Redacted_FAR_Part_6_IPS.pdf

Control Number: xxxxxxxxxxxxx

Justification Review Document for Other than Full and Open Competition - FAR Part 6

Program/Equipment: Energetic Loading and Demilitarization Industrial Plant Equipment Maintenance

Authority: Title 10 United States Code (U.S.C.) Section 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements

Amount: $xxxxxxxxxxxxxxxx

Prepared by:

Typed Name: _ xxxxxxxxxxxxxxxx ______________ DSN: _ xxxxxxxxxxxxxxxx ____

Title: __ xxxxxxxxxxxxxxxx ___________________ Date: xxxxxxxxxxxxxxxx _____

E-mail: xxxxxxxxxxxxxxxx

Contracting Officer:

Typed Name: _ xxxxxxxxxxxxxxxx ______________ DSN: _ xxxxxxxxxxxxxxxx ____

Date Reviewed: xxxxxxxxxxxxxxxx ____E-Mail: _ xxxxxxxxxxxxxxxx _________

Technical Representative:

Requirements Representative:

Reviews

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

Program Manager

Signature: __ xxxxxxxxxxxxxxxx _________ Date: __ xxxxxxxxxxxxxxxx _________

Branch Chief

Division Chief

Legal Counsel

Associate Director

Justification and Approval for Other than Full and Open Competition – FAR Part 6

1. Contracting Activity: U.S. Army Contracting Command - New Jersey

2. Description of Action: The U.S. Army Combat Capabilities Development Command – Armaments Center (DEVCOM-AC) requests a new, five year, time-and-materials/labor hour contract. The Government projects award for xxxxx 2022 and fiscal year xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx funds will be used.

3. Description of Supplies/Services: DEVCOM-AC has a requirement for specialized maintenance services for energetic process equipment and the associated support equipment for Picatinny Arsenal’s energetic research and development areas (xxxxxxxx xxxxxxxxxxxxxxxxxx). The majority of the equipment in these areas was designed, manufactured, and installed by Integrated Production Systems Inc., doing business as IPS Custom Automation (IPS). DEVCOM-AC requires the real-time ability to provide repair, perform maintenance, installation and installation support, replacement and refurbishment of support equipment, supply equipment parts and materials, and technical support for all industrial plant equipment and associated controls in xxxxxxx xxxxxxxxxxxxxxxxxxxxxxxx areas, as necessary. The availability, reliability, and timely repair of these systems are integral in providing xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx to the warfighter. The period of performance is five (5) years.

Base Period: Value: $xxxxxxxxxxxxx Option Year 1: Value: $ xxxxxxxxxxxxx Option Year 2: Value: $ xxxxxxxxxxxxx Option Year 3: Value: $ xxxxxxxxxxxxx Option Year 4: Value: $ xxxxxxxxxxxxx

Total: $ xxxxxxxxxxxxx

4. Authority Cited: Title 10 United States Code (U.S.C.) Section 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited: As described at FAR 6.302-1(a)(2), when the supplies or services required by the agency are available only from one responsible source, or for DoD, NASA and the Coast Guard, from only one or a limited number of responsible sources, and no other types of supplies or services will satisfy agency requirements, full and open competition need not be provided for.

As further described in FAR 6.302-1(a)(2)(iii)(A) and (B), for DoD, NASA, and the Coast Guard, services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the agency’s requirement. The duplication costs are based on the time/cost estimated for a new contractor to complete the engineering tasks needed to understand and successfully perform the requirements of this Performance Work Statement (PWS).

The new contractor would have to review and perform thorough walkthroughs of all of the current Statements of Procedures and energetic processes on Picatinny Arsenal.

The new contractor would have to become familiar with the control software being used and learn how software interfaces with the energetic and support equipment in all subject areas used to support the warfighter.

The new contractor would have to learn the energetic facilities, as a whole system, along with the individual pieces of support equipment operates.

They will have to become familiar with the existing safety controls and be able to trouble shoot them real-time. The contractor would have to spend time reviewing installation and facility drawings, as well as performing the maintenance required for all of the systems.

If the new contractor does not have previous experience working in explosive environments, they would have to receive training and review and learn all of the risks and regulations that are associated with operating in energetic areas, energetic equipment, and with energetic buildings.

The new contactor would have to become familiar with how the systems work with energetic materials and energetic waste, versus commercial materials and commercial waste. This is knowledge that is not easily attainable, due to the uniqueness of the R&D systems at Picatinny Arsenal.

