A03_-_Redacted_Simplified_Acquisition_Sole_Source_Justification_over_ 150K.pdf

Control No: JA-Adel-17-055

GATAN INC

JUSTIFICATION REVIEW DOCUMENT

FAR PART 13 SIMPLIFIED ACQUISITION JUSTIFICATION AND APPROVAL FOR

OTHER THAN

FULL AND OPEN COMPETITION

Program/Equipment: Preventative Maintenance (PM) Contract for Gatan, Inc., Equipment

Authority: 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.

Amount: $156,000

Prepared By:

Typed Name: Frederick L Beyer DSN: 410-306-0893 Title: Materials Research Engineer Date: 22 FEB 2016

Procuring Contracting Officer:

Typed Name: Catherine Abbott DSN: 290-4347 Date Reviewed: 18 October 2016

Technical Representative:

Typed Name: Frederick L Beyer DSN: 410-306-0893 Title: Materials Research Engineer Date Reviewed: 22 FEB 2016

Requirements Representative:

Typed Name: Frederick L Beyer DSN: 410-306-0893 Title: Material Research Engineer Date Reviewed: 22 Feb 2016

Department of Army

FAR Part 13 Simplified Acquisition Sole Source Justification and Approval for Other than

Full and Open Competition

1. Contracting Activity: U.S. Army Contracting Center

Adelphi Contracting Division

CCRD-SCA

2800 Powder Mill Road Adelphi, MD 20783-1138

2. Description of Action

Approval is requested to solicit for a new firm-fixed price contract (FFP) Purchase Order (PO) to Gatan Inc., hereafter referred to as Gatan. This contract, in support of the Army Research Laboratory’s (ARL) on the basis of other than full and open competition, is required in order to purchase one (1) base year and two (2) subsequent one (1) year option preventive maintenance plans for Gatan instruments: 806 (HAADF STEM Detector, part number: 806.PMP.3), 777 (STEMpack, part number: 777.PMP.1), 832 (Orius SC1000, part number: 832.PMP.1), and 863 (GIF Tridiem, part number:

863.PMP.1), hereafter referred to as the PMPs, to determine the microscopic structure and composition of all classes of materials. The previously mentioned items are critical components on the ARL-owned JEM-2100F transmission electron microscope. This instrument supports a wide range of research programs in materials science and engineering within ARL’s Weapons and Materials Research Directorate (WMRD).

_X_ An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B) and is not a cost reimbursement type contract (FAR 16.301-3(a)(2)).

3. Description of Supplies/Services

a) Base Year (10/27/16 - 10/26/17) PM Plan Service Contract for Gatan instruments: 806 (HAADF STEM Detector, part number: 806.PMP.3), 777 (STEMpack, part number: 777.PMP.1), 832 (Orius SC1000, part number:

832.PMP.1), and 863 (GIF Tridiem, part number: 863.PMP.1) Estimated value $52,000.

b) Option Year One (1) (10/27/17 - 10/26/18) PM Plan Service Contract for Gatan

(STEMpack, part number: 777.PMP.1), 832 (Orius SC1000, part number:

c) Option Year Two (2) (10/27/18 - 10/26/19) PM Plan Service Contract for Gatan

(STEMpack, part number: 777.PMP.1), 832 (Orius SC1000, part number:

Delivery schedule: 12 month maintenance support period for the base and each option phase

Total estimated value: $156,000.

4. Authority Cited 1 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: The aforementioned PM Services, are only provided by:

Gatan Inc.

5795 W Las Positas BLVD Pleasanton, CA 94588-4083 United States

The equipment listed above are critical components on the ARL JEM-2100F transmission electron microscope, originally procured under contract W911QX-07-P- 0511. These components require periodic routine maintenance in order to be fully operational and to meet the original specifications as determined by the manufacturer and approved by ARL. Operations below the specified performance level do not allow ARL Weapons and Materials Research Directorate (WMRD) to meet mission and customer research goals. Therefore, it is imperative the Gatan 806, 777, 832, and 863 components on the JEM-2100F transmission electron microscope receive routine repairs and updates as necessary to maintain complete functionality and operability.

The JEM-2100F transmission electron microscope, as configured with the above equipment from Gatan Inc., is a state-of-the art instrument used to determine the microscopic structure and composition of all classes of materials. This instrument supports a wide range of research programs in materials science and engineering within ARL-WMRD. The instrument has advanced imaging and spectroscopic capabilities, including high-resolution microscopy, microscopy of various types of materials including delicate polymers and biological materials, composition mapping via X-ray spectroscopy and electron energy loss spectroscopy, digital image capture, high contrast imaging, and tomography. Ongoing research and WMRD missions will be sacrificed if the Gatan Inc. components of the JEM-2100F are not properly maintained.

Delays in obtaining service further impair the functioning of the instrument and increase the likelihood of future failures. The service contract requested for this action provides high-priority, on-site emergency repairs. In many circumstances, a technician must inspect the components of the JEM-2100F in order to diagnose fully problems reported by users. Additional visits are then required for the actual repair of the instrument.

