Air Cooled X-Ray Unit 160kV

Trade Agreement: CETA / WTO-AGP / NAFTA / CFTA / FTAs with Peru / Colombia / Panama / Korea Tendering Procedures: Generally only one firm has been invited to bid Non-Competitive Procurement Strategy: Exclusive Rights Comprehensive Land Claim Agreement: No Vendor Name and Address: SPELLMAN HIGH VOLTAGE ELECTRONICS CORP 7 FAIRCHILD AVE PLAINVIEW New York United States Nature of Requirements:

1. Advance Contract Award Notice (ACAN) An ACAN is a public notice indicating to the supplier community that a department or agency intends to award a contract for goods, services or construction to a pre-identified supplier, thereby allowing other suppliers to signal their interest in bidding, by submitting a statement of capabilities. If no supplier submits a statement of capabilities that meets the requirements set out in the ACAN, on or before the closing date stated in the ACAN, the contracting officer may then proceed with the award to the pre-identified supplier.

2. Definition of the requirement The National Research Council of Canada (NRC) has a requirement for the supply of quantity 1 of LPX-160 (Digital) Air Cooled X-Ray Unit 160kV.

3. Applicability of the trade agreement(s) to the procurement This procurement is subject to the following trade agreement(s) - Canadian Free Trade Agreement (CFTA) - North American Free Trade Agreement (NAFTA) - Canada-Columbia, Canada-Korea, Canada-Panama, and Canada Peru Free Trade Agreements

4. Justification for the Pre-Identified Supplier The NRC performs non-destructive testing (NDT) using x-radiography as part of its mandate. Due to a significant testing contract it received, there is a need to have redundancy by procuring another system that can be interchange with the current one. The current backup system is over 40 years old and does not have the same characteristics and therefore the inspection cannot be repeated and compared with previous inspections. In the current project, the test pieces are scheduled to be inspected several times over their lifespan, which could span over several years. The NRC has a need for another industrial radiography source that is 100% compatible with existing NRC system. This compatibility would include interchangeable tube and/or generating panels. This will allow direct replacement and continue operation while existing system are out of service for repair and calibration. Repair and calibration process can range from a few to several weeks. Due to the high throughput of radiography inspection being carried out in the project, this period of downtime is too long and unacceptable to the NRC client, and would result in significant delay. Using a system different than a Lorad-160X for some of the inspections would results in logistical chaos as all subsequent inspection of the selected test piece would need to be done with the same x-radiography source, and thus requiring to switch back and forth between 2 systems, at the cost of significant increase in inspection time and delay.

Since the Lorad system is also used by the Department of National Defence and the Royal Canadian Air Forces, the NRC can directly support DND and the RCAF. This will allow commonality of equipment throughout the federal government agencies. A different system would result in additional operating costs including: extensive staff training and maintenance of a unique system. The calculation of costs has not been completed but would be significant over the life of the equipment, and cost prohibitive in the over the life of the current project that led to the need of this procurement.

Over the years the NRC has purchased and/or manufactured items such as Lorad specific tripod stands, carriages and manipulators for the system, and aiming devices and lasers to complement its capabilities. The Lorad is a constant potential system and has 160 kV and 5 mA, with a focal spot size of 1.5mm. The lead room used to house the system at NRC has a 160 kV maximum limit to ensure the safety of staff working in the immediate area. Also, all of the x-ray techniques used at the NRC have been developed using this system. Any equipment change would require revisions to all of the techniques, setting parameters in use, as well as the purchase of new system manipulators and tripods. In addition, extra convoluted work would be needed to compare previous inspection results with newly obtained results if a system different than a Lorad is used.

The NRC works several materials that have with various density, therefore the maximum X-ray source (kV) allowable by the NRC infrastructure (160 kV) is needed. Any system with less than 160 kV would limit NRC capabilities and restrict it field of R&D activities. Any source with high capability cannot be used in NRC facility due to health and safety reason, since the lead room is only rated for 160 kV, increasing the rating of the room to support 200 kV, will lead to a significant construction and building changes cost exceeding the purchase, force temporary closure of existing facility/capability, and moreover 200 kV source are more expansive than 160 kV, therefore anything more than 160 kV will not results in cost saving.

Structure, Materials and Manufacturing (SMM) staff members are already trained to run the system so no additional training would be required to operate the new system. No changes in the housing carrying the control panel would be needed.

Spellman High Voltage Electronics Corp. is the original equipment manufacturer (OEM) and exclusive source of the Lorad system, is the owner of all related intellectual property (IP), and has no value-added resellers.

5. Government Contracts Regulations Exception(s) The following exception to the Government Contracts Regulations is invoked for this procurement under subsection 6(d) - "only one person is capable of performing the work".

6. Exclusions and/or Limited Tendering Reasons The following exclusion(s) and/or limited tendering reasons are invoked under the - Canadian Free Trade Agreement (CFTA) - Article(s) 513.12(b)(ii) - Exclusive rights - North American Free Trade Agreement (NAFTA) - Article(s) 1016.2(f) - Exclusive rights

7. Delivery date The product must be delivered on or before March 29, 2018.

8. Name and address of the pre-identified supplier Spellman High Voltage Electronics Corp One Commerce Park Valhalla, New York, USA 10595

9. Suppliers' right to submit a statement of capabilities Suppliers who consider themselves fully qualified and available to provide the goods, services or construction services described in the ACAN may submit a statement of capabilities in writing to the contact person identified in this notice on or before the closing date of this notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.

10. Closing date for a submission of a statement of capabilities The closing date and time for accepting statements of capabilities is November 9, 2017 at 2:00 p.m. Eastern Standard Time (EST).

11. Inquiries and statements of capabilities are to be directed to: Mark Walton Supply Officer Public Works and Government Services Canada Acquisitions Branch Commercial Consumer Products Directorate Scientific, Medical, and Photographic Division "PV" 6A2, Phase III, Place du Portage, 11 Laurier Street, Gatineau, Quebec, Canada K1A 0S5 Telephone: 873-469-3185 Facsimile: 819-956-3814 E-mail address: mark.walton@tpsgc-pwgsc.gc.ca Delivery Date: 31/08/2017

You are hereby notified that the government intends to negotiate with one firm only as identified above. Should you have any questions concerning this requirement, contact the contracting officer identified above.

An Advance Contract Award Notice (ACAN) allows departments and agencies to post a notice, for no less than fifteen (15) calendar days, indicating to the supplier community that it intends to award a good, service or construction contract to a pre-identified contractor. If no other supplier submits, on or before the closing date, a Statement of Capabilities that meets the requirements set out in the ACAN, the contracting authority may then proceed with the award. However, should a Statement of Capabilities be found to meet the requirements set out in the ACAN, then the contracting authority will proceed to a full tendering process.

Suppliers who consider themselves fully qualified and available to provide the services/goods described herein, may submit a statement of capabilities in writing to the contact person identified in this Notice on or before the closing date of this Notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.

The PWGSC file number, the contracting officer's name and the closing date of the ACAN must appear on the outside of the envelope in block letters or, in the case of a facsimile transmission, on the covering page.

The Crown retains the right to negotiate with suppliers on any procurement.

Documents may be submitted in either official language of Canada.