A03_-_Redacted_JA_over_ 150K_(L3_IDIQ).docx

Justification Review Document For Other than Full and Open Competition

Program/Equipment: L-3 Supplies and Services

Authority: 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1

Amount: $5,000,000.00

Prepared By:

Typed Name: {REDACTED} DSN: {REDACTED}

Title: Engineering Technician Date: 03 February 2015

Procuring Contracting Officer:

Typed Name: Daniel Balizan DSN: {REDACTED}

Date Reviewed: 05 February 2015

Technical Representative:

Typed Name: {REDACTED} DSN: {REDACTED}

Title: Engineering Technician Date Reviewed: 03 February 2015

Requirements Representative:

Typed Name: {REDACTED} DSN: {REDACTED}

Title: Branch Chief Date Reviewed: 04 February 2015

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

DSN: {REDACTED}

Justification and Approval For Other than Full and Open Competition

1. Contracting Activity:

United States (US) Army Contracting Command – Aberdeen Proving Ground (ACC-APG), Adelphi Contracting Division (CCAP-SCA), 2800 Powder Mill Rd, Adelphi, MD 20783

2. Description of Action: The proposed action will result in award of an Indefinite Delivery Indefinite Quantity (IDIQ) type contract. . The contract will have an ordering period of five (5) years upon which Firm Fixed Price (FFP) type delivery orders (DO) and FFP task orders (TO) will be issued to acquire parts, equipment and services to support continuity of laboratory operations and mission completion. The total contract ceiling price for the five (5) year ordering period will be $5,000,000.00. Award is anticipated in March 2015. The type of funding which will be utilized for the 1st DO will be Fiscal Year (FY) 2014 Research Development Test and Evaluation (RDT&E) funds with future orders being funded by current year RDT&E appropriations.

3. Description of Supplies/Services: The {REDACTED} identified a requirement for supplies and services for various replacement and expendable items for L-3 manufactured flash x-ray systems and Computed Radiography (CR) systems. The items include, but are not limited to various quantities of the following: x-ray tubes, 150 kilovolt (kV), 300 kV, 450 kV ,1 MV, Remote Tubehead Cables, Control cables, Remote Tubeheads, Modules, High voltage power supplies, X- ray Controller (XCON) Trigger systems, Trigger Transformers, Charge Resistors, Flash X-ray Systems including standard add-on channels and options; 150 kV, 300 kV, 450 kV ,1 MV, CR Image plates and Cassettes, CR cleaning screens, CR image readers.

Maintenance includes factory and on-site pulser rebuilding, one-time repairs which shall be done On-site and or at the factory, services to troubleshoot and repair flash x-ray equipment including: Trigger system malfunctions x-ray pulser malfunctions – module and other high voltage component breakdowns and factory repair of CR image readers. Equipment Modifications consist of upgrades to existing system power supply and trigger systems, air conversion of existing 300 kV and 450 kV flash x-ray equipment, along with various components and assembly parts associated with L-3 {REDACTED}. Five (5) locations within ARL-WMRD at {REDACTED} have been identified as requiring these L-3 supplies or services, locations as follows:

{REDACTED}

4. Authority Cited: The statutory authority for this action is 10 U.S.C. 2304(c)(1), as implemented by FAR FAR 6.302-1 “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements”.

5. Reason for Authority Cited: The proposed source is L-3 {REDACTED}. located at 2700 Merced St., San Leandro, CA 94577-5602. The L-3manufactured parts and equipment are uniquely integrated into all of ARL WMRD experimental facility systems. L-3 is the original equipment manufacturer (OEM), no other vendor is capable of fulfilling the requirements of the Government and is able to provide compatible parts and equipment to incorporate into existing ARL owned L-3 pulsed power systems. L-3 is the “owner” of the specification and manufacturing drawings and no other source is authorized to sell L-3 OEM parts. Refurbishing the equipment with OEM parts is the only way to ensure that the equipment is maintained with precision and high quality. OEMs parts are normally superior to third party parts, having endured a more detailed design and manufacturing process. It is in the best interest of the Government to have OEM replacement parts for the testing equipment to ensure full functionality. Even when a piece of equipment is out of warranty, any usage of non-original parts will negate the warranty that is provided by the OEM when a major rebuild is completed on a piece of equipment. OEM parts are designed to match precisely for these highly technical systems. Furthermore, the OEM of the pulsed power systems is the only source identified that is capable of certifying the systems to the OEM operating standards upon completion of maintenance services. There are no distributors or authorized maintenance vendors for L- 3’s proprietary equipment, and subsequently, no other supplies or services will satisfy ARL’s requirement for this procurement.

