Sole_Source_Justification.pdf

Control Number: 15-41

Simplified Acquisition Sole Source Justification Review Document

Program/Equipment: Immersive Environment Simulator Reconfigurable Automatic

Virtual Environment (RAVE) II Display Upgrade. The upgrade shall include replacing four (4) projectors, four (4) screens, one (1) contaminated mirror, a video switching system and an image generator, as well as providing qualified personnel to install the upgrade.

Authority: 41 USC 1901, implemented by FAR 13.501(a)(1)

Amount: $ 407,700.00

Prepared By:

Typed Name: [redacted] [redacted]

Title: Electronics Engineer Date: 8 JUN 2015

Procuring Contracting Officer:

Typed Name: Phillip J. Amador [redacted]

Date Reviewed: 15 JUL 2015

Technical Representative:

Title: Electronics Engineer Date Reviewed: 8 JUN 2015

Requirements Representative:

Title: Contract Program Specialist Date Reviewed: 03 August 2015

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

[redacted]

X Legal Advisor

Simplified Acquisition Sole Source Justification Using Simplified Acquisition Procedures

1.a. Contracting Agency - Adelphi Contracting Division Army Contracting Command – Aberdeen Proving Ground (ACC-APG) Adelphi Contracting Division (CCAP-SCA) 2800 Powder Mill Road Adelphi, MD 20783

1.b. Requiring Agency – Army Research Laboratory U.S. Army Research Laboratory Human Research & Engineering Directorate (HRED) Soldier Performance Division (SPD) Dismounted Warrior Branch (DWB) Aberdeen Proving Ground Maryland, 21005-5066

2. Description of Action - Approval is requested to solicit for a new contract in support of the U.S. Army Research Laboratory HRED/SPD/DWB on the basis of other than full and open competition for an Immersive Environment Simulator RAVE II Display Upgrade. The upgrade shall include replacing four (4) projectors, four (4) screens, one

(1) contaminated mirror, a video switching system and an image generator, as well as providing qualified personnel to install the upgrade.

A firm fixed-price (FFP) contract is requested using FY15 Research Development Test and Evaluation (RDT&E) funds. The funds have been reviewed and are determined to be appropriate and available for obligation through 30 September 2015.

The sole source vendor is:

Mechdyne Corporation 11 E Church Street, Suite 400 Marshalltown, IA 50158-5011 CAGE Code: 087T8

DUNS: 968974766

Small Business Concern

3. Description of Supplies/Services – Design and installation of an upgraded visual display system to replace the outdated components of the custom designed RAVE II visual display in ARL-HRED’s Immersive Environment Simulator. The RAVE II display system provides the visual scene for an immersive virtual reality simulation system used in research studies conducted at HRED. The RAVE II system consists of (4) Modules, each one comprised of a 12.5 ft. by 10 ft. rear projection screen; a projector; a mirror;

and a light-blocking cloth cover extending from the top and sides of the screen over the projector and mirror; all mounted on a movable (wheeled) frame structure to enable repositioning of the displays to connect together to form 90 degree angles from one another and fully surround the ODT or be moved back to allow for outside viewing or maintenance of the ODT. Images of simulated environments are displayed to the screens by image generators through a video switch that controls which image source is displayed to which screen. The custom-built simulator is used in numerous research studies conducted at HRED. These studies are dependent on the operation of the entire system. The validity of the research is a factor of the quality of the images provided by the system and all components of the simulator must be fully integrated with the RAVE II to maintain the schedule of these research efforts

4. Authority Cited

The statutory authority permitting other than full and open competition is 41 USC 1901, implemented by FAR 13.501(a), using the specific authority selected below:

_X__(1) The property or services needed by the executive agency are available from only one responsible source and no other type of property or services will satisfy the needs of the executive agency;

____(2) The executive agency’s need for the property or services is of such an unusual and compelling urgency that the Federal Government would be seriously injured unless the executive agency is permitted to limit the number of sources from which it solicits bids or proposals;

____(3) It is necessary to award the contract to a particular source—

____(A) to maintain a facility, producer, manufacturer, or other supplier available for furnishing property or services in case of a national emergency or to achieve industrial mobilization;

