REDACTED Limiting Competition.docx

Control No: W45N7V1351004E

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

1. Contracting Activity: Army Contracting Command-Redstone Arsenal (ACC-RSA), Corpus Christi Army Depot (CCAD) 308 Crecy Street, Bldg. 10, Mail Stop 18 Corpus Christi, Texas 78419-5260 Office Symbol: CCAM-AL

2. Description of Action: Follow-on Requirement

Order #_______ against a single award IDC Contract Modification # _______ to existing PO/TO/DO/Call Order #________________

Pricing/Contract Type: Fixed Price Time & Materials/Labor Hours Cost Reimbursable Hybrid

Funds: Operations & Maintenance, Army (OMA) Other Funds: Army Working Capital Funds, FY: 2022

Name of Proposed Contractor(s) and Address:

Carl Zeiss Industrial 6250 Sycamore Ln Maple Grove, MN 55369

Brand Name Buy: No

3. Description of Services or Supplies: Zeiss Software Coordinate Measuring Machine (CMM) 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.

Period of Performance: 31 July 2022 to 30 July 2023 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: IAW FAR 13.106-1(b) (1), this acquisition requires the specific product (Zeiss CMM software maintenance agreement) that is required in order to provide maintenance and support for Zeiss CMM software system currently in use by the Corpus Christi Army Depot (CCAD).

The Corpus Christi Army Depot (CCAD) has a requirement for a Zeiss CMM 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.

This is a sole source procurement due to the proprietary nature of the software and the maintenance and support. There are currently no authorized reseller or distributors.

Carl Zeiss Metrology Inc 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 they own 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 result in a significant additional cost to the Government. This sole source justification does precludes competition as the sole source, Carl Zeiss Metrology Inc, owns the proprietary rights to the product. The only option available for use of another product is to replace the Zeiss Coordinate Measuring Machines with another brand. This would result in a significant additional cost to the Government (up to $250K per day) and cause a significant production delay in key depot production work centers.

6. Publicizing Contract Actions: For FAR Part 13 actions, the public display and synopsis requirements of FAR 5.101 and FAR 5.203 do not apply due to the $ threshold, apply and will be followed, or do not apply due to an exception at 5.202(a) (13) (i).

Requirement to post justification in accordance with FAR 8.405-6(b)(3), FAR 13.105(c), or FAR 16.505(a)(4)(iii)(A) Action is NOT a brand name restriction and is under $150K, no posting required Action is a brand name restriction, under $25K, no posting required Action is a brand name restriction, over $25K. It will be redacted and posted with the solicitation.

Action is a brand name restriction over $25K but will not be posted due to exception:

FAR 8.405-6(b)(3)(iii)(B)

7. Market Research:

In accordance with FAR Part 10, market research has been conducted for this action by Jonathan Rogers – Requirer and Terry Clark – Contract Specialist.

The following techniques were used:

Personal knowledge of procuring services of this type: Mr. Rogers has 38 years of experience in the Government Acquisitions field.

Contacted knowledgeable individuals in Government and Industry regarding procuring services of this type: Mr. Rogers learned from Mr. Ploeger, CCAD IT Industrial Automation Branch, that there is still a valid requirement for the Zeiss CMM software maintenance agreement currently in place.

Mr. Rogers also learned from Ms. Kruger, POC Carl Zeiss Metrology Inc, that Carl Zeiss Metroloty Inc. owns the proprietary rights to the CMMs and the software. They do not provide products or support through distributors or resellers.

Publication of a formal request for information: A formal CHESS RFI not submitted due to the fact that Zeiss is the manufacturer of the Zeiss CMM software and they own the propriety rights. A CHESS SONA was requested and approved.

Other Types of Market Research and date performed: On 04 January 2022 the Contract Specialist utilized the search engine Google and found on other companies that can provide the service for the CMM Software Maintenance as found on the following link:

https://www.google.com/search?hl=en&gbv=2&q=ZEISS+CMM+dealers&sa=X&ved=2ahUKEwjm5Zbkxpj1AhWEmHIEHRFVCQ0Q1QJ6BAgGEAY

8. Other Facts: Review of Government and/or commercial databases for relevant information: W912NW-17-P-0074, W912NW-18-P-0049, W912NW-20-P-0057, and W912NW-21-P-0075.

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.

Typed Name: Lyndon Ploeger Title: Chief, IT Industrial Automation Branch

Signature:

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.

Typed Name: Danny Ortiz Title: Contracting Officer

Signature:

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