redated Limiting-Competition-under-SAT-Final.pdf

Control No: W912NW20Q0047

Version – February 2017

Memorandum for Record – Limiting Competition at or below the Simplified

Acquisition Threshold

1. Contracting Activity: Army Contracting Command – Redstone Arsenal, Corpus Christi Army Depot, Contracting Office 9035 Ocean Dr. Bldg. 10, Mail Stop 18, Corpus Christi TX 78419-5260.

2. Description of Action:

Nature: New Requirement Contract Vehicle: Purchase Order Number To be Determined Pricing/Contract Type: Firm Fixed Price Funds: Army Working Capital Funds, FY: 2020

Name of Proposed Contractor(s) and Address:

VJ Technologies, Inc.; CAGE 0JLW5 89 Carlough Road, Bohemia, NY 11716

Brand Name Buy: Yes No

3. Description of Services or Supplies: The CCAD X-ray System (Bar Code R1058) in Bldg. 49 is used to perform Non-Destructive Inspection of helicopter rotor blades, a Critical Safety Item (CSI), undergoing inspection, repair or overhaul as required per Depot Maintenance Work Requirement (DMWR). The system is used to identify the presence of water and Foreign Object Debris (FOD) in the rotor blades which will impact the ability to balance or lead to further damage to the blade if not removed. This effort will restore the x-ray system to operational status after being disconnected and partially disassembled to facilitate the construction renovation of Building 49. This effort will update the system’s VJ Technologies Vi3 imaging software to the current revision;

provide a new personnel door from booth to new control room; secure the existing old personnel door; extend existing cable set, control cabling and power wiring; replace an antiquated control console, controls, and integration of computers and monitors for high resolution real-time digital imaging; assure there is no radiation leakage; provide acceptance testing and training. The new x-ray control room will house control consoles for this effort’s x-ray system as well as an existing second x-ray system. The x-ray system primarily supports the inspection, repair and overhaul of rotor blades for the UH60 Black Hawk, AH64 Apache, and UH-1N Huey.

CLIN 0001: X-ray system R1058 Services to restore an X-ray system / QTY: 1 / UoM:

Each. Period of Performance: 120 days after contract award. Total Value: $ 175,400.00

4. Authority: FAR 13.106-1(b)(1): For purchases not exceeding the simplified acquisition threshold (SAT), only one source reasonably available, urgency, exclusive licensing agreements, brand name, or industrial mobilization.

5. Reasons for Authority Cited: The control room will house the control console for this effort and another existing x-ray system’s control console which utilizes the current revision of the VJ Technologies, Inc. Vi3 software. This arrangement will allow an operator to control both systems from a single control room. Having the same software on both systems will ensure that the quality of the inspection process is maintained at the same level on each system as well as provide the utmost safety for personnel. With differing software on the systems the potential exists for the operator to become confused as to which system is being used and lose track of imaging and system handling and could result in the degradation of the quality of the inspection process as well as damage to the system, damage to the asset being examined, or injury to personnel. There is also a risk that the controls and imaging software would not function with the existing vault, gantry, and x-ray equipment and will require additional investment cost and time to make compatible to function. It is certain that the VJ Technologies provided controls and software will be compatible with the existing system equipment as this was utilized prior to disassembly. Therefore the prudent action is to duplicate the systems and operation as much as practicable by utilizing the same software on each system.

The VJ Technologies, Inc. Vi3 software works with the Digital Detector Array (DDA) panel to process all the analog signals that are acquired from the X-ray exposure then digitally converts them to produce a readable image. Compliance with current Nondestructive Testing (NDT) Standards is required. Current Standard Practice (ASTM E2698) for Radiological Examination Using Digital Detector Arrays requires equipment monitoring of the DDA performance over time in accordance with Standard Practice ASTM E2737. This Standard Practice (ASTM E2737) for Digital Detector Array Performance Evaluation and Long-Term Stability is intended to ensure that the evaluation of image quality, as far as this is influenced by the DDA system, meets the needs of users, and their customers, and enables process control and long term stability of the DDA system. This practice specifies the fundamental parameters of DDA systems to be measured to determine baseline performance, and to track the long term stability of the DDA system. A separate program is required to interface with the proprietary VJ Technologies Vi3 software to acquire the unfiltered digitized signals from a radiographed object to perform specific testing, evaluating, and monitoring. Another vendor's program will be unable to or have difficulty interfacing with and acquiring the analog and digitized signals from the proprietary VJ Technologies Vi3 Software. If another vendor’s program is utilized, an additional training program will be required to be set-up to maintain operator proficiency and certification on the different software controlled systems.

