Sole Source Justification.pdf

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

NEGOTIATION SENSITIVE

March 2023 NEGOTIATION SENSITIVE Page 2 of 5

I. Contracting Activity.

Hideo Mera, Contracting Officer

AFMC AFSC OL_H/PZIMB

6038 Aspen Ave Bldg 1289 Upstairs Hill Air Force Base, UT 84056

DSN: 777-4626

hideo.mera.2@us.af.mil PR number: N/A

II. Nature and/or description of the action being processed.

A. Upon approval to use other than full and open competitive procedures, the Air Force will issue a new, commercial, Firm-Fixed Price (FFP) contract to perform on-site maintenance for the Computerized Ultrasonics Scanning System (CUSS) and associated subcomponents for the 309th maintenance Support Group (MXSG), that are proprietary to Matec Instrument Companies, Inc.

The government anticipates a five (5) year contract period of performance (PoP) to begin 1 Jul 2024 though 30 Jun 2029. The contract will be for one (1) base year and four (4) one year option periods. Matec Instruments Company, Inc. will also price the Option to Extend clause FAR 52.217-8, potentially extending the contract by an additional six (6) months to 1 Dec 2029.

The proposed contract will be awarded to:

Matec Instruments Company, Inc.

56 Hudson St Ste 3 Northborough, MA 01532 Cage Code: 0YA32 Vendor ID:LBETU3X5AB97 Phone: (508) 393-0155 NAICS Code: 811210 Based on the NAICS code: Small

B. The proposed contract will be "C " Type contract with Firm Fixed Price (FFP).

C. Estimated Value: $ 607,082.80

D. Type of J&A: Individual

E. Estimated Date of Award: 1 Jul 2024

III. Description of supplies/services required to meet agency needs.

A. This requirements is for the 309 Maintenance Support Group (MXSG) Nondestructive Inspection (NDI) section at Hill Air Force Base (HAFB) for a service contract to perform on-site maintenance for the Computerized Ultrasonics Scanning System (CUSS) and associated subcomponents. This sophisticated and proprietary system is used for the detection of sub-surface irregularities and flaws in composite structures, and it is vital to the inspection and sustainment of the F35, F22, B2, F16, and A10 weapon systems. The Contractor shall provide all labor, tools, parts, supplies, equipment, lodging, transportation, and other necessary items needed to perform the required services on the CUSS located in building 238 at HAFB. The Contractor shall maintain the CUSS and subcomponents to specifications in accordance with (IAW) Original Equipment Manufacturer (OEM) manuals

B. The estimated value is $600K utilizing working capital 4930 funds. The estimated value is based on historical pricing with inflation built in.

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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C. Contract Line Item Number (CLIN) totals are estimates and mat be subject to change based on contractors proposal.

Period of Performance:

Basic Year: 1 Jul 2024 - 30 June 2025

Option Year 1: 1 Jul 2025 - 30 Jun 2026

Option Year 2: 1 Jul 2026 - #0 Jun 2027

Option Year 3: 1 Jul 2027 - 30 Jun 2028

Option Year 4: 1 Jul 2028- 30 Jun 2029

CLIN structure is as follows:

Basic Year: $

CLIN 0001 (FFP) Preventative Maintenance (PM) , Repair, Parts and Travel $

CLIN 0002: (FFP) Over & Above (O&A) Maintenance and Repair $

CLIN 0003: (FFP) Initial Evaluation $

Option Year One: $

CLIN 1001 (FFP) PM, Repair, Parts and Travel $

CLIN 1002: (FFP) O&A $

Option Year Two: $

CLIN 2001 (FFP) PM, Repair, Parts and Travel $

CLIN 2002: (FFP) O&A $

Option Year Three: $

CLIN 3001 (FFP) PM, Repair, Parts and Travel $

CLIN 3002: (FFP) O&A $

Option Year Four: $

CLIN 4001 (FFP) PM, Repair, Parts and Travel $

CLIN 4002: (FFP) O&A $

Six (6) Month Option to Extend: $

CLIN 5001 (FFP) PM, Repair, Parts and Travel $

CLIN 5002: (FFP) O&A $

IV. Statutory authority permitting other than full and open competition.

AFFARS 5313.501 - 10 U.S.C. 3572, Implementation of Simplified Acquisition Procedures (41 U.S.C. 1901)

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

A. The CUSS system design, layout, inspection envelope along with other functions were specifically built for the 309th MXSG NDI section at HAFB. The Government does not have the organic capabilities, expertise, knowledge or proprietary rights to accurately maintain and or calibrate the CUSS System.

