Redacted_J A_for_ASFI.pdf

Control No. 12-0009

Justification and Approval For Other Than Full and Open Competition

1. Contracting Activity: U.S. Army Contracting Command Aberdeen Proving Ground (ACC-APG), Edgewood Division

E4455 Lietzan Road (CCAP-SCE) Aberdeen Proving Ground (EA), MD 21010-5401.

2. Description of Action: Approval is requested for a new Firm Fixed Price (FFP) five

(5) year Requirements contract with one 12 month option period to be awarded to Bruker Detection Corporation (Bruker), Billerica, MA for production and support of the Improved Point Detection System – Lifecycle Replacement (IPDS-LR).

Individual Delivery/Task orders under this contract will utilize Fiscal Year 2013 through 20181 Procurement funds.

3. Description of Supplies/Services:

a. The Joint Project Manager for Nuclear, Biological and Chemical Contamination Avoidance (JPM NBC CA) has a requirement to procure IPDS-LR systems and on-board kits (repair and consumable parts). The IPDS-LR is a chemical detector. It is intended to serve as a fixed point detector to monitor external air for chemical warfare agents (CWAs) and toxic industrial chemicals (TICs) aboard US Navy ships. The system will detect and alert ship personnel to the onset of vapor hazards in time to take protective measures. The IPDS-LR is a form/fit/function hardware replacement and delivers “plug and play” components to naval vessels. Shipboard installation is accomplished via existing mounting locations and foundations. The IPDS-LR consists of two Detection Units (DUs), two External Air Sampling Units (EASUs), a Control Display Unit (CDU), and a Remote Display Unit (RDU). The EASUs (one mounted on the ship’s port side, the other on starboard side) introduce sampled air to their associated DUs for analysis. The CDU provides system control, audible and visual alarms, and system status information in Damage Control Central. The RDU, in addition to providing audible and visual alarms and system status information on the bridge, interfaces with the main circuit general shipboard announcement system for ship-wide chemical alarms. These components (DUs, EASUs, CDU, and RDU) are required to fit in the current IPDS installation interface specifications such as size, power draw, weight, and clearances.

b. The proposed contract will include a 60-month base ordering period and one 12-month option ordering period for a total ordering period of 72 months. The contract will allow for the procurement of IPDS-LR systems, on-board kits, and technical support services. The technical support services will consist of engineering, training, and sustainment services necessary to support the IPDS-LR system. The total estimated dollar value for this effort is calculated as follows:

1 Funding for FY 2018 procurement to be addressed in POM 2014 request.

1) Procurement of an estimated maximum of 250 IPDS-LR systems estimated at $134,321.00 per system for a total estimated amount of $33,580,250.00.

2) Procurement of an estimated maximum of 250 on-board kits estimated at $7,391.00 per kit for a total estimated amount of $1,847,750.00.

3) Technical support services estimated at $10,100,000.00.

4) The total estimated dollar value for this contract including options, estimated at $7,588,000.00, is $45,528,000.00.

4. Authority Cited: 10 USC 2304(c)(1), as implemented by Federal Acquisition Regulation (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 authorized by FAR 6.302-1 procurement by Other Than Full and Open Competition is necessary based on the following:

a. The only responsible source capable of providing the IPDS-LR, on-board kits, and technical support services is:

Bruker Detection Corporation 40 Manning Road

Billerica, MA, 01821 CAGE Code: 360H2

b. In December 2007, three Indefinite Delivery Indefinite Quantity (IDIQ) contracts were awarded for the IPDS-LR development and production. The three contractors Smiths Detection, Environics USA, and Bruker were issued a series of competitive delivery orders in which their proposed systems were tested and the results evaluated by the Government. Of the three systems evaluated only the Bruker system was capable of meeting the requirements As such, the Bruker IPDS- LR system underwent Production Verification and Operational Testing via additional delivery orders against their IDIQ contract. Smiths Detection and Environics USA were both informed in May 2009 that their systems were unable to meet requirements, and no additional orders were issued against their respective IDIQ contracts. Following completion of Production Verification and Operational Testing, the Bruker IPDS-LR design entered First Article Testing (FAT) in November 2010.

After successfully completing FAT, the Bruker IPDS-LR system entered Low Rate Initial Production (LRIP) in June 2011. In April 2012, the Bruker IPDS-LR system entered Full Rate Production where 180 systems were authorized for procurement, 40 of which are being manufactured under a delivery order awarded in June 2012.

This new acquisition is required since, Bruker’s current contract expires in December 2012 and does not allow sufficient time to procure the remaining IPDS-LR systems to support the Navy’s fielding schedule.

c. Technical Data: The Government does not own the Technical Data Package (TDP) for the IPDS-LR. The IPDS-LR is a modified COTS item. Bruker possesses the critical system knowledge and owns the proprietary data required to produce the system. The Government and Bruker teams have successfully tested and enhanced the IPDS-LR over a four year period. The Government will not pursue procurement of the TDP as this is a one-time requirement to fill the capability gap resulting from obsolescence of the previous system. No future similar acquisitions are anticipated.

d. Duplication of Costs: Although a competitive performance specification exists for the IPDS-LR system, any competitive procurement would result in a substantial duplication of costs. All IPDS-LR logistics products to include the operator manual, maintenance manual, maintenance training, and on-board kits have been developed specifically for the Bruker IPDS-LR system. In addition, the Bruker IPDS-LR system has undergone extensive Performance Verification, Operational, and First Article Testing which a new IPDS-LR design would be required to undergo. The Government estimates the duplication of costs to be $11M, and a minimum of 5 years to complete. This cost estimate is based on costs experienced throughout the IPDS-LR program and consists of $5M for integration design and implementation, $3M for qualification testing, $2M for operational testing, and $1M for a new logistics program. The 5-year time needed to qualify another system includes additional efforts due to the involvement and oversight from the Office of the Director, Operational Test & Evaluation and from the Joint Requirements Office for Chemical, Biological, Radiological and Nuclear Defense.

e. Navy Test Requirements: In addition to meeting requirements for CWA detection, interferent rejection (false alarm), natural environments (including coastal environment), reliability aboard ship, outdoor simulant detection, and contamination survivability, the Bruker IPDS-LR system is the only system that has obtained Navy Ship Change Documentation (SCD) certifications. The Navy SCD certifications include shipboard shock (MIL-S-901 D Shock Tests, High Impact), shipboard vibration (MIL-STD-167-1), and shipboard Electromagnetic Environmental Effects.

