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MICC CONTROL NO. 2012-89 MICC-DPG CONTROL NO. FYI2-0 I

JUSTIFICATION REVIEW DOCUMENT

FOR OTHER THAN FULL AND OPEN COMPETITION

Program/Equipment: CCTS Maintenance Service Agreement

Authority: 10 U.S.C. 2304(c)(1) Only one responsible source)

Amount: $1,249,775

Prepared by: Typed Name: James Pearson Date: 06/26/2012

Title: Physical Scientist DSN: 789-7883

PCO: Typed Name: Paul E. Frailey Date: 07/02/2012

Title: Contracting Officer DSN: 789-2587

Technical: Typed Name: Dr. Martin Marshall Date: 06/26/2012

Title: TEID, Division Chief DSN: 789-5276

Requirements: Typed Name: Dr. Martin Marshall Date: 06/26/2012

Title: TEID, Division Chief DSN: 789-5276

Management: Typed Name: Ryan Harris Date: 06/26/2012

Title: WDTC Director DSN: 789-3429

MICC CONTROL NO. 2012-89 MICC-DPG CONTROL NO. FY12-0l

I have reviewed this J&A and find the justification adequate to support other than full and open competition.

loca! Associate Director, Office of Small Business Name: H. Elizabeth Reed

Signature/Date:

MICC Legal Counsel Name: Daniel Keys

Signature/Date:

Division Chief Name: Eric S. Vokt

Signature/Date:

Director Name: H, Elizabeth Reed

Signature/Date:

DSN: 789-2104

DSN: 421-3092

DSN: 789-2107

DSN: 789-2104

MICC CONTROL NO. 2012-89 MICC..DPG CONTROL NO. FYI2-0l

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Mission & Installation Contracting Command; Dugway Proving Ground Installation Contracting Office, Dugway, Utah.

2. Description of Action: This acquisition is a finn-fixed price maintenance service contract for eight Chemical Cloud Tracking System (CCTS) units. The CCTS is used for cloud measurement, tracking, and mapping. The contract is anticipated to have a base period of twelve months and four twelve month option periods. The base yearwill be funded with FY12 RDT&E funds. Option periods will be funded by FY13- FY16 RDT&E funds.

3. Description of Supplies I Services: This requirement is for a non-personal services contract to provide maintenance service for the West Desert Test Center's (WDTC) CCTS units. Under the maintenance service contract the vendor will provide annual preventative maintenance for eight CCTS units. The CCTS maintenance services are broken out into two parts. The standard CCTS maintenance service agreement covers all parts except for the cryocooler. The cryocooler maintenance service covers only the cryocoolers. A requirements line ~em will be included in the contract for potential CCTS repairs not covered under the maintenance service agreement

Standard CCTS Maintenance: The standard CCTS maintenance agreement covers all CCTS Sensor components except for the cryocooler which is described below, Under the CCTS maintenance agreement the vendor will perform annual preventative maintenance and repair any parts that break under normal wear.· Annual preventative maintenance includes the following:

1. Blackbody repair and Thermoelectric (TE) replacement;

2. Electronics stack repair (batteries in embedded CPU as needed, etc.);

3. Pan and Titt (P&T) motor rebuild, lubrication, pass-through wiring replacement and calibration service;

4. Power supply maintenance;

5. Cable repair and maintenance;

6. · Fourier T ransfonn Infrared (FTIR) spectrometer optical alignment and tune-up;

7. FTIR spectrometer laser power supply replacement;

8. FTIR spectrometer white light replacement

Crvocooler Maintenance: The cryocooler has a maximum lifetime of 10,000 hours atterwhich the system is unusable. Under the cryocooler maintenance service agreement the vendor will refurbish units as they approach the maximum lifetime of 10,000 hours and replace any cryocooler that fails.

Hardware replacement hardware and software upgrades, and engineer field test support may be provided on a requirements basis subject to the availability of funding and approval by the Contracting Officer ·

The requiring activity for this requirement is the West Desert Test Center's (WDTC) Test Engineering and Integration Division (TEID). TEID uses the CCTS-for remote detection, quantification, and mapping of chemical clouds on field tests. The proposed contract will be for a total of five years: . one 12-month base period plus four 12-month option periods. The anticipated cost for the entire five year period is $1,251 ,988.00. The anticipated periods of perfonnance and estimated costs are as follows:

Base Period Option Year 1 Option Year 2 Option Year 3 Option Year 4

Beginning 01 AUG 2012 Beginning 01 AUG 2013 Beginning 01 AUG 2014 Beginning 01 AUG 2015 Beginning 01 AUG 2016

Ending 31 JUL2013 Ending 31 JUL 2014 Ending 31 JUL2015 Ending 31 JUL2016 Ending 31 JUL2017

$ 236,800.00 $ 243,200.00 $ 249,775.00 $ 256,530.00 $ 263.470.00 $1,249,774.35

MICCCONIROLNO. 2012-89 MICC-DPG CONTROL NO. FY12-0l

The price reasonableness of each option period will be evaluated prior to award.

4. Autliority Cited: 10 U.S. C. 2304(c)(1) as implemented by FAR 6.302c1, Only One Responsible Source and No Other Suppues or Services \Ni!l Satisfy Agency Requirements.

5. Reason for Authority Cited: Micro Engineering Software and Hardware (MESH), Inc. developed the CCTS units for the WDTC through a Small Business Innovative Research Contract (DAAD09-00-C- 0002) awarded 21 DEC 1999. The CCTS design includes proprielary software, a radiometric model based upon MESH's intellectual property, custom-designed hardware, and complex software-hardware interlaces. It is essential that mainlana'lce !asks a'ld enhancement !asks be coordinated in such a manner that WDTC can mainlain use of the instruments. Use of another vendor would essentially require duplicating the work that MESH has already complelad which would require many times the cost of the current effort. The Government has spent over $4.6 million in the development, purchase, maintenance, upgrades, and training for the CCTS in use at Dugway Proving Ground. Additionally, other vendors would, by necessity, change the software interface which would require completely new training of government personnel using the instruments resulting in additional costs to the mission. The CCTS is used regularly in field testing at WDTC and only MESH can improve the instruments while simultaneously keeping them available for current teSting needs without degrading current abilities.

Other possible vendors include Aerospace, Inc. and Physical Sciences, Inc (PSI). Although both of these contractors might be able to build a system similar to the CCTS, doing so would require slarting from the beginning, using their own proprielary software as wen as redesigning software-hardware interlaces. PSI developed a similar CCTS prototype for Product Director Test Equipment, Strategy, and Support (PD-TESS) from 2007 to 2009 at a cost of $750,000 per sensor and $200,000 for the workslation. Based on this information and using escalation rates based on the Bureau of Labor Slatistic's Producer Price Index for NAICS 5416, it is estimated that procuring a new CCTS through PSI, Inc. would cost the Government approximately $8.1 million. In addition to increased costs, allowing one of these contractors to redesign the system would involve the risk that the CCTS might not mainlain its currenHy proven capabilities. Only MESH has the capability to simullaneously improve and mainlain the CCTS without completely redesigning the system from the ground up. Furthermore, because CCTS is comprised of integralad units, it is not possible to separate the !asks by component and acquire them separately.

If this J&Ais not approved it will be deirimenlal to the mission of WDTC because the CCTS will not be mainlained or improved to support current or future testing needs. Data provided by the CCTS has been a vilal part of DPG's mission capabilities for many different tests. Loss or degradation of this $4.6 Million capability would greatly jeopardize DPG's test support mission. The requirements for refereeing field tests become conslantly more stringent To meet the more stringent needs of the present and anticipated needs of the future, it is necessary to mainlain and improve the CCTS asset.

Due to the proprielary nature of this requirement, no other supplies or services will satisfy the need to have the CCTS available for testing at WDTC. Failure to secure this contract will result in no maintenance being performed on the CCTS and the system will be unable to support ongoing and future field testing where remote measurement of chemical clouds is a requirement

6. Efforts to Obtain Competition: A combined synopsislsolicilation will be posted on the Federal Business Opportunities website on or around July 2, 2012. Synopses for similar services performed by MESH have been published for prior contracts. No responses were received from any other potential offerors during the notice period. Additional infOrmation regarding market research is provided in paragraph 8.

