Thermal_Analysis_Equipment_JA_25APR2016_Redaction.pdf

Program/Item: Thermal Analysis Equipment Estimated Dollar Value: $354,500.00

Control No.: CAO-00-0000

For Official Use Only

JUSTIFICATION REVIEW DOCUMENT

FOR OTHER THAN FULL AND OPEN COMPETITION

Programs/Items: Thermal Analysis Equipment

Authority: 10 U.S.C. 2304(c)(1), “Only One Responsible Source and No Other

Supplies or Services Will Satisfy Agency Requirements”, as implemented by FAR 6.302-1(a)(2)(ii)(B)

Amount: $354,500.00

Prepared by: Timothy Cassidy DSN: 880-7364 Title: Contracting Specialist

Office Symbol: ACC-NJ-CCsymbols Date: 14 April 2016

Email: timothy.j.cassidy12.civ@mail.mil

Contracting Evangelina C. Tillyros DSN: 880-6545 Officer: Title: Contracting Officer

Office Symbol: ACC-NJ-CC Date: 14 April 2016

Email: evangelina.c.tillyros.civ@mail.mil

Technical Andrew T. Perich, PE DSN: 880-3175 Representative: Title: Chief, MM&PT Division

Office Symbol: RDAR-MEE-M Email: andrew.t.perich.civ@mail.mil

Date: 15 April 2016

Requirements Andrew T. Perich, PE DSN: 880-3175 Representative: Title: Chief, MM&PT Division

Office Symbol: RDAR-MEE-M Email: andrew.t.perich.civ@mail.mil

Date: 15 April 2016

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Program Manager Andrew T. Perich, PE DSN: 880-3175 Signature: _X //Signed// _________ Date: 14 April 2016

Legal Counsel: Jered Leo DSN: 880-6585 Signature: _X //Signed// _________ Date: 14 April 2016

Center Director: Patricia B. Nickells DSN: 880-2388 Signature: _X //Signed// _________ Date: 25 April 2016

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: United States Army Contracting Command – New Jersey

2. Description of Action:

The action covered under this Justification and Approval (J&A) is for a new, twelve (12) month, Firm-Fixed-Price (FFP) contract with four (4) option periods, for the commercial procurement of thermal analysis equipment that includes: one (1) Netzsch STA449 F1 Jupiter Simultaneous TGA-DSC/DTA apparatus coupled with one (1) QMS 403 D Aeolos Mass Spectrometer, one (1) interface computer and one (1) external chiller. This effort is to procure thermal analysis equipment to replace existing equipment that has ceased functioning. The period of performance (POP) of this requirement is for twelve

(12) months after equipment delivery and installation and four (4) option periods to extend support for the equipment.

a. The proposed contracting action shall result in a sole source award to Netzsch Instruments, North America, LLC. (herein known as “Netzsch”) 129 Middlesex Turnpike, Burlington, MA 01803. Netzsch Instruments is the only authorized supplier of Netzsch Thermal Analysis Instruments.

b. The contract will use Fiscal Year (FY) 2016 Research, Development, Test, and

Evaluation (RDT&E) funding. The total estimated value of this effort is $354,500.00.

Equipment delivery and installation is required within eight (8) weeks after contract award. A standard manufacturer’s commercial warranty, with a twelve (12) month duration, shall commence once the equipment has been successfully installed. This effort also includes four (4) separate option periods for annual equipment maintenance after expiration of the initial manufacturer’s warranty. Contract award is anticipated no later than (NLT) third Quarter (QTR) FY 16.

c. Pursuant to Defense Federal Acquisition Regulation Supplement (DFARS)

207.103 an Acquisition Plan is not required.

3. Description of Supplies/Services:

a. This J&A covers the procurement of thermal analysis equipment for the U.S. Army Armament Research, Development and Engineering Center’s (ARDEC) Advanced Materials Branch (RDAR-MEE-M) Nanotechnology Center. This equipment is used by the Nanotechnology Center for the characterization of new and novel materials that are transformed into armament prototypes. This equipment will support the Research and Development (R&D) of materials required to develop new munitions for the Warfighter by performing a complete thermal analysis and mass spectroscopy for characterizing the physical and chemical properties of stable and metastable samples over a wide temperature range. Installation and training for the aforementioned equipment is also required.

