JA_Fire_Suppression_Software_redact_Redacted.pdf

Version – MAY 2016 FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

FAR SUBPART 13.5 SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS – SOLE SOURCE JUSTIFICATION AND APPROVAL

Program/Equipment: Maintenance of Software of the Centralized Fire Alarm System at

Caserma Ederle and Del Din, Vicenza, Italy

Authority: Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 as implemented by FAR Subpart 13.5.

Amount: $ 723,836.89 / € 655,000.00 (including the amount for FAR 52.217-8 Option to

Extend Services Clause)

Prepared by: Maximiliano Faccio DSN:

COR, O&M Division, DPW Date: 19 Aug 2016

Email: maximiliano.n.faccio.ln@mail.mil

Contracting Officer: Dee Cavanaugh DSN:

Contracting Officer Date: 19 Aug 2016

Email: deloris.s.cavanaugh.civ@mail.mil

Technical: Maximiliano Faccio DSN:

COR, O&M Division, DPW Date: 19 Aug 2016

Email: maximiliano.n.faccio.ln@mail.mil

Requirements: Marco Bellot DSN:

Chief, O&M Division, DPW Date: 19 Aug 2016

Email: marco.bellot.ln@mail.mil l

Reviews: I have reviewed this justification and find it adequate to support sole source.

Legal Counsel:

Typed Name: Michael Rudkin

DSN:

Signature: _______________________________ Date: ____________________

FAR Subpart 13.5 Simplified Procedures for Certain Commercial Items – Sole Source

Justification and Approval

1. Contracting Activity: 414th CSB, RCO Italy

2. Description of Action: DPW O&M Division requests a Hybrid Firm Fixed Price Contract with one Time and Material (T&M) CLIN. The T&M CLIN is about 19% of the contract value.

The contract will be with Elpro i.c.a. The Government projects award for September 2016 and fiscal year 2016 O&M 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: The requirement is for the Maintenance and Updates of the

Software and Supporting Hardware for the Fire Suppression/Alarm Systems located at Caserma

Ederle, Villaggio, Torri di Quartesolo, Lerino, Longare, ASP 7/Tormeno, and Del Din.

Base Period: 16 September 2016 – 15 September 2017 Value:

Option Period 1: 16 September 2017 – 15 September 2018 Value:

Option Period 2: 16 September 2018 – 15 September 2019 Value:

Total: $ 617,040.56

FAR Clause 52.217-8, Option to Extend Services, will be

4. Authority Cited: Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 (or 41

U.S.C. 1903 for Special Emergency Procurement) as implemented by FAR Subpart 13.5:

Unusual and compelling urgency

Exclusive licensing agreements

Industrial mobilization

Other:

5. Reason for Authority Cited:

a. When the fire alarm system was installed at Caserma Ederle, it was accomplished slowly—building by building. The Government obtained user licenses for the software, but it does not own the software and therefore, cannot repair or makes changes to the software. The software belongs to the company that installed the Notifier software, Elpro i.c.a. To further complicate the issue, when Del Din was built, the decision was made to install Tyco software at

Del Din. Again, the Government only has user licenses and do not own the software.

b. Only Elpro i.c.a. and Tyco have the ability to work with the software. Elpro i.c.a. entered into an agreement with Tyco last year in order to have the ability to accomplish level one technical support for Tyco software.

c. No other company owns the license or has access to both systems and can provide the much needed maintenance and upgrade support required for the fire suppression system.

d. Alternatives. The COR requested pricing information for changing out the entire system at both Del Din and Caserma Ederle in order to have one system at both locations. The cost for installing a new system only at Del Din would be more than €1M / $1,105,094. This is an avenue that the DPW continuing to explore and may decide to utilize should funding be provided. We have also requested pricing for utilizing only one of the software packages currently in use at both locations. Again, the DPW is researching this prospect.

e. The COR has confirmed that the software is not currently functioning at one-half of the facilities at Del Din. There are many issues also at Caserma Ederle that impede system effectiveness. The Government has a minimum need to have the software functioning at all times in order to meet both Italian and American fire codes.

f. As stated above, the Government does not these software packages. The software is proprietary and competition is therefore restricted.

g. At both locations, Caserma Ederle and Del Din, the current state of the software is at failure at the moment. If there were to be a fire, many of the alarms on post would not sound.

This sole source procurement will not only allow the Government to be in compliance with

Italian and American safety laws and regulations, it will protect the safety of Soldiers, their families and all civilians working at the two locations.

6. Efforts to Obtain Competition: The Contracting Officer shall publish the notices required by FAR 5.201.

7. Actions to Increase Competition: The Government will research to find the best alternative to preclude the necessity to limit competition for the maintenance of the software installed for the fire suppression/alarm system at USAG-I (Vicenza). However, as long as we are dependent on proprietary software for the fire suppression/alarm system, the Government will always be in a sole source relationship with the owner of the software.

8. Market Research: Part of the market research was to determine if utilizing the current two software packages installed at Del Din and Caserma Ederle is in the best interest of the

Government. The COR contacted one of the companies he found in market research, Siemens, to have a general quote for replacing the entire system. The COR and the Chief of O&M at DPW discussed the situation using the available information and realized that this was not a possibility for at least the current fiscal year due to the expense. Once it became evident that a sole source contract for this requirement was the only possible choice for now, the COR and contracting officer requested a quote from the contractor, Elpro i.c.a. The COR then accomplished more market research to determine the current market pricing for these services.

Market research also demonstrated that there are many companies that provide this type of software for fire alarms: Siemens, Bosch, Mircom, Honeywell, Notifier and Tyco to name a few, but again, the cost of replacing the current systems with a new system is not feasible. Market research has been conducted since February 2016 until present to identify the best method to provide USAG-I with the peace of mind that a fully functioning fire suppression/alarm system provides.

9. Interested Sources: See Paragraph 6 for the synopsis information. To date, no other sources have written to express interest in the acquisition.

10. Other Facts:

a. Procurement History. In 2012, contract W912PF-12-C-0041, for Inspection and Repair of the Fire Suppression System at Caserma Ederle (Del Din was in construction at that time). The contract was awarded to Elpro i.c.a. and included software maintenance. The follow-on contract, W912PF-15-C-0002, was awarded in July 2015 to Gemmo SPA.

b. Software maintenance for the fire suppression system may always be sole source due to the proprietary nature of software. The Government will continue with market research to find the best method for ensuring the soundness of the Fire Suppression System at USAG-I

(Vicenza).

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.

Typed Name: Maximiliano Faccio Date: 24 August 2016

Title: COR, DPW O&M Division 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.

Typed Name: Marco Bellot Date: 24 August 2016

Title: Chief, DPW O&M Division Signature: