A03_-_Redacted_Simplified_Acquisition_Sole_Source_Justification_over_ 150K_(FAR_13.5).pdf

Control No: JA-Adel-16-601 Contractor: JEOL USA

Supply/Service: Preventative Maintenance for JEOL 2010F Transmission Electron Microscope (TEM)

Version – November 2015

4. Authority Cited:

41 U.S.C. 1901(e)(2), implemented by FAR 13.501(a) -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited:

As described at FAR 13.501(a) and FAR 6.302-1(a)(2), when the supplies or services required by the agency are available only from one responsible source, and no other types of supplies or services will satisfy agency requirements, full and open competition need not be provided for.

The Electro-Optics (EO) Materials & Devices Branch of SEDD requires a maintenance contract with JEOL USA to support the existing JEOL 2010F TEM. The TEM has been operating between two (2) divisions of the Army Research Laboratory (ARL), the Radio Frequency & Electrons Division and the Electro-Optics & Photonics Division, for the last eleven (11) years. The original TEM was procured from JEOL, USA Inc under competitive procedures in 1991. JEOL is the OEM of the TEM and currently holds the existing maintenance contract (W911QX-13-P-0333). Due to the complex and proprietary nature of the mechanical and electrical systems and the accompanying computer software employed in the JEOL 2010F TEM, only the OEM, JEOL USA, can provide service on the instrumentation. JEOL USA is the only source that has access to the proprietary design information and large inventory of original equipment components needed to perform the maintenance/repair of the components and circuitry of the systems and return them to OEM specifications.

JEOL USA, Inc. is the sole factory authorized provider of service and sales in the United States and Canada. A typical JEOL service engineer is a graduate of an accredited Technical Institute, having at least an associate’s Degree in Electrical Engineering.

Initially, the engineer receives approximately seven (7) weeks of formal instruction at the JEOL Training Center as well as individualized instrument training. These classes are interspersed with extensive field training under direct supervision of senior service engineers. Engineers return periodically to the JEOL Training Center for additional training whenever new equipment or new techniques are introduced. Factory training and JEOL training center instruction in maintaining JEOL instrumentation are available only to current, qualified JEOL Service Engineers. The electronic schemes for the JEOL 2010F are proprietary to JEOL and only JEOL-trained service engineers can service the JEOL microscopes. In addition, the JEOL TEMs are computer controlled and all of the computer software is proprietary to JEOL USA Inc., and is not available to outside service organizations. Without knowledge of the instruments operating software and the electronic schemes, it will be impossible to service this TEM and if not serviced ARL cannot protect its assets and therefore risks rendering this $ instrumentation inoperable. It would be counterproductive and fiscally wasteful to use a different source as the supplies and services required to operate, maintain, and upgrade the TEM are only available from JEOL USA. If this contract is not awarded, it will severely harm current SEDD missions and programs and lead to unacceptable delays in the accomplishment of mission objectives such as, the examining of morphology of semiconductor films for infrared materials development. Furthermore, to procure services from a different manufacturer will require the replacement of the TEM currently used by SEDD. Consequently, the purchase of a new TEM would result in a substantial duplication of cost to the Government, of an estimated $ , not expected to be recovered through competition. Due to the aforementioned, JEOL USA is the only source that will satisfy SEDD’s requirements.

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. Because this is a sole source action, effective competition is not applicable.

Only JEOL Engineers have access to the proprietary knowledge and technology, which is necessary to perform the required services for ARL’s 2010F TEM. ARL SEDD Subject Matter Expert (SME) has performed market surveys to identify vendors capable of meeting ARL’s requirements, details of which are in the market research section of this document. The Requiring Activity’s research confirmed that JEOL Engineers are the only contractor with the proprietary knowledge and technology that is necessary to perform the required services. Therefore, it is not possible to compete this procurement requirement. ARL will continue to pursue web searches and consultations with knowledgeable government and industry personnel to help locate alternative manufacturers that can provide maintenance support that is compatible with current Government Owned Equipment (GOE), but until that is known, ARL will continue to use the only existing known source, JEOL, USA Inc. If SEDD discovers that another manufacturer could provide a reliable alternative with a high confidence of compatibility, ARL will not hesitate to purchase the services competitively.