The thermal analysis equipment under this effort includes:

(1) Netzsch STA449 F1 Jupiter Simultaneous TGA-DSC/DTA apparatus

The main thermal analysis unit that provides simultaneous thermogravimetric analysis, differential scanning calorimetry (TGA-DSC/DTA), and differential thermal analysis (DTA) measurements from 120 – 1600oC under ambient and low oxygen conditions. This equipment is specially designed and suits ARDEC’s needs for high caloric and thermobalance sensitivities, vacuum capability, heat capacity analysis at high and low temperatures, and is designed to support evolved gas analysis.

(2) QMS 403 D Aeolos Mass Spectrometer

An evolved gas analyzer with fully integrated hardware and software components and has the capability to measure evolved chemical species from 1-300 amu transferred from the STA449 F1 Jupiter thermal analysis unit.

(3) Netzsch interface computer

The interface computer system that is required to operate the STA449 F1 Jupiter and QMS 403D Aelos Mass Spectrometer simultaneously under fully programmable conditions. This interface computer processes data to foster the sequential communication, data acquisition, and interoperability between the TGA-DSC/DTA and QMS Mass Spectrometer operations. As such, the computer system configuration is unique to the equipment being procured.

(4) External chiller

The external chiller provides proper cooling to all heating elements in the STA449 F1 Jupiter TGA-DSC/DTA.

(5) Options for annual equipment maintenance

The equipment requires proper standardization and annual calibration for functional accuracy. To accommodate this need, four (4) options for this annual equipment maintenance are included. This equipment maintenance plan also covers emergency repairs to prevent any future work stoppages due to equipment failure.

b. The total estimated value of $354,500.00 for the thermal analysis equipment procurement consists: one (1) Netzsch STA449 F1 Jupiter Simultaneous TGA- DSC/DTA apparatus estimated at $203,000, coupled with one (1) QMS 403 D Aeolos Mass Spectrometer estimated at $123,000, one (1) interface computer at $3,000 and one (1) external chiller estimated at $5,500. All equipment includes a standard manufacturer warranty for a period of one year from the date of installation. Four (4) option periods, each with a twelve month duration, will be included for annual support and maintenance following expiration of the initial manufacturer’s warranty and are estimated at $5,000 per option period.

4. Authority Cited:

10 U.S.C. 2304(c)(1), Only One Responsible Source and No Other Supplies or Services will satisfy agency requirements, as implemented by FAR 6.302-1(a)(2)(ii)(B), unacceptable delays in fulfilling agency’s requirement.

5. Reason for Authority Cited:

The following provides rationale under the authority of FAR 6.302-1(a)(2)(ii)(B) unacceptable delays in fulfilling agency’s requirement for the procurement of the thermal analysis equipment:

a. This effort represents a new contract to procure thermal analysis equipment and four (4) option periods for annual support and maintenance of that equipment. Market research supports that Netzsch is the only contractor that currently exists that is capable of fulfilling the requirements under this effort. Recent market research indicates that an alternate system that could satisfy ARDEC’s Nanotechnology Center’s requirements does not currently exist. A sole source award to this contractor is required in order to avoid unacceptable delays in fulfilling the Government’s requirements.

