Signed_DPG_JA_2017_88_CCTS.pdf

Control No. MICC 2017-88 Contractor: Micro Engineering Software and Hardware (MESH), Inc.

Program: Chemical Cloud Tracking System (CCTS) Maintenance

Version – March 2018 FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

FAR PART 6 JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

Program: Chemical Cloud Tracking System (CCTS) Maintenance Service Agreement

Authority: 10 U.S.C. § 2304 (c), as implemented by FAR 6.302-1, "Only one responsible source and no other supplies or services will satisfy agency requirements."

Amount: $1.7M

Prepared by: Paul E. Frailey DSN: 789-2587 Contract Specialist Date: 5/16/2017 Email: paul.e.frailey.civ@mail.mil

Contracting Officer: Monty N. Kurtz DSN: 789-2501 Contracting Officer Date: 5/16/2017 Email: monty.n.kurtz.civ@mail.mil

Technical: Tracy L. Mullendore DSN: 789-5608 Division Chief, DMD Date: 5/16/2017 Email: tracy.l.mullendore.civ@mail.mil

Requirements: Tracy L. Mullendore DSN: 789-5608 Division Chief, DMD Date: 5/16/2017 Email: tracy.l.mullendore.civ@mail.mil

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

DSN: 789-3003

Acting Director, West Desert Test Center: Douglas O. Andersen

___________________________________ Date: ________________ mailto:paul.e.frailey.civ@mail.mil mailto:tracy.l.mullendore.civ@mail.mil mailto:tracy.l.mullendore.civ@mail.mil douglas.andersen Typewritten Text 20180614 douglas.andersen Typewritten Text

Program: Chemical Cloud Tracking System (CCTS) Maintenance

Version – March 2018 FOR OFFICIAL USE ONLY

Small Business Specialist, Small Business Program:

Diane House DSN: 470-3893

Date: See Digital Signature

Local Legal Counsel:

Kateni Leakehe DSN: 789-3335

Date: See Digital Signature

Director, MICC-Dugway Proving Ground:

A. Jim Keetch DSN: 789-2362

Date: See Digital Signature

Deputy Assistant Director, Small Business Program:

Luis O. Trinidad DSN: 738-2136

Date: See Digital Signature

MICC Office of Counsel:

Susan D. Denley DSN: 259-8739

Date: See Digital Signature scott.kukes Text Box

Program: Chemical Cloud Tracking System (CCTS) Maintenance

Version – March 2018 FOR OFFICIAL USE ONLY

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

1. Contracting Activity: Mission & Installation Contracting Command - Dugway Proving Ground, 5330 Valez Circle, Mail Stop 1, Dugway Proving Ground, Utah 84002-

2. Description of Action: The West Desert Test Center (WDTC) requests award of a firm-fixed price maintenance service contract with Micro Engineering Software and Hardware (MESH), Inc. for up to five years with a base period of twelve months and four twelve-month option periods in support of Dugway Proving Ground (DPG) WDTC. The estimated value of this requirement over the five year period is $1.7M, subject to the availability of funds. The base year will be funded with Fiscal Year (FY)17 Research, Development, Test and Evaluation (RDT&E) funds. Option periods will be funded by FY18 - FY22 RDT&E funds.

This action is a follow-on to contract W911S6-12-D-0001. That contract was not competed under authority 10 U.S.C. § 2304 (c), as implemented by FAR 6.302-1, "Only one responsible source and no other supplies or services will satisfy agency requirements."

3. Description of Supplies/Services: WDTC Data management Division (DMD) has a requirement to provide maintenance service for Chemical Cloud Tracking System (CCTS) units used for cloud measurement tracking and mapping. Under the proposed service contract the vendor will provide required upgrades and annual preventative maintenance for eight CCTS units. The proposed service contract includes, but is not limited to repairs, preventative maintenance, hardware and software upgrades for continued sustainment and obsolescence avoidance, etc.

The CCTS provides the DPG test range with cloud tracking data which is integrated into DPG customer test results and scenarios.

Base Period: 19 July, 2018 to 18 July, 2019 Value: $533,000 Option Period 1: 19 July, 2019 to 18 July, 2020 Value: $291,750 Option Period 2: 19 July, 2020 to 18 July, 2021 Value: $297,750 Option Period 3: 19 July, 2021 to 18 July, 2022 Value: $291,750 Option Period 4: 19 July, 2022 to 18 July, 2023 Value: $291,750

Total Value: $1,706,000

4. Authority Cited: 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.

5. Reason for Authority Cited: As described at 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.

a. Background: Micro Engineering Software and Hardware (MESH), Inc.

developed the CCTS units for the WDTC through a Small Business Innovative Research (SBIR) Contract (DAAD09-00-C-0002) awarded 21 DEC 1999. The CCTS design includes proprietary software, a radiometric model based upon MESH's intellectual property, custom-designed hardware, and complex software-hardware interfaces. It is essential that maintenance tasks and upgrade tasks be coordinated in such a manner that WDTC can maintain use of the instruments.

b. Alternatives: Due to the proprietary nature of the existing MESH CCTS the first alternative to the noncompetitive award would be not to procure the system support. Failure to procure the maintenance support will result in an obsolete system that would be rendered unusable due to breakdown of various components.