____(B) to establish or maintain an essential engineering, research, or development capability to be provided by an educational or other nonprofit institution or a Federally funded research and development center;

____(C) to procure the services of an expert for use, in any litigation or dispute (including any reasonably foreseeable litigation or dispute) involving the Federal Government, in any trial, hearing, or proceeding before a court, administrative tribunal, or agency, whether or not the expert is expected to testify; or

____(D) to procure the services of an expert or neutral for use in any part of an alternative dispute resolution or negotiated rulemaking process, whether or not the expert is expected to testify;

____(4) The terms of an international agreement or treaty between the Federal Government and a foreign government or an international organization, or the written directions of a foreign government reimbursing the executive agency for the cost of the procurement of the property or services for that government, have the effect of requiring the use of procedures other than competitive procedures;

____(5) Subject to section 3105 of this title, a statute expressly authorizes or requires that the procurement be made through another executive agency or from a specified source, or the agency’s need is for a brand-name commercial item for authorized resale;

____(6) The disclosure of the executive agency’s needs would compromise the national security unless the agency is permitted to limit the number of sources from which it solicits bids or proposals; or

____(7) The head of the executive agency (who may not delegate the authority under this paragraph)—

(A) determines that it is necessary in the public interest to use procedures other than competitive procedures in the particular procurement concerned; and

(B) notifies Congress in writing of that determination not less than 30 days before the award of the contract.

5. Reason for Authority Cited: ARL-HRED requires the replacement of outdated components for the custom designed RAVE II Visual display in ARL-HRED’s Immersive Environment Simulator. Mechdyne Corporation is the sole designer and manufacturer, or the Original Equipment Manufacturer (OEM), of the RAVE II system installed at ARL HRED. Mechdyne Corporation, as the OEM, is the only source capable of integrating the required systems to ensure full compatibility with current systems and meet the required standards with the necessary precision, accuracy and reliability. The RAVE II system was custom designed by Mechdyne Corporation under contract DAAD17-01-F- 0471 (Fakespace Systems, Inc. was a subcontractor, Mechdyne Corporation acquired Fakespace in 2003) to provide the visual scene for a virtual reality simulator that incorporates an omni-directional treadmill (ODT) designed and built for HRED under a separate Research and Development (R&D) contract, DAAD17-03-C-0139 (MTS Systems Corporation).

The original graphics system, installed in 2002, is far outdated by the current commercial standards for resolution (currently only supports 1280x1024 pixels), image quality (current brightness is 6000 lumens, contrast ratio is 300:1), frame rate (currently 60 Hz), lamp life (currently 1000 hours) and other performance characteristics. The projectors (manufactured by Christie Digital), analog video switch (manufactured by Crestron) and image generator (manufactured by Quantum 3D) are no longer supported by the manufacturers so certain parts are unavailable for replacement when needed.

Should these systems become inoperable, research studies would have to be delayed and likely cancelled as the systems would be unserviceable. These studies are dependent on the operation of the entire system. The validity of the research is a factor of the quality of the images provided by the system and all components of the simulator must be must be fully integrated to maintain the schedule of these research efforts.

As the sole designer and manufacturer of the RAVE II system, Mechdyne Corporation is the only source that has the proprietary drawings, knowledge and understanding of the support structure, mounting connections and cabling and switch configurations required to complete the necessary upgrades. ARL is responsible for the integrity of the test data they produce and require all instruments to be operating to certified standards and with full compatibility capability. Therefore, it is in the best interest of the Government to have the required system built by the OEM to ensure system compliance for accurate and consistent results.

Furthermore, upgrading just the components needed to bring the system up to current capabilities and standards will be much less costly to the Government than replacing the entire system (original cost of [redacted] for equipment and installation) and take less than a third of the time [two (2) weeks for an upgrade vs. at least six (6) months to re-procure the entire system and an additional six (6) or more weeks for a full system installation], reducing down time and potential research delays.

Due to the aforementioned, Mechdyne Corporation, is the only manufacturer that can meet the Government’s minimum requirements.