Because of the age of the CUSS system and proprietary data issues it is beyond the scope of the 309th maintenance capabilities to support. Additionally; the system should be calibrated yearly and Matec is the only entity that has the specialized knowledge to perform the calibration as well as the ability to update the much needed software.

B. This is a highly specialized service, and award to another source may result in poor performance, costing the government time, money and potential damages to the CUSS system. The poor performance could potentially result in untimely delays and render the CUSS unusable, awarding this sole-source contract will ensure continual operational mission support for MXSG NDI section at HAFB.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

On 19 October 2024 Matec Instrument Companies, Inc. sent a letter to confirm that Matec Instrument Companies, Inc.

is the sole source provider of service and maintenance for the Ultrasonics Systems that have been installed at Hill Air Force Base. No other company, division, or entity is authorized or qualified to perform service, maintenance and calibration on these systems.

The Matec Systems are proprietary and complex products that require specialized training, equipment, and software to service and maintain. Matec is the manufacturer of these systems and has the exclusive rights to provide service and maintenance for them. Any attempt to service or maintain these systems by unauthorized or unqualified personnel may result in damage or malfunction.

Additionally; Market Research was conducted using Internet searches, contacting known sources, and industry SME's to determine if other sources are capable of satisfying this requirement. Because of the proprietary nature of the CUSS System no other companies have the capabilities required. Consequently, no other vendor has the data rights to the specifications and standards necessary to perform service, calibrations and software updates for these machines.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The cost of this acquisition will be fair and reasonable. Actions anticipated to ensure reasonableness of price will be accomplished with the procedures and criteria contained in the Federal Acquisition Regulation (FAR) under Parts 13.106-3 Award and documentation. The AFMC Guide for Price Negotiation Memorandum / Price Competition Memorandum (PNM/PCM) will also be used, as appropriate. Detailed documentation and justification of price reasonableness will be disclosed in the official PNM/PCM, to be prepared upon completion of negotiations.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

On 19 October 2023 Matec Instrument Companies, Inc. sent a letter to confirm that Matec Instrument Companies, Inc.

is the sole source provider of service and maintenance for the Ultrasonics Systems that have been installed at Hill Air Force Base. No other company, division, or entity is authorized or qualified to perform service, maintenance and calibration on these systems.

The Matec Systems are proprietary and complex products that require specialized training, equipment, and software to service and maintain. Matec is the manufacturer of these systems and has the exclusive rights to provide service and maintenance for them. Any attempt to service or maintain these systems by unauthorized or unqualified personnel

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

March 2023 NEGOTIATION SENSITIVE Page 5 of 5 may result in damage or malfunction.

Additionally; Market Research was conducted using Internet searches, contacting known sources, and industry SME's to determine sources capable of satisfying this requirement. Because of the proprietary nature of the CUSS System no other companies have the capabilities required. Consequently, no other vendor has the data rights to the specifications and standards necessary to perform service, calibrations and software updates for these machines.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

None

X. List of any sources that expressed, in writing, an interest in the acquisition.

Matec Instrument Company, Inc. was the only Company to express interest is this acquisition.

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

It is the ultimate goal of MXSG to increase organic repair capabilities but with the critical skills necessary to provide this service it is likely the Government will need to utilize Matec for future support of this requirement. Because of the age of the CUSS system the Government is not interested in pursuing purchasing the data rights for this system. It is likely in the near future the CUSS system will need to be replaced, at this time the Government will look into purchasing the data rights for the new system if organic capability is foreseeable.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by our signatures above, we certify that any supporting data contained herein, which is our responsibility, is both accurate and complete.