Redacted Simplified Acquisition Sole Source Justification (FAR 13.5) HIVE-MK.rtf

Control No: JA-20-Adel-310 Contractor: Power Test, Inc.

Supply/Service: Hybrid-electric Integration, Validation, and Experimentation (HIVE)

JUSTIFICATION REVIEW DOCUMENT FOR COMMERCIAL ITEMS

FAR PART 13 SIMPLIFIED ACQUISITION JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

Programs/Equipment: Hybrid-electric integration, Validation, and Experimentation (HIVE) Facility Integration

Authority: 41 U.S.C. 1901(e)(2), implemented by FAR 13.501(a) -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Amount: REDACTED

Prepared by:

REDACTED

DSN: Redacted

Mechanical Engineer Date: 05.19.2020 Email: REDACTED Contracting Officer:

Christopher R. Moy Contracting Officer Email: christopher.r.moy.civ@mail.mil

DSN: 290.2021

Date: 05.19.2020 Technical:

REDACTED Mechanical Engineer DSN: Redacted Date: 05.19.2020 Email: REDACTED Requirements:

REDACTED

VICTOR ERP Program Manager DSN: Redacted Date: 05.19.2020 Email: REDACTED

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

Program Manager:

FAR PART 13 SIMPLIFIED ACQUISITION JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

Contracting Activity: U.S. Army Contracting Command – Aberdeen Proving Ground (ACC-APG), Adelphi Contracting Division - (CCAP-SCA), 2800 Powder Mill RD, Adelphi, MD 20783.

Description of Action: The Propulsion Division (PD) of the Army Research Laboratory (ARL) Vehicle Technology Directorate (VTD) requests a Firm-Fixed-Price (FFP) contract with Power Test, Inc. (PTI), N60W22700 Silver Springs Dr., Sussex, WI 53089-3966, (CAGE Code: 9W788). The Government projects award for June 2020 and fiscal years 2020/2021 Research, Development, Test, and Evaluation (RDT&E) Army funds will be used. An acquisition plan is not required because this procurement either does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i), or is an R&D acquisition and does not meet the definition of services in 10 U.S.C. 2330(c)(2).

Description of Supplies/Services: The proposed contract action is to procure the remaining proprietary Power Test, Inc. equipment and materials (e.g. load absorbing dynamometer, not limited to the combining gearbox, and relevant sensor suite) to finalize the design and integration of the Government-owned HIVE facility as a sole source award. As part of these efforts, Government furnished equipment (GFE) was previously purchased from PTI under a separate contract W911QX-18-P-0321 as part of an electric motor testing facility. This equipment needs modification and integration with the new equipment to form a single facility (HIVE). These equipment and materials are necessary for the HIVE facility to safely operate, which allows for experimentation and data collection across various hybrid-electric configurations and validation of different electric machines as test articles. An indicative list of the actions required to complete this contract that only the original equipment manufacturer (OEM) PTI can provide due to proprietary design are the following:

Delivery Date: 1 January 2021 Total Value: REDACTED

Authority Cited: 41 U.S.C. 1901(e)(2), implemented by FAR 13.501(a) -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Reason for Authority Cited: The proposed sole source contractor is Power Test, Inc., who is an industry leader in the design and manufacture of dynamometer systems. The Contractor has detailed experience with heavy equipment testing systems, and familiarity with those present within Combat Capabilities Development Command-Army Research Laboratory (CCDC-ARL) that makes them ideal for modifying and augmenting existing equipment with new equipment, which demonstrates there unique core competencies as well.

The procurement of an additional dynamometer and control system is dependent on compatibility with existing PTI equipment. PTI uses their own proprietary developed software and hardware to control their dynamometers called PowerNet, which is the basis of the existing control system. As such, any modifications, changes or additions to it would have to be done and approved by PTI for patent compliance and proprietary data. Attempting to haphazardly modify and add the new equipment would potentially result in incompatibility issues and damage to the existing Government-owned equipment. Due to this incompatibility, being at the heart of the facility which is the control system, catastrophic failure can occur if the dynamometers do not correctly operate in tandem. In addition, the modification of the existing equipment by a different vendor other than PTI would result in voiding any warranties and risk damaging the equipment in the process, which would result in significant incurred costs. If another vendor would be selected for this procurement, significant duplicative costs would be incurred by the Government to the amount of REDACTED. The basis for this estimate is derived from existing equipment, such as a dynamometer, Variable Frequency Drive (VFD) and control system would not be capable of being retrofitted in order to accommodate the new dynamometer.

