Attachment 4 - JOFOC - Velo3D_Redacted.pdf

Rev.:01/2021

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

George C. Marshall Space Flight Center (MSFC)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN

COMPETITION (JOFOC)

For Velo3D Sapphire Manufacturing System Lease Agreement

1. Federal Acquisition Regulation (FAR) 6.303-2(b)(1) – Identification of the agency and the contracting activity, and specific identification of the document as a “Justification for other than full and open competition.”

This document is a justification for other than full and open competition prepared by the National Aeronautics and Space Administration (NASA), George C. Marshall Space Flight Center (MSFC).

The procuring agency is the National Aeronautics and Space Administration (NASA), and the contracting activity is MSFC.

2. FAR 6.303-2(b)(2) – The nature and/or description of the action being approved:

This justification provides the rationale for contracting by other than full and open competition to award a sole-source contract with Velo3D, Inc. for the lease of, and option to purchase, a Velo3D Sapphire Metal Additive Manufacturing System. This powder bed metal additive printing system allows manufacture of 3D printed components in-house, where traditional manufacturing methods call for vendor production and subsequent shipment of components, facilitating efficiency and design-build customization. While various competitors exist in the 3D printing commercial marketplace, this system employs a proprietary printing method which removes various limitations to metal additive manufacturing; limitations which impact quality and performance of critical components. In particular, where other machines require support material to be printed in situations where the printed component includes an overhang greater than 45° or holes larger than 1 mm, the Velo3D Sapphire system provides the capability to produce finished products without these restrictions.

3. FAR 6.303-2(b)(3) – A description of the supplies or services required, to meet the Agency’s needs (including the estimated value):

The Velo3D Sapphire system is currently being used by third party engine suppliers such as to manufacture flight components for both the Space Launch System (SLS) and Human Landing System (HLS) vehicles. This system is the only commercially available additive manufacturing system capable of producing these critical components. Market research and industry knowledge indicates that this system offers the most advanced capabilities available in the 3D metal printing arena. NASA MSFC’s Advanced Manufacturing Branch (EM-42) is responsible for the qualification of the methods used to manufacture these components, and therefore must have hands-on

Velo3D Sapphire Manufacturing System FY22 JOFOC Log Number 22-62 amount of post-processing can be used to remove support material from these parts, making them impossible to manufacture using the 3D method.

The Velo3D system does not require support material to print these geometries; rather, it relies on a distinct powder re-coating system which removes the need for support structures. A Velo3D Sapphire metal additive manufacturing system can, for example, print larger diameter internal cooling channels required for full performance of a component. By not requiring support material like other available machines, the Velo3D Sapphire enables the user to construct components otherwise unsuitable for additive manufacturing and to significantly reduce or eliminate the post-processing time and cost, as well as mitigate the risk of post-processing part damage. This machine capability is unique to Velo3D and is not currently found elsewhere in the metal additive manufacturing space.

NASA MSFC is the lead center for high technology readiness level additive manufacturing for the agency. In this role, MSFC must be prepared to establish certification guidance for all partners and programs. Due to the rapidly changing environment for additive manufacturing capabilities, the necessary way to characterize additive manufacturing machines is to have hands on experience. Because the Velo3D system has features unlike any other on the market, it is important for NASA to be able to perform in depth exploration of its capabilities and understand any limitations. Additionally on-site availability enables various NASA groups to witness the process, design test builds and develop methods to properly dictate the processes, procedures, and parameters used to build for-flight parts. It is not feasible nor cost effective to purchase every new machine produced in this rapidly changing market; lease programs provide a more practical alternative. To facilitate the certification of the HLS and SLS hardware, the MSFC Additive Manufacturing laboratory must have access to a Velo3D Sapphire machine.

6. FAR 6.303-2(b)(6) – A description of the efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies:

In accordance with FAR Subpart 5.203 and FAR Subpart 12.603, a combined solicitation/synopsis will be published on the Government Point of Entry (GPE) website (Sam.gov) to advise potential offerors of NASA’s intent to award this sole source order to Velo3D, Inc. and provide the opportunity to submit responses if they believe they can provide a product that meets the requirements of the solicitation. The results of this combined synopsis/solicitation will be summarized in a memorandum to the contract file.