Based on the infonnation in paragraph 5 above, full and open competition for this action is not feasible.

7. Actions to Increase Competition: WDTC peiSOnnel will review specifications in the future to determine whether changes may be made to aliow fur iuil and open competition. The requiring activity sandra.j.johnson2 Highlight

MICCCON1ROLNO. 2012-89 MICC-DPG CON1ROLNO. FYI2-0l is also continually conducting marl<.et research (see paragraph 8) below to identify any other potential sources I technologies that may permit this requirement to be procured under full and open competition in the future.

8. Market Research: The requiring activity is continually seeking competitive services by conducting market research through the interne~. trade journals, and professional contacts. This research has indicated that other possible vendors (Aerospace, Inc. and PSI) have the technical capability to provide a similar system. P..!ttlough both of these contractors might be able to build a system similar to the CCTS buitt by MESH, Inc., doing so would require starting from the beginning, using their own proprietary software as well as redesigning softwar&-hardware interfaces. Allowing one of these contractors to redesign the system would involve the risk that the CCTS might not maintain its currently proven capabilities.

9.

The following previous requirements for the CCTS were published on the A'Tny Single Face to Industry website, the Army's designated Government Point of Entry. Solicitations issued after 2003 were also published on the Federal Business Opportunities website.

DATM03-02-T-0052 issued on 31 JUL2002 DABJ 19-03-T-0041 issued on 19 MAY 2003 W911 S6-04-R-0004 issued on 04 MAY 2004 W911S6-05-R-0001 issued on 10 NOV 2004 W911S6-11-T-0012 issued on 10 MAR 2011

No responses from potential offerors other than MESH were received by the DPG's Installation Contracting Office f6r the publicized requirements. The current requirement will also be published on the Federal Business Opportunities web site on or around July 2, 2012. All responses received ih response to the requirement will be considered by the government

Interested Sources: MESH, Inc.

114 Bamsley Road Oxford, PA 19363

(610) 932-7754 Brian Tercha (btercha@meshoxford.com)

10. Other Factors:

(a) Procurement History: Contracts have been established in the past or currently exist with MESH for the CCTS for various improvements and services. Previous contracts with MESH include the following:

i. DAAD09-00-C-0002 {competitively awarded firm-fixed price SBIR contra~ Phase I) awarded on 21 DEC 1999 for $119,679;

ii. DAAD09-0Q.-P-0239 {sole-source firm-fixed price contract for CCTS component parts) awarded on 23AUG 2000 for $10,846;

iii. DAAD09-01-C-0003 (Phase II of SBIR contract) awarded 25 OCT 2000 for $728,584;

iv. DATMOC-02-P-0238 (sole-source firm-fixed price contract for two FTIR spectrometers and software) awarded on 29AUG 2002 for$503,077;

v. DAABJ 19-03-P-0173 (sole-source firm-fixed price contract for JCAD test support) awarded on

09 APR 2003 for $23,800;

vi. . V\1911 S6-04-C-0005 (sole-source firm-fixed price contract for CCTS upgredes) awarded 08

JUN 2004; $219,453

vii. W911S6-04-P-0152 (sole-source firm-fixed price contract for CCTS maintenance) awarded 12

MAY 2004 for $10,000;

viii. V\1911 S6-05-D-0001 {sole-source indefinite delivery indefinite quantity task order contract for

CCTS maintenance, hardware modifications, software upgrades, repairs, field support, training, and technical support) awarded 07 DEC 2004;

MICC CONTROL NO. 2012-89 MICC-DPG CONTROL NO. FYI2-0l

i. Task orders 0001 through 0020 were issued under this contract from 07 FEB 2005 through 18 AUG 2009 for a wide variety of maintenance, hardware, testing, and support totaling $3,003,009;

ix. W911S6-11-P-0047 (sole-source firm-fixed price contract for CCTS repairs) awarded 20 JUN 2011 for $27,548.

(b) Reasonable Efforts to Retrieve Required Information: Technical personnel, historic and current contract information, and government weQsites were used to obtain the required information for this requirement MESH was contacted to provide information on required annual maintenance tasks, labor/material breakouts for annual maintenance tasks, anticipated future repairs based on its historical data, and its standardized prica list for repairs.

