A_11-_JA_(20055)_Redacted_(14_March)_Final.pdf

The items being sought under this solicitation are twenty-seven (27) U.S. Army Integrated Logistics Support Center (ILSC) managed items that support sustainment and function of VOSS systems.

VOSS items were last previously procured under Army Product Manager Ground Sensors (PM GS) contract W909MY-12-D-0017. Contract W909MY-12-D-0017 via Modification P00005 is current through August 2017 (through two-year extension) and this new contracting initiative will provide continuing sustainment support for these VOSS system items.

CAGE Code 1UMJ7 is the original manufacturer or the sole source contractor of all the spares addressed in this acquisition, and controls the design and configuration of these items. The items are as follows:

NSN Part Part Numbers/ Drawings

CAGE AMC/

AMSC

5855-01-626-6338 Turret, Optical RECO (Gimbal) 990-3600-000 1UMJ7 3/ P

5340-01-599-8397 Cover, Access (Top Plate - Gimbal) 330-3600-400 1UMJ7 3/ P

5999-01-618-3082 Housing, Electronic Components (Right Plate - Gimbal)

330-0015-007 1UMJ7 3/ P

5999-01-600-6555 Housing, Electronic Components (Left Plate - Gimbal)

330-0015-008 1UMJ7 3/ P

5340-01-626-5788 Cover, Access (Front Cover - Gimbal) 010-1342-000 1UMJ7 5/ P

3130-01-613-3714 Bearing Unit, Plain (Bearing Assy, AZ Univ Gimbal

330-0014-001 1UMJ7 3/ P

5995-01-618-6374 Wiring Harness, Branched (Slip Ring Assembly)

330-2010-007 1UMJ7 5/ P

5340-01-600-9643 Bracket, Mounting (Ring Assembly, Gimbal)

330-3600-100 1UMJ7 3/ P

6720-01-618-6246 Camera and Lens Assembly (Camera, Lumitron)

330-0143-000 1UMJ7 5/ P

5895-01-618-6477 Receiver-Transmitter Control Group (Optical Assy, FO)

330-3600-360 1UMJ7 3/ P

6720-01-600-9644 Camera System, Recon (Camera Assy, DX, Sony)

330-0033-002 1UMJ7 3/ P

1240-01-615-6246 Range Finder, Laser (Mast Height Laser)

300-0003-000 1UMJ7 5/ P

5985-01-633-0328 MAST 450-1000-000 1UMJ7 3/ P

7042-01-623-3642 Controller System, Common (IFU) 990-3600-101 1UMJ7 5/ P

1260-01-618-6453 Target Designator Set, Electro- Optical (Laser Illuminator)

330-0175-000 1UMJ7 3/ P

6760-01-614-4061 Lens, Camera, General, Photographic (Canon Lens)

025-2085-000 1UMJ7 5/ P

1240-01-645-9143 Range Finder, Laser (LRF Thales) 330-3600-380 1UMJ7 3/ P

5895-01-623-4938 Controller, Environmental (Kneeboard)

990-8004-000 1UMJ7 5/ P

7025-01-623-6479 Display Unit (Monitor) 100-4124-000 1UMJ7 5/ P

6105-01-616-7941 Motor, Control (AZ Motor Assembly) 330-0004-002 1UMJ7 3/ P

6105-01-612-7833 Motor, Direct Current (EL Motor Assembly)

330-0005-002 1UMJ7 3/ P

5865-01-600-6533 Encoder, Countermeasure (Gimbal) 330-0002-001 1UMJ7 3/ P

5995-01-600-6506 Cable Assembly, Prin (Gimbal) 330-0140-000 1UMJ7 5/ P

6605-01-618-8024 Gyro Assembly, Navigation 330-3600-201 1UMJ7 3/ P

5895-01-600-6484 Cover, Electronic Communication (Gimbal)

330-3600-600 1UMJ7 3/ P

4810-01-644-2564 Valve, Linear, Directional Control 700-0077-001 1UMJ7 5/ P

5340-01-647-3269 Cover, Access (Cover, Kneeboard) 330-0188-000 1UMJ7 5/ P

The resultant contract will include DLAD 52.216-9006, Addition and Deletion of Items (AUG 2005), to add items within the following scope:

In addition to those NSNs specified [in the chart above], the scope of this contract includes all DLA and DoD NSNs for the AN/VSQ-6B Vehicle Optics Sensor Systems (VOSS) for which Lockheed Martin Gyrocam Systems (CAGE Code 1UMJ7) is the only approved source.