CCAD currently has other x-ray systems that utilize the VJ Technologies Vi3 software and performance measurement software to inspect assets and track the long term stability of the respective DDA system. By updating and utilizing the same software on this effort as is used on other systems in the inspection process of rotor blades, a Critical Safety Item (CSI), will ensure maintainability, inspection quality, repeatability and uniformity across the available x-ray systems.

The software update is proposed to be provided by VJ Technologies, Inc., 89

Carlough Road, Bohemia, NY 11716 (Cage Code 0JLW5, Small Business). Prior to partial system disassembly VJ Technologies had provided technology upgrades, and preventive maintenance and troubleshooting services on this system. They are well aware of this system’s configuration, capability, and limitation. They are currently contracted to provide preventive maintenance and troubleshooting services to other CCAD x-ray systems. These systems utilize the proprietary VJ Technologies Vi3 software.

6. Publicizing Contract Actions: For FAR Part 13 actions, the public display and synopsis requirements of FAR 5.101 and FAR 5.203 apply and will be followed.

Although not required this justification will be published with the solicitation is issued.

7. Market Research: Market Research revealed that VJ Technologies, Inc. is the only source for this acquisition. It also revealed that this is a commercial item and the procedures of FAR Part 12 will be followed.

In accordance with FAR Part 10, market research has been conducted for this acquisition by William Avila, General Engineer, Corpus Christi Army Depot and Kevin Palmer, Army Contracting Command – Redstone Arsenal.

The following techniques were used:

- Personal knowledge in procuring supplies/services of this type.

- Contact with knowledgeable persons in Government and/or industry regarding the commercial nature of this requirement and/or standard industry practices in this area of supply/services. Ongoing from November 2016 thru March 2020.

- Review of recent market research results for similar or identical supplies/services. Conducted November 2016 thru 27 April 2020.

- Review of Government and/or commercial databases for relevant information.

Conducted May 2020.

- Sources Sought was published to Federal Business Opportunities on 6/12/2019 which resulted in the receipt of one interest letter from Newco, Inc., 2811 W Palmetto Street, Florence, SC 29501. In the letter, Newco states that they have “the experience and technical knowledge to accomplish restoration, repair and reactivation to provide a fully functioning high resolution real-time digital inspection x-ray system.” However, they also point out that “The only unique items I see in the announcement is the VJ Technologies software. VJ Technologies is one of many DICONDE compliant software system used to capture and manipulate X-ray images. Newco has access to many other software suites that do exactly the same thing.” The requirement is to update the existing system’s VJ Technologies Vi3 imaging software to the current revision. It is not to replace the existing software with a different software suite.

Based on the results of the above research, the following potential source was identified: Contractor Name - VJ Technologies, Inc.; CAGE - 0JLW5; Business Size - Small Business.

8. Other Facts: Procurement history.

(1) While not as extensive in scope as this effort, the following contract’s software component was a factor affecting the competitive status of the action. Contract #W912NW-19-P-0007 was awarded on 24 Jan. 2019 for X-ray Systems PM Services to be provided by VJ Technologies, Inc. in support of two other systems that utilize the VJ Technologies, Inc. proprietary software. The on-going service contract is for semi-annual Preventive Maintenance on the X-Ray machines at Hanger 44 (CCAD Bar Code Z7725) and Building 49 (CCAD Bar Code T0008710). These two systems utilize the same VJ Technologies software required in this effort. Total dollar value of the contract Base year is $16,150.00.

(2) Non-competitive action.

(3) Authority previously used for less than full and open competition: FAR13.106- 1(b)(1), For purchases not exceeding the simplified acquisition threshold (SAT), only one source reasonably available, urgency, exclusive licensing agreements, brand name, or industrial mobilization.

b. Other facts.

Prior to partial system disassembly VJ Technologies had provided technology upgrades, and preventive maintenance and troubleshooting services on this system.

They are well aware of this system’s configuration, capability, and limitation.

9. Technical/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.

Forrest Kelman Chief, Equipment Engineering Division

10. Contracting Officer Certification/Approval:

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable based upon previous contract pricing for the same services offered within the commercial market place.

I certify that this justification is accurate and complete to the best of my knowledge and belief, and that completing this purchase as a sole source is in the best interest of the Government. Additionally, I approve this justification to limit competition subject to the availability of funds and provided that the services or supplies herein described have otherwise been authorized for acquisition.

Archie Covington Contracting Officer

KELMAN.FORRES

T.W.1384010047

Digitally signed by

KELMAN.FORREST.W.13840100

Date: 2020.06.01 10:45:38 -05'00'

COVINGTON.A

RCHIE.LEE.JR.1

019789639

Digitally signed by

COVINGTON.ARCHIE.LE

E.JR.1019789639

Date: 2020.06.01 11:16:20 -05'00'