20Q0262_non-comp_redacted.pdf

SWIP Tracking No. SGXM204361

DON SAP Guide Enclosure (3) 1

MEMORANDUM TO THE FILE

Subj: USE OF OTHER THAN FULL AND OPEN COMPETITION FOR AN ACQUISITION

UNDER THE SIMPLIFIED ACQUISITION THRESHOLD

IDENTIFICATION OF SOURCE:

Hitachi High-Tech America Dallas, TX

CAGE: 6WR65

I. BACKGROUND:

1. FAR 13.106-1(b)(1)(i) states for purchases not exceeding the simplified acquisition threshold, Contracting Officers may solicit from one source if the Contracting Officer determines that the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, brand-name or industrial mobilization).

2. As required by FAR 13.106-3(b)(3)(i), this memorandum explains the absence of competition for this acquisition, as only one source will be solicited for this requirement (or for a portion of the requirement) and the requirement is not expected to exceed the simplified acquisition threshold.

II. DESCRIPTION OF ITEM OR SERVICE:

This procurement action is for the maintenance of the Government owned Hitachi STEM and associated GATAN Analysis Sytems, . This maintenance contract will ensure proper operation of the equipment in accordance with the manufacturer's performance specifications and the Government's test requirements.

III. THE DETERMINATION FOR USE OF OTHER THAN FULL AND OPEN

COMPETITION IS BASED ON THE FOLLOWING (select all that apply):

A. _X__ ONLY ONE RESPONSIBLE SOURCE (select all that apply):

1. ___ RESTRICTIVE RIGHTS. The source has established proprietary rights, limited rights in data, patent rights, copyrights or secret processes in the item or service required.

DON SAP Guide Enclosure (3) 2

2. ___ EXCLUSIVE LICENSING AGREEMENTS. The item or service is only available from the Original Equipment Manufacturer (OEM), or there is only one authorized distributor or technical representative for the OEM.

3. _X__ OTHER REASONS. Critical features for properly repairing and maintaining the operation of the Hitachi STEM and GATAN systems include component integration, complete parts inventory, access to proprietary information and qualified service engineers for both systems. The service engineers from Hitachi have been specially trained on both systems and have an in-depth knowledge of the equipment that is required to maintain and/or repair the equipment. Hitachi maintains an active inventory of parts, and they have access to proprietary information that is required for repair of both systems. Servicing highly complex pieces of equipment such as the Hitachi STEM and GATAN requires specialized training from the manufacturer. The service engineers at Hitachi have this specialized training, as well as familiarity with system proprietary information required to repair the system. No other additional firm would have access to the proprietary information required to fully cover maintenance and repairs of this system. To go with another, the Government would be required to start another contract to find another system to meet our requirements. This would cause a delay of 12-18 months .

B. ___ BRAND NAME. Item required must be a brand name product, or feature of a product, particular to one manufacturer.

C. ___UNUSUAL AND COMPELLING URGENCY. The supplies or services are of such unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals.

Urgent requirements are supplies or services that will result in a work stoppage, or are mission critical and the routine processing time would result in injury to the Government. The determination that the procurement for the above item/service is an urgent and compelling requirement is based on the following:

1. Date on which the requirement was first identified:

2. Required delivery date/period of performance:

3. Explanation of why delivery/commencement of services by the date mentioned above is required: Explain the impact to the mission if the date above is not met, any special circumstances or conditions that exist which validate the requirement as “urgent,” estimated production lead time for the item, etc.

4. If appropriate, include any additional pertinent information.

DON SAP Guide Enclosure (3) 3

IV. CERTIFICATIONS/APPROVALS:

A. Technical / Requirements Certification: I certify that the facts and representation under my cognizance which are included in this justification are complete and accurate to the best of my knowledge and belief.

B. Certification/Approval.

Upon the basis of the above statements and information justification, I hereby approve, as the Contracting Officer, the solicitation of the proposed procurement(s) using other than full and open competition.