4. Authority Cited:

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2), “Only One Responsible Source [or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources,] and No other Supplies and Services Will Satisfy Agency Requirements”.

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5. Reason for Authority Cited:

The proposed source for this action is LMGS, 5600 Sand Lake Rd, Orlando FL 32918-8907. The VOSS is a commercial-based item, and the Government is not in possession of the Technical Data Package (TDP), and all associated firmware and software are proprietary to LMGS. The Government requested information regarding the purchase of the TDP on two separate occasions.

LMGS responses received on 27 May 2010 and 24 March 2011 stated the VOSS TDP was commercially developed using proprietary and competitive sensitive information and that LMGS is not willing to sell the TDP. In December 2013, the Government requested information from LMGS related to purchase of VOSS source code.

The LMGS response received 10 January 2014 stated LMGS developed the source code for all of the Gyrocam product line at its own expense and is not willing to sell it. Any other source would need to perform an extensive reverse engineering effort before it could have its products tested and initiate production. Thus, hardware deliveries would be delayed more than three years if different sources were sought at this time. The host platform on which this system will be installed, the MMPV Type I and II, are already fielded in support of land-based units deployed across the globe. It is paramount that the Government has a viable contract to sustain fielded systems as well as support the reset and upgrade of systems at Tobyhanna Army Depot in FY17-22, thereby enabling fielding of capability to Soldiers. With the increased tempo of MMPV Type I and Type II fielding starting in FY17, it is critical that parts are available to meet the reset schedule. To do otherwise would adversely impact the Army’s ability to successfully provide the Warfighter with VOSS and could increase the risk of serious injury or loss of life to Warfighters.

For all NSNs identified on this acquisition, the Acquisition Method Codes (AMC) and Acquisition Method Suffix Codes (AMSC) assigned by ILSC engineers are “3P” and “5P”. An AMC of 5 means “Acquire directly from a sole source contractor which is not the actual manufacturer” where as an AMC of 3 means “ Acquire, for the second or subsequent time, directly from the actual manufacturer”. LMGS is the Original Equipment Manufacturer (OEM) of the Vehicle Optics Sensor System (VOSS) and they own the technical data rights for all twenty-seven (27) items listed. As the OEM supplier of VOSS at the system and individual spare parts levels, LMGS is also the sole source contractor for all VOSS components. LMGS is the actual manufacture on some but not all of the NSNs listed above. As for the AMSC “P”, this means the “rights to use the data needed to purchase these parts from additional sources is not owned by the Government and cannot be purchased, developed, or otherwise maintained”.

6. Efforts to Obtain Competition:

Market research has been conducted to find other potential sources for the production of VOSS spares, the results of which are contained in the Market Research section of this J&A. Details on the market research can be found in Section 8 below. Current market research has not yielded any other sources that can meet the Government’s requirements for the production of these VOSS spare parts.

In order to timely meet the Government’s requirements, an interested vendor should own and/or have a right to the Technical Data Package (TDP) and all associated firmware and software for VOSS that are proprietary to LMGS.

The Government will continue to conduct market surveillance to ascertain if there are changes in the market place that would enable future actions to be competed. However, it is anticipated that follow-on acquisitions for spare parts for existing VOSS will be conducted on a sole source basis. If additional systems are required, competitive acquisition using a performance specification will be used.

The Contracting Officer will synopsize the proposed contracting action at least 15 days before issuance of the solicitation in accordance FAR 5.203(a). In addition, Defense Logistics Acquisition Directives (DLAD) Proc Notes M06 & L04 (see attachment 2 for the actual notes), “Conditions for Evaluation & Acceptance of Offers for Part Numbered Items”, will be included in the solicitation.

The Contracting Officer will include FAR 52.244-5 “Competition in Subcontracting” (DEC 1996), which requires the contractor to select subcontractors on a competitive basis to the maximum practical extent consistent with the objectives and requirements of the contract in the solicitation.

