RedactedACC1691.pdf

CMO#2012-009

Program/Item: Joint Chemical Agent Detector (JCAD) / Services Est. Dollar Value: $2,769,000.00

Justification and Approval for Other Than Full and

Open Competition

1. Contracting Activity: Army Contracting Command (ACC) – Warren (DTA), Chem/Bio Team (CCTA-HCC-B) located in Warren, MI 48397 is the Contracting Activity for the proposed action.

2. Description of Action: ACC-Warren proposes to negotiate and award, on other than full and open competition basis, a new Contract Logistics Support (CLS) Firm-Fixed Price contract for one base year with four additional option years, to Smiths Detection (CAGE Code 23667) 2202 Lakeside Blvd, Edgewood, MD 21040-1102) for the repair and/or the replacement of the M4 and the M4A1 Joint Chemical Agent Detector (JCAD) system detectors. This action will be financed using FY2012 Operations and Maintenance Army (OMA) funds.

3. Description of Supplies/Services: The requirement of this contract is for the repair and/or the replacement of the M4 and the M4A1 Joint Chemical Agent Detector (JCAD) (detector only).

The M4 and the M4A1 JCAD detectors are the Joint Service’s newest point detectors capable of detecting Chemical Warfare Agents and Toxic Industrial Chemicals. The M4/M4A1 is lighter and smaller than currently fielded equipment, lower in operating costs and does not have a radioactive source. This new detection technology will improve upon survey tasks in support of decontamination efforts and contamination avoidance operations (*).

The Contractor shall complete all actions necessary for the repair and/or the replacement of the detectors that are sent to their facility and ensure detectors are repaired to a fully operational condition in accordance with applicable Scope of Work or Performance Specifications to be included in the contract. Repair of detectors shall include, but not limited to, failures due to breakage of a part, or malfunction of a part, or damage to a part that rendered the detector unserviceable, or a condition which causes the detector to fail to meet its performance requirements.

The estimated value for the total contract is $2,769,000, including the options.

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplier or Services Will Satisfy Agency Requirements, as implemented in FAR 6.302-1. Specifically FAR 6.302-1 (a)(2) states “When the supplies or services required by the agency are available from only one responsible source, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for.”

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Agent Detector (JCAD) / Services Est. Dollar Value: $2,769,000.00

5. Reason for Authority Cited: The use of 10 USC 2304(c)(1) and FAR 6.302-1 is justified because at this time Smiths Detection is the original equipment manufacturer (OEM) and the only approved source for the JCAD detector, and neither the Technical Data Package nor the technical data rights for the JCAD detector have been provided to the Government. Without a detailed Technical Data Package, issues with the detector cannot be diagnosed and without a diagnosis, the detector cannot be repaired by other sources (*).

The JCAD is a non-developmental item, and the Government did not purchase technical data rights. Due to the relatively small number of expected repairs, acquisition of the JCAD TDP was deemed unlikely to be cost-beneficial for the Government (*). The Government has inquired if Smiths Detection would be willing to sell data rights, but they have not responded yet. If the Government can purchase data at a cost-effective price, a competitive service contract will be established to provide long term sustainment for the M4 and the M4A1 JCAD detectors in the future. Therefore, this option is not considered to be viable at this time for the agency to meet its current mission requirements.

The Government estimates it would take two years to develop (by reverse engineering) a competitive TDP for the M4 and the M4A1 JCAD detectors at an estimated cost of $20 million.

The Government hasn't yet initiated efforts to internally develop a full TDP for the parts that comprise the JCAD system. Waiting for development of a TDP to permit full and open competition for this service effort would cause unacceptable delays in fulfilling the agency's requirements (*).

Active Government monitoring of the market has yielded no products that meet the set requirements at this time. Therefore, Smiths Detection, as the original equipment manufacturer, is uniquely qualified and positioned to fulfill our need to repair and/or replace M4 and the M4A1 JCAD detectors.

Failure to support the JCAD repair program will result in decreased operational readiness, impact the ability to safely operate in chemical environments and possibly result in death or serious injury to the war fighter (*). The repair program is essential to ensure proper operation of the JCAD Detector.