Contracting Officer Signature Name (Printed) / Phone # Date

SWIP Tracking No. SGXM204362

DON SAP Guide Enclosure (3) 1

MEMORANDUM TO THE FILE

Subj: USE OF OTHER THAN FULL AND OPEN COMPETITION FOR AN ACQUISITION

UNDER THE SIMPLIFIED ACQUISITION THRESHOLD

IDENTIFICATION OF SOURCE:

Hitachi High Technologies America, Inc. Dallas TX 75261-2208 CAGE 6WR65

I. BACKGROUND:

1. FAR 13.106-1(b)(1)(i) states for purchases not exceeding the simplified acquisition threshold, Contracting Officers may solicit from one source if the Contracting Officer determines that the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, brand-name or industrial mobilization).

2. As required by FAR 13.106-3(b)(3)(i), this memorandum explains the absence of competition for this acquisition, as only one source will be solicited for this requirement (or for a portion of the requirement) and the requirement is not expected to exceed the simplified acquisition threshold.

II. DESCRIPTION OF ITEM OR SERVICE:

This procurement action is for the maintenance of the Government owned Hitachi SU7000 Scanning Electron Microscope, . This maintenance contract will ensure proper operation of the equipment in accordance with the manufacturer's performance specifications and the Government's test requirements.

III. THE DETERMINATION FOR USE OF OTHER THAN FULL AND OPEN

COMPETITION IS BASED ON THE FOLLOWING (select all that apply):

A. _X__ ONLY ONE RESPONSIBLE SOURCE (select all that apply):

1. _X__ RESTRICTIVE RIGHTS. The source has established proprietary rights, limited rights in data, patent rights, copyrights or secret processes in the item or service required.

It is not possible to reverse engineer the system to allow integration of equipment from another source due to the unavailability of proprietary program source code and other design information. Critical features for properly repairing and maintaining the operation of the Hitachi SU7000 SEM include component integration, complete parts inventory, access to proprietary information and qualified service engineers for both systems. The service engineers from Hitachi have been specially trained and

DON SAP Guide Enclosure (3) 2 have an in-depth knowledge of the equipment that is required to maintain and/or repair the equipment.

Hitachi maintains an active inventory of parts, and they have access to proprietary information that is required for repair of both systems.

2. X ___ EXCLUSIVE LICENSING AGREEMENTS. The item or service is only available from the Original Equipment Manufacturer (OEM), or there is only one authorized distributor or technical representative for the OEM.

The Hitachi SU7000 has specialized software that controls the operation and systems of the SEM. This software is licensed only by Hitachi. Servicing highly complex pieces of equipment such as the Hitachi SU7000 requires specialized training from the manufacturer. The service engineers at Hitachi have this specialized training, as well as familiarity with system proprietary information required to repair the system. No other additional firm would have access to the proprietary information required to fully cover maintenance and repairs of this system.

3. _X__ OTHER REASONS.

To get another vendor to maintain this equipment, the Government would need to purchase new equipment from a different new contract. This would cost the Government 12-18 months down time.

B. ___ BRAND NAME. Item required must be a brand name product, or feature of a product, particular to one manufacturer.

C. ___UNUSUAL AND COMPELLING URGENCY. The supplies or services are of such unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals.

Urgent requirements are supplies or services that will result in a work stoppage, or are mission critical and the routine processing time would result in injury to the Government. The determination that the procurement for the above item/service is an urgent and compelling requirement is based on the following:

1. Date on which the requirement was first identified:

2. Required delivery date/period of performance:

3. Explanation of why delivery/commencement of services by the date mentioned above is required:

4. If appropriate, include any additional pertinent information.

DON SAP Guide Enclosure (3) 3

IV. CERTIFICATIONS/APPROVALS:

A. Technical / Requirements Certification: I certify that the facts and representation under my cognizance which are included in this justification are complete and accurate to the best of my knowledge and belief.

B. Certification/Approval.

Upon the basis of the above statements and information justification, I hereby approve, as the Contracting Officer, the solicitation of the proposed procurement(s) using other than full and open competition.

Contracting Officer Signature Name (Printed) / Phone # Date