When no service contract is in place, two (2) purchase requests are usually required – one for diagnosis and a second for repairs, including the purchase of replacement parts.

Both purchase requests will lengthen the time in which the instrument is not functional and will increase the likelihood of additional problems. Due to the specialized nature of this instrument, only the original equipment manufacturer (OEM), Gatan, Inc., is qualified to service these components. Only the OEM has the expertise to diagnose problems and perform repairs to these components that will maintain the instrument to the original specifications thereby preventing mission degradation or failure.

The warranty and operation manual states that the equipment should only be serviced or repaired by the original equipment manufacturer (OEM). Otherwise any extended warranties may be voided. Even when a piece of equipment is out of warranty, any usage of non-OEM 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 this highly technical equipment. Normally, the only company that can produce the spare part to the original specification is the OEM. They are the “owner” of the specification and manufacturing drawings. Refurbishing the equipment with OEM parts is the only way to ensure that the equipment is maintained with precision and high quality. OEM parts are normally superior, having endured a more detailed design and manufacturing process. It is the best interest of the Government to have the testing equipment repaired by the original manufacturer. All repair, calibration and verification equipment is certified and traceable to a National Standards Lab such as NIST, which is essential for the integrity of the test data obtained from this equipment.

6. Efforts to Obtain Competition:

Vendors other than Gatan, Inc., make equipment similar to the Gatan components described above. For example, LK Technologies makes electron spectrometers, however if an alternative source of spectrometer was pursued, not only would there be a realization of duplication of costs based on equipment purchases, a new preventative maintenance agreement would be required for those items. Furthermore, an introduction of new technology would sacrifice previous baseline research results and pose serious mission risk based on lack of continuity and compatibility in test data.

Furthermore, the specialized nature of the purchased product components on the JEM- 2100F transmission electron microscope eliminates the possibility of service from companies other than the OEM as there are no authorized resellers of the Gatan maintenance plans. Therefore, no other manufacturers or vendors of the electron microscopy equipment in question can meet the Government’s requirements.

7. Actions to Increase Competition:

Should a similar equipment purchase or equipment upgrade be required in the future, ARL will continue to monitor industry by seeking out all sources specializing in such areas to help locate comparable sources. Furthermore, should Gatan authorize other sources as OEM representatives to work on Gatan equipment in the future then full and open competition could potentially exists. As a result, the market will be continually surveyed to determine whether another manufacturer has emerged that could meet the Army requirements, thus justifying the need for full and open competition. Technical evaluations will be utilized to determine if there are viable sources that can be sought after and considered for competitive interest.

8. Market Research:

The Technical assessment for researching new sources for similar or upgraded equipment has been conducted on an ongoing basis since the original system equipment was procured in 2007. Market research for the current required PM was conducted by Dr. Frederick Beyer in the month of March 2016. Dr. Beyer contacted three (3) professional microscopists in government and academia (See A01 – Market Research Document- Technical for list of names and information) to determine if any other vendors could provide service on the Gatan, Inc., equipment in question. All three

(3) reported that the specialized, proprietary nature of Gatan, Inc., equipment precludes other vendors from offering service and repairs to Gatan, Inc., equipment. Furthermore, extensive Market Research was conducted by Contract Specialist, Cristina Watkins, in hopes to locate an alternative authorized vendor capable of meeting the preventative maintenance requirements. The result of the Market Research, after confirmation from the OEM, is that Gatan is the only authorized source to perform the required Service. A notice of intent to sole source was posted 01 November 2016 and no responses have been received to date.

9. Interested Sources:

(A02 – Synopsis (Sole Source using 13.106) was posted as a Synopsis – Notice of Intent to Sole source on FedBizOpps on 01 November 2016 to determine if any vendor other than Gatan claimed they could satisfy the Government requirement. To date, no responses have been received.

10. Other Facts:

a. Procurement history.

Contract: W911QX-10-P-0344 Contractor: Gatan Inc.

Award Date: 15 September, 2010 Competitive Status: Not Competed (FAR 6.302-1 “Only one responsible source and no other supplies or services will satisfy agency requirements”)

Contract: W911QX-12-P-0404

Contractor: Gatan Inc Award Date: 7 September, 2012 Competitive Status: Not Competed (FAR 6.302-1 “Only one responsible source and no other supplies or services will satisfy agency requirements”)

Contract: W911QX-13-C-0188 Contractor: Gatan Inc.

Award Date: 27 September, 2013 Competitive Status: Not Competed (FAR 6.302-1 “Only one responsible source and no other supplies or services will satisfy agency requirements”)

b. Class Justification. This is not a class justification

c. Though the authority for this action does not specifically cite unusual and compelling urgency, there is a schedule impact to completing this acquisition as the current maintenance contract expires at the end of October 2016.

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: Materials Research 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: Materials Research Engineer

X 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. This contract is determined to be the most advantageous to the Government since the Contractor bears the inherent risks of the contract by having to complete the contract within the proposed price.

Additionally, previous acquisitions for the same maintenance services have been in line with the estimated price for this contemplated procurement.

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 Gatan Preventative Maintenance 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.

Contracting Officer (KO)

Contracting Officer