The second alternative would be to conduct a competitive acquisition for other possible vendors to include Aerospace, Inc. and Physical Sciences, Inc (PSI) to build a system similar to the CCTS. This is not acceptable because any alternative system would be incompatible with the existing equipment. Use of another vendor would produce a substantial duplication of cost that is not expected to be recovered through competition. The Government has invested over $4.6 million in the development, purchase, maintenance, upgrades, and training for the CCTS in use at Dugway Proving Ground. The CCTS is used regularly in field testing at WDTC and only MESH can improve the instrumentation while simultaneously keeping it available for current testing needs without degrading current abilities.

c. Justification: MESH retains proprietary data rights over the hardware, software, and licensing of the CCTS. No other company possesses the technical data necessary to provide the maintenance support, updates, and make repairs necessary to keep the system up to date. Data provided by the CCTS has been a vital 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 constantly more stringent. To meet the more stringent needs of the present and anticipated needs of the future, it is necessary to maintain and improve the CCTS assets.

6. Efforts to Obtain Competition: Because of the unique nature of this requirement, purchase of a system from any other manufacturer would still result in a sole source acquisition for updates for the same proprietary reasons stated above.

a. Effective Competition: Because this is a sole source action, effective competition is not applicable.

b. Subcontracting Competition: MESH, Inc., a small business, is the original manufacturer of the CCTS; therefore, the majority of the services necessary for this requirement will be performed by the company.

7. Actions to Increase Competition: A Sources Sought announcement was posted (22 AUG 2017) to the Federal Business Opportunities (FBO). There were no vendors that responded to the sources sought with capability statements or qualifications. As stated above, maintenance requirements of the current system will continue to be sole source actions. As a test facility for chemical, biological, radiological, nuclear explosives development and testing, DPG is constantly contacted by research, engineering, consulting, etc. firms that seek the opportunity to get involved with opportunities at DPG. The DPG DSD and other divisions conduct capability briefs, review potential vendor capabilities and performance at other locations, etc. to determine if other solutions are better or at the least a significant improvement over current methods.

8. Market Research: The requiring activity is continually seeking competitive services by conducting market research through the internet, 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.

9. Interested Sources:

MESH, Inc.

114 Barnsley Road Oxford, PA 19363

10. Other Facts:

a. Procurement History: Contracts have been established in the past or currently exist with MESH for the CCTS for various improvements and services.

The initial requirement was a competitive SBIR, Firm Fixed Price (FFP) requirement. Subsequent actions have been sole source per FAR Part 6.302-1.

Previous contracts with MESH- include the following:

b. DAAD09-00-C-0002 (competitively awarded firm-fixed price SBIR contract, Phase I) awarded on 21 DEC 1999 for $119,679;

1) DAAD09-00-P-0239 (sole-source firm-fixed price contract for CCTS component parts) awarded on 23 AUG 2000 for $10,846;

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

3) DATM0C-02-P-0238 (sole-source firm-fixed price contract for two FTIR spectrometers and software) awarded on 29 AUG 2002 for $503,077;

4) DAABJ19-03-P-0173 (sole-source firm-fixed price contract for JCAD test support) awarded on 09 APR 2003 for $23,800;

5) W911S6-04-C-0005 (sole-source firm-fixed price contract for CCTS upgrades) awarded 08 JUN 2004; $219,453

6) W911S6-04-P-0152 (sole-source firm-fixed price contract for CCTS maintenance) awarded 12 MAY 2004 for $10,000;

7) W911S6-05-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;

8) 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;

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

10) W911S6-12-D-0001 (sole-source firm-fixed price contract for CCTS Maintenance) awarded 21 SEP 2012 through 23 SEP 2016 for total of $1,257,200.00

(a) 2015 – modification executed to fund hardware upgrade for $60,000

(b) 2016 – modification executed to fund software upgrade $26,320

Program: Chemical Cloud Tracking System (CCTS) Maintenance

Version – March 2018 FOR OFFICIAL USE ONLY

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.

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.

13. Fair And Reasonable Cost Determination: I hereby determine that the anticipated price for this contract action will be fair and reasonable. The techniques identified at FAR 14.404(b)(1) and the Government will reserve the right to require the submission of Other Than Certified Cost or Pricing Data as is deemed necessary to arrive at a fair and reasonable price. The Contract Pricing Reference Guide, per 15.404-1(a)(7) will be utilized in justifying pricing to be fair and reasonable. The Contracting Officer has used a comparison of industry cost for similar work. The Independent Government Cost Estimate (IGCE) will primarily be an analysis of the contractor’s proposed cost. Additionally, the techniques identified at FAR 15.404- 1(c)(2)(iii) will be used to further ensure award will be at fair and reasonable prices.

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 CCTS Maintenance Service Agreement from Micro Engineering Software and Hardware, Inc.

on an other than full and open competition basis pursuant to the authority of Title 10 United States Code Section 2304(c)(1) as implemented by Federal Acquisition Regulation Part 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. The estimated value of the contract is $1.7 million for a five year period of performance consisting of a base year and four option years, from July 2018 through July 2023. The approval is subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

SCOTT D. KUKES

Command Advocate for Competition US Army Mission and Installation Contracting Command, Ft Sam Houston TX