JA_MICC_14-79_redacted.pdf

MICC Control No. 14-79 YUMA 14-04

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

Program/Equipment: Vaisala Radiosondes

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

Amount: $12.49M

Prepared by:

Name: Date:

Title: DSN:

E-mail:

Procuring Contracting Officer:

Name: Date:

Title: DSN:

E-mail:

Technical/Requirements Representative:

Name: Date:

Title: DSN:

E-mail:

Management Representative:

Name: Date:

Title: DSN:

E-mail:

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

Local Small Business Specialist:

Name: Date:

Signature: ___________________ DSN:

Local Legal Advisor:

Division Chief, MICC - YPG:

Name: Date: ________

Director, MICC - YPG:

Name: Date: ________

MICC Legal, 418th CSB

Signature: ___________________________ Phone:

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

Vaisala Radiosondes

1. Contracting Agency: Mission and Installation Contracting Command - Yuma Proving Ground (MICC – YPG), U.S. Army Yuma Proving Ground (USAYPG), Arizona.

2. Description of Action: Approval is requested to award a noncompetitive Firm-Fixed Price (FFP) requirements-type contract with Vaisala, Inc., for up to five-year ordering period in primary support of the USAYPG Yuma Test Center (YTC) Meteorological Branch with additional ordering capability for Army test centers, White Sands Missile Range (WSMR), Fort Hood, and Dugway Proving Ground (DPG). The estimated value of this requirement over the five-year ordering period is <$12.5M subject to the availability of funds. Funding will be obligated via individual delivery orders utilizing appropriate Fiscal Year (FY) funds.

3. Description of Supplies: The requirement is for the supply of expendable RS92 GPS type radiosondes for upper air data collection. The DigiCORA Sounding System is used to compile and transmit upper air data collection to ground stations. The expendable radiosondes RS92, which form an integral part of the sounding system, are carried aloft by helium filled balloons, and transmit data back to the DigiCORA Sounding System relative to pressure, temperature, humidity, wind speed and wind direction. The Vaisala systems were standardized across the U.S. Army and provide a commonality of test data sharing between installations. A requirements contract will provide for filling all actual purchase requirements of designated Army test centers.

4. Authority Cited: This other than full and open competition action is permitted under the statutory authority of 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: Vaisala is the only responsible source that can satisfy the Army’s requirements.

a. Background:

i. USAYPG, a Major Range and Test Facility Base (MRTFB), is a general purpose facility with over 60 years of experience in integrated operational/developmental testing of all types of military systems and gear in three of the world’s four extreme natural environments.

USAYPG conducts tests on medium and long-range artillery; aircraft target acquisition equipment and armaments; armored and wheeled vehicles; a variety of munitions; and a variety of military personnel gear.

ii. The USAYPG YTC Meteorological Branch has utilized the Vaisala Upper Air

Sounding System at seven ground stations for over 20 years to collect upper air meteorological data for determining atmospheric conditions prior to the initiation of a test mission. The same upper air sounding system from Vaisala are also in use at ‘sister’ MRTFBs at WSMR, NM; Ft.

Huachuca, AZ; Cold Regions Test Center (CRTC), AK; Aberdeen Proving Ground (APG),MD;

Redstone Arsenal, AL; and DPG, UT. The Vaisala systems were selected by the Range Commanders Council Meteorology Group (RCCMG) and standardized across the U.S. Army to provide a commonality between installations with the sharing of data relative to on-going testing.

The USAYPG YTC Meteorological Branch invested approximately $320,000 in the purchase of four initial Vaisala DigiCORA stations in the early 1990’s. In addition, a transfer of three additional stations from the Army Meteorological unit at Fort Hunter Liggett to USAYPG also occurred around the same timeframe. The seven sounding stations were upgrades to MW21 models around 2002-2004 for approximately $270,000. The MW21 models were upgraded to the current technology, MW41 model, in April 2014 for $140,000.

iii. Vaisala, Inc is the Original Equipment Manufacturer (OEM) and owns all proprietary data and patent rights to this equipment. No other manufacturer's product is compatible with the Vaisala DigiCORA Upper Air Sounding System to provide a commonality of test data between installations.

iv. Since the initial purchase discussed in Paragraph 5(a)(ii) above, USAYPG has invested an additional $1,200,000 in the ground stations and overall system including upgrading to the Vaisala DigiCORA Sounding System MW41 in April 2014. In addition, USAYPG has been purchasing an estimated $700,000 per year of radiosondes and other parts to maintain the functionality and sustain on-going testing requirements. Further, WSMR purchases an estimated $300,000 per year of radiosondes. Similar investments have been made across the Army test centers.

v. Acquisitions to date were conducted on a sole source basis to Vaisala, Inc using the

General Services Administration (GSA) Contract Number GS-25F-6029D with approval through Limited Source Justification’s (LSJs) posted pursuant to FAR 8.405-6(a)(2)(i)(B).

b. Alternatives:

i. The first alternative to this acquisition is to conduct a competitive acquisition. This is not acceptable because any alternate system would be incompatible with the existing equipment manufactured by Vaisala, Inc. due to the lack of fit, form, and functionality and could potentially negate the commonality of test data collected and the sharing of that data between MRTFBs.