The current thermal analysis equipment is over ten (10) years old and is broken beyond repair. Service technicians have made multiple trips to try to repair the equipment, but have been unable to make any repairs due to part obsolescence and degradation. Inability to use this equipment prevents ARDEC’s Nanotechnology Center from running air sensitive samples, including nanopowders, pyrophoric materials, and samples that require inert gas atmospheres. Running air sensitive samples constitute the majority of the Nanotechnology team’s workload. The existing equipment failure has resulted in a complete stop of analysis that support the following: Project Manager - Close Combat Systems (PM-CCS) programs including CHAFF, IR Countermeasures, and the Cloud effort; PM-Maneuver Ammunition Support (PM-MAS) programs including, OWL, and 40mm SPOTTER; as well as all nanopowder synthesis efforts, MIC Primer Characterization, nano-ink formulation, pyrophoric foams, BP synthesis, nB4C, Al/Si milling and other Army and Air Force efforts that require thermal analysis.

b. Should award be made to any source other than Netzsch, assuming that a similar design was discovered, a total delay of 36 months would occur. After the government is able to successfully identify a similar commercial design it would require 24 months to modify that equipment to include the required vacuum capability for analyzing meta-stable samples, if the design does not have this required capability.

After successfully modifying the system, an additional twelve (12) months would be required for testing. This testing would consist of a baseline test series to establish vacuum and oxygen levels at the sample and determine whether the equipment has the capability to meet the specialized performance and safety requirements of the user.

After completion of the baseline tests, additional testing would be needed to verify calibrated results. Executing a contract under full and open competition would significantly delay the delivery of the thermal analysis equipment and further jeopardize ARDEC’s Nanotechnology Center’s ability to effectively support the Army and Air force programs that require thermal analysis.

Unacceptable Delays

Activity Delay Time to Modify Commercial Equivalent Equipment 24 months Testing of Commercial Equivalent Equipment 12 months

Total Delay 36 Months

The above tasks must be performed in sequential order. These delays were estimated, based upon engineering expertise and experience using this type of equipment.

d. Analysis of Alternatives to Other Than Full and Open Competition: Two (2) potential procurement strategies to satisfy the thermal analysis equipment requirement were analyzed:

(1) Full and Open Competition

Award of a sole source contract to Netzsch for thermal analysis equipment under FAR 6.302-1 is the only alternative to satisfy ARDEC’s Nanotechnology Center’s requirements without incurring unacceptable delays. Netzsch is the only authorized supplier of Netzsch Thermal Analysis Instruments. In addition, this strategy increases the ability of the ARDEC’s Nanotechnology Center to resume work analysis of air sensitive samples in supporting the Army and Air force programs that require thermal analysis. There are no other commercial or noncommercial sources for these items. This conclusion is supported by the following information:

i. Cost: The U.S. Government estimates that it would cost approximately

$200,000 in unnecessary costs to compete this requirement. None of these costs are anticipated to be recovered through competition. These costs include the following cost elements which are based on the requirements to modify the TGA-DSC/DTA apparatus for vacuum capability. The thermobalance and chamber of the equipment will have to be redesigned and repositioned to integrate two vacuum pumps and all the tubing and movable seals that would be required so the chamber and thermobalance can be safely be pumped down to 10-4 mbar. It is estimated the hardware costs alone would be at least $125,000. If properly retro-fitted, the instrument would then have to undergo a series of experiments to validate its data using calorimetry and weight standards, which would also need to be procured separately. It is estimated the testing and validation efforts would cost at least $75,000.

ii. Schedule Risk: Award of a sole source contract to Netzsch provides proven equipment performance in satisfying the requirements of ARDEC’s Nanotechnology Department. If award is made to any other contractor, modifications and subsequent testing of a commercial system would cause an increase in cost, risk and additional schedule delay to the Government. Further delays would impact ARDEC’s Nanotechnology Department ability to support Army and Air force programs that require thermal analysis. Delays in these efforts increases the risk to the warfighter whose safety may depend on the success and completion of those programs.

iii. Performance/Requirements Risk: As discussed in the Market Research

Evaluation (Section 8 below), Netzsch is the only authorized supplier of Netzsch Thermal Analysis Instruments. The Netzsch equipment is the only commercially available equipment with the thermobalance and differential scanning calorimetry sensitivity that is necessary in order to analyze nanopowder samples. In addition, the Netzsch equipment is the only commercially available equipment with a vacuum system that allows for analysis of air sensitive samples that are paramount to meeting ARDEC’s Nanotechnology Center’s mission.

