Sole Source Justification - GE NDI Mx Eqpmnt Svcs (Serv P24-015RN) 2024 08 01 Redacted.pdf

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

March 2023 Page 2 of 4

I. Contracting Activity.

Air Force Material Command

AFSC/PZIMC

3001 Staff Drive Tinker AFB, OK 73145

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

This individual Sole Source Justification authorizes use of other than full and open competition procedures to obtain a firm-fixed price contract for continued performance of services under a one-year basic and 4 one-year options with potential for a 6-month extension under FAR 52.217-8. The contemplated contract with Waygate Technologies USA LP Commercial and Government Entity (CAGE) code 052B7 is for Remedial Maintenance (RM) and Repair service on the NDI Equipment. Waygate Technologies USA LP is the original equipment manufacturer (OEM) for the NDI Equipment.

The estimated total value for this award is $521,872.00 with a Period of Performance (POP) of 01 November 2024 to 31 October 2029.

Current Contract Number: FA813219PA039 Contractor: GE Inspection Technologies, Skaneateles, NY 13152 CAGE Code: 052B7 POP: 01 August 2019-31 October 2024 Sole Source Requirement Note: This contractor is now known as Waygate Technologies USA LP

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

The Contractor will provide maintenance services for their GE Non-Destructive Inspection (NDI) equipment manufactured manufactured by GE Inspection Technologies. This service would be for five years, which would consist of a base year and four option Years; 1 Nov 2024-31 Oct 2029).

Services will consist of inspection, repair, detail replacement, and calibration of GE brand NDI equipment. Each piece of NDI inspection equipment on this contract is used to inspect critical aircraft parts and components at a near-microscopic level to ensure part and component integrity and serviceability without dismantling the parts. Failure to have operational NDI equipment will result in the lack of proper safety inspections for airplane parts and components, which will cause an immediate work stoppage.

This is a commercial requirement as NDI equipment is used in the commercial environment in many industries worldwide.

Contract Period Estimated Period of Performance Estimated Price Basic Year 1 Nov 2024 - 31 Oct 2025 Option Year 1 1 Nov 2025 - 31 Oct 2026 Option Year 2 1 Nov 2026 - 31 Oct 2027 Option Year 3 1 Nov 2027 - 31 Oct 2028 Option Year 4 1 Nov 2028 - 31 Oct 2029

TOTAL ESTIMATED PRICE $471,856.00

Extension of Services IAW FAR Clause 52.217-8) TOTAL ESTIMATED PRICE - Base and Four Options & Svc Ext $521,872.00

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

March 2023 Page 3 of 4

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

The authority for this action is DAFFARS 5313.501 as codified by 10 U.S.C. 3572, 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).

Waygate Technologies USA LP provides maintenance services for the NDI Equipment on the current sole-source contract (FA813219PA039; expires on 31 October 2024). This acquisition will be for continued performance of these RM/Repair services. The NDI Equipment was designed by Waygate Technologies USA LP. As the OEM, Waygate Technologies is the only known source with the required replacement parts, software, engineering data, and expertise required to maintain the NDI Equipment.

The Government does not possess any technical data on these products which would allow it to develop in-house maintenance program. Waygate (and previously, GE) does not provide any technical data or license the data rights. The development of organic maintenance procedures without the requisite data and/or technical manuals is impossible without extensive and costly reverse engineering.

believe attempts to award to any other source would create unacceptable delays in the NDI shop's ability to fulfill its mission of non-destructive part inspections, which immediately would impact multiple platforms by potentially grounding the aircraft until such time as another vendor could gain a license from the OEM, become certified to perform the work, and a contract could be competed and awarded. Due to the lack of other licensed entities able to perform this service, the Government does not expect that another source could become qualified in time to avoid unacceptable delays in meeting the current need. If the NDI Equipment is not used, the part would have to be disassembled and/or destroyed to perform the same level of required inspection that the NDI Equipment can perform.

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

An announcement will be posted on SAM.gov, informing the public of this sole source award. Interested parties may respond; however, Waygate Technologies has stated that if any other vendor aside from Waygate were to perform any maintenance service on these systems, Waygate has the right to and will refuse any maintenance service requests for the affected systems at Tinker AFB.

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

The Contracting Officer will use price analysis IAW FAR 13.106-3 in order to determine the contract price to be fair and reasonable. Since this is a commercial item requirement as defined by FAR Part 2, we may request other than certified cost or pricing data will be requested, if necessary, to determine the price to be fair and reasonable.

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 reviewing System for Award Management (SAM) databases using North American Industry Classification System (NAICS) Code 811310. reached out to the OEM as well as performed Internet searches to inquire about authorized repair facilities for this NDI equipment. Additionally, they reviewed past market research information for this requirement. The results were as follows:

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

March 2023 Page 4 of 4

-Conversation with OEM - Per Remote Visual Inspection (Waygate Technologies/Baker Hughes), no one besides Waygate Technologies is authorized to repair GE NDI equipment. Waygate has not authorized any third-party vendors to repair their equipment, and they have not and will not share their product data with or authorize anyone else to perform maintenance on their equipment.

-Internet Searches - searches were conducted via Google, GSA eBuy/Advantage, and the Small Business Administration's Dynamic Small Business Search using many different keywords for authorized GE/Waygate/Baker Hughes repair contractors. No authorized maintenance vendors were found except for Waygate themselves.

-Previous Contract - market research information for FA813219PA039 was reviewed, which revealed that there were also no known alternate sources for that requirement other than Waygate.

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.

Only Waygate Technologies USA LP (OEM) has expressed interest in this acquisition.

Waygate Technologies USA LP, Skaneateles, NY 13152 CAGE Code: 052B7

UEI: K3D5UGBFTVQ9

Large Business

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.

In an effort to identify and remove barriers to competition, the Government will continue to monitor the marketplace for source development and continue discussions with the OEM regarding additional approved sources. The Government will advertise the requirement and attempt to acquire the data usage rights necessary to qualify additional sources or perform the services organically.

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.