ray detectors and imaging software will not be compatible or functionally usable with the Government’s existing 9 MeV HEXCT Scanner System.

Again, the HEXCT system imaging software will be modified and added to within the proprietary General Electric imaging software application framework. VJT/Fraunhofer will not be aware of specific and proprietary General Electric methods or components of the

HEXCT Scanner System, which will require the complete replacement of the system that is compatible with VMS, as opposed to a simple modification and upgrade. Therefore, VJT/Fraunhofer is unable to meet the Government’s requirement.

Nikon Corporation (Nikon) specializes in manufacturing optics and imaging products, including x-ray CT inspection systems using sources of up to 750 keV energy. Nikon typically provides a solid state flat panel or a proprietary curved linear array detector with their systems. The Nikon x-ray detectors and imaging software will not be compatible or functionally usable with the existing 9 MeV HEXCT Scanner System. The HEXCT system imaging software will be modified and added to within the proprietary General

Electric imaging software application framework. Nikon will not be aware of specific and proprietary General Electric methods or components of the HEXCT Scanner System, which will require the complete replacement of the system that is compatible with VMS, as opposed to a simple modification and upgrade. Therefore, Nikon is unable to meet the

Government’s requirement.

And finally, the Advanced Research and Applications Corporation (ARACOR) manufactures test and inspection equipment, including high energy, one MeV and higher, x-ray imaging systems. ARACOR was bought in 2004 and has since been

Supply/Service: HEXCT X-Ray Upgrades renamed the Rapiscan Systems High Energy Inspection Corporation.

ARACOR/Rapiscan does provide very high energy x-ray sources that is compatible with the energy sources used by the HEXCT Scanner System. However, the

ARACOR/Rapiscan’s high energy x-ray detectors and imaging software are not compatible or functionally usable with the existing 9 MeV HEXCT Scanner System. The proprietary HEXCT system detectors have been modified. The HEXCT system imaging software will be modified and added to within the proprietary General Electric imaging software application framework. ARACOR/Rapiscan is not aware of specific and proprietary General Electric methods or components of the HEXCT Scanner System, which will require the complete replacement of the system that is compatible with VMS, as opposed to a simple modification and upgrade. Therefore, ARACOR/Rapiscan is unable to meet the Government’s requirement.

There are a very limited number of companies that produce XCT systems and each company has their own techniques and processes for designing and building their systems. These companies include the aforementioned manufacturers of XCT systems.

The XCT hardware, including x-ray detectors, and software, which runs the scanner system, of other vendors is not expected to be compatible or functionally usable with the

HEXCT system. Vendors other than General Electric do not have the required compatibility with the HEXCT system or the specific software/hardware knowledge that meets the Government’s requirement. These vendors will not be able to ensure continuity of use and the required functionality of upgraded and improved hardware and software with the rest of the HEXCT system. All of the modifications to upgrade and improve the HEXCT system must be successfully integrated into it to provide proper functionality. After extensive research, it was determined that General Electric is the only company that is capable and compatible with their own schematics and equipment to perform modifications, testing and training on the Government’s current HEXCT Scanner

System. Due to the aforementioned, General Electric is the sole vendor capable of meeting the Government’s requirements.

9. Interested Sources:

A Synopsis was posted on 10 June 2020 with a closing date of 25 June 2020. To date, no responses have been received and no other sources have written in to express interest. The notices required by FAR 5.201 shall be published and all bids or proposals shall be considered.

10. Other Facts:

a. Procurement History

Contract: W911QX-16-C-0033 Contractor: GE Global Research Award Date: 29 September 2016

Supply/Service: HEXCT X-Ray Upgrades

Period of Performance: 29 September 2017 – 8 March 2019 Dollar Value: $504,186.71 Competitive Status: Restricted/Sole Sourced Authority: FAR 6.302-1 – Only one responsible source and no other supplies or services will satisfy agency requirements.

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.

Signer’s Title: Materials Engineer

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.

Signer’s Title: Chief, Materials Manufacturing Tecnology Branch

Supply/Service: HEXCT X-Ray Upgrades

13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. The proposed cost will be determined fair and reasonable in accordance with FAR 13.501(a)(1). In addition, current published price lists/catalogs/invoices for exact or comparable items sold to a different firm or agency will be reviewed, along with a vendor statement.

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

Supply/Service: HEXCT X-Ray Upgrades

Approval Based on the foregoing justification, I hereby approve the procurement of thecompletion of final modifications and upgrades of existing High Energy X-ray Computed Tomography (HEXCT) scanner system to become state-of-the-art Non-Destructive Evaluation (NDE) instrument, on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c) (1), subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.