4200_6 - Simplified-Acquisition Procedures (SAP) (Rev 10_01_2025)_Redacted.pdf

This is a Determination Memorandum for a Sole Source Acquisition under the Simplified Acquisition Procedures (SAP) for procurements exceeding $15,000 but not exceeding $350,000.

The government seeks to procure one Varjo XR-4 Secure Focal Edition headset and Varjo Base Pro software to support a Naval Innovative Science and Engineering (NISE) effort titled Cross-cockpit Viewing Solutions for XR Trainers. These supplies will be used in ongoing research and development for evaluating chroma key and rotoscoping techniques to minimize visual anomalies in extended reality flight trainers, as well as to support future R&D efforts where the GT525 lab conducts ongoing research in XR technology for flight simulation. The sole source justification centers on the unique characteristics of the Varjo XR-4 Secure Focal Edition, which is Trade Agreements Act (TAA) compliant and assembled in Finland, a NATO member country. The headset features a high-density display of 51 pixels per degree (PPD), video pass-through cameras with automatic focusing lenses, large field of view, inside-out tracking capability, and specialized ergonomic design. The Varjo Base Pro software includes integrated tools for chroma key and rotoscoping techniques necessary for the NISE Cross-cockpit Viewing Solutions program. The government acknowledges that no other vendor can provide this unique combination of security compliance, visual performance specifications, and technical capabilities. As a mitigation strategy for future acquisitions, the government may continue surveying the XR market for new entrants and technological advancements to headsets that align with security and technical requirements.