7. FAR 6.303-2(b)(7) – A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable:

The Contracting Officer’s signature on this document indicates that the Contracting Officer has determined that the anticipated cost to the government will be fair and reasonable. The Contractor shall be required to submit a proposal to be evaluated and negotiated by the Government. Prior to execution of the contractual instrument, a proposal analysis will be performed. The proposal analysis will ensure that the final agreed-to price for the contract action is fair and reasonable.

The Velo3D Sapphire system is anticipated to be leased to NASA MSFC at market price, which is appropriate for the caliber of the system. NASA MSFC EM-42 owns and operates a variety of metal additive manufacturing machines. Leasing the machine will relieve NASA MSFC of upkeep costs once the qualification process is completed. While other manufacturers may be willing to lease their machines, they do not possess the capabilities of the Velo3D Sapphire system. Test coupons will be produced on the Velo3D system that are specific to the capabilities of the machine. It is EM-42’s intent to characterize the mechanical properties of parts built using the technology that is unique to Velo3D which allows it to build parts with 0° overhang.

The non-recurring expenses related to maintenance and support of the machine are included in the lease estimate. The lease agreement is also anticipated to include an end user-based calibration system for the entire machine, a cost savings over traditional systems that will minimize machine down-time.

8. FAR 6.303-2(b)(8) – Description of the market research conducted, and the results, or a statement of the reasons market research was not conducted:

Market research was conducted to ensure that the capabilities of this machine were unique to the Velo3D Sapphire system. The research conducted was through in-depth market knowledge of engineers in EM-42, careful review and consideration of competitors product capabilities, communication with the supplier and communications with engine suppliers that currently use the system. EM-42 currently owns and operates six different metal additive machines. These six are representative of a large portion of the classes of machines currently available in the commercial marketplace. Despite their differences, none are capable of 0° overhang builds without support. The additive manufacturing engineers within EM-42 are also tasked with ensuring that new technologies are constantly sought out through market research, publications, and conferences. Through this level of research, it has been determined that the capabilities of the Velo3D Sapphire system are unmatched.

Various engine suppliers and aerospace companies, including have selected the Velo3D Sapphire system as the machine to manufacture a variety of critical and complex engine components due to its unique capabilities. These critical engine components cannot be manufactured using any other system due to the uniqueness of the Velo3D Sapphire system, and therefore, EM-42 requires the Sapphire system to complete qualification of these components. In some cases, parts would need to be re-designed to allow for manufacture on other systems, which requires extensive time and resources, and often results in a reduction in performance of the end use part.

9. FAR 6.303-2(b)(9) – Any other facts supporting the use of other than full and open competition:

None

10. FAR 6.303-2(b)(10) – A listing of the sources, if any, that expressed an interest in writing in the acquisition:

A notice of NASA’s intent to award this sole-source action was synopsized on the GPE website (Sam.gov) per FAR Subpart 5.2 and FAR Subpart 12.603 (See Section 6 above) in a combined synopsis/solicitation format. The results of this action will be summarized in the Price Negotiation Memorandum (PNM) which is located under Tab 65 of the

NF1098.

11. FAR 6.303-2(b)(11) – A statement of actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required:

Currently, there are no known actions that the Agency may take to remove or overcome barriers to competition before any subsequent acquisition for the required support is sought, as the strategic market research and product evaluations. The Agency will continue to examine the market in the future for alternative solutions or new sources before executing any subsequent acquisitions for the same requirements.

Velo3D Sapphire Manufacturing System Lease Agreement

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SIGNATURE PAGE

I certify that the facts presented in this justification are accurate and complete.

Brian M. West Team Lead – Additive Manufacturing and Digital Solutions Advanced Manufacturing Branch/EM-42

I hereby certify that the above justification is complete and accurate to the best of my knowledge and belief.

Hervie B. Williford Contracting Officer

CONCURRENCE:

Todd J. Pospisil MSFC, Procurement Officer (Acting)

APPROVED:

Joe L. Leopard MSFC, Competition Advocate