Sole Source Justification-Redacted.pdf

Version 2.0

Source Selection Information – see FAR 2.101 and 3.104

SOLE SOURCE JUSTIFICATION

FOR AN ACTION EXCEEDING THE SIMPLIFIED ACQUISITION THRESHOLD

USING SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS

(AUTHORITY: FAR 13.501(a), 41 U.S.C. 1901)

1. Agency and contracting activity.

Department of Commerce, NOAA Acquisition and Grants Office (AGO), Eastern Region Acquisition Division (ERAD) and the National Ocean Service (NOS), National Geodetic Survey (NGS), Remote Sensing Division (RSD).

2. Nature and/or description of the action being approved.

This is a sole source justification to award a firm-fixed-price contract to Applanix Corporation (Applanix) to replace the existing Applanix Digital Sensor Systems (DSS) and to award the follow on contract for the necessary hardware/software maintenance, service support and licensing as currently available on existing contract 1305M218PNCNL0258.

3. Description of supplies or services required to meet the agency’s needs (including the total estimated value).

NOAA is congressionally mandated to survey the Nation’s shoreline. These DSS systems are critical tools used by NOS to accomplish its Coastal Mapping Program, the Aeronautical Survey Program, research and development projects, emergency response activities related to natural disasters, and other special projects. The NOAA NOS has historically used aerial mapping imaging/camera systems to perform these and other critical missions. Upgrading and expanding existing, in-place systems will provide increased mission capability via improved image resolution.

The requirement is to upgrade the existing Applanix DSS systems which will further support and increase capabilities in all mission critical functions as listed above. The government intends to acquire a minimum of one (1) emergency response camera system with the option to acquire three (3) additional emergency response camera systems. The purchase will also include the necessary hardware/software maintenance, service support and licensing for the base and all option years.

Upgrading and expanding the existing, in-place DSS systems to newer versions will provide increased mission capability and efficiency. The upgrade will increase the resolution from 80 to 100-150 megapixels; increase the shutter frame rate (decreased cycle time) from 3 seconds to 0.5 seconds and decrease in-flight development time from 8 seconds per image to 2 images per second.

Delivery of the new camera system(s) will be required 30 days after contract award. Maintenance, service support, and licensing will commence upon delivery and continue for a 12-month base period to be followed by four (4) option periods consisting of 12-months each.

4. Statutory authority permitting the sole source (including brand name) acquisition.

☒ 41 U.S.C. 1901, using SAP up to $7M as authorized by FAR 13.500(a) and implemented by FAR 13.501(a).

☐ 41 U.S.C. 1903, using SAP up to $13M for contingency operations as authorized by

FAR 13.500(c) and implemented by FAR 13.501(a).

5. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

The contracting officer has determined the following circumstances justify the use of a sole source as supported below:

Only one source is capable of providing the systems and services needed at the level of quality required because the systems and services are unique and highly specialized. The proposed contractor, Applanix, is the original (and only) equipment manufacturer (OEM) of the DSS to be upgraded and is the only known firm capable of performing the end-to-end requirement. These systems contain proprietary hardware/software/firmware, such that only Applanix possesses the knowledge necessary to engineer and provide update(s) of/to the existing hardware/software/firmware and maintain the same. Only Applanix can ensure a fully operational upgrade that is completely compatible with existing aircraft and office-based systems and, ensure the system(s) perform within stringent operating tolerances, set forth in the national mapping accuracy standards for coastal mapping. Furthermore, only Applanix can preserve the warranty and service contract(s) inherent in the original system contract purchase. No other companies offer maintenance on these products and no other company is allowed to make updates to the software.

NOAA’s fleet of Applanix DSS, collectively, must be compatible and interchangeable. This is true from an operating standpoint, as well as a data collection and processing standpoint; as all of RSD’s Geographic Information System (GIS) workflows are standardized and based on Applanix hardware and software. As such, no other systems can be integrated into NOAA’s DSS fleet that is not of the same proprietary hardware and software.

Since 2002, the OEM of all of the current NOS aerial camera systems is Applanix. NOAA and NOS have tailored its existing aircraft, employee training, workflows, and products based on the Applanix DSS. For NOAA to attempt to purchase the upgrade from another source, NOAA would need to develop a sufficient product design specification to send to potential manufacturers because the current design specs are proprietary to Applanix. The required custom engineering, testing and air trials, along with customizing/adapting a new camera system to NOAA aircraft and reconfiguring existing workflows would take more government employees than currently exist, creating an unnecessary burden on NOAA. In addition, it would be highly uncertain as to when the product would be ready for delivery and use. This delay could result in failure of the RSD mission and put public safety at risk.

The RSD has an immediate need for these services to support legally mandated mapping and charting requirements as part of Coast and Geodetic Services Act of 1947 (and subsequent revisions), The Disaster Relief Appropriation Action of 2013, and Hydrographic Services Improvement Act.

6. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies.

In accordance with FAR Subpart 5.2, a Notice of Intent to negotiate a sole source contract pursuant to the authority of 41 U.S.C. 1901 was posted to beta.SAM.gov on November 26, 2019 and closed on December 12, 2019. No responses were received.

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

Prior to award of the proposed contract, pricing information shall be obtained from the contractor and a price analysis will be performed to sufficiently determine that the price, to the Government, of the proposed acquisition will be fair and reasonable in accordance with FAR 13.106-3(a)(2).

The prices proposed will be compared to prices found reasonable on previous purchases for the same or similar services as well as the IGCE.

8. Description of the market research conducted (see Part 10) and the results or a statement of the reason market research was not conducted.

Market research was conducted by the NGS and ERAD for the contract award to identify available sources and to evaluate the availability of the marketplace to meet the requirement.

In addition to the Notice of Intent described above in Section 6, confirmation was obtained from Ms. Angie Spierenburg of Applanix confirming that Applanix continues to be the sole provider for services/software upgrades to the DSS camera systems, Position and Orientation System for Airborne Vehicles Computer Systems (POS AV PCS) and Position and Orientation System Post- Processing Package (POS PAC) software licenses, as these systems are proprietary products developed and manufactured by Applanix.

Four distributors were identified during market research. However, the distributors/resellers are only for marine POS MV products. They are not authorized to sell DSS Camera systems, POSTrack, or POS AV PCS systems as confirmed via email received from Rick Morton, Manager of Business Development for Applanix.

Based on the results of the market research, it is apparent that only one vendor can fulfill all of the upgrade needs and requirements. This vendor, Applanix, is the incumbent contractor under the current firm-fixed price contract.

9. Any other facts supporting the use of a sole source (including brand name), such as:

A sole source solicitation is necessary to maintain timely data delivery processes for a critical agency mission that directly impacts lives and property. The existing workflow has steadily reduced the time to deliver data used to save lives and property from days to just a few hours.

This workflow is based on Applanix hardware/software and processes. If this requirement is not solicited from Applanix, the existing workflow will be delayed and the data delivery process would require a redesign that would undue two decades of progress.

10. List of the sources that expressed a written interest in the acquisition.

No sources expressed interest in the acquisition via a response to the Notice of Intent posted on November 26, 2019 to beta.SAM.gov.

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

Consistent with the Competition in Contracting Act, the Government will continue to conduct thorough market research to gauge the marketplace capabilities for future requirements. The Government will seek competition of future acquisitions for airborne surveying camera systems, their associated components and maintenance/warranty plans.