ARL is responsible for the integrity of the test data they produce and require all instruments to be operating to the manufacturers certified standards. Data has already been generated using the L-3 manufactured radiographs. This data is critical in supporting the ARL’s mission to support the {REDACTED}. ARL uses {REDACTED}. Flash x-rays can {REDACTED}. Due to {REDACTED} the x-ray equipment is sometimes damaged and needs to be replaced or repaired. ARL requires compatible equipment (only manufactured by L-3) for continuity of laboratory operations and mission completion. Attempting to utilize any other vendors’ parts and equipment with the L-3 manufactured X-Ray systems would invalidate the data, causing significant delays to current missions and programs, thereby harming the Government. The current systems include {REDACTED}. The total value of the current systems is estimated at {REDACTED}. The acquisition of other than L-3 x-ray equipment would require replacement of the entire system and result in a significantly higher cost to the government, {REDACTED}, and approximately five (5) years re-procure, install, train the Government researchers to operate, and develop new systems. These estimates are based on previous award history and current published price listings and include the costs to re-procure all components of the systems, the cost for the installation and configuration of new systems, the man-hours for operational training for new systems, and deployment of the new systems.

Due to L-3 being the OEM of the Flash X-Ray Systems owned and operated at ARL facilities, it is determined to be in the best interest of the Government to issue a sole source IDIQ delivery order/task order type contract to L-3 for parts, equipment and maintenance. Having an IDIQ contract in place for parts and maintenance is advantageous to the government in that an ARL experimental facility costs {REDACTED}. Furthermore, the estimated cost to re-procure the existing systems {REDACTED}. This estimate includes the costs to re-procuring all components of the systems, the cost for the installation and configuration of new systems, the man-hours for operational training for new systems, and deployment of the new systems, which are based on previous award history and current published price listings. The parts and equipment covered by this proposed contract action, which can only be supplied by L-3, was chosen to be compatible with the existing systems without requiring replacement of other components. The acquisition of different x-ray equipment would require replacement of the entire system and result in a significantly higher cost to the Government. When equipment is not functional the loss in productivity quickly becomes more expensive than the cost of the equipment repair. Since L-3 is the OEM of the Flash X-Ray Systems, it is determined to be in the best interest of the Government to issue a sole source IDIQ delivery order type contract to L-3 for parts, equipment and maintenance.

6. Efforts to Obtain Competition: A competitive procurement strategy was not pursued due to the highly unique ability of this equipment which is only manufactured by L-3. Additionally, no other vendor can provide the required maintenance or service the current Government owned equipment without voiding all existing warranties.

7. Actions to Increase Competition: ARL continues to survey the market for Flash X-Ray Systems and will continue to search for qualified contractors comparable to L-3 {REDACTED}. If any sources are found that can provide the same services or equipment, a technical evaluation will be utilized to determine if these sources can be considered for competitive interest.

8. Market Research: {REDACTED}, ARL Engineering Technician/Test Director with eleven (11) years experience conducted market research from 01 January 2014 through 04 November 2014 for the subject procurement. The market research for this requirement consisted of contacting vendors within the Flash X Ray systems industry, internet research, and review of past procurements for similar items. The Government Technical Point of Contact (TPOC) contacted {REDACTED}, sales representative with {REDACTED}., a reseller that offers X-Ray system accessories, which resulted in the representative stating that they only sell X-ray imaging plates and cassettes and could not meet the government’s needs for pulsed power hardware for this requirement as no other sources is authorized to resell L-3 equipment. In addition, contact was made with {REDACTED}, sales representative, L-3 Applied Technologies and found that Engineers and Scientists at L-3 have pioneered the use of most high power techniques taken for granted today such as {REDACTED}

Internet research shows that other sources (example {REDACTED}and {REDACTED}) exist but are not compatible with existing ARL owned equipment. Switching to one of these other manufacturers would require complete replacement of the flash x-ray equipment at significantly higher cost to the government as compared to replacing broken pieces of the systems.

