Redacted Limiting-Competition-under-SAT_ACC.docx

Control No: AP22F032203229

CUI

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

1. Contracting Activity: Army Contracting Command – Redstone Arsenal – Corpus Christi Army Depot, Contracting Office (CCAM-ALC).

2. Description of Action:

Nature: New 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: 2023

Name of Proposed Contractor and Address:

Chant Engineering Co Inc.

59 Industrial Drive Doylestown, Pennsylvania 18901-6007

Brand Name Buy: Yes No

3. Description of Services or Supplies: Due to changes made to DMWR-55-1650-166 via MEOD3029, the current software configuration of CH-47 Blade Lag Test Stand is unable to perform within the testing requirement, so a software update/upgrade is required to test CH-47 Blade Lag Dampers.

Period of Performance: To be determined.

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: This requirement is an upgrade to the CH47 Blade Lag Damper Test Stand software in support of the Directorate of Accessories and Rotor Blade Production, Hydraulics Branch #1 (P61 C10). The recommended source is Chant Engineering Co. Inc. (CHANT), 59 Industrial Drive New Britain PA 18901.

Combat Capabilities Development Command (CCDC) published changes to DMWR 55-1650-166 dated 15 September 2011 via MEO D-30329. The Maintenance Engineering Order (MEO) made changes to the testing requirements. Corpus Christi Army Depot (CCAD), Hydraulics Branch #1 (P61C10) is no longer able to test CH-47 blade lag dampers in accordance with DMWR 55-1650-166, dated 15 September 2011 as amended by MEO D-30329. For the test stand to have testing capabilities that fall within DMWR requirements, a change to the software source code is required. Upgrading the current test stand software source code will allow the shop to test CH-4 7 blade lag dampers to DMWR requirements. The test stand is a single point of failure, so purchasing the software upgrade will allow Hydraulics Branch#1 to continue the testing of CH-47 blade lag dampers.

Procurement of the CH47 blade lag damper test software update is proprietary due to CHANT being the company that designed the test stand and software exclusive to the DMWR specifications. CHANT owns all proprietary data associated with the test stand, including the software. Additionally, CHANT retains all programing rights of the programable logic controller. This update is essential to retaining this program and generating revenue for these assets.

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.

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.

7. Market Research:

Dates Conducted: 5 April – 29 August 2023 by Edson Martinez and Terry Clark, Contract Specialist.

Market research, in accordance with FAR Part 10, was conducted through the following methods:

Discussed with knowledgeable persons in Government and/or industry regarding the commercial nature of this requirement and/or standard industry practice in this area of supplies/services: Mr. Martinez exchanged emails with the following individuals: Mr. Nathan Collette, CHANT Manager of Military Sales, Thursday, February 23, 2023. Also, with Mr Charles Little, CCAD Information Technology, Friday, January 27, 2023, and Russ Hunsberger, CHANT Applications Engineer, Thursday, February 9, 2023. Mr. Martinez learned that the CHANT owned all the data rights to the Test Stand, including the commercial software.

Publication of a formal request for information: On 17 August 2023, the Contract Specialist posted the Request for Information (RFI) on SAM.GOV to verify there are no other sources who can provide for this requirement. The RFI ended on 25 August 2023 with no other interested parties in this requirement.

Discuss the review of Government and/or commercial databases for relevant information. Identify database(s) and when reviewed. The Contract Specialist conducted searches on the SAM.gov site for Government awarded contracts with CHANT, software, and lab view terms on 28 March 2023. No similar contract information found.

8. Other Facts: N/A

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.

Chief, Test Equipment Engineering Division

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.

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