At a minimum, an alternate source contractor would generate a duplication cost of $xxxxxxxxxxx to conduct the work outlined in this PWS as outlined in the chart below:

Direct Labor Overhead Total

Hours Rate Dollars Rate Dollars

Review of Existing Equipment and Engineering Drawings

R&D Equipment xxx xxx xxx xxx xxx

Total xxx xxx xxx

Review of Regulations

AR 385 xxx xxx xxx xxx xxx

DA PAM 385-64 xxx xxx xxx xxx xxx

MIL-DTL-31000 xxx xxx xxx xxx xxx

OSHA xxx xxx xxx xxx xxx

Ammo/Explosives Certification xxx xxx xxx xxx xxx

Review of SOPs

R&D SOPs xxx xxx xxx xxx xxx

Review of Hazard Analysis

Existing Hazard Analysis xxx xxx xxx xxx xxx

Review of Environmental Regulations

NJ State xxx xxx xxx xxx xxx

Federal xxx xxx xxx xxx xxx

Familiarization Trips (10, 1-week trips)

Airfare (trips) xxx xxx xxx

Per Diem (days) xxx xxx xxx

Lodging (nights) xxx xxx xxx

Car Rental (days) xxx xxx xxx

Fuel (trips) xxx xxx xxx

Total xxx xxx

Subtotal xxx xxx xxx

G&A xxx xxx

Subtotal xxx

Profit/Fee xxx xxx

Total xxx

*These costs are based on the xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxx Rates.

The total duplication cost of $xxxxxxxxxxxxxxxxx assumes the contractor has a current engineering staff and resources to support this PWS. This also assumes that the contractor is familiar with established operating procedures, general equipment design/performance data, and required documentation (safety site plans, environmental assessments and installation drawings).

The selection of another contractor would incur significant unacceptable delays. IPS has xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx with Picatinny Arsenal utilities and energetic areas. IPS has xxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx at Picatinny Arsenal. IPS has xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx. IPS has xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx to provide maintenance, repair, installation and installation support, replacement and refurbishment, supply parts and material, and technical support. It is anticipated that a xxxxxxxxxxxxxxxxxxxxx delay would occur if the Government attempted to award to a contractor other than IPS. If another contractor is awarded this contract it would take at least xxxxxxxxxxxxxxxx for them to familiarize themselves with the energetic processing equipment and regulations. An additional xxxxxxxxxxxxx delay can also be expected for another contractor to obtain the required technical staff in order to support the maintenance, repair, installation and installation support, replacement and refurbishment, supply parts and material, and technical support. During this learning curve, any maintenance work that is needed would have to be delayed, and programs that are supported by xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx would be significantly impacted and interrupted.

Fulfilling this requirement with a sole source contract to IPS is necessary to meet technical and performance requirements. As the designer, manufacturer of the majority of energetic equipment xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx at Picatinny Arsenal, IPS has xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx meet the Government requirements.

(b) Alternatives: While developing the current requirement, DEVCOM-AC considered the feasibility of using in-house personnel to perform this equipment maintenance.

Using in-house personnel would require training and expertise in a wide range of functional areas including xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx. Also, given the proprietary nature of the equipment that was custom designed, manufactured, and installed by IPS, it is unlikely that in-house personnel could even attain this type of expertise. Furthermore, in-house personnel would lack the facilities, resources, and supplier network necessary to be able to successfully perform this requirement. Therefore, it is not feasible for DEVCOM-AC to dedicate Government personnel to meet this requirement.

Similarly, if this effort is not awarded on a sole-source basis to IPS, xxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxx would lack the maintenance and/or repairs needed to keep it operational. Any disruption in this equipment’s operation would inhibit DEVCOM-AC’s ability to xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx. This would negatively impact the programs that xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx, causing program delays and/or mission failure, which would ultimately impact xxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx to the warfighter.

6. Efforts to Obtain Competition: The Contracting Officer shall publish the notices required by FAR 5.201 and any bids or proposals received shall be considered

a. Effective competition. Because this is a sole-source action, effective competition is notapplicable.

b. Subcontracting competition. The Government intends to ensure the awardee obtains subcontracting competition to the maximum extent possible. All appropriate clauses to include, FAR 52.219-8 “Utilization of Small Business Concerns” and FAR 52.244-5 “Competition in Subcontracting” will be included in the resultant contract.