7. Fair and Reasonable Cost Determination:

The Contracting Officer hereby determines that the anticipated cost to the Government for this contract action will be fair and reasonable, based upon FAR 15.404-1(a)(2).

8. Market Research:

Sources Sought market survey 5995-1 and 6028-1 were posted via the Federal Business Opportunities website, fedbizopps.gov on 23 March 2016 and 22 June 2016, respectively. Three companies responded to the 5995-1 market survey: LMMFC who is the corporate parent of LMGS;

Avalex Technologies Inc. (Avalex) of Gulf Breeze, FL, a small business and the Original Equipment Manufacturer (OEM) for VOSS displays; and Jenesia1 of Merry Hill, NC, a small business that possesses patented technology on an industrial surveillance system. A fourth company responded to 6028-1, Clear Align LLC, of Eagleville, PA, is a small business that delivers custom electro-optic systems and subsystems utilizing imaging, fiber-optic and laser technologies. Lastly, the contracting specialist issued a sources sought for these items on 31 May 2016. LMGS, Clear Align, LLC, SemiConductor devices USA Infrared LLC (SCD.USA-IR), Sofradir EC and Jenesia1 were the only respondents., LMGS, a commercial product line within LMMFC, is the original equipment manufacturer for VOSS and, as such, possess the detailed engineering data for system parts. This ensures full compatibility with the existing systems. LMGS has historically manufactured and/or supplied all of the sustainment spare parts supporting the US Army, and allies including Canadian forces, and they are a provider of stabilized electro-optic/infrared sensor systems. The incumbent spares provider, LMGS has demonstrated the ability to meet the Government’s requirements for the full range of VOSS spare parts. In addition, LMGS is uniquely qualified because they are the sole owner of the VOSS’ Technical Data Package (TDP) including all associated firmware and software. They also have in their possession all electrical and physical interfaces within/between the primary components, which they proprietarily own.

Avalex Technologies Inc. produces COTS-based displays in support of the VOSS program to the LMGS. However, Avalex cannot supply the Government directly because they lack the compatibility to access the TDPs for the VOSS system. Furthermore, without access to the TDP, Avalex has no right to all associated firmware and software as well as all of the electrical and physical interfaces within/between the primary VOSS system components. Without this TDP, Avalex’s displays would not be able to be interfaced into the VOSS system.

Clear Align, LLC produces the camera and lens assembly in support of the VOSS program and stated in their response that it is capable of providing additional support to the infrared lens or the lens and camera. However, Clear Align LLC does not own or have rights to any of the VOSS’ detailed TDPs including all associated firmware and software which are proprietary to LMGS.

Without this TDP, Clear Align LLC’s camera and lens assembly would not be able to be interfaced into the VOSS system. Therefore, Clear Align does not have the ability to supply any of the parts to meet VOSS capabilities and needs.

The remaining companies all offer rival products. Jenesia1 has a patented technology called the Wireless Industrial Surveillance System Apparatus Mount (WISSAM-4) that is a competing system to VOSS. SemiConductor Devices USA Infrared LLC (SCD.USA-IR) manufactures and does maintenance and repair for infrared detectors and complete cameras. Sofradir EC designs and manufactures infrared and low light imaging systems. While the companies may make items that could compete with LMGS’s overall VOSS system, they all lack the access to the Technical Drawing Package for the VOSS system. In addition, any interested vendor that desires to provide the Government with components for the VOSS system must first gain access to the TDP or be able to reengineer the components in a timely manner. Lastly, the Government did announce that we were seeking vendors to provide spare parts (NSN, PN and required CAGE) to the VOSS system as well the fact that the Government did not own the technical data to the system.

Although the Government received several responses, LMGS, Clear Align, LLC, SemiConductor devices USA Infrared LLC (SCD.USA-IR), Sofradir EC and Jenesia1, none of the respondents can provide the required spares directly to the Government (per NSN/PN/CAGE) but LMGS. LMGS owns Technical Data Package and all associated Firmware and Software. All electrical and physical interfaces within/between the primary components are proprietarily owned by LMGS. As a result, no other vendor can provide the required components for the end item. Any attempt to purchase these items from a source who does not have access to the TDP owned by LMGS would adversely impact the Army’s mission at this time.