Pursuant to FAR 5.102(a)(6) a notice was posted allowing companies to submit its technical capability if they felt they possessed the ability to provide the requirement. To date, no other company has challenged the proprietary nature or sole source action of this acquisition.

Additionally, waiting for another company to develop the technology to meet the compatibility requirement would result in an unreasonable delay and substantial duplication of costs.

ii. The second alternative is to continue utilizing the Vaisala GSA contract. Although this alternative has been the selected method of procurement in the past, it has presented some drawbacks of its use for the following reasons:

- Vaisala does not keep an inventory of radiosondes on hand and only begins manufacturing the equipment ordered when they receive the delivery order, which creates at least a three to four month lead time to receive the radiosondes after the placement of an order.

- In order to compensate for the long lead time required and the need to meet any surge in the test mission, USAYPG is forced to procure the radiosondes in large quantities to cover time delays and mission surges. These large quantities require large controlled-environment storage areas to be found in which to store them prior to use, to alleviate any potential denigration of the sensitive electronics contained within the radiosondes which could potentially lead to inaccurate data collection. These types of controlled-environment storage areas are not readily available on USAYPG with many units competing for the same space.

- The ‘most favorable’ pricing available for the purchase of radiosondes under the current GSA contract is only available with volume discounts thereby encouraging the Government to purchase more than they need which does not fit with the current purchasing strategy.

- Finally, Vaisala’s GSA contract is set to expire on November 30, 2015. While its GSA contract has been renewed in the past, and it is assumed the contract will be renewed again in the future, there is no guarantee that the GSA vehicle will be available.

Additionally, any Blanket Purchase Order (BPA) attached to the GSA contract is subject to the expiration date of the GSA contract and does not allow for the flexibility and length of performance necessary for USAYPG.

iii. The only feasible alternative is to establish a noncompetitive requirements contract to provide for the on-going requirement for expendable radiosondes. This alternative is principally beneficial to the Government for the following reasons:

- This alternative would establish a contract vehicle with “most favorable” fixed prices for a period of 5 years eliminating the need to purchase large quantities of radiosondes in order to receive that favorable pricing; it would also alleviate the need for large controlled-environment storage areas in which to store the equipment; and

- The terms and conditions of the contract would require a minimum level of inventory to be held by Vaisala to ensure shorter lead times to delivery.

This alternative is deemed to be the more advantageous to the Government and ensure optimum readiness levels by the USAYPG YTC Meteorological Branch and other Army test centers to the ever-changing testing mission are met, and more importantly, ensure the consistency and accuracy of the data collected in support of on-going Theaters of Operation.

c. Justification: Vaisala, Inc, as indicated above, is currently the only company with the requisite knowledge and expertise required to produce and sell this unique equipment. As such, any attempt to compete this requirement would result in unreasonable delays as other competitors work at developing this highly specialized technology. Consequently, these delays would likely result in a substantial duplication of costs to the Government that would not be offset by a theoretically lower price after competition. Furthermore, Vaisala also has proprietary rights in the equipment does not permit the resale or distribution of its equipment through a third-party.

d. Prior Acquisitions: An Indefinite Delivery Indefinite Quantity (IDIQ) contract was established on 01 August 2013 by WSMR for local use only. This requirements contract would be primarily used by USAYPG and open for other Army test ranges as a strategic source. Other sole source purchases are discussed further in paragraph 10, below.

e. Impact: As discussed in paragraph (a)(ii) above, the Vaisala systems were standardized across the U.S. Army and provide a commonality of test data sharing between installations, and use of a different system at USAYPG could potentially negate that commonality and the sharing of data. USAYPG has a significant investment ($1.2M) in the existing Vaisala Upper Air Sounding System and ground stations and the on-going requirements to purchase an estimated $700,000 per year in radiosondes to sustain the capability as discussed in paragraph (a)(iv).

Similar investments across the Army test community make this requirements contract with Vaisala systems an optimal strategic solution. Disapproval of a noncompetitive contract would create a situation where the Meteorological Branch would be continually faced with long-lead times, a need for large controlled-environment storage areas and decreased flexibility in response times to the test mission, all of which create barriers to efficient processes. Approval of this sole source contract would provide the USAYPG YTC Meteorological Branch and other Army test centers the contract vehicle for the optimum levels of radiosondes inventory without the risk of denigration to the electronics caused by extended storage. It would also allow the team to provide the necessary levels of support, in a manner that is consistent with the expensive test programs currently conducted at USAYPG and other Army test centers.