7. Actions to Increase Competition:

The proposed contractor occupies a very specialized niche, which is narrow in scope and the need to access proprietary data eliminates all candidate contractors except the OEM, JEOL USA. There are currently no service vendors capable of providing the required service as well as providing the required OEM parts necessary. It is not practical for the Government to foster competition in this area since the Government has no control over proprietary data needed to perform the service on the contract. The market will be monitored for other TEM’s that will meet the Government’s requirements if the currently owned TEM becomes obsolete or irreparable in the future. In addition, the requiring office will continue to survey the market for any changes in JEOL USA’s proprietary data rights.

8. Market Research:

(Physical Scientist with twenty (20) years of experience) conducted market research in June of 2016 to identify vendors capable of meeting ARL’s requirements. ARL SEDD SME, , performed market research via review of other market research efforts conducted for similar purchases (W911QX-15-P-0008), internet searches, literature reviews, and discussions with Subject Matter Experts (Dr.

, from the Naval Research Laboratory;

from the ARL; and , from JEOL USA).

Her research concluded, there are no other sources capable of providing the required maintenance services for the JEOL 2010F TEM; due to the proprietary nature of the embedded firmware, the supplies and services required to operate, maintain, and upgrade the TEM are only available from JEOL USA. Consequentially, JEOL USA is the only source that will satisfy the Government’s requirements.

9. Interested Sources:

A synopsis notice was posted on 11 August 2016 to FedBizOps with the intent to sole source with JEOL USA. To date, no other sources have written to express an interest, however as required by FAR 5.201, any other bids or proposals received 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-04-P-0950 awarded 13 SEP 2004 (POP 2004-2008) W911QX-09-P-0626 awarded 02 SEP 2009 (POP 2009-2010) W911QX-11-P-0438 awarded 07 SEP 2011 (POP 2011-2013) W911QX-13-P-0333 awarded 30 SEP 2013 (POP 2013-2016)

(2) Competitive status of these actions.

W911QX-04-P-0950: Sole Source W911QX-09-P-0626: Sole Source W911QX-11-P-0438: Sole Source W911QX-13-P-0033: Sole Source

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

W911QX-04-P-0950, W911QX-09-P-0626, W911QX-11-P-0438, and W911QX- 13-P-0333: 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) 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.

Past procurements were awarded based on the fact that the design and components of the Government owned JEOL 2010F TEM is proprietary to JEOL USA. As a result, JEOL USA is the only source that can provide maintenance services and meet the Government’s requirements.

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

N/A

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

(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.

b. Acquisition Data Availability:

This acquisition is for the procurement of preventative maintenance on a proprietary piece of Government owned equipment. The JEOL 2010F TEM consists of designs and components that are proprietary to JEOL USA. As a result, JEOL USA is the only source that can provide the requested maintenance service and, thus, deeming the effort not suitable for full and open competition. The market will be monitored for other TEM’s that will meet the Government’s requirements if the currently owned TEM becomes obsolete or irreparable in the future.

c. Unusual and Compelling Urgency:

d. Subcontracting Competition:

e. Follow-on Contracts:

The original TEM was procured from JEOL, USA Inc under competitive procedures back in 1991. Due to the proprietary nature of the embedded firmware, proprietary design of the system, proprietary parts and OEM trained engineers, the supplies and services required to operate, maintain, and upgrade the systems are only available from JEOL USA, INC. In order to compete this requirement, the Government would have to re-procure the presently owned systems at a cost of approximately , which will not alleviate another sole source requirement to the successful contractor for the supplies and services required to operate his systems. The cost of $ is considered a substantial duplication of cost that could not be recovered through competition

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: Physical Scientist

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: Physical Scientist

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable.

This determination will be made using the following:

__ Cost analysis _X_ Price analysis __ Should-cost

__ IGCE

__ Audit:

__ Other:

As a part of this basis, certified cost or pricing data:

__ will be required.

_X_ will not be required and the following exception applies (FAR 15.403):

__ Prices that will be agreed upon are based on adequate price competition.

__ Prices that will be agreed upon are based on prices set by law or regulation.

__ A commercial item is being acquired.

__ A waiver has been granted by the head of the contracting activity (HCA) in accordance with DFARS PGI 215.403-1.

__ The contract action is a modification to a contract or subcontract for commercial item(s).

_X_ The estimated cost of the contract action is less than the threshold for certified cost or pricing data.

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

Approval Based on the foregoing justification, I hereby approve the procurement of Preventative Maintenance Services for the duration of one (1) year with two (2) one (1) year options for an existing, Government-owned JEOL 2010F Transmission Electron Microscope (TEM) manufactured by JEOL, Inc.on an other than full and open competition basis pursuant to the authority of 41 U.S.C. 1901(e)(2), subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

(End of Justification)