Photographic Printing, Processing and Storage

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION I. Contracting Organization: Agency: National Oceanic and Atmospheric Administration (NOAA) Contracting Activity: Acquisition and Grants Office (AGO), Eastern Acquisition Division (EAD) Program Office: NOAA/NOS/National Geodetic Survey (NGS) Remote Sensing Division (RSD) II. Description of Action: This requirement covers the processing, printing, scanning, and storage services of NGS's library of color, black-and-white panchromatic, and color and black-and-white infrared aerial film as needed to provide aerial photographic and electronic digital scan products in support of Government programs as well as private sector requests. Since the late 1940's, the National Geodetic Survey's Remote Sensing Division has acquired precision aerial photography for a variety of mission-specific, geo-positioning applications. These include: delineating the shoreline for Nautical Chart creation, measuring water depths (photobathymetry), topographic mapping, mapping seabed characteristics, and locating features or obstructions to ensure the safety of marine and air navigation. The photographic images acquired prior to the 1960's represent overhead depictions prior to any satellite reconnaissance. Some of the early film is very delicate and must be handled by trained professionals to ensure these one-of-a-kind assets are not irreparably damaged and lost forever. With a mix of historical and contemporary assets, over 6000 rolls of film are in NGS' library. Unlike 35mm film that many were accustomed to until the advent of digital photography, aerial film is much larger in stature and requires considerably more space, special processing, storage with rigorous environmental controls, and careful transfer and handling procedures. This requirement is considered a commercial item (supplies and services) and is being conducted pursuant to FAR Part 13.5, "Test Program for Certain Commercial Items." A single Indefinite Delivery, Indefinite Quantity (IDIQ) contract is anticipated with a 48-month ordering period. The estimated value is $558,789.30. III. Description of Services Needed: A comprehensive range of aerial photographic and digital products and services is required which includes processing, printing, scanning, and storage services of color, black-and-white panchromatic, and color and black-and-white infrared aerial film supplied by NGS. Specialized photographic equipment is necessary to process aerial film and to produce contact prints, scaled enlargements, film diapositives, roll film duplication, and conversion of analog images to metric-quality standards. In addition, specialized expertise and knowledge is required of historic aerial film handling, cataloging and record keeping, full-service photographic laboratory and chemistry facility, film development and product generation of various media including film, paper, and electronic data, special services such as electronic or hand titling, research, splicing, and mounting, and the capacity to properly and securely store the thousands of undeveloped and developed film in rigorous environmental conditions, specifically long-term freezer storage. The existing contract with H.A.S Images, Inc., EA133C-13-SE-1651, has a performance period which ends September 22, 2014. A new contract is required to continue the stated requirements and to prevent a lapse in the environmentally-controlled film storage, which would be detrimental to the Government and to the existing stored and aged film. The total estimated cost of this requirement is $558,789.30, over the four-year ordering period. IV. Authority: This acquisition is being conducted on a sole source basis pursuant to Federal Acquisition Regulation 13.5, Test Program for Certain Commercial Items, Subpart 501(a)(1)(ii), Special Documentation Requirements. V. Nature of Acquisition Requiring Use of Other than Full and Open Competition The proposed contractor, H. A. S. Images, Inc. (HAS) of 136 North St. Clair Street, Suite 300, Dayton, Ohio, 45402, is the only company that can provide the needed services required by NGS as described in Section III above. A Sources Sought Notice was issued May 2014, and there have been numerous attempts in the past to solicit new sources, without success however. HAS is the only company with the specialized expertise required to fulfill all of the requirements. Specifically, - HAS is the only company with full laboratory and chemistry services. - HAS is the only company with unexposed aerial film environmentally-controlled storage of 125 rolls or more. - HAS is the only company with exposed aerial film environmentally controlled storage of 6,000 rolls or more. - HAS is the only company with AR-5 reversal chemical processing capability. VI. Efforts to Solicit from Other Sources: In 2010 and again in 2013, a Sources Sought Notice was published in the Government-wide Point of Entry located at http://www.fedbizopps.gov requesting any firms with the capabilities to provide the required photographic services to respond to the Notice. No responses were received. NGS also performed internet-based searches to seek other vendors who could fulfill the requirements. (See VII. Market Research). On May 30, 2014 a Sources Sought Notice with a synopsis of the project was published in the Government-wide Point of Entry located at http://www.fedbizopps.gov requesting any firms with the capabilities to provide the required photographic services (a draft of the Statement of Work was included) to respond to the Notice. There were no responses. Also, immediately following the Sources Sought Notice, a Notice of Intent to Sole Source (to HAS) was published at the same Point of Entry requesting capable firms to respond. One verbal response of interest was received; however, the company did not provide a capability statement nor did they respond to inquiries initiated by the Contract Specialist to engage in a discussion of their capabilities. VII. Determination of Fair and Reasonable Cost: The estimated price for this acquisition is $558,789.30 over the 48-month ordering period. Although HAS is the only known firm who has all the unique capabilities (including full laboratory, chemistry services, AR-5 reversal chemical processing and environmentally controlled storage capability), the Contracting Officer will determine fair and reasonableness by comparing the offered price to: 1) the Independent Government Cost Estimate, 2) historical prices paid for same or similar service, 3) prices listed within appropriate GSA Schedule(s), and 4) other commercial company prices obtain via the Internet. VIII. Market Research: In 2010, 2013, and 2014, notices were published in the Government-wide Point of Entry seeking firms capable of providing the comprehensive range of aerial photographic and digital products and services noted in Section III above, and no responses were received. NGS also performed internet-based searches in 2010 and 2013 to locate potential sources capable of providing these identified services. Based on these searches only three companies (Aerial Surveys International, Pacific Western Aerial Surveys, Aerial Photo Lab, Inc.) were found to have capability; however, their capability was limited to some, but not all, NGS requirements. Specifically, - Aerial Surveys International could not provide full chemical capabilities for processing the various types of film used by NGS, nor did they have digital film printers or enlargers, densitometers, or an environmentally-controlled film storage facility. - Pacific Western Aerial Surveys was able to provide only some chemical processes but did not have analog printers or enlargers, or a film storage facility. - Aerial Photo Lab, Inc. could provide most, but not all, processes required for this service but, did not have an on-site environmentally-controlled film storage facility. It is important to note that the advent of digital photography is directly related to the decline in film photography and the availability of/ and demand for film processing companies who provide the needed specialized processing for this requirement. Secondly, aerial film is much larger in stature and requires considerably more space, specialized photographic equipment for processing, sizeable storage with rigorous environmental controls, and careful transfer and handling procedures. Thus, no known companies, aside from HAS, have continued to invest in this type of infrastructure. As stated earlier HAS is the only company with the specialized expertise needed to fulfill all of the requirements; most specifically, HAS is the only company with full laboratory and chemistry services, the only company with unexposed aerial film environmentally-controlled storage of 125 rolls or more, the only company with exposed aerial film environmentally controlled storage of 6,000 rolls or more, and the only company with AR-5 reversal chemical processing capability. At no time has any firm indicated interest in pursuing a teaming arrangement to collectively meet the requirements that HAS them self-meet 100% and have for 20 years. IX. Other Facts: None. X. Interested Sources: As noted above, one verbal response of interest was received in response to the May 30, 2014 Sources Sought Notice; however, they failed to respond to the government's request for information. XI. Steps to Foster Competition: The Government will continue to engage industry and seek new sources as it has in the past to foster competition.