JA_Data_Physics_Vibration_Redacted.pdf

MICC Control No: 2017-4 Contractor: Data Physics Corporation

Program/Equipment: Maintenance and Repair

Version – MAY 2016 FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

FAR PART 13.5 SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS –

SOLE SOURCE JUSTIFICATION AND APPROVAL

Program/Equipment: The United States Army Yuma Proving Ground (USAYPG) Yuma Test Center (YTC) has a requirement for upgrade and maintenance of seven vibration control/data acquisition systems manufactured by Data Physics Corporation.

Authority: Simplified Acquisition Procedures for Certain Commercial Items, 41 U.S.C.

1901 as implemented by FAR 13.501(a)(1)(ii) for sole source commercial acquisitions.

Amount: $ 230,000.00

Prepared by: DSN:

Date: 21 Feb 2017 Email:

Contracting Officer: DSN:

Date: 21 Feb 2017 Email:

Technical: DSN:

Date: 21 Feb 2017 Email:

Requirements: DSN:

Date: 21 Feb 2017 Email:

Program/Equipment: Maintenance and Repair

Version – MAY 2016 FOR OFFICIAL USE ONLY

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

Program Manager:

Date: see electronic signature

Acting Director, MICC-YPG:

Tejae Craig

DSN: 899-6903

Signature: ____ Date: see electronic signature

Small Business Specialist, Small Business Program:

Date: see electronic signature

Legal Counsel:

Date: see electronic signature

Program/Equipment: Maintenance and Repair

Version – MAY 2016 FOR OFFICIAL USE ONLY

FAR Part 13 Justification and Approval for Other than Full and Open Competition

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

2. Description of Action: The USAYPG Yuma Test Center (YTC) Meteorology and Simulation Division requests a new firm-fixed price purchase order with Data Physics Corporation located at 2480 N. 1st Street Suite 100 San Jose, CA, 95131-1030. The Government projects award by 01 April 2017 and Fiscal Year (FY) 2016 Research, Development, Test, and Evaluation (RDT&E) funds will be used. An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

3. Description of Supplies/Services: USAYPG has a requirement for annual maintenance and repair of seven YTC Vibration Control/Data Acquisition (DAQ) systems manufactured by Data Physics Corporation. The systems interface with vibration test equipment to support laboratory vibration and shock testing. The equipment is required for YTC evaluation of test item performance, reliability, and safety. The equipment control software is currently out of date and computer hardware/software require replacement to meet Army Test and Evaluation Command (ATEC) standards for computer based test equipment. The current requirement consists of an annual maintenance and hardware/software upgrade for each system. The period of performance is for one-base period with four one-year option periods. The contract scope is summarized below:

Base Period: 1 Apr 2017 to 31 Mar 2018, with a value of Option Period I: 1 Apr 2018 to 31 Mar 2019, with a value of Option Period II: 1 Apr 2019 to 31 Mar 2020, with a value of Option Period III: 1 Apr 2020 to 31 Mar 2021, with a value of Option Period IV: 1 Apr 2021 to 31 Mar 2022, with a value of

The total estimated value of the acquisition is $ 230,000.00

4. Authority Cited: Simplified Acquisition Procedures for Certain Commercial Items, 41 U.S.C. 1901 as implemented by FAR 13.501(a)(1)(ii) for sole source commercial acquisitions.

5. Reason for Authority Cited: As described at FAR 13.501(a)(1)(ii), sole source (including brand name) acquisitions conducted under simplified acquisition procedures are exempt from the requirements in Part 6. The test equipment in the current procurement is a combination of computer hardware, data acquisition instrumentation, and software. The equipment contains proprietary hardware and software only available from the equipment manufacturer. The seven systems were purchased during FY 2004 and 2006; the 2004 contract was a competitive solicitation which evaluated all equipment manufacturers. A competitive solicitation for the current upgrades and maintenance will

Program/Equipment: Maintenance and Repair

Version – MAY 2016 FOR OFFICIAL USE ONLY require a contractor to obtain proprietary information from Data Physics Corporation, develop hardware and software diagnostic capabilities, and essentially duplicate the capabilities of the existing manufacturer in order to be compatible with the (DAQ) systems manufactured by Data Physics Corporation that the government already possesses. Data Physics Corporation has developed the equipment capability and design over the past 30 years and the financial investment and duplication of the existing contractor capabilities by another contractor are not justified.

