A03_-_REDACTED_Simplified_Acquisition_Sole_Source_Justification.docx

Control No: JA-18-Adel-005 Supply/Service: Carestream HDX-1 Digital Scanners

JUSTIFICATION REVIEW DOCUMENT

FAR PART 13 SIMPLIFIED ACQUISITION JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

Supply/Service: Qty Two (2) Carestream Non-Destructive Testing (NDT) HPX-1 Systems with INDUSTREX SP2 software, current version.

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: -REDACTED-

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

Program Manager:

Department of Army FAR Part 13 Simplified Acquisition Sole Source Justification and Approval for Other than Full and Open Competition

1. Contracting Activity: Adelphi Contracting Division, Army Contracting Command-Aberdeen Proving Ground, ACC-APG Weapons and Materials Research Directorate, (WMRD) Aberdeen Proving Ground, Aberdeen, Maryland 21005

2. Description of Action: The United States (U.S.) Army Research Laboratory (ARL), WMRD, Protection Division requests a firm-fixed-price contract for a Brand Name Sole Source with Carestream Health, 150 Verona Street, Rochester, NY 14608. The Government projects award for November 2017 and fiscal year 2018 Research, Development, Test, and Evaluation (RDT&E) funds will be used.

_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)).

Manufacturer:

Carestream Health 150 Verona Street Rochester, NY 14608

CAGE:4QX22

Business Size (Large)

Resellers:

TATTERSALL SUPPLY, LLC

997 NW 31ST AVE

Pompano Beach, FL, 33069-1121 CAGE Code: 018P6 Business Size (Small)

Test Equipment Distributors, LLC.

1370 Piedmont Troy, Michigan 48083 CAGE Code: 3N525 Business Size (Small)

3. Description of Supplies/Services:

Qty Two (2) Carestream Non-Destructive Testing (NDT) HPX-1 Systems with INDUSTREX SP2 software, current version.

Total Estimated Cost: -REDACTED-

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:

The Protection Division of the Weapons and Materials Research Directorate (WMRD) at the ARL requires the procurement of Carestream Digital X-Ray scanners. The Protection Division is involved in ballistics and explosive research in which X-radiography is a primary diagnostic. The Carestream Digital X-Ray machines will be used to read out digital imaging plates that store the radiographic data acquired during the dynamic tests. To do this efficiently for ARL’s tests, ARL has written custom software that allows data extraction in the format necessary to be post processed. This extraction allows for armor designers to calculate penetration velocities, armor dynamic deflections, and armor fragmentation processes. The communications built into the scanner that allows integration of the ARL developed software occurs via Institute of Electrical and Electronics Engineers (IEEE) commands.

In the event that these machines are not procured, new software would have to be written to perform the process, and the data would have to be handeled using a multi-step process. This would cause the need for significant investment in re-coding software, re-training of personell, and result in non-uniformity of process across multiple ARL ranges -REDACTED-. It would also cause a lack in compatiblity with data that has been collected for the past five (5) years, which is invaluable when making future decisions for armor design. The overarching implications would include delays to complete ARL mission deliverables as software and code will have to be rewritten to accommodate new commercial software. -REDACTED- Additionally, there will be the added burden of reanalyzing or retaking the last five (5) years worth of data to achieve experimental continuity with the new software. This burden will cause substantial duplication of cost to the Government, that is not expected to be recovered through competition. Additionally, the IEEE commands are only integrated into the Carestream machines. Due to the aforementioned, only Carestream can provide Digital Scanners that will meet the Government’s requirements.

6. Efforts to Obtain Competition: In August-September 2017, this effort was pursued as full and open competition. During solicitation, it was discovered that the requirements were only able to be met by the Carestream Digital X-Ray machines. Several resellers of the product expressed interest in submitting a bid. On 4 October 2017, a Sources Sought was posted on FBO to find any additional resellers. At the conclusion of the posting, two (2) small businesses were discovered. As such, this procurement will be pursued as a Brand-Name Sole Source.

7. Actions to Increase Competition:

The Government will communicate the needs and modifications that drive this to be a sole source purchase to multiple vendors that were not able to meet the specifications. This will allow the industry to have the potential to modify their products to meet the Government requirements for future acquisitions.

8. Market Research:

-REDACTED- performed Market Research by performing internet searches and contacting various companies in the industry. Additionally, the requirement was pursued under full and open competition in September 2017, where it was revealed that the requirements could only be met by Carestream. Another vendor, General Electric (GE) requested that the software requirement be relaxed, however the IEEE commands are essential to the mission. As stated in section 5, replacing the IEEE commands will result in substantial duplication of cost as new code will have to be written to accodmate the GE machine. Therefore, only Carestream can satisfy the requirements of the Government. Carestream has multiple resellers that can provide the requested Digital X-Ray Machines.See above in Section 2 where the resellers are referenced to obtain brand name competition from.

9. Interested Sources:

A Sources Sought was posted on FBO on 4 October 2017 for two (2) weeks to find additional vendors other than the two (2) large businesses found during Market Research. During the posting, responses were received from two (2) small businesses who are resellers of the Carestream machines. The discovery of the small businesses will allow for a total set-aside to small business. These vendors will be solicited for quotes and must submit their offers in an appropriate and timely manner from which a Lowest Price, Technically Acceptable evaluation standard will be used for award.

10. Other Facts: N/A, First Time Buy for Carestream Digital X-Ray machines

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: Physicist

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

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):

_X_ 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).

__ 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 Carestream Non-Destructive Testing (NDT) HPX-1 Systems with INDUSTREX SP2 software, current version 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.

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