6. Efforts to Obtain Competition: A sources sought notice was posted to the Federal Business Opportunities (FBO) website through the Army Single Face to Industry (ASFI) website on 20 May 2014. The purpose was to identify potential sources that may be interested in and capable of providing the equipment. The interested vendors were required to respond by demonstrating the technical capability to meet these requirements. One company, Vaisala, responded to the notice with the information that they are the only authorized sellers of its products. Additionally, as discussed in Paragraph 10(a) below, USAYPG has maintained the functionality this equipment from Vaisala on a sole source basis; likewise have other test centers. Purchase of a system from any other manufacturer would still result in sole source acquisitions for equipment for the same proprietary reasons stated above. As continually evidenced in the recent contract actions of paragraph 10(a), no other company has challenged the proprietary nature or sole source action to Vaisala. Based on the information in Paragraph 5 above, competition for this action is not feasible.

7. Actions to Increase Competition: The Meteorological Branch continually conducts market research as described in Paragraph 8, below. Additionally, new upper air instrumentation is routinely presented at the RCCMG. Until a new system is defined and found suitable by the RCCMG, and a directive issued to test ranges for the purchase of said equipment, future purchases of equipment for the Vaisala DigiCORA III Upper Air Sounding System and ground station will remain limited to Vaisala.

8. Market Research: The Meteorological Branch technician, continually researches advancements in new technologies and industry capabilities through internet research, trade journals, industry conferences, and discussions with the industry on topics and equipment regarding meteorology as well as collaborating with colleagues across the Army. The Meteorological Branch has considerable experience in researching and analyzing the types of meteorological equipment for military upper air data test support. Further market research is discussed in the market research report dated 22 July 2014.

9. Interested Sources: Vaisala, Inc is the only source capable of providing the proprietary equipment and expendables for the DigiCORA III Upper Air Sounding System. A notice of intent to negotiate a sole source FFP requirements-type contract with Vaisala, Inc will be posted to satisfy the requirements of FAR 5.201 after the approval of this justification. It is anticipated that no responses will be received due to the proprietary nature of the equipment as discussed in Paragraph 5, although any bids or proposals received would be considered. In previous purchases using Vaisala’s GSA schedule, MICC-YPG posted the requirement and the approved LSJ on the GSA website under SIN 66 610 with each procurement. To date no other company has challenged the sole source action.

10. Other Factors:

a. Procurement History: A number of sole source acquisitions have been made using the GSA schedule with Vaisala after posting the brand name only justification. Further, WSMR acquired these same items through a sole source indefinite delivery indefinite quantity contract.

Other test centers have acquired these radiosondes through vendor purchases off of prime support contracts. This lack of coordination provides no economies of scale, balanced production, or any incentive for Vaisala producing and supporting a just in time inventory.

b. Acquisition Data Availability: Technical data packages have not been developed because of the proprietary equipment data rights used in the Vaisala radiosondes. Disclosure of proprietary information must not be made to other potential offerors.

c. Unusual and Compelling Urgency: This action is not being procured through urgent procedures.

d. Sub-contracting Competition: Although subcontracting efforts are not precluded, it is not anticipated that any functions under the existing requirement will be subcontracted. Vaisala is the only authorized sellers of its products and does not use small businesses as resellers or distributors.

11. Technical/Requirements Certification: I certify that the supporting data under my cognizance which are included in this Justification are accurate and complete to the best of my knowledge and belief.

NAME: DATE:

TITLE: SIGNATURE:

12. Management Review/Approval: The requirement herein described is a valid requirement of the activity named in this Justification. The technical and requirements information contained in this Justification represent the minimum needs of the Government. The only way to satisfy this requirement is by limiting competition as described herein.

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 15.404- 1(b)(2)(ii), “Comparison of proposed prices to historical prices paid,” FAR 15.404-1(b) (2)(v), “Comparison of proposed prices with independent Government cost estimates,” and FAR 15.404-1(b)(2)(vi), “Comparison of proposed prices with prices obtained through market research for the same or similar items” will be used to ensure award will be at fair and reasonable prices. Certified cost or pricing data will not be required pursuant to FAR 15.403-1(c)(3).

14. Procuring 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 herebyapprove the strategic Army Test Center procurement ofup to 5 years of Vaisala Radiosondes for an estimated less than $12.49M on an other than full and opencompetition basis pursuant to the statutory authority of 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, subject to the availability of funds, and provided the supplies described herein have otherwise been authorized for acquisition.

CARSELLO.DEAN.M.1230116675

cirxiATITDC 2014.08.14 16:01:17-05'00' SIGNATURE: Date:

Dean M. Carsello

Special Competition Advocate Mission and Installation Contracting Command, Ft Sam Houston TX

"FOR OFFICIAL USE ONLY"

(Protective Marking to beremoved after date of award)