JA - Redacted.pdf

Control No:

Contractor: Next Generation Analytics (NGA), Inc Supply/Service: Cast Film Line System Upgrades

Justification and Approval for Other than Full and Open Competition – FAR Part 6

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

2. Description of Action: The United States (U.S.) Army Research Laboratory (ARL) Army Research Directorate (ARD) Science of Extreme Materials (SEM) Competency requests a firm-fixed-price (FFP) contract with Next Generation Analytics (NGA), Inc located at 5126 S Royal Atlanta Drive, Tucker, GA 30084-3052 (CAGE Code: 7GRT2).

NGA, Inc. is a wholly owned subsidiary of original equipment manufacturer (OEM) Collin Lab & Pilot Solutions GmbH (a German-owned entity, CAGE Code: D7556). NGA, Inc.

is the sole authorized U.S. distributor of Collin Lab & Pilot Solutions GmbH products. The Government projects award for September 2024 and fiscal year (FY) 2023-2024, Army, Research and Development Test and Evaluation (RDT&E) funds will be used.

_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. 4501(d)(2).

3. Description of Supplies/Services: The Government requires upgrades to the current cast film line that is in operation at ARL, Aberdeen Proving Ground (APG), MD.

Upgrades to enhance the alignment of the current cast film line, and upgrades to the temperature control, and roller systems are required to enhance the thickness and microstructural uniformity of the films processed with the line. These enhancements in uniformity and film thickness will enable ARL to better control the mechanical, electrical, and optical properties of the films that we make, which is critical for our applications in weapons and protection systems.

Delivery Date: 10 Months after contract award (ACA) Delivery Location: Aberdeen Proving Ground, MD, 21005 Total Value: $463,000.00

4. Authority Cited: 10 U.S.C. 3204(a)(1) as implemented by FAR Part 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited: As described in Section 3, the ARL ARD SEM Competency requires upgrades to the current cast film line that is in operation at the ARL at APG, MD. The purpose of the required equipment upgrades is to improve the overall quality, dimensional tolerance, and structural tolerance of the films that ARL produces with the current in-house cast film line. With the current line, ARL is able to produce pre-drawn cast films with thickness between 200 and 500 microns that have thickness uniformity of 5%. While this is adequate for many commercial applications, to meet challenging future Army requirements for protection systems, weapon systems, and signature management, ARL is required to push pre-drawn cast film thickness to a range between 20 and 100 microns with a film uniformity of 1-3%. In addition, ARL has determined that the pre-drawn cast film can have structural variability in crystallinity and crystalline orientation in the initial pre-drawn cast films. The total thickness, thickness variability, and structural variability that ARL currently exhibits on the cast film line is limiting the performance that can be achieved in the fully drawn films after machine direction orienting the films. With the required improvements to the existing cast film line, ARL can develop critical technologies for protection and weapon systems supporting Army modernization priorities including: Long Range Precision Fires, Soldier Lethality, and Next Generation Combat Vehicle.

ARL has determined that the following upgrades are necessary to achieve the film thickness, thickness tolerances, and structural tolerances to include: a) an accurate in-line thickness measurement system that is integrated with the cast film line to provide real time feedback about the thickness across the entire film. This will allow ARL to adjust the gap in the lip die, the extrusion conditions, and the film take off conditions to reduce thickness variability; b) Oil heated rollers on the casting portion of the film line.

Oil tempering provide better temperature control and broader temperature ranges than the water tempering which is currently on the existing line. Currently the two casting rollers are controlled by a single water tempering unit which needs to be upgraded to be independently temperature controlled. This will enable better control over the structural evolution of the film during casting, as well as film adhesion to the rollers during casting, which will improve the film thickness and structural control; c) a rail system that will provide precision alignment of the film during casting, cooling, drawing, and winding.

Subtle misalignment of the processing sections is generating stresses in the film during processing, which limits our ability to precisely control the thickness and structure during processing; d) additional oil heated rollers, an oil tempering unit, and a water tempering unit for the MDO section of the line. This will provide more precise control of the film temperature during drawing.

In order to provide the required thickness control, thickness variability control, and structural control of the cast film line, these required upgrades must integrate seamlessly into the hardware and software of the existing cast film processing line in operation at ARL. Collin Laboratory and Pilot Solutions is the original designer and OEM of the aforementioned, existing hardware and software for this cast film processing line. The original cost of the whole line was approximately $2M. Initially, the whole line was awarded $1.75M via contract number W911QX13P0354. Then, later the Government purchased two (2) additional extruders for a total of approximately . This existing hardware and software is proprietary and therefore, no other sources can supply this equipment. Therefore, if the Government was unable to procure the upgrades to the existing Government-owned cast film line, the Government would incur substantial duplication of costs to reprocure an entirely new, similarly capable cast film line system.