Similarly, government development of detailed specifications to permit a competitive procurement is not possible. As previously stated, the software acquired was commercial off the shelf and the government does not own the hardware or software design, or have capabilities to design and manufacture the equipment. Alternate commercial equipment manufacturers exist, however no benefit presently justifies equipment replacement and other manufacturers will have similar upgrade and maintenance costs.

Equipment replacement funding is not currently available, thus upgrade and maintenance is the most cost effective method to meet the test requirements. The YTC test schedule presently does not permit suspension of equipment operation and significant test delays will impact numerous test programs.

. With the upgrades, the existing equipment has a serviceable life of approximately five to ten more years. A competitive procurement for equipment replacement will be conducted when the equipment performance does not meet test requirements or the equipment has reached the end of serviceable life.

6. Efforts to Obtain Competition: The Contracting Officer shall publish the notices required by FAR 5.201 and any responses received shall be taken into considered.

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

b. Subcontracting Competition: Subcontracting competition not required since Data Physics Corporation is a small business.

7. Actions to Increase Competition: Vibration test controllers currently available from several manufacturers were evaluated to determine if benefits exist that would decrease operational costs or provide technical improvements. Recent changes in controller design or performance provide very limited benefit over the existing equipment. The existing Data Physics controllers allow chassis expansion and additional software licensing if required. None of the manufacturers currently have second source suppliers that support or service equipment. The small controller market and equipment complexity only permit competition for the original equipment purchase. In summary, no option exists to increase competition in the current purchase, also discussed in paragraph 5.

The Meteorology and Simulation Division will continue to survey the equipment market enabling them to remain up-to-date and knowledgeable of additional sources.

Program/Equipment: Maintenance and Repair

Version – MAY 2016 FOR OFFICIAL USE ONLY

8. Market Research: In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) 205.205-71, DFARS 206.302-1(d), and DFARS Procedures, Guidance and Information (PGI) 206.302-1(d), a request for information or sources sought was posted to Federal Business Opportunities on 02 February 2017 for seven days with a closing date of 09 February 2017. There were no responses received by the due date.

9. Interested Sources:

The information was sent to the requiring activity who indicated the existing equipment is being upgraded and is not being replaced by new systems. The upgrade is necessary to meet computer operating system requirements. Both the maintenance and upgrade of the equipment are sole source requirements. Only the original manufacturer is capable of supporting the equipment because of proprietary rights and the complexity of the hardware and software.

10. Other Facts: Procurement History: A summary of previous YTC contracting actions related to the equipment and manufacturer are indicated below. The original system, to include hardware and software was competed and awarded on 24 June 2004 under contract W9124R-04-C-0142 in the amount of $ 96,175.00. The combined/synopsis solicitation received a total of four quotes. Since then, YTC has invested a total of approximately since 2004 to purchase, maintain and operate the current equipment. The maintenance cost through FY 2021 is estimated to be of the total, or approximately for each system. The operational cost is reasonable based on the complexity of the equipment. The equipment is still a manufacturer commercial product and thus considered adequate to support test requirements for an additional five to ten years. The need for equipment replacement and a competitive procurement contract will be determined from the equipment reliability during future operation.

Contract Competitive or

Sole Source Purchase Description Cost

W9124R-14-P-1124 Sole Source Control Software and DAQ Hardware $ 54,795.00

W9124R-08-P-1225 Sole Source Vibration Product Power Logic DPBL-12 Modules $ 18,040.00

W9124R-07-P-1107 Sole Source Data Analysis Software $ 4,300.00

W9124R-06-P-1385 Sole Source Vibration Control/DAQ Systems $ 289,085.00

W9124R-04-C-0142 Competitive Digital Vibration Control System $ 96,175.00

Program/Equipment: Maintenance and Repair

Version – MAY 2016 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.

Date: see electronic signature

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.

Date: see electronic signature

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. This determination will be made using price analysis techniques in accordance with FAR 13.106-3(a)(2).

Date: see electronic signature

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Date: see electronic signature