(2) Component Breakout:

A separate component buy for this action was also considered as an alternative to Other than Full and Open Competition. Given that Netzsch is the only authorized supplier of Netzsch Thermal Analysis instruments in North America, this leaves the U.S. Government with little information and opportunity to undertake a breakout approach. Awarding a separate contract (or possibly several contracts) on a component basis would impose an unnecessary financial burden on the U.S. Government as it would incur additional costs to meet interoperability requirements for separately procured components.

Awarding a separate contract (or possibly several contracts) on a component basis would also impose an unnecessary logistical burden on the U.S.

Government. The logistical burden is primarily due to the difficulty in ensuring interoperability among individual components if procured separately. The differences in wiring configuration, sequencing control, and communication among components become problematic when components are procured individually from various commercial vendors and pose a high risk of not integrating properly. A separate component buy for a multi-component system, that must be vacuum tight, poses performance concerns as all moving parts, seals, and transfer lines must be properly rated and synchronized for vacuum control. A single award to Netzsch, the only authorized seller of the Netzsch STA449 F1 Jupiter Simultaneous TGA-DSC/DTA apparatus coupled with a QMS 403 D Aeolos Mass Spectrometer and accompanying equipment required for operation, will significantly mitigate these risks in meeting the U.S.

Government’s requirements and needs.

(3) Conclusion

Full and Open Competition of this requirement presents an unacceptable level of schedule, cost, and performance risk. The only alternative to satisfy ARDEC’s requirements, at an acceptable level of risk, is a sole source award to Netzsch. Award to any other contractor will result in a significant delay in schedule, putting various programs at further risk. Specifically, delays incurred in Full and Open Competition would result in material development and scheduling delays for PM-CCS, PM-MAS, and other Army and Air force efforts, putting the Warfighter at an immediate and significant disadvantage in close-combat scenarios.

e. Acquisition Data Availability: Netzsch is the only authorized supplier of Netzsch Thermal Analysis instruments that include the specified Netzsch STA449 F1 Jupiter Simultaneous TGA-DSC/DTA apparatus coupled with a QMS 403 D Aeolos Mass Spectrometer and various supporting equipment needed for operation. Although other thermal analysis equipment was discovered during market research, none of available instruments meet the temperature, sensitivity, and vacuum requirements necessary for ARDEC’s Nanotechnology Center to meet its mission.

6. Efforts to Obtain Competition:

a. Effective competition: In accordance with FAR 5.201, a pre-solicitation notice citing FAR 6.302-1(a)(2)(ii)(B) will be posted to the Federal Business Opportunity website (FedBizOpps) and will contain the appropriate rationale for Other than Full and Open Competition upon approval of this J&A. Any proposals received by other than the intended source will be evaluated and considered for potential competition.

b. Market research has been conducted in accordance with FAR 10.001 for this effort and yielded results that effective competition is not anticipated for this effort. See paragraph eight (8) below.

c. Subcontracting competition. Netzsch is considered a large business for NAICS

334516. As such, subcontracting opportunities will be maximized to the fullest extent possible. In order to maximize the potential for competition, the contract will contain FAR clause 52.219-8 “Utilization of Small Business Concerns”. FAR clause 52.219- “Small Business Subcontracting Plan” is not required as this action does not meet the $700,000 threshold.

7. Actions to Increase Competition:

a. Effective competition is not anticipated for this action. It was determined through the market research in paragraph eight (8) below that no other thermal analysis equipment that can currently meet the Government’s requirements exists. This research indicated that Netzsch thermal analysis equipment is the only one currently available in the market place capable of meeting the Government’s requirements. Market research showed that a similar system to the Netzsch equipment does exist but does not have the necessary temperature, sensitivity, and vacuum control required to run air sensitive samples, which is required to meet mission requirements. Therefore, the Netzsch Thermal Analysis Equipment is the only one that successfully meets ARDEC’s Nanotechnology Center’s requirements.

b. This is a one-time buy for ARDEC’s Nanotechnology Center and there are no future requirements for the Netzsch Thermal Analysis Equipment beyond the completion of this action.