Efforts to Obtain Competition: Effective competition is not applicable for this procurement based upon the market research performed in Section 8 below, PTI has been verified as being the only source that can meet the Government’s minimum requirements for the proposed procurement based on the market research performed via online searches, email correspondences, frequent phone calls, previous contracts, and in-person meetings. A synopsis of this requirement was posted on beta.SAM.gov (Contract Opportunities) from 19 May 2020 through 26 May 2020 to provide notice of the Government’s Intent to Sole Source to Power Test, Inc. At the time of the synopsis announcement closing, no vendors responded expressing interest. In addition to the announcement, the Requiring Activity’s market research consisted of conducting discussions with subject matter experts (SMEs) to include REDACTED (REDACTED), CCDC-ARL, REDACTED (REDACTED), CCDC-ARL, and REDACTED (REDACTED), PTI. Market research confirmed that PTI is the only source with proprietary knowledge and technology necessary to provide the modification/integration of the HIVE facility. It was determined that it is not possible to compete this procurement due to PTI’s existing equipment and control system which the new equipment will require integration. However, the Contracting Officer publishing a synopsis notice required by FAR 5.201 would achieve effective competition as any bids or proposals received shall be considered. Therefore, at this time, the procurement will be pursued on an Other Than Full and Open Competition basis in accordance with FAR Part 13.501(a) – Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Actions to Increase Competition: ARL attempted to identify multiple sources for the HIVE facility modification/integration being procured by performing internet searches on various vendors that manufacture dynamometers and holding discussion with them about concerns for compatibility of old and new equipment requirements. Due to the proprietary data concerning hardware and software integration of existing equipment along with compatibility requires significant time and investment to develop, only one source was identified at this time that is capable of providing the HIVE facility modification/integration and will likely be the only source for the foreseeable future. The Government has no control over the compatibility and proprietary technology needed to fulfill the minimum requirements. However, the market will be monitored for other dynamometer compatibility and integration services that will meet the Government’s requirements. In addition, the requiring office will continue to survey the market for any changes in PTI’s proprietary rights for the required technology. ARL’s Scientist will continue to pursue web searches, consultations with knowledgeable Government and industry personnel and attend trade shows to help locate alternative manufactures that can provide dynamometer compatibility and proprietary requirements. Until this information is known, ARL will continue to use the only existing known source, PTI. If the VTD discovers that another manufacturer could provide a reliable alternative with a high confidence of compatibility, ARL will not hesitate to purchase the product competitively.

Subcontracting Competition: In accordance with FAR 19.702(b)(1) a subcontracting plan is not required from a small business concern, therefore PTI being a small business concern is not required to submit a subcontracting plan.

Market Research: Market research was conducted between December 2019 and April 2020. The Government contacted knowledge people and subject matter experts within Government and industry to determine if other vendors have the capabilities to meet the requirements of the HIVE facility modification/integration. In addition, Government representatives continually provide market research surveillance by searching and reviewing catalogs, literature on manufacturers, distributors, and dealers, along with on-line sources, such as, http://www.superflow.com, http://www.dynomitedynamometr.com, http://powertestdyno.com, http://www.magrol.com, and https://www.avl.com/-/avl-dynoexact to seek qualified and interested vendors.

The results of the market research conducted the last four (4) months has not identified any vendors capable of executing the current mission ready/deployed capabilities offered by PTI. Specifically, vendor’s lack the proprietary data for hardware and software that allows the modification/integration of the existing equipment to the new equipment.

Therefore, the unique capabilities provided by PTI solidifies them as the only vendor capable of providing the HIVE facility modification/integration.

Interested Sources: A Notice of Intent to Sole Source was submitted on beta.SAM.gov (Contract Opportunities) on 18 May 2020 with a response date of 26 May 2020 under Solicitation number, W911QX-20-Q-0120 by the Contracting Officer required by FAR 5.201. During that posting period and thereafter, no sources have challenged the sole source or expressed interest in fulfilling the requirement, nor has any other sources expressed any written interest in this procurement. Based on the aforementioned, Power Test, Inc. continues to be the only responsible source capable of providing the HIVE facility modification/integration that meets the Government’s minimum requirements.

Other Facts:

a. Procurement History

Contract: W911QX-18-P-0321 Contractor: Power Test, Inc. Award Date: 25 September 2018 Delivery Date: 25 February 2019 Dollar Value: REDACTED Competitive Status: Full and Open Competition 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: Mechanical Engineer

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: VICTOR ERP Program Manager

Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable.

This determination will be made using the following: Price analysis

As a part of this basis, certified cost or pricing data:

will not be required and the following exception applies (FAR 15.403): A commercial item is being acquired.

MOY.CHRISTOP Digitally signed by

MOY.CHRISTOPHER.RYAN.

HER.RYAN.1285 1285356217

X 356217 -04'00' Date: 2020.06.02 13:48:22 Christopher R. Moy Contracting Officer (KO) Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

MOY.CHRISTOP Digitally signed by

MOY.CHRISTOPHER.RYAN.1

HER.RYAN.1285 285356217

X 356217 Date: 2020.06.02 13:48:44 -04'00' Christopher R. Moy Contracting Officer (KO) Approval

Based on the foregoing justification, I hereby approve the procurement of Hybrid-electric integration, Validation, and Experimentation (HIVE) Facility Integration, for an estimate of REDACTED, on an other than full and open competition basis pursuant to the authority of 41 U.S.C. 1901(e)(2), subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

MOY.CHRISTOP Digitally signed by

MOY.CHRISTOPHER.RYAN.

HER.RYAN.1285 1285356217

X 356217 Date: 2020.06.02 13:49:12 -04'00' Christopher R. Moy Contracting Officer (KO)

(End of Justification)

REVIEWS

MOY.CHRISTOPH Digitally signed by

MOY.CHRISTOPHER.RYAN.12

ER.RYAN.128535 85356217

X 6217 Date: 2020.06.02 13:49:37 -04'00' Christopher R. Moy Contracting Officer (KO)