7. Actions to Increase Competition: Full and open competition is not practical at this time. IPS is the only source that currently possesses the requisite level of expertise, experience and capabilities to meet this requirement. The Government continues to conduct market research on an annual basis to determine if market conditions have changed. To increase competition for future acquisitions, the Government will provide for full and open competition for the replacement of any major piece of equipment covered under this contract action.

8. Market Research: In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) 205.205-71, DFARS 206.302-1(d), and DFARS Procedures, Guidance and Information (PGI) 206.302-1(d), a sources sought notice, W15QKN-21-X-

0FNJ, was posted to beta.sam.gov Contract Opportunities on February 09, 2021 with a closing date of March 01, 2021.

Only one response was received, from IPS (CAGE: 0RHF1), 419 Duncan Perry Rd.

Arlington, TX 76011. IPS is the contractor that has performed maintenance, repairs, fabrications and installation of xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxx over the last two decades. They have xxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx. IPS has a proven track record of providing the needed skill sets to perform all phases of projects at Picatinny, from xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx.

They are also capable of xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx meeting customers’ requirements. Therefore, IPS is the only vendor who has the unique knowledge, skill base, technical capabilities, and high quality performance as documented in the Contractor Performance Assessment Reporting System under the current contract W15QKN-18-C-0084.

Market research was updated by issuing Sources Sought Notice W15QKN-22-X-0FNJ on 16 February 2022 with a closing date of 3 March 2022. One response was received in response to the latest sources sought notice from xxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx. xxxxxxxxxxxxxxxx has experience xxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxx, but does not have xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxx. The market research results show that only IPS is capable of providing the needed equipment maintenance since they are the original equipment manufacturer and they have the experience working with energetic loading equipment.

9. Interested Sources: See Paragraph 6 for the synopsis information. To date, no other sources have written to express interest in the acquisition.

10. Other Facts:

a. Procurement history.

(1) W15QKN-18-C-0084 was awarded to IPS on 10 September 2018.

(2) Competitive Status: Sole Source

(3) Authority Previously Cited: 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements.

(4) The justification for this effort stated, that to increase competition for future acquisitions, the Government will provide for full and open competition for the replacement of any major piece of equipment covered under this contract action.

To date, there has not been a requirement to replace any major piece of equipment covered under the scope of this contract action.

(5) Since no Blanket Purchase Agreement (BPA) holders responded with the capability to satisfy the requirements for work with energetic equipment, DEVCOM-AC pursued a sole source contract for continued equipment maintenance.

(6) No unusual patterns revealed.

(7) There have been no changes to the circumstances justifying this procurement.

W15QKN-10-A-0049, Call Orders

(1) Call Orders #2 and #3 under W15QKN-10-A-0049 were awarded to IPS on September 27, 2010 and August 28, 2012, respectively.

(2) Competitive Status: Full and Open Competition

(3) Authority Previously Cited: Not Applicable.

(4) No justification was prepared to support this procurement.

(5) These call orders were awarded using full and open competition under existing Blanket Purchase Agreements (BPA), however, only one offer was received for each call order. No other BPA holders responded with the capability to satisfy the requirements for work with energetic equipment.

(6) No unusual patterns revealed.

(7) No justification was prepared to support for the procurement.

b. Other facts. None

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.

Signature: _xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx__Date: _xxxxxxxxxxxx____________

Typed Name: _xxxxxxxxxxxxxxxx___ Title: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

12. Requirements 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.

Signature: _xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx__Date: _xxxxxxxxxxxx____________

Typed Name: _xxxxxxxxxxxxxxxx___ Title: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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.

This determination will be made using cost and price analysis. As a part of this basis, certified cost or pricing data will be required.

Signature: _xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx__Date: _xxxxxxxxxxxx____________

Typed Name: _xxxxxxxxxxxxxxxx___ Title: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

14. Contracting Officer Certification:

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

Signature: _xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx__Date: _xxxxxxxxxxxx____________

Typed Name: _xxxxxxxxxxxxxxxx___ Title: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Approval

Based on the foregoing justification, I hereby approve the procurement of Energetic Loading and Demilitarization Industrial Plant Equipment Maintenance on an other than full and open competition basis pursuant to the authority of Title 10 United States Code (U.S.C.) Section 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements. The total estimated value is $xxxxxxxxxxxxx. The approval is subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Date: __xxxxxxxxxxxxxx__ ____ xxxxxxxxxxxxxxxxxxxxx ________ xxxxxxxxxxxxxx Advocate for Competition Army Contracting Command – New Jersey