2020-079 LSJ - GSA Laser Powder Bed Fusion Machine_BC.docx

CMO Control Number: 2020-079 Department of the Army Limited Source Justification for GSA Purchases above the Simplified Acquisition Threshold

1. Contracting Activity: The United States Army Contracting Command–Detroit Arsenal (ACC-DTA) is the contracting activity for this action.

2. Description of Action: This action requests approval to award a new Firm Fixed Price (FFP) Delivery Order under General Services Administration (GSA) Federal Supply Services (FSS) Schedule Number GS-03F-080CA from Phillips Corporation, Inc. Federal Division (Phillips), located in Hanover, Maryland. This requirement is in support of the Combat Capabilities Development Command Ground Vehicle Systems Center (CCDC-GVSC). The type of funds to be utilized for this effort are FY2019, Research, Development, Test and Evaluation (RDT&E).

3. Description of Supplies/Services Purchased: The proposed contract action is to procure one EOS M290 Laser Powder Bed Fusion Machine (EOS M290) for use at the Detroit Arsenal. The EOS M290 is capable of running metal powders (steel, aluminum, nickel alloys) and is powder bed based, allowing it to be more compatible with the EOS brand ecosystem. THE EOS M290 is Nationally Recognized Testing Laboratory (NRTL) approved and Class I Laser Certified. The estimated dollar value of this procurement is $1.3M.

4. Authority Cited: 40 U.S.C. 501 and FAR 8.405-6, Limited Sources Justification and Approval. This acquisition is conducted under the authority of the Multiple Award Schedule Program.

5. Reason for Authority Cited:

The reason for authority cited is FAR 8.405-6(b) – Limiting Sources – Items peculiar to one manufacturer. The EOS M290 is essential to the Government’s requirements as described below.

The CCDC-GVSC Materials Directorate Additive Manufacturing (AM) Team is solely responsible for AM of metals for CCDC-GVSC customers which allows for enhanced weight reduction, single point failure elimination, logistics burden reduction, rapid prototyping, and reduced system development time. The CCDC-GVSC AM Team engineers are fully trained in utilization of the EOS M290 system and have utilized the EOS M290 located at Rock Island Arsenal-Joint Manufacturing and Technology Center-Center of Excellence (RIA-JMTC AM COE) in qualification and certification of its customer supported components. However, as a result of a continuous increase in workload, to include expanding into classified AM, it is necessary to procure an additional EOS M290 system for the Detroit Arsenal.

Qualification and certification of Government production equipment is a complex process that involves selection of materials, processes, and the performance of the system as it relates to the EOS M290. Qualifying a system other than the EOS M290 would require, at a minimum, one year of four full-time engineers’ labor at an estimated cost of $374,160 to $552,080, which is based on an average mechanical engineer wage rate using upper 90% range for the Detroit area. The EOS M290 qualification data is available from other CCDC centers for CCDC-GVSC use; thereby, avoiding a duplication cost for additional qualification and certification efforts.

If CCDC-GVSC procures a brand other than the EOS M290, it would result in duplication of process development. This would require significant machine usage, manpower, and funding resources, which would result in unnecessary schedule delays and an additional cost of $0.5-$1.0M in equipment and material. In addition, procuring a brand other than the EOS M290 would result in a learning curve of at least two years to reduce risk and variation in the process. This additional time would jeopardize mission readiness in producing armaments for the Warfighter, rapid prototypes for new weapon designs, and new component technologies for CCDC-GVSC Science and Technology programs.

The CCDC-GVSC AM Team has made a significant investment in the EOS brand of systems, which the AM facilities are built around. Space has been allocated in the CCDC-GVSC AM facility at the Detroit Arsenal, specifically around the footprint of the EOS M290. An EOS M290 at the Detroit Arsenal will allow for engineers and technicians to seamlessly begin utilizing equipment without additional training and will allow prior investments to be leveraged.

Award of this requirement to any other source would result in a duplication of cost and efforts, ultimately leading to the inability of the CCDC-GVSC AM Team to expand into classified AM of its customer supported requirements. CCDC-GVSC must possess the capability in advance operations to develop the latest technologies to provide replacement components to the Warfighter.

6. Market Research: A Request for Information (RFI) was posted to the beta.SAM.gov website by the ACC-DTA contract specialist, on 10 March 2020, closing on 19 March 2020. One response was received, from Machine Tools USA, Inc. Machine Tools USA, Inc. provided information for a Renishaw system, not the brand name system specified in the RFI. The justification in Section 5 supports why the Renishaw system would not meet Government requirements.

CCDC-GVSC AM Team also conducted market research from 01 April 2018 through 31 December 2019. The CCDC-GVSC AM Team reviewed FAR Part 8 Sources and noted that the EOS M290 is available via GSA FSS contract GS-03F-080CA. The AM Team also reviewed previous EOS M290 purchase history which utilized the same GSA FSS contract. The CCDC-GVSC AM Team received a letter from EOS on 21 January 2020 confirming that Phillips is the only known distributor of the EOS M290 for EOS North America, Inc., the Original Equipment Manufacturer.

7. Other Facts: N/A

8. Actions to Increase Competition: Competition is not being sought for this procurement, as Phillips is the only distributor of EOS brand equipment as confirmed by EOS via a letter dated 21 January 2020. Should EOS add additional distributors of its equipment in the future, the Government may pursue competition for procurement of EOS brand equipment at that time.

9. Technical Certification: I certify that the supporting data under my cognizance which is included in the justification are accurate and complete to the best of my knowledge and belief.

10. Requirements Certification: I certify that the supporting data under my cognizance which is included in the justification is accurate and complete to the best of my knowledge and belief.

11. Contracting Officer’s Best Value Determination: I hereby determine that this order represents the best value consistent with FAR 8.404(d) and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the Government’s needs.

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

Approval of Limited Source Justification

Based on the foregoing justification, I hereby approve the procurement of one EOS M290 Laser Powder Bed Fusion Machine for an estimated $1.3M pursuant to the authority of 40 U.S.C. 501 and FAR 8.405-6, subject to availability of funds, and provided that the supplies or services herein described have otherwise been authorized for acquisition.

FOR OFFICIAL USE ONLY

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