6. Efforts to Obtain Competition: Based on Market Research performed by the Technical Point of Contact (TPOC), Mechdyne Corporation is the only vendor capable of fulfilling the Government’s requirements. Mechdyne Corporation, the OEM, is the sole designer and manufacturer of the RAVE II system installed at ARL HRED and no other source is qualified to perform this upgrade; therefore, effective competition for this acquisition is not anticipated. The Government will continue to perform market research to identify new manufacturers and seek opportunities for competition for future RAVE II display system requirements.

7. Actions to Increase Competition: Based on information provided in section five (5) above, competition for this action was not feasible; however, any future purchase requests that require a total system replacement will include new market research. The new market research will include all the elements necessary at that time to increase the competition, in accordance with the current Federal Acquisitions Regulations (FAR), As required by FAR 5.201, any other bids or proposals received during this procurement will be forwarded to the Government’s Technical Certifier for consideration. The Government will continue to pursue market research to help locate other potential sources that can meet the requirement, but until another source is known, the Government will continue to use the existing known source, Mechdyne Corporation, as they are the only company with the knowledge and understanding of the RAVE II display system

8. Market Research: Market research was conducted in May 2015 by [redacted], an Electronics Engineer who has been working with and overseeing the maintenance of HRED’s RAVE II (reconfigurable cave automatic virtual environment (CAVE)) system since 2004. Market research was conducted to determine whether a vendor other than Mechdyne Corporation could provide the design and installation of the upgrade for the current RAVE II system at the US Army Research Laboratory (ARL). [redacted] conducted this research by contacting knowledgeable members of industry and Subject Matter Experts (SMEs) and executed internet searches. The SMEs contacted included [redacted], Ph.D., Deputy Director, NCAMSC Director, and [redacted], Ph.D., Virtual Medical Environments Director, Uniformed Services University of the Health Sciences.

[redacted] oversaw the design, installation and operations of a Wide Area Virtual Environment (WAVE) comprised of a 24-screen, 48-projector, stereoscopic virtual environment designed and built by Mechdyne Corporation for the National Capital Area Medical Simulation Center. This project was awarded through an AV/SIM (audio/visual and multimedia simulation) IDIQ contract. [redacted], Director of the Rowan University Virtual Reality Laboratory, said that Mechdyne Corporation has designed various systems for their Laboratory from the early 2000s up to their recently installed 10-screen collaborative environment. He stated that Mechdyne Corporation was the only US vendor they found that could provide custom unique products to meet research needs.

Most Audio/Visual companies that provide large display systems are focused on flat displays for marketing purposes and cannot deliver the custom virtual reality display systems for long-term research use that Mechdyne Corporation provides. Also contacted was [redacted], Senior Account Manager, Mechdyne Corporation.

[redacted] has been involved in numerous government funded projects for the Army, the Joint Forces Command and NASA as well as educational and commercial organizations. The existing system must function as a whole and no other source is able to provide the integration of the components to ensure total system functionality, operability, and safety due to the proprietary nature of the system as Mechdyne Corporation is the OEM of the RAVE II. Based on the aforementioned, Mechdyne Corporation is the only responsible source capable of satisfying the Government requirements.

9. Interested Sources:

A Synopsis was posted to the Federal Business Opportunities (FBO) website on 16 July 2015, for fifteen (15) days to announce that the Government intends to solicit and negotiate with only one source and to provide the public an opportunity to review the requirement and respond. The Synopsis closed on 31 July 2015. No other sources responded to the Synopsis to express an interest by submitting a capability statement, proposal, or quotation.

10. Other Facts:

a. Procurement history.

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

DAAD17-01-F-0471: 26 September 2001 (Delivery Date 31 December 2002): Awarded to Silicon Graphics Federal Inc. for the original design and installation effort. Fakespace Systems, Inc. was the subcontractor for the initial design and installation. Mechdyne Corporation acquired Fakespace Systems, Inc. in 2003.

W911QX-05-F-0299: 21 September 2005 (Delivery Date 31 July 2006): Awarded to Mechdyne Corporation for the design and installation of 4th display module.

W911QX-04-P-0139: 18 December 2003 (Period of Performance 01 January 2004 – 31 December 2004): Yearly Maintenance.

W911QX-05-P-0064: 23 November 2004: Yearly Maintenance, with four (4) option years (Period of Performance 01 January 2005 – 31 December 2009):

Option one (1) exercised 21 December 2005 Option two (2) exercised 08 January 2007 Option three (3) exercised 18 December 2007 Option four (4) exercised 03 November 2008

W911QX-10-P-0088: 01 January 2010: Yearly Maintenance, with four (4) option years (Period of Performance 01 January 2010 – 31 December 2014):

Option one (1) exercised 08 December 2010 Option two (2) exercised 08 December 2011 Option three (3) exercised 01 January 2013 Option four (4) exercised 16 December 2013

W911QX-15-P-0116: 02 March 2015: Yearly Maintenance, with four (4) unexercised option years (current Period of Performance 26 February 2015 – 25 February 2016).

(2) Competitive status of these actions.

DAAD17-01-F-0471: Competed

W911QX-05-F-0299: Non-competitive

W911QX-04-P-0139: Non-competitive

W911QX-05-P-0064: Non-competitive

W911QX-10-P-0088: Non-competitive

W911QX-15-P-0116: Non-competitive

(3) Authority previously used for less than full and open competition.

FAR 6.302-1 – Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

After the award of the initial contract, DAAD17-01-F-0471, all subsequent contracts were sole sourced to Mechdyne Corporation, because market research found that while certain elements of repair and replacement on the RAVE II system could possibly be handled by alternative vendors, no other source is able to provide the full scope of the maintenance and calibration services, and ensure system functionality and operability, due to the proprietary nature of the system.

All subsequent contracts were sole sourced to Mechdyne Corporation, because market research found that while certain elements of repair and replacement on the RAVE II system could possibly be handled by alternative vendors, no other source is able to provide the full scope of the maintenance and calibration services, and ensure system functionality and operability, due to the proprietary nature of the system.

(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.

Market research was conducted by [redacted], Electronics Engineer, Dismounted Warrior Branch, HRED, with 23 years of professional experience. [redacted] conducted this research to determine whether a vendor other than Mechdyne Corporation could provide maintenance services for the current RAVE II system at the US Army Research Laboratory (ARL). [redacted] conducted this research by contacting knowledgeable members of industry and Subject Matter Experts (SMEs) and executed internet searches. Research found that certain elements of repair and replacement on the RAVE II system could possibly be handled by alternative vendors, however no other source is able to provide the full scope of the maintenance and calibration services, and ensure system functionality and operability, due to the proprietary nature of the system. Based on the aforementioned, Mechdyne Corporation is the only responsible source capable of satisfying the Government requirements. Therefore, a non-competitive contract was awarded to Mechdyne.

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

None.

(6) An explanation of any unusual patterns which may be revealed by the history;

e.g., several consecutive, urgent buys.

None.

(7) If a justification was prepared to support the procurement made before this one, include a copy of the previous J&A as part of this approval package, and briefly describe the circumstances justifying the buy and whether there have been any significant changes (the previous J&A just needs to be easily available to the reviewers/approvers. It does not have to become a material part of this J&A. Also, it should not be part of this J&A when it gets redacted and posted publically). Also describe the Section 7 Actions to Increase Competition that were planned in the previous J&A, and discuss whether or not those actions were taken for this current procurement. If the Section 7 actions from the previous J&A were not taken with this procurement, the J&A must be approved at one level above the previous J&A approver (insert the appropriate signature block below).

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: Electronics Engineer

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: Contract Program Specialist

Technical Certifier

Requirements Certifier

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. Detailed documentation and justification of cost/price reasonableness will be disclosed in the official contract file to include a published price list if available, and comparison of the proposed price with prices found reasonable on previous purchases. Cost or Pricing data is not required, in accordance with the threshold at FAR 15.403-4(a)(1).

14. Procuring Contracting Officer Certification:

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

Contracting Officer (KO)

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of the Immersive Environment Simulator RAVE II Display Upgrade on an other than full and open competition basis pursuant to the authority of 41 USC 1901, implemented by FAR 13.501(a)(1), 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 below date, this Justification and Approval shall be returned to the Special Competition for Advocate (SCA) for revalidation. Additionally, if any changes to the requirements, basis for the justification, market conditions, or increases in the estimated value of the proposed action occur at any time, the Contracting Officer shall document these changes in a memorandum and obtain review/concurrence from the Competition Advocate.