6. Efforts to Obtain Competition: This procurement action will be synopsized in Federal Business Opportunities (FedBizOpps) to alert potential interested contractors, subcontractors and future alternate sources.

7. Actions to Increase Competition: No action will be taken to increase competition for this instant procurement. As stated above, the Government does not own the rights to the Technical Data Package to support a competitive procurement for this requirement. Smiths Detection is the only source that is able to produce the JCAD because they developed the Technical Data Package. The Government does not own the detailed Technical Data Package for the JCAD detector nor the rights to that technical data package. That does not preclude the Government to take action for future procurements, and as a result the Government has offered to purchase the Technical Data Package and technical data rights from Smiths Detection. If Smiths Detection

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Agent Detector (JCAD) / Services Est. Dollar Value: $2,769,000.00 agrees to sell the Technical Data Package to the Government, then the Government will be able to successfully compete for sustainment of JCAD contracts. At present, Smiths Detection is still reviewing the Government’s offer and a final decision is expected in the near future.

8. Market Research: Active Government monitoring of the market through internet searches has yielded no contractors that can meet the JCAD requirements at this time, other than Smiths Detection. Smiths Detection is the JCAD detector original equipment manufacturer and the only approved source. Furthermore, the Technical Data Package for the JCAD detector is proprietary to Smiths Detection. However, the market continues to be monitored by conducting internet searches, attending international symposia and conferences, and reviewing testing at laboratories that conduct Chem-Bio testing and the National Institute for Occupational Safety and Health (NIOSH) Chemical Biological Radiological Nuclear (CBRN) standard testing. The market research was performed in April, 2011 by ECBC in Rock Island.

9. Interested Sources: To date, no other sources have expressed an interest in writing. Smiths Detection is the only source that produces the JCAD. However, the notices required by FAR

5.201 will be published and any proposals received shall be considered.

10. Other Facts:

a. Procurement History: No contract procurement history exists for the service of the M4 and the M4A1 Joint Chemical Agent Detectors (JCAD).

b. Acquisition data availability: Presently the Government does not have adequate technical data in order to procure this service using full and open competition because the technical data, which is critical to perform repairs or to replace the product, was not purchased during the developmental stages of the JCAD program (*). Currently there is no effort to develop the full technical data package for the JCAD spare parts because the need for this information has not been justified based on future estimated requirements (*).

c. Subcontracting competition: A subcontracting plan is required for all acquisitions over $650,000. To increase competition in its subcontracting and to insure that the prime contractor, Smiths Detection, obtains as much subcontracting competition as possible, the Government will include subcontracting clauses in the solicitation.

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

Name: Nannette Ramsey Date: __9 November 2011 ____

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Agent Detector (JCAD) / Services

Title: Associate Director, Engineering – ECBC – RI Signature: __//s//____________

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

Name: Raymond A. Muskeyvalley Date: 11/09/2011

Title: Associate Director Signature: //s// Raymond A. Muskeyvalley Soldier and Chemical Biological Readiness and Sustainment

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost for this contract action will be fair and reasonable based. The contractor’s proposal will be reviewed using both cost/price analysis and DCAA audit recommendations to discern whether the costs proposed are current and justifiable. The final agreement will give full consideration to all contractual requirements to support the determination of fair and reasonable price for this effort.

Certified cost or pricing data will also be obtained from the contractor.

Name: Harmony Hunsanger_________ Date: ___2011 NOV 10_________

Title: Contracting Officer___________ Signature: __// signed HH//_______

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

Name: Harmony Hunsanger Date: ____2011 NOV 10_________

Title: Contracting Officer_________ Signature: __// signed HH//________

Agent Detector (JCAD) / Services

APPROVAL

Based on the foregoing justification, I hereby approve this Contract Logistics Support procurement for the repair and/or the replacement of the M4 and the M4A1 Joint Chemical Agent Detector (JCAD) system detectors (NSNs M4 – 6665-01-596-0316 and M4A1 – 6665-01- 586-8286) at a total estimated value of $2,769,000, on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(1) and FAR 6.302-1, subject to the availability of funds, and provided that the services and property described herein have otherwise been authorized for acquisition.

DATE: __10 Nov 2011________ SIGNATURE: __//signed//_____________

LA RUTH SHEPHERD

Competition Advocate