Duplication of costs of this magnitude would be detrimental to the Government and are not expected to be recouped via competition.

During market research, the Government identified several companies that could potentially provide a fully integrated pilot scale cast film line with these required upgrades. Examples include Davis Standard, Ollital Technology, Centexbel, and LabTech Engineering Company, LTD. Howevever, competing this requirement amongst these companies would require reproducing the existing ARL-owned cast film line and the new upgraded capabilities in a new, additional cast film line. Accounting for inflation and likely delivery delays, this procurement startegy would cost 12 times the estimated sole source acquisition cost (see following paragraph for cost estimates). Additionally, other companies may be capable of providing laboratory scale equipment such as: HED International, Robot Digg Equipment Makers, PopTop, and Randcastle Technology.

However, it was determined during market research that the laboratory scale equipment is too small to meet the Government’s minimum requirements. The laboratory scale equipment can not meet the required cast fim width indicated in the preceeding section (e.g. 350mm width rollers) or the implied throughput to feed into those rollers.

Building a brand new pilot scale line would incur detrimental costs to the Government including: 1) an estimated in new equipment; 2) an estimated in laboratory renovations to ensure appropriate electric, water, air, and exhaust facilities for the new equipment. This would also result in Government research delays by a minimum of three (3) years including: a) one (1) year lead time on new processing equipment; b) one

(1) year lead time on laboratory renovations; and c) one (1) year lead time on becoming proficient with the new equipment. In addition, ARL staff have developed expertise in operating ARL’s existing Collin-brand cast film line. It would take one (1) additional year and approximately 1/4 of a man year from each staff (total additional cost of approximately ) once the new equipment is fully operational for this same ARL staff to become proficient with a new processing cast film line. This strategy is not advantageous to the Government in terms of time and cost.

The original equipment from Collin Laboratory and Pilot Solutions currently in use at ARL is very flexible and modular with capability to process a broad range of polymers at a pilot scale. Most laboratory and pilot equipment from the suppliers noted above are either too small to meet ARL needs or too large to fit into the existing laboratory space.

Lastly, ARL owns several pieces of processing equipment from Collin Laboratory and Pilot Solutions including a fiber extrusion line, roll mill, twin screw extruder, in addition to a cast film line. The equipment is interchangeable making the ARL processing equipment very versatile and reconfigurable to address both current and future Army needs. A new processing cast film line from a different vendor would degrade the versatility of ARL’s current processing equipment because it would not be compatible from a hardware or software perspective. Therefore, competing this requirement to upgrade to a brand new pilot scale cast film line is not a reasonable, nor feasible option.

Alternatively, it could be possible for another company supply the required upgrades and integrate them into the existing ARL cast film line. Another company could potentially attempt to retrofit their equipment to the existing ARL cast film line. However, since the existing hardware and software is proprietary to Collin Laboratory and Pilot Solutions, an alternative source would need to make precise measurements of all sections of the cast film line by essentially, reverse engineering this equipment hardware and software. This would include measurement, engineering, fabrication and installation and integration into proprietary hardware/software environment, which would conservatively increase costs by 75% with no guarantee of successful delivery of the required upgraded capabilities.

Reverse engineering the existing Collin hardware may also violate the original purchase agreement, W911QX-12-C-0181. Furthermore, in May 2024, discussed with Hans Fischer (a lead engineer from Collin Laboratory and Pilot Solutions) who confirmed that Collin would not provide drawings for their equipment designs because the design and engineering drawings are proprietary to Collin. Therefore, another company would need to arrive at ARL and make precision measurements of all the hardware and custom design the hardware to ensure seamless integration to the existing equipment. This alternative would be an extensive cost to the Government without a guarantee of success. Similarly, if this requirement was competed and awarded to another company other than Collin, that company would have to learn the specialty software supplied by Collin Laboratory and Pilot Solutions to ensure seamless processing control, which is not advantageous or cost effective to the Government.

If ARL does not procure these upgrades, the Government will not be capable of delivering critical materials solutions for long range missiles, active vehicle armor packages, and signature management materials for vehicle and soldier concealment.

NGA, Inc. is a wholly-owned subsidiary of OEM Collin Lab & Pilot Solutions GmbH operating in the U.S. and is the sole authorized U.S. distributor of Collin Lab & Pilot Solutions GmbH products (Collin does business as NGA, Inc. in the USA).

Consequently, NGA, Inc. is the only source that can fulfill the Government’s minimum requirements for upgrades to the existing cast film processing line.

6. Efforts to Obtain Competition:

Because this is a sole source action, effective competition is not applicable. The upgrade to the existing cast line system may only be performed by a single vendor, NGA, Inc.