Additionally, ARL periodically surveys the usage of other x-ray systems used by private contractors ({REDACTED}.) and other government agencies such as the Aberdeen Test Center (ATC), as a way of indentifying new technological advancements in X-ray diagnostics that may be available within the industry to ensure no other source is available to provide equipment that is required to meet ARL- WMRD’s experimental facility systems requirements. These organizations use L-3 {REDACTED} similar to ARL when performing similar types of efforts in developing {REDACTED} for the US Army.

9. Interested Sources: Pre-Solicitation Synopsis, W911QX-15-R-0006, was posted to FedBizOps on 17 December 2014. To date only one source, L-3 {REDACTED}. has been identified and expressed an interest in this requirement. As required by FAR 5.201, should any other proposals be received, the information shall be forwarded to the approving official for consideration.

10. Other Facts:

a. Procurement history:

1.) Contract numbers and dates of the last several awards:

W911QX-09-D-0017 - Apr 09/ 5M flash X-ray tubes and components W911QX-07-P-0587 –10 Jul 07 / 28K flash X-ray tubes and components W911QX-07-P-0539 – 12 Jul 07 / 88K Right Angle Tube head and components W911QX-07-P-0061 – 15 Dec 06 / 18K Single Flash X-Ray Tube and components W911QX-06-P-0863 – 22 Sept 06 / 26K Single Flash X-Ray Tube and components W911QX-05-P-0706 – 22 Aug 06 / 104K MV X-ray system and components

2.) Competitive status of these actions:

All actions that require materials in the acquisitions above were awarded on a sole source basis to L-3.

3.) Authority previously used for less than full and open competition The statutory authority for this action is 10 USC 2304 (c)(1) as implemented by FAR 6.302-1. Only one responsible source and no other supplies or services will satisfy agency requirements was used for all of the above referenced contracts.

4.) If a justification was prepared to support the procurement made before this one, a summary of the contents of paragraph 7 of the justification for that procurement and an explanation of the results:

The same justification was provided in previous procurements, that ARL has been monitoring the market for Flash X-Ray Systems and will continue to search for qualified contractors comparable to L-3 {REDACTED} however since L-3 is the OEM of the equipment and parts, it benefits the Government to use these OEM parts in the existing Government owned equipment.

5.) If any prior award was accomplished by full and open competition, a detailed explanation of the changed circumstances:

All actions ARL have solicited through L-3 utilizing the Sole Source FAR authority 6.302- 1 serving as the justification reasoning.

6.) An explanation of any unusual patterns which may be revealed by the history; e.g., several consecutive, urgent buys:

There have been a few {REDACTED}, but the majority has been scheduled purchases.

7.) If a justification was prepared to support the procurement made before this one, briefly describe the circumstances justifying the buy and whether there have been any significant changes:

. Previous J&A’s were utilized to provide the justification and approval for materials/services purchased from L-3 that exceeded the $100,000 threshold but were under individual contract. This proposed effort is requiring a J&A using the same sole source authority to provide the contract usage to a bigger audience of ARL users by intending to award an IDIQ contract with L-3 {REDACTED}

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.

Signer’s Title: Engineering Technician

Signature: {REDACTED}

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.

Signer’s Title: Branch Chief

Signature: {REDACTED}

Name: {REDACTED} Title: Requirements Certifier (Req) Date: Wednesday, 04 February, 2015

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 based on price analysis from previous contracts and comparison to other commercial contracts with cost analysis conducted on a per task order basis. Cost or pricing data will not be required per FAR 15.403-1(b)(3).

Signature:

Title: Contracting Officer (KO) Date: Thursday, 19 February, 2015

14. Procuring Contracting Officer Certification:

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

Signature:

Title: Contracting Officer (KO) Date: Thursday, 19 February, 2015

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of L-3 Supplies and Services 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 “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements” subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition. If the proposed contract action is not completed within 180 days from the approved date, this Justification and Approval shall be returned to the Special Competition Advocate for revalidation. Additionally, should there be changes to the requirements, basis for the justification, market conditions or increases in the estimated value of the proposed action, the Contracting Officer shall document these changes in a memorandum and obtain review/concurrence from the Special Competition Advocate.

Signature:{REDACTED}

Name: {REDACTED}

Title: Special Competition Advocate (SCA)

Date: 3 March 2015