8. Market Research:

a. The U.S. Army Contracting Command - New Jersey (ACC-NJ), on behalf of the ARDEC RDAR-MEE-M, conducted market research to identify potential sources for the supply, delivery, and maintenance for thermal analysis equipment that will replace existing thermal analysis equipment that has ceased functioning. A Sources Sought Notice (SSN), W15QKN-15-X-3169, was published for thirty days on FedBizOps on 10 November 2015 to identify potential sources for the Thermal Analysis Equipment. The request for interested bidders received one response from Netzsch Instruments North America, LLC. (Netzsch)

(i) Netzsch of 29 Middlesex Turnpike, Burlington, MA 01803 response supports that they have the capability to provide the specified instrumentation, delivery, installation, and training as listed in the referenced Sources Sought Notice with low risk to the Government. Netzsch develops and manufactures a complete high-precision instrument line for thermal analysis, calorimeter and thermophysical properties measurement, and offers world class commercial testing services in the laboratory.

Their instrumentation is employed for research and quality control in the polymer sector, the chemical industry, the areas of inorganic and building materials, and environmental analysis. Instruments for controlling – such as for in-situ cure monitoring – are included in their product line. They are listed in the System for Award Management (SAM) with no active exclusions and are registered under the NAICS Code 334516, Analytical Laboratory Instrument Manufacturing.

(ii) Netzsch provided support that they can offer installation and training with a low risk to the Government. They employ service engineers who are direct employees and are fully trained on all Netzsch systems eliminating a need for subcontactors.

Installation and training is scheduled within three (3) weeks of system delivery and would take approximately three (3) days for installation and training of employees.

(iii) Netzsch supported they are the only authorized supplier of Netzsch Thermal Analysis units. The responder can fully honor the one-year manufacturer's warranty for all parts and labor and support an additional four (4) consecutive years of support and can offer varying levels of maintenance agreements that would satisfactorily meet the requirements of this effort.

(iv) Netzsch is a qualified source of meeting the requirements for the thermal analysis requirement in all of the technical areas required by Sources Sought Notice W15QKN-15-X-3169 as substantiated by their past history for development of this type of thermal analysis equipment. They are currently the only qualified source and supplier for the Netzsch STA449 F1 Jupiter Simultaneous TGA-DSC/DTA apparatus (P/N STA400F1A01.000-00) and the QMS 403 D Aeolos Mass Spectrometer (P/N QMS4030DA00.000-00) as specified in the Sources Sought Notice.

(v) Netzsch supported that no subcontractor would need to be utilized in completing this effort.

b. Additional market research was conducted on October 19 and 20, 2015 by

ARDEC RDAR-MEE-M to find any commercial equivalent equipment currently on the market that may satisfy all requirements stated in Sources Sought Notice W15QKN-15- X-3169. Several companies were identified, researched on the internet, and contacted by telephone including Mettler Toledo (www.mt.com), Perkin-Elmer (www.perkinelmer.com), and TA Instruments (www.tainstruments.com).

(i) Mettler Toledo 1900 Polaris Parkway Columbus, OH 43240 is an analytical chemical equipment manufacturer that specializes in precision balances and analytical instruments. The website of Mettler Toledo has product specifications for a high temperature TGA/DSC system (TGA/DSC 3+) that can be combined with mass spectroscopy. Initially, the TGA/DSC 3+ seemed promising with high thermobalance and DSC sensitivities; however, further discussion via telephone with a product support specialist revealed that Mettler Toledo’s TGA/DSC 3+ cannot be modified for vacuum tight measurements, as required by ARDEC’s Nanotechnology Laboratory.

Unfortunately, none of Mettler-Toledo’s other systems have high enough sensitivities to currently satisfy the requirements.

(ii) The website for Perkin Elmer 940 Winter St. Waltham, MA 02451 details specifications for their highest sensitivity and sample volume simultaneous TGA/DSC, STA8000, but the instrument lacks several required features, including the vacuum capability, and so it cannot currently satisfy current requirements. Further market research led to the website for TA Instruments of New Castle, DE.