(c) Acquisition Data Availability: Due to the proprietary nature of the CCTS and the costs associated with duplication of effort, specifications have not been developed for full and open competition (developed under SBIR program). All technical and historical information necessary for this requirement was obtained through information at WDTC and historical contract information. Information to determine that the Independent Government Cost Estimate is fair and reasonable was obtained through MESH (i.e. standardized price list, labor rates, and labor material bre>akouts for anticipated repairs to justify maintenance cost). The GSA Advantage website and other commercially available websites were used to verify the labor rates are fair and reasonable.

(d) Unusual and Compelling Urgency: Not Applicable.

(e) Subcontracting Compatition: MESH, Inc., a small business, is the original manufacturer of the CCTS; therefore, the majority of the services necessary for this requirement will be perfonned by the company.

11. Technical Certification: "I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of. my knowledge and belief."

NAME: Dr. Martin Marshall

TITLE: Chief.. Test Engineering /Integration Division

Signature/Date:

iAfP "71'/JJld'Z.J jl:;_, 'J~t:::J /11,udJI- ,?6,W,Je'~IZ--

12. Requirements CertiFICation: "I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief."

NAME: Dr. Martin Marshall mLE: Chief, Test Engineering /Integration Division

Signature/Date:

J:Z£7711 >JV'tJ :z.%, '")'}{.~_ ?d~t:U (7P/'J6 Jd; lz._

13. Management Review I Approval: "The requirement herein described is a valid requirement of the activity named in paragraph 3 of this J&A. The technical and requirements information contained in the

MTCC CONTROL NO. 2012-89 MlCC-DPG CONTROL NO. FY12-0l

14.

J&A represent the minimum needs of the government. The only way to satisfy this requirement is by limiting competition as described herein.

NAME: Ryan Harris

TITLE: Director, West Desert Test Center

Signature/Date:

j;i.P~ 472~ Z/ ? I ~ ( :nd Reasonable Cost Determination: I hereby determine thatthe anticipated cost or price to the Government for this contract action will be fair and reasonable based on the following:

A price analysis was conducted in accordance with FAR 15.404-1 (b). Data examined include the contractor's standardized pricing list, other manufacturer prices for similar items, labor hour categories and rates, and travel rates. In addition, a price comparison between purchasing a new system and providing maintenance was performed. A summary follows:

The annual maintenance cost estimate provided by MESH is based on its standardized price list for repairs. MESH charges the rates on its standardized price list to all of its MCAD/CCTS customers (verified by the Cost/Price Analyst). Dugway Proving Ground is receiving a 1 0% discount from the standardized price list for annual maintenance service because all sensor head maintenance will be performed at the same time. Furthermore, MESH is discounting its standardized price list by an additional 1%. A comparison of MESH's labor rates to labor rates for other engineering companies on GSAAdvantage found MESH's labor rates comparable.

Because the anticipated price is based on a standardized price list and the contractor's labor rates are comparable to other contractors for similar work, the price is determined to be fair and reasonable.

Certified cost or pricing data not required based on the following: FAR 15.403-1 ( c)(3)(i): Any acquisition of an item that the contracting officer determines meets the commercial item definition in FAR 2.101, or any modification, as defined in paragraph (3)(i) of that definition, that does not change the item from a commercial item to a noncommercial item, is exempt from the requirement for cost or pricing data.

NAME: Paul E. Frailey

Signature/Date:

MICCCONTROLNO. 2012-89 MICC-DPG CONTROL NO. FY12-01

15. Contracting Officer Certification: "I certify that this J&A is accurate and complete to the best of my knowledge and belief. n

NAME: Paul E. Frailey

TITLE: Contracting Officer

SignaturefOatefjf~

I fj

MlCC CONTROL NO. 2012-89 MlCC.DPG CONTROL NO. FY12-0l

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of Chemical Cloud Testing System Maintenance Service on an other than full and open competition basis pursuant to the authority of 10 U.S. C.

2304( c)( 1 ), subject to the avaiiability of funds, and provided the services herein described have otherwise been authorized for acquisttion.

NAME; Albert Jacob

TITLE; MICC Special Competition Advocate

Signature/Date;