9. Other Facts:

Procurement History: In order to sustain continued operation of the 797 fielded VOSS, the Army awarded a spare and repair parts and logistics data contract to LMGS on a sole source basis. This was the first contract on which these parts were procured as individual spares.

This three year IDIQ Contract, W909MY-12-D-0017, was awarded on 22 August 2012 with a $333.3M ceiling to expire on 22 August 2017. We cannot issue a Full and Open Solicitation like in 2008 as the technical data is proprietary and owned by LMGS. The Government’s efforts to obtain this data have not been successful, as LMGS is not willing to sell the Technical Data Package.

Acquisition Data Availability: The Government possesses a performance specification, installation and mounting instructions for multiple vehicles, provisioning data for engineering, and training support packages. The Government has twice previously requested information from LMGS regarding the purchase of the Level III Technical Data Package;

however, responses in 2010 and 2011 stated that the VOSS TDP was commercially developed utilizing LMGS proprietary and competitive sensitive information and that LMGS is not willing to sell at this time. Additionally, the Government has requested information related to purchase of VOSS source code; however, the response received in 2013 stated LMGS developed the source code for all of the Gyrocam product line at its own expense, and is not willing to sell it.

Per DFARS PGI 206.303-2 and 206.304 (whether efforts to obtain competition were completed), The Government stated on its previous J&A for contract W909MY-12-D-0017 that Market Research was conducted in 2010 seeking potential sources that could meet the Government’s requirement to provide spare and repair parts, and support services. The Government continued to conduct market research, as can be seen in Section 8 above. The results of the Market Research confirmed that LMGS is the only source that meets the Government’s requirements for producing and delivering VOSS spare and repair parts since LMGS possesses proprietary information concerning spare and repair parts and has declined the Government’s request to sell this proprietary information. Additionally, the lack of technical data/ data rights prohibited the Government’s ability to seek subcontracting solutions from small businesses as well as small disadvantaged businesses. Additional actions taken to increase competition are on a system level. The individual VOSS spares that are included in the current requirements are still sole source.

10. Interested Sources:

Vendor CAGE Lockheed Martin Gyrocam Systems 1UMJ7 Avalex Technologies, Inc. 096Y5

SCD.USA-IR 4Y1D4

Jenesia1 6D2S0 Sofradir EC 61834 Clear Align, LLC 3PWC3120

11. Actions agency may take to overcome barriers to competition:

The Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions for these items to be procured through competition.

Without configuration control of the technical data package, little can be done to increase the possibility of competition. The solicitation will be published in the Federal Business Opportunities (FedBizOpps).

12. Certifications:

I hereby certify that these supplies meet the Government’s needs in accordance with applicable specifications and that this justification is accurate and complete to the best of my knowledge and belief

Date

PRD Engineer

I certify that requirements, which form the basis of this justification, are accurate, and that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Date

Item Manager

As the Contracting Officer, I certify that this justification is accurate and complete to the best of my knowledge and belief.

Theresa Boutchyard Date Procuring Contracting Officer

I have reviewed and hereby recommend this justification for approval.

Bradley Holtzapple Date Competition Advocate

I hereby approve this justification.

Milton K. Lewis Date Head of Contracting Activity

( ) Up to $700,000 Contracting Officer

( ) $700,000 to $13,500,000 Competition Advocate

(X) $13,500,000 to $93,000,000 Head of the Contracting Activity (HCA)

( ) Over $93,000,000 Senior Procurement Executive (AQ)

BOUTCHYARD.THE

RESA.I.1395400998

Digitally signed by

BOUTCHYARD.THERESA.I.13954

00998 Date: 2017.02.02 13:12:53 -05'00'

HOLTZAPPLE.BRAD

LEY.A.1198214309

Digitally signed by

HOLTZAPPLE.BRADLEY.A.11982

14309 Date: 2017.02.02 15:43:22 -05'00'

LEWIS.MILTON.K

ING.1064624357

Digitally signed by

LEWIS.MILTON.KING.10646243

Date: 2017.03.06 15:15:30 -05'00'

February 2, 2017

February 2, 2017

2 Feb 2017

2 Feb 2017

Attachment:

1 – Add on Procedures

2 – Procurement Notes