C10_PR 1301400534 Sole Source Justification_Redacted.pdf

NSWCCD SAP Non-Competitive Procurement Justification Memo Effective April 2025

MEMORANDUM FOR FILE

FROM:

CODE: Code 623 TO: Code 02

DATE:

SUBJECT: Non-Competitive Procurement Justification Memo for Actions Under SAT

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.

2. FAR 8.405-6 allows for limiting sources for orders or BPAs under Federal Supply Schedules under certain circumstances or for items peculiar to one manufacturer

3. As required by FAR 13.106-3(b)(3)(i), FAR 8.405-6(a)(1), or FAR 8.405-6(b)(2), 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 (Include manufacture/sole source name and address.)

This requirement is for Hardware Maintenance Agreements (HMA) and Software Maintenance Agreements (SMA) for three (3) pieces of existing Government-owned ZEISS 3D Optical Metrology equipment located at NAVAL SURFACE WARFARE CENTER Corona Division. The agreements are essential for ensuring the measurement tools meet precise standards and maintain operational readiness in support of NAVSEA program requirements. The period of performance is for one (1) base year and two (2) option years.

Manufacturer: Carl Zeiss Industrial Quality Solutions, LLC Address: 6250 Sycamore Lane North, Maple Grove, MN 55369

Estimated Cost:

III. BASