YPG JA 2019_93_Redacted Final.pdf

Control No: 2019-93 Contractor: Vaisala, Inc.

Program/Equipment: Radiosondes

Version – September 2018 FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

FAR SUBPART 13.5 SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS - SOLE SOURCE JUSTIFICATION AND APPROVAL

Program/Equipment: Vaisala Radiosondes

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

Amount: $4.53M

Prepared by: DSN:

Date:

Contracting Officer: DSN:

Date:

Technical/ DSN:

Requirements: Date:

DSN:

Date:

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

Signature:

Legal Counsel:

DSN:

Program/Equipment: Radiosondes

Version – September 2018 FOR OFFICIAL USE ONLY

Small Business Professional MICC OSBP:

MICC Office of Counsel:

Daniel I. Keys

DSN: 663-9517

Program/Equipment: Radiosondes

FAR Subpart 13.5 Simplified Procedures for Certain Commercial Items Sole Source Justification and Approval

1. Contracting Activity: U.S. Army 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 Team requests to award a noncompetitive Firm-Fixed Price (FFP) requirements-type contract with Vaisala, Inc.,194 S. Taylor Ave, Louisville CO 80027, for a five-year ordering period to support YTC, with additional ordering capability for other Army Test and Evaluation Command (ATEC) centers, such as White Sands Missile Range (WSMR), NM;

Aberdeen Proving Ground (APG), MD; and Dugway Proving Ground (DPG), UT. The estimated value of this requirement over the five-year ordering period is $4.53 million.

Funding will be obligated via individual delivery orders utilizing appropriate Fiscal Year (FY) funds. An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulations Supplement (DFARS) 207.103(d)(i)(B).

This action is a follow-on contract to W9124R-14-D-0201. Th contract was awarded under authority 10 U.S.C. 2304(c)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. Paragraph, “Actions to increase competition” of the previous justification, dated 14 August 2014, stated: The Meteorological Team continually conducts market research as described in Paragraph 8, below. Additionally, new upper air instrumentation is routinely presented at the Range Commanders Council Meteorology Group (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. Those actions were not accomplished due to no new directive from RCCMG, therefore replacement of Vaisala instrumentation equipment is not an option.

3. Description of Supplies: The requirement is for the supply of expendable RS41 GPS type radiosondes for upper air data collection. The Vaisala DigiCORA Sounding System is used to compile and transmit upper air data collection to ground stations.

The expendable radiosondes RS41, which form an integral part of the sounding system, are carried aloft by helium filled balloons, and transmit data back to the Vaisala DigiCORA Sounding System relative to 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. This follow-on enterprise requirements contract will provide for filling all actual purchase requirements of designated ATEC centers.

Program/Equipment: Radiosondes

Version – September 2018 FOR OFFICIAL USE ONLY

Quantity: 30,000 each Period of Performance: 15 April 2020 – 14 April 2025 Total Value: $4.53M

4. Authority Cited: Simplified 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: Vaisala is the only responsible source that can satisfy the Army’s requirement.

a. Background:

i. 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 ground stations that use the DigiCORA Upper Air Sounding System to provide a commonality of test data between installations. USAYPG ground station data collection infrastructure is based on Vaisala architecture for which the airborne test data collection instrumentation that feeds to it must also be Vaisala equipment to work. See paragraph 6 below.

ii. The USAYPG YTC Meteorological Team has utilized the Vaisala Upper Air Sounding System at seven ground stations for over 25 years to collect upper air meteorological data for determining atmospheric conditions prior to the initiation of a test mission. ATEC ranges with Meteorology departments use this common platform, launching over 6,500 radiosondes per year. ATEC employs over 26 Vaisala upper air systems (MW41) across the ranges at a value of over $2.6M. The Vaisala systems were selected by the RCCMG and standardized across the U.S. Army test ranges to provide a commonality between installations with the sharing of data relative to on-going testing and furthers the use of command driven or enterprise contracts, such as has been in place for Vaisala radiosondes.

iii. The USAYPG YTC Meteorological Team invested approximately $320,000 in the purchase of four initial Vaisala DigiCORA ground stations in the early 1990’s. In addition, a transfer of three ground stations from the Army Meteorological unit at Fort Hunter Liggett to USAYPG also occurred around the same timeframe. The seven ground stations were upgraded to MW21 models between the years 2002-2004, for approximately $270,000. The MW21 models were then later upgraded to the current technology, MW41 model, in April 2014 for $140,000. 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 and other ATEC ranges have been purchasing an average of over a $1,000,000 per year of radiosondes. Moreover, the sounding processing subsystems were replaced two years ago in a command wide purchase by APG which extends the lifecycle expectancy of the system to the year 2025.

Program/Equipment: Radiosondes

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iv. Prior to the establishment of the current enterprise contract, W9124R-14-D- 0201, acquisitions 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). Under the authority of FAR 6.302-1, a sole source Indefinite Delivery Requirements enterprise contract, W9124R-14-D-0201, was awarded to Vaisala for five years with a value for up to $12 million.

b. Alternatives:

i. The first alternative to this acquisition is to conduct a competitive acquisition.

This is not acceptable because any alternate system radiosondes would be incompatible with the existing ground station equipment manufactured by Vaisala, Inc.

due to the lack of fit, form, and functionality and would potentially negate the commonality of test data collected and the sharing of that data between the ATEC test ranges. As discussed in Paragraph 6 below, responses to the sources sought from vendors other than Vaisala, Inc., must consider the replacement of the entire system in use at USAYPG and the other ATEC ranges because of the incompatibility of other vendor’s solutions with the Vaisala ground stations. Additionally, waiting for another company to develop the technology for their radiosondes to meet the compatibility requirement for the ground station equipment would result in an unreasonable delay.

ii. The second alternative is to reestablish ordering through the Vaisala, Inc. 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:

(a) Vaisala, Inc. 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.

(b) 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 in which to store them prior to use, to alleviate any potential deterioration 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 other YTC branches competing for the same limited space.

(c) 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.

Program/Equipment: Radiosondes

Version – September 2018 FOR OFFICIAL USE ONLY

(d) Finally, Vaisala, Inc.’s, GSA contract is set to expire on November 30, 2020.

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.

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:

(a) This alternative would establish a contract vehicle with “most favorable” fixed prices for a period of five years eliminating the need to purchase large quantities of radiosondes in order to receive that favorable pricing. Radiosonde prices have remained stable over the years due to technology advancements, bulk buying, and the feasibility of the previous enterprise contract;

(b) This alternative would also alleviate the need for large controlled-environment storage areas in which to store the equipment; and

(c) 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.

(d) This alternative is deemed to be the more advantageous to the Government and ensure optimum readiness levels by the USAYPG YTC Meteorological Team 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 has proprietary rights in the equipment and does not permit the resale or distribution of its equipment through a third-party. Vaisala radiosondes work only with Vaisala systems. Radiosondes cannot be interchanged with other systems. As such, any attempt to compete this requirement would result in unreasonable delays as other competitors work at developing this highly specialized technology.

d. Impact if justification not approved: Disapproval of a noncompetitive contract would create a situation where the Meteorological Team would be continually faced with long-lead times, a need for large controlled-environment storage areas for excessive inventory and decreased flexibility in response times to any surges in the test mission, all of which create barriers to efficient processes and the risk of impacting the outcomes and data collected from various test missions in support of expensive test programs.

6. Efforts to Obtain Competition: A sources sought notice was posted to the Federal Business Opportunities (FBO) website on 25 July 2019 for seven days. 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

Program/Equipment: Radiosondes

Version – September 2018 FOR OFFICIAL USE ONLY technical capability to meet these requirements.

it would require the replacement of the entire system, which would result in the duplication of costs for replacement of the ground stations before the end of their service life, and incompatibility with other ranges (see Paragraph 9 below). Additionally, as discussed in Paragraph 10(a) below, USAYPG has maintained the functionality of 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.

Actions to Increase Competition: Although, new upper air instrumentation is routinely presented at the RCCMG, the current directive supports the continued use of Vaisala systems. 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 will remain limited to Vaisala, Inc.