However, the Contracting Officer published a formal synopsis on 27 June 2024 with a closing date of 05 July 2024. No offers from interested vendors were received in response to this posting.

Later, the Contracting Officer posted an amended synopsis, this time utilizing the Synopsis Request for Information format under the authority of under the authority of FAR 6.302-1, to be able to provide contract financing under this effort, because the first synopsis was issued utilizing FAR 13.5 acquisition procedures. This synopsis was posted from 15 August 2024 through 30 August 2024, and no responses were received to this posting either.

Currently, as the sole authorized U.S. distributor of OEM Collin Lab & Pilot Solutions GmbH equipment, NGA, Inc. is the only source able to fulfill the Government’s minimum requirements for upgrades to the existing cast film processing line in operation at ARL.

The estimated total cost for this requirement is under $750,000.00 and therefore, a subcontracting plan is not required.

7. Actions to Increase Competition: The Government will continue to monitor the commercially available cast film line market for other potential sources to increase future competition for this requirement and any associated parts and repairs. It is not feasible for the Government to compete this requirement to other sources, as only Collin Lab & Pilot Solutions GmbH (via its sole authorized U.S. distributor NGA, Inc.) is capable of meeting the Government’s minimum requirements outlined in the above Section 5.

The Government will also continue to evaluate opportunities to promote competition by considering the feasibility of pulling out portions of future similar sole source requirements for competition and potentially obtaining technical data package (TDP) rights for future similar sole source requirements, if possible. The Government could not separate out portions of the subject requirement for competition or obtain TDP rights as the required items are commercial items and the associated TDP rights are proprietary to Collin Lab & Pilot Solutions GmbH.

8. Market Research: Market research was conducted in July 2023 through March 2024 by the Technical Point of Contact (TPOC) who possesses over 26 years of research experience with polymer processing through his employment at the University of Maryland Baltimore County, the National Institute of Standards and Technology, Sandia National Laboratories, and ARL. Market research efforts for this requirement included contacting knowledgeable subject matter experts (SMEs) within ARL and industry. Over the past year, TPOC visited the 3M company in July 2023 and March 2024, as 3M has extensive film processing capabilities. TPOC observed 3M’s rail system, cast film roller system, and in-line diagnostic tools to make an assessment of the technical requirements for this upgrade requirement. Additionally, contacted Polymers Branch researcher at the ARL-Central extended site location, who works closely with Case Western Reserve University and with Peak Nano (a small business in the cast film processing industry). ARL’s collective discussions with Government and industry SMEs, and based on independent research experience with film processing, concludes that an integrated, upgraded cast film line system is required to advance film technology forward for the Army.

During Market Research, the Government identified companies could potentially provide a fully integrated pilot scale cast film line with these required upgrades, including Davis Standard, Ollital Technology, Centexbel, and LabTech Engineering Company, LTD.

Additionally, one of these companies could potentially provide the required parts to upgrade the cast film line system currently in-use. However, as discussed in detail within section 5, either of these approaches would result in substantial duplication of costs and other damages to the Government. As such, it was determined that it is in the Government’s best interest to issue a sole source to NGA (the US subsidiary for Collin

Laboratory and Pilot Solutions) on the basis of compatibility, as well as the unique and proprietary nature of the required upgrades.

9. Interested Sources: To date NGA, inc. has been the only source to express an interest in this requirement. However, as required by FAR 5.201, a synopsis was posted to the government wide point of entry, SAM.gov. However, the Government did not receive any responses from interested vendors.

10. Other Facts a. Procurement History

On 23 September 2013, contract number W911QX13P0354 was awarded to Dr. Collin GMBH (now known as Collin Lab & Pilot Solutions GmbH) in the amount of $1,750,810.00 for an Upgrade to the ARL Film and Fiber Extruder capabilities.

Contract: W911QX13P0354 Competitive Status: Awarded under “Other than Full and Open Competition” Authority: 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.

Prior Justification: only the OEM is capable of providing the necessary components of the system procured under Contract W911QX-12-C-0181.

Prior Full and Open Status: Awarded under “Other than Full and Open Competition” Unusual Patterns: Not Applicable, no unusual patterns Justification Changes: Current award will be made under 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.

On 28 September 2012, contract number W911QX12C0181 was awarded in the amount of $466,270.70 to Dr. Collin GMBH (now known as Collin Lab & Pilot Solutions GmbH).

This contract was for one (1) Pilot scale, mono-component multi-filament polymer fiber melt spinning system for research and development of continuous filament yarn applications, and it was originally completed as a full and open competion requirement.

Over the last ten (10) years, the decision to sole source this upgrade requirement is based on the basis of compatibility to existing equipment in use at ARL.

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.