Redacted_J&A.pdf

Item: AVL Preventative Maintenance and Emergency Repairs

Estimated Cost: $1,097,109.00 CMO Control Number: 2018-057

For Official Use Only (FOUO)

DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. CONTRACTING ACTIVITY: Anniston Army Depot, Anniston, AL is the contracting activity

2. DESCRIPTION OF ACTION: Anniston Army Depot intends to award a new firm fixed price contract to AVL Instrumentation & Test Systems, INC in Plymouth MI. The proposed contract is for Preventative Maintenance and Emergency repair of the AVL brand engine test cells located at Anniston Army Depot. The proposed contract will include a base year with four (4) option years using Army Working Capital Funds

(AWCF).

3. DESCRIPTION OF SUPPLIES/SERVICES: The contractor will provide on-site preventive maintenance and emergency repair services for the AVL Equipment listed below including all labor, equipment, special tools, materials, documentation, transportation, schematics, common tools of the trade, and any other items necessary to provide the required support of the AVL brand engine test cells here at Anniston Army Depot (ANAD). The contractor will follow the definition of Preventative Maintenance according to the Industry Standard EN 13306:2001. This states that Preventative Maintenance is “maintenance carried out at predetermined intervals or according to prescribed criteria and intended to reduce the probability of failure or the degradation of the functioning of an item.” Preventative maintenance shall be carried out according to AVL specifications detailed in the equipment user manual. The contractor will perform emergency repairs for the AVL equipment, including on-site emergency repair services when requested, on a high priority basis and outside the PPM (reference paragraph 5 herein) as needed. Emergency repair services shall include application engineering support, modification and upgrade of AVL software and hardware, purchase of parts for repair of AVL equipment at ANAD, and repair and return of AVL equipment. The contractor shall acknowledge the Government’s request for on-site emergency repairs or other on-site technical support from the Contracting Officer or COR within twenty-four (24) hours after notification. Contractor personnel shall be dispatched to ANAD within 72 hours when expedited repair service is requested at the expedited repair service rate. The total estimated value for the base year will be $210,722.00. The total for base and four (4) option years will be approximately $1,097,109.00. An IGCE was conducted and these estimates were reached based on the labor rates from the current contract we have with AVL plus inflation and the addition of money to cover the cost of possible repair parts for each year.

4. AUTHORITY CITED: The statutory authority permitting other than full and open competition is 10 United States Code (U.S.C.) 2304(c)(1) as implemented in Federal

Acquisition Regulation (FAR) 6.302-1(a)(2)(iii)(A), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

5. REASONS FOR AUTHORITY CITED: AVL is the Original Equipment Manufacturer (OEM.) AVL retains the proprietary rights to all technical, design, and software data required to perform necessary repairs, alignments, and software updates.

AVL will not delegate those rights or release the proprietary information. The AVL test cells are complex testing equipment with capability to test and diagnose components for the U.S. Army M1 Abrams main battle tank and other armored combat vehicles. The test cells are a vital requirement to meet ANAD’s mission. Should the AVL test cells be serviced by a non-certified distributor, any remaining warranty will be voided. If this repair and maintenance effort were not awarded directly to the certified company, AVL Instrumentation & Test Systems, INC, then the 24 AVL test cells at ANAD would become irreparable and would require replacement. Anniston Army Depot’s Directorate of Production Engineering (DPE) estimated that the cost to upgrade each of the test stands is approximately $250,000.00 each, bringing the total to $6M for all of the test stands. Since the total value of this repair effort over the next five years is only $1.1M, to replace the units for a total of $6M would result in a substantial duplication of cost that would be unlikely to be recovered through competition.

6. EFFORTS TO OBTAIN COMPETITION:

a. Effective Competition: For the reasons stated in section 5 above this procurement will not be competed.

b. Subcontracting Competition: AVL is not a Small Business and will submit a subcontracting plan in response to the solicitation. The following applicable clauses will be utilized in the solicitation:

52.219-9, Small Business Subcontracting Plan (Deviation 2018-O0013) APR

DFARS 252.219-7003 Small Business Subcontracting Plan (DoD Contracts) (Deviation 2018-O0007) (Apr 2018)

7. ACTIONS TO INCREASE COMPETITION: We will continue to conduct industry surveys of other vendors to determine if they have developed products and services which meet the requirements for the repair and maintenance of AVL equipment. All vendors must have written permission from AVL stating that they can have access to AVL proprietary data. Access to this data is required to properly service and maintain this equipment.

8. MARKET RESEARCH: During the package preparation phase, the current vendor, AVL, was contacted. AVL provided a letter stating they are the sole authorized service provider for the AVL test equipment. In addition, sources were sought on the

FedBizOps website for which there were no responses. This was published on 10 APR 2018 and closed on 24 April 2018 at 4:00 P.M. CDT.

Sources Sought Summary of Service: The specification establishes the requirements for on-site preventive maintenance and emergency repair services for Government owned AVL Equipment as specified herein. This equipment is located in buildings 474, 475, 410, 149 and Turbine Engine test cells 1, 2,3,4,5, and 20 at Anniston Army Depot (ANAD), Anniston, Alabama. The on-site preventive maintenance and emergency repair support coverage shall be for one-base year with an option of 4 additional years.

9. INTERESTED SOURCES: To date no other sources have expressed interest except those in section 8 above. A synopsis will be provided with the provided in accordance with FAR 5.201.

10. OTHER FACTORS:

a. Previous History: Service Contract

Contract: W911KF-12-C-0002 Service Contract Contractor: AVL INSTRUMENTATION & TEST SYSTEMS, INC Competitive Status: FAR 6.302-1(a)(2)(iii) “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements” Award Date: 14-Nov-2011

Contract: W911KF-15-C-0016 Service Contract Contractor: AVL INSTRUMENTATION & TEST SYSTEMS, INC Competitive Status: FAR 6.302-1(a)(2)(iii) “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements” Award Date: 28-May-2015

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 & Date:

Name:

Title: Director, Department of Public Works (DPW)

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 & Date:

Name:

Title: Director, Department of Public Works (DPW)

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.

Compared the effort IGCE to previous contract costs as well as to the cost analysis to replacement equipment. Certified cost and pricing data will not be required due to the exception listed in FAR 15.403-1(b)(3).

Title: Contracting Officer

14. Contracting Officer Certification:

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

Title: Contracting Officer

APPROVAL

Based on the forgoing justification, I hereby approve the procurement of services for Preventative Maintenance and On-Call Emergency Repairs of the AVL Engine Test cells contract on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(1),as implemented by (FAR) 6.302-1(a)(2)(iii)(A), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements” provided that the services and property herein described have otherwise been authorized for acquisition. The estimated value of this contract is $1,097,109.00