Market Research: The Meteorological Team 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 Team has considerable experience in researching and analyzing the types of meteorological equipment to meet the needs of the test ranges for upper air data test support.

Interested Sources: See Paragraph 6 above, for the synopsis information. InterMet responded to the Sources Sought notice as supplier for the radiosondes. Knowing that the radiosondes are not interchangeable within different ground units, which would negate the requirement to only purchase the Vaisala radiosondes.

No other sources have written to express interest in the acquisition. Vaisala, Inc. is the only source capable of providing the proprietary equipment and expendables for the DigiCORA III Upper Air Sounding System and do not use any third party distributors.

Other Facts:

Procurement History

Contract numbers and dates of the last several contracts for these same requirements are illustrated in the table below. Procurement of the most recent enterprise solution was sought and approved under authority of FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, resulting in contract W9124R-14-D-0201. This enterprise solution was

Program/Equipment: Radiosondes deemed to be more advantageous to the Government than the multiple sole source acquisitions that were frequently made using the GSA schedule with Vaisala, Inc. The enterprise solution also provided economies of scale, a more predictable production requirement, and incentive for Vaisala, Inc. producing and supporting a just-in-time inventory. Prior to the establishment of the enterprise contract, WSMR acquired these same items through a sole source indefinite delivery indefinite quantity contract for use only by WSMR.

Contract Description Amount Date Awarded

Authority for other than full and open competition W9124R-14-D-0201 Radiosondes $11,440,554 03 Sep 14 FAR 6.302-1 W9124R-14-F-3008 Radiosondes $251,328 24 Apr 14 FAR 8.405-6(a)(1)(i)(B) W9124R-14-F-3001 MW41 Upgrade $138,265 30 Apr 14 FAR 8.405-6(a)(1)(i)(B) W9124R-13-F-3034 MW31 Upgrade $101,902 16 Sep 13 FAR 8.405-6(a)(1)(i)(B) W9124R-13-F-3016 Radiosondes $31,671 04 Jun 13 FAR 8.405-6(a)(1)(i)(B) W9124R-13-F-3008 Radiosondes $357,984 02 May 13 FAR 8.405-6(a)(1)(i)(B) W9124Q-13-D-0002 Radiosondes $1,580,000 02 Aug 13 FAR 8.405-6(a)(1)(i)(B)

ii. As discussed in Paragraph 7 above, the actions to increase competition have not changed. The RCCMG directive remains current for the use of Vaisala Systems and associated equipment.

iii. There have been no unusual patterns that may be revealed in the history.

iv. Vaisala included potential escalation in the price of the radiosondes over the five year period on contract W9124R-14-D-0201. As the prices have remained stable over the years, Vaisala, Inc. made a price adjustment to the RS41-SG at the end of Option 3 to the current contract which lowered the overall value of Option 4 approximately $1 million.

v. Subcontracting: The contractor is an other than small business. The contracting officer has determined that there are no subcontracting possibilities. As prescribed by FAR 19.705-2(c), a determination and finding (D&F) that includes a detailed rationale, has been generated and approved at a level above the contracting officer. The D&F will be placed in the contract file.

Program/Equipment: Radiosondes

Version – September 2018 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.

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.

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). As a part of this basis, certified cost or pricing data is not required because the item and/or services being acquired are considered commercial and the following exception applies (FAR 15.403-1(b)(3)).

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

Program/Equipment: Radiosondes

Approval

Based on the foregoing justification, I hereby approve the procurement of Vaisala Radiosondes on an other than full and open competition basis pursuant to the authority of Title 41 United States Code § 1901 as implemented by FAR Subpart 13.5, Simplified Procedures for Certain Commercial Items. The estimated value of the contract is $4.53 million with a 5 year ordering period, 15 April 2020 through 14 April 2025. This approval is subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

SCOTT D. KUKES

Alternate Command Advocate for Competition U.S. Army Mission and Installation Contracting Command, JBSA Fort Sam Houston, TX

Alternate to the Command Advocate for Competition U.S. Army Mission and Installation Contracting Command, JBSA Fort Sam Houston, TX