Sole Source Justification Final Signed_Redacted.pdf

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Olympus Nondestructive Inspections Equipment and Borescope/Videoscope Repair
Solicitation number
FA813224Q0015
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About this file

This document is a Sole Source Justification for a firm fixed-price, sole source contract with Evident Scientific, Inc. (CAGE Code 9DV74) to provide remedial maintenance and calibration services for Olympus non-destructive inspection (NDI) equipment and borescopes/videoscopes used by the Oklahoma City Air Logistics Complex at Tinker Air Force Base.

The contract will be for a base year from June 2024 to June 2025 with four one-year option periods and a six-month extension, for a total estimated value of $. Evident Scientific is the original equipment manufacturer and sole source for these services, as they retain proprietary data and will not authorize any other vendor to perform the required maintenance. Market research found no other capable sources. The contracting officer will determine the pricing to be fair and reasonable using historical data and price analysis prior to award.

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

CONTROLLED UNCLASSIFIED INFORMATION

March 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 1 of 6March 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 1 of 6

NOTE: If a Justification was approved for the preceding acquisition, a copy of the approved Justification for the predecessor action must be included in the staff package for approval of the instant Justification. This applies to Justification staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor Justification will be used as a reference document by the approving official.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition:

Contracting Activity:

Air Force Material Command

AFSC/PZIMC

3001 Staff Drive 2575 Tinker AFB, OK 73145

Purchase Request / Local ID Number: ( F3YCEB4032A101, ( F3YCEB3350A101, ( F3YCEB4032A102

Program / Project (and PE, if applicable): Serv A23-014RN Olympus NDI and Borescope Renewal

Program Type (PEO or Other Contracting): Other Contracting, Maintenance

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

AFFARS 5313.501 - 10 U.S.C. 3403, Special Emergency Procurement Authority (41 U.S.C. 1903)

Estimated Contract Cost (including options): Justification Type: Class Individual

COORDINATION ( AFFARS 5306.304(a))

Date

12 Feb 2024

16 Feb 2024

Contracting Officer Jaqueline Hughes

AFSC/PZIMC 405-739-3962

Signature

27 Feb 2024

01 Mar 2024

HUGHES.JAQUELINE. Digitally signed by

HUGHES.JAQUELINE.C.

Date: 2024.02.16 13:27:07 -06'00'

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

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APPROVAL (AFFARS 5306.304(a) )

13 Mar 2024

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

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I. Contracting Activity.

Air Force Material Command

AFSC/PZIMC

3001 Staff Drive 2S75 Tinker AFB, OK 73145 PR#s( F3YCEB4032A101, ( F3YCEB3350A101, ( F3YCEB4032A102

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

The - located within the Oklahoma City Air Logistics Complex at Tinker Air Force Base (AFB), Oklahoma, require a service contract for Remedial Maintenance (RM)/Calibration of its Olympus Nondestructive Inspection (NDI) Equipment and Borescopes/ Videoscopes. The previous contract was awarded to Olympus America, Inc. which has since split into two companies, Olympus and Evident Scientific Inc. The Government recognizes Evident Scientific, Inc. as the successor in interest of Olympus America Inc. As a result Evident Scientific, Inc. became entitled to all rights and titles of interest of Olympus America Inc. for the contracts listed in the attachment. This individual Sole Source Justification (SSJ) authorizes the use of other than full and open competition procedures to obtain a new, firm fixed price (FFP), sole source contract for this effort.

The contemplated contract will be with Evident Scientific, Inc., CAGE: 9DV74 the original equipment manufacturer (OEM). Estimated date of award is June 2024. RM/Calibration will be performed on an as-needed basis when the Evident Scientific, Inc. NDI equipment requires repair. This is a follow-on to contracts FA8132-18-C-0004 and FA8125-15-C-0018 as shown below.

Previous Contract Information:

Contract Number: FA8132-18-C-0004 Date of Award: 11 Sep 2018 Expiration Date: 10 Mar 2024 Basis for award: Sole Source Acquisition Contractor: Olympus SSAI CAGE: 1KY21

Contract Number: FA8125-15-C-0018 Date of Award: 02 Sep 2015 Expiration Date: 02 Sep 2018 Basis for award: Sole Source Acquisition Contractor: Olympus SSAI CAGE: 1KY21

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

The contractor will furnish all labor, materials, transportation, and incidentals to facilitate RM/Calibration of Evident Scientific, Inc. Brand Scopes and other NDI equipment IAW Performance Work Statement (PWS) Serv A23-014RN. This will be a five-year FFP, commercial, Definitive C-type, RM service contract (one-year basic with four one-year options, plus an optional six-month extension).