(iii) TA Instruments 159 Lukens Dr. New Castle, DE 19720 is another well-known chemical equipment manufacturer that specializes in thermal analysis and rheological analytical equipment. TA Instruments offers a similar technology in their Q600 SDT Simultaneous DSC-TGA coupled to a Discovery Mass Spectrometer; however, the instrument does not meet several criterion set forth in Sources Sought Notice W15QKN- 15-X-3169: the TA Instruments system does not reach 1600 C; the thermobalance sensitivity is greater than 25 ng (100 ng); the DSC sensitivity is greater than 0.1 µW (4 µW); the system is not vacuum tight; and the maximum sample size is less than 5 g (2 http://www.tainstruments.com/ g). Therefore, although a similar thermal analysis system is commercially available through TA Instruments, the system does not currently meet the specifications needed to meet ARDEC’s requirements.

c. In accordance with FAR 10.001(3)(ii) it has been determined that the Thermal

Analysis Equipment to be acquired in support of this effort meets the definition of a Commercial Item as described in FAR 2.101. The item(s) to be acquired are of a type customarily used by the general public or by non-governmental entities for purposes other than governmental purposes, and has been sold, leased, or licensed to the general public; or, has been offered for sale, lease, or license to the general public.

d. The General Services Administration (GSA) supply schedules were also queried for the Netzsch system. Utilizing a variety of searches through the supply schedules, it was determined that there are no vendors on GSA that are capable of meeting the Government’s requirement.

e. Based on the results of the market research and the specific information provided in Section 9 below, Netzsch is the only source that has the ability to meet all of the Government’s without incurring unacceptable delays. Market research revealed that effective competition is not anticipated for this effort.

9. Interested Sources:

a. As required by FAR 5.201, a pre-solicitation notice citing FAR 6.302-1 will be published on FedBizOpps prior to release of the solicitation, and any proposals received shall be considered.

b. To date, no other sources have written to express interest in this acquisition.

10. Other Facts:

a. Procurement History: The procurement history for thermal analysis equipment is as follows:

(1) Contract Number: W15QKN-05-P-0644

Contractor: Netzsch Instruments Inc.

Award Date: 20 Sept 2005 Competition Status: Sole-Source J&A Authority: Not Available Dollar Value: $218,318.00 Period of Performance: 12 months Contract Type: Firm Fixed Price Place of Performance: Picatinny Arsenal, NJ

Previous J&A Authority: Not Available

b. Other Facts: Not applicable

11. Technical Certification: I certify that the supporting data under my cognizance, which are included in the justification are accurate and complete to the best of my knowledge and belief.

Name: Andrew T. Perich, PE Date: ___________________ Title: Chief, MM&PT Division Signature: ___________________ Organization: RDAR-MEE-M

12. Requirement Certification: I certify that the supporting data under my cognizance, which are included in the justification are accurate and complete to the best of my knowledge and belief.

Name: Andrew T. Perich, PE Date: ___________________ Title: Chief, MM&PT Division Signature: ___________________ Organization: RDAR-MEE-M

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. The resulting proposal will be subjected to a formal technical evaluation and price analysis. Certified cost and pricing data will not be required as per FAR 15.403(b)(3) as the supplies being procured under this effort are commercial.

Name: Evangelina C. Tillyros Date: ___________________ Title: Contracting Officer Signature: ___________________ Organization: ACC-NJ-CC

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Evangelina C. Tillyros Date: ___________________ Title: Contracting Officer Signature: ___________________ Organization: ACC-NJ-CC

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of thermal analysis equipment, with a total dollar value estimated at $354,500.00, on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(1), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements”, as implemented by FAR 6.302-1(a)(2)(ii)(B), subject to the availability of funds, and provided that the services and property herein have otherwise been authorized for acquisition.

Date: ________________ Signature: __________________________________ Evangelina C. Tillyros Contracting Officer Army Contracting Command- New Jersey