A03_-_Simplified_Acquisition_Sole_Source_Justification_Redacted.pdf

JUSTIFICATION REVIEW DOCUMENT FOR COMMERCIAL ITEMS

FAR PART 13 SIMPLIFIED ACQUISITION JUSTIFICATION AND APPROVAL FOR

OTHER THAN

FULL AND OPEN COMPETITION

Programs/Equipment: Preventative Maintenance on the JEOL JEM-ARM200F Transmission Electron Microscope (TEM).

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: $698,746.90

Prepared by: DSN:

n Date: 18 April 19 E :

Contracting Officer: Ariel Amey D Contracting Officer Date: 19 Aug 18 E il

Technical: DSN:

n Date: 18 April 19 E :

Requirements: DSN:

Date: 18 April 19 E il

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

Program Manager:

4/26/2019

X Edward C Shaffer

Program Manager Signed by: SHAFFER.EDWARD.C.1023169246

FAR PART 13 SIMPLIFIED ACQUISITION JUSTIFICATION AND APPROVAL FOR

OTHER THAN

FULL AND OPEN COMPETITION

1. Contracting Activity:

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

2. Description of Action:

U.S. Army Research Laboratory (ARL) requests a firm-fixed price service contract with JEOL USA, Inc. (Large Business), 11 Dearborn Road, Peabody, MA, 01960-3862, Cage Code: 51043 for Preventative Maintenance on the JEOL JEM-ARM200F Transmission Electron Microscope. The contract’s estimated value is $698,746.90 with a base effort of one (1) year and four (4) one (1) year options.

_X_ An acquisition plan is not required because this procurement either does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i), or is an R&D acquisition and does not meet the definition of services in 10 U.S.C. 2330(c)(2).

3. Description of Supplies/Services:

The contract is for Preventative Maintenance Services on the existing, Government-owned JEOL JEM-ARM200F Transmission Electron Microscope (TEM) manufactured by JEOL USA Inc., the Original Equipment Manufacturer (OEM). The JEOL JEM-ARM200F TEM is located in the . The maintenance contract will cover the following basic instruments, accessories, and components:

MODEL JU2011026: JEM-ARM200F Atomic Resolution Transmission Electron Microscope 364819 SN:EM1710001660166. Coverage includes:

ASID Scanning Device, ASID-IAU Image Acquisition Unit for ASID, FLC Free Lens Control, and SEG Side Entry Goniometer

MODEL JU2012625: EM-20765SCS2H HR STEM CS CORRECTOR

365114

MODEL 731-LX3-W2-6XXXAX-M202: Chiller, LX3 Water Cooled LX3-W2-

6XXXAX-M202

MODEL P13228D: JUS-FEGBB, Battery Backup – 96621REV.F

MODEL JU2013651: 15KVA UPS

Base Period: One (1) year After Contract Award (ACA) Value:

Option Period 1: Twelve (12) months Period of Performance (PoP) Value:

Option Period 2: Twelve (12) months PoP Value:

Option Period 3: Twelve (12) months PoP Value:

Option Period 4: Twelve (12) months PoP Value:

Total:

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, or for DoD, NASA and the Coast Guard, from only one or a limited number of responsible sources, and no other types of supplies or services will satisfy agency requirements, full and open competition need not be provided for.

requires a new preventative maintenance service contract with JEOL USA, Inc. to support the existing, recently purchased JEOL JEM- ARM200F TEM. The JEOL JEM-ARM200F TEM has been operating between

To date, JEOL is still the Original Equipment Manufacturer (OEM) of the TEM. Due to the complex and proprietary nature of the mechanical and electrical systems and the accompanying computer software employed in the JEOL JEM-ARM200F TEM, only the OEM, JEOL USA Inc. and its JEOL-trained service engineers, 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 system and return the components to OEM specifications.

JEOL USA, Inc. is the sole factory authorized provider of service and sales in the United States and Canada. The electronic schemes for the JEOL JEM-ARM200F are proprietary to JEOL and only JEOL-trained service engineers can service the JEOLJEM- ARM200F TEM. Factory training and JEOL training center instruction in maintaining JEOL instrumentation are available only to current, qualified JEOL-trained service engineers. 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, 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.

Furthermore, to procure services from a different manufacturer will require the replacement of the TEM currently used by

Consequently, the purchase of a new TEM would result in a substantial duplication of cost to the Government, , not expected to be recovered through competition. Due to the aforementioned, JEOL USA is the only source that will satisfy .

6. Efforts to Obtain Competition:

A synopsis of this requirement was posted to FedBizOps from 14 August 2018 to 29 August 2018 to provide notice of the Government’s intent to pursue a sole source acquisition strategy with JEOL USA, Inc. At the time of the announcement closing, no vendors responded expressing interest. In addition to the announcement, the Requiring Activity’s market research consisted of reviewing other market research efforts conducted for similar purchases (W911QX-16-P-0277, W911QX-13-P-0333, W911QX- 11P-0438, W911QX-09-P-0626, and W911QX-04-P-0950), internet searches, literature reviews, and discussions with subject matter experts (SMEs), to include from the Army Research Laboratory;

from the Army Research Laboratory, and with the at Aberdeen Proving Ground. Market research confirmed that JEOL USA, Inc. is the only source with the proprietary knowledge and technology necessary to perform the required preventative maintenance services on the JEOL JEM-ARM200F TEM. It was determined that it is not possible to compete this requirement due to the proprietary rights authorized to JEOL USA, Inc, and only their JEOL-training service engineering technicians are capable of performing the preventative maintenance to ensure OEM operation.

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, Inc. There are currently no other 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 TEMs 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. 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.

8. Market Research:

conducted market research in April of 2018 to identify vendors capable of meeting ARL’s requirements. ARL SEDD subject matter expert (SME), performed market research via review of other market research efforts conducted for similar purchases (W911QX-16-P-0277), via internet searches, literature reviews, and discussions with SMEs to include

, from the Army Research Laboratory; from the Army Research Laboratory, and with the at Aberdeen Proving Ground. research concluded from information from the SME’s that there are no other sources capable of providing the required maintenance services for the JEOL JEM-ARM200F 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.

9. Interested Sources:

A notice of intent to sole source was submitted to FedBizOpps on 14 August 2018 and closed on 29 August 2018 under Solicitation number, W911QX-Q-0107. The Contracting Officer submitted a notice of intent to sole source to FedBizOpps on 02 April 2019 through 17 April 2019 as required by FAR 5.201. During that posting period and thereafter, no sources have challenged the sole source or expressed interest in fulfilling the requirement.

10. Other Facts:

a. Procurement History:

Not applicable, as this service is a new requirement for the newly procured JEOL JEM- ARM200F Transmission Electron Microscope

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:

4/26/2019

X Charles Rong

Technical Certifier (Tech) Signed by: RONG.CHARLES.C.1258533123

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:

4/26/2019

X Edward C Shaffer

Requirements Certifier Signed by: SHAFFER.EDWARD.C.1023169246

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.

X Ariel M. Amey

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 a firm-fixed price service contract for Preventative Maintenance on the JEOL JEM-ARM200F Transmission Electron Microscope 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)