Contract Year Period of Performance Estimated Value Base Year: 15 Jun 2024 - 14 Jun 2025 $ Option Year I: 15 Jun 2025 - 14 Jun 2026 $ Option Year II: 15 Jun 2026 - 14 Jun 2027 $ Option Year Ill: 15 Jun 2027 - 14 Jun 2028 $ Option Year IV: 15 Jun 2028 - 14 Jun 2029 $

Option to Extend Services IAW FAR Clause 52.217-8 - 15 Jun 2029 - 14 Dec 2029 $

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

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Estimated TOTAL CONTRACT VALUE $

This effort will be awarded utilizing non-expiring working capital funds (Appropriation Code 4930).

Evident Scientific's services are commercial and have been provided to the commercial aircraft industry, the medical industry, firearms manufacturers, and consumer markets at large.

As described below in Sections V and XI, there are no immediate actions that can be taken to develop competition. Therefore, it is appropriate to seek approval for more than one fiscal year's requirements. If other qualified or approved sources become known during the life of this contract, full and open competition will be considered and utilized to the maximum extent practicable.

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

DAFFARS 5313.501 - 10 U.S.C. 2302b, Implementation of Simplified Acquisition Procedures (41 U.S.C. 1901)

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

The ) have established a requirement to obtain a service contract for RM/Calibration of its NDI Equipment and Borescopes/Videoscopes. The agency's needs can only be satisfied by the unique supplies or services available from Evident Scientific, Inc. There is currently over $ of Olympus NDI Equipment in the Tinker AFB inventory requiring RM/Calibration. This equipment is used daily by the employees responsible for conducting non-destructive testing (NDT) and detailed inspection of aircraft engines and components to ensure mission readiness. The NDI equipment requiring repair are commercial items that Evident Scientific designed and built as the OEM, they maintain the data rights necessary for the RM and calibration of the Olympus NDI Equipment and Borescopes.

Evident Scientific, Inc. produces and provides all required replacement parts and alone possess the highly specialized technical skills to perform the required tasks associated with this service. Additionally, Evident Scientific, Inc. will not sell replacement parts for their NDI equipment or Borescopes to other companies, thereby preventing maintenance service by anyone other than Evident Scientific. Should any other company attempt maintenance on this equipment - Evident Scientific, Inc. will not warranty any parts that have been worked on by anyone other than company trained employees nor will they allow alternative parts manufactured by other companies to be utilized due to strict testing, reliability and liability concerns. Failure of the NDI equipment to detect defects in engine parts can be catastrophic and lead to loss of life or aircraft.

The purchase of brand new equipment to replace Olympus branded equipment is not feasible. It would cost over $ to purchase this equipment brand new in a competitive environment. The new equipment would also have to have RM/Calibration services schedule within one year to maintain their proper functionality. There would be substantial duplication of costs incurred that would not be overcome by competition in replacing the equipment.

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

On 6 December 2023 Pre and Post Award Supervisor for Evident Scientific, Inc. was contacted to determine if Evident Scientific, Inc. would sell or release the data and data rights in order to allow for open competition. declined the request. Evident Scientific, Inc. should change their corporate policy

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

March 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 5 of 6March 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 5 of 6 concerning proprietary data - it is estimated that it would take two years for the certification of technicians, ordering of parts, and expertise development with the equipment. Market Research has indicated no current interested parties for this service. As a result, awarding to any other source than Evident Scientific, Inc. would result in unacceptable delays to critical Air Force mission requirements.

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

The Contracting Officer will use historical pricing, along with price analysis techniques per FAR 13.106-2(b) to ensure the total contract price, which is the base year, four option years, and the optional 6 month extension of services, will be determined to be fair and reasonable prior to contract award.

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

Market Research was performed by searching on the World Wide Web (WWW), querying GSA Advantage, speaking with the subject matter expert (SME) on past history, contacting the OEM, as well as on small business dynamic search to look for other vendors that could repair Olympus Brand videoscopes and NDI equipment but none were found. After contacting the OEM, they verified they do not maintain a distributor network, the service was not authorized to be offered by any other vendor other than the OEM and they would not release their data rights. Evident Scientific, Inc.

was the only company found that could support the required services.

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

N/A

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

Evident Scientific, Inc.

48 Woerd Ave Ste 105 Waltham MA 02453-3824 CAGE Code 9DV74

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.

Based upon the information provided in Section V, the fact that Evident Scientific, Inc. is the OEM, retains ownership and possession of proprietary data and rights and is unwilling to license or sell those rights, produces and provides all required replacement parts, possess the highly specialized technical skills to perform the tasks, and no sources have been revealed through market research - there are no actions which can be taken at this time to remove barriers to competition.

As indicated by the signatures on this document, the previous J & A has been reviewed and any stated actions to remove barriers to competition have been completed. This acquisition, and required notification will be posted to SAM.gov. The Government will continue to seek release of parts and technical data annually and prior to each subsequent contracting effort by inquiring about the availability of data rights and spare parts for contractors other than Evident Scientific, Inc. prior to exercising Options.

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

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

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XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.

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