These certifications qualify the system as mechanically survivable and able to continue to function in the shipboard environment after a dynamic event.

Additionally, these certifications ensure the system will not become a projectile hazard from same dynamic event. These qualifications (dependent on test site availability) require a year in the planning and execution. They are performed only after the system has proven its chemical agent detection capability to avoid the need to re-test due to configuration changes that may occur in the sensitivity qualification.

Any new IPDS-LR design would be required to undergo the Navy SCD certification process. Currently, the Navy has certified only the Bruker IPDS-LR design and no other systems are undergoing or scheduled to be tested.

f. Delivery Schedule Requirements and Unacceptable Delays: The fielding schedule for IPDS-LR has been established by the Navy, requiring production systems for installation aboard ship from FY12 through FY19 without break.

Deliveries under the new contract must begin 4QFY13 and continue through FY19 in order to meet the fielding schedule. The JPM NBC CA has been directed to “ensure there are no production breaks in this system”.2 Because Bruker owns the TDP, another contractor cannot build the IPDS-LR to the current configuration. Qualifying a different system will require approximately 5 years and cause unacceptable delays to the fielding schedule. The IPDS-LR provides CWA detection capability to US Navy ships and replaces the previous system which has become unsustainable.

Replacement of the previous system is necessary due to parts obsolescence, decreasing reliability, and increasing maintainability cost and manpower. The Navy has already budgeted for the installations and scheduled ships for system installation based on the ADM approved procurement schedule. Operator and maintainer training has already begun. Therefore, IPDS-LR delays directly impact the replacement schedule and would put the US Navy in a situation of having an unsustainable CWA detection system aboard ships. Additionally a second system would be an unacceptable burden on the Navy logistic system – from a budget, schedule and life-cycle management perspective.

6. Efforts to Obtain Competition: Based on the information in paragraph 5, competition for this action is not feasible. No other sources have a Navy SCD certified system, which prevents them from being able to meet the delivery schedule for this requirement. As such, no further competition for the production of the remaining IPDS-LR systems is planned.

7. Actions to Increase Competition: The proposed contract will cover production of all remaining quantities of IPDS-LR required to satisfy the Navy’s Full Operational Capability. This is a one-time requirement to fill the capability gap resulting from obsolescence of the previous system. No future similar acquisitions are anticipated.

8. Market Research: The IPDS-LR Team conducted market research during the period May – August 2012 and found no system, other than the Bruker design, that could meet the IPDS-LR requirements for effectiveness, suitability, survivability, and delivery schedule. Methods used included internet searches, consultation with JPM Guardian personnel, and information gathered at conferences and symposiums.

While numerous CWA detectors were identified, none were of the configuration that would meet shipboard installation interface requirements. No system other than the Bruker IPDS-LR has been certified by the Navy to meet shipboard operating environment requirements. The US Navy Technical Direction Agent confirmed in August 2012 that the Bruker IPDS-LR is the only CWA detection system that has been approved for shipboard use. Furthermore, any system chosen other than the Bruker IPDS-LR would require extensive redesign and qualification testing. Such testing would include not only the SCD certification (shipboard shock, shipboard vibration, and electromagnetic effects) but also other assessments (CWA detection, false alarms, natural environments, reliability, outdoor simulant detection, and contamination survivability). The time needed to conduct these tests and perform

2 IPDS-LR Full Rate Production Acquisition Decision Memorandum from the Joint Program Executive Officer for Chemical and Biological Defense, 16 April 2012.

the evaluation would cause unacceptable delays to the fielding schedule and result in additional costs to the program.

9. Interested Sources: Bruker is the only known source capable of providing the IPDS-LR and associated support services. The notices required by FAR 5.201 were published on 12 September 2012. To date, no written responses have been received to the FedBizOpps notice; however, all offers received shall be considered.

10. Other Facts:

a. Procurement History.

Contract Number

Contractor Date of Award

Competitive Status

Contract Amount

Note

W911SR-

08-D-

Smiths Detection

19 Dec

Full and Open

$50 million ceiling

System unable to meet requirements.

Effective May 2009 no additional orders were issued

W911SR-

08-D-

Bruker Detection

19 Dec

Full and Open

$50 million ceiling

Only system capable of meeting requirements

W911SR-

08-D-

Environics

USA

19 Dec

Full and Open

$50 million ceiling

System unable to meet requirements.

Effective May 2009 no additional orders were issued

b. Acquisition Data Availability: As indicated in paragraph 5(c) above, the IPDS-LR is a modified COTS system, and the Government does not possess the competitive Technical Data Package.

c. Subcontracting Competition: Due to the anticipated dollar value of this requirement, the offeror will be required to submit an individual subcontracting plan and address subcontracting competition in its proposal. Prior to award, the Subcontracting Plan will be reviewed and approved by the Government. The appropriate subcontracting clauses 52.244-5, Competition in Subcontracting and 52.244-6, Subcontracts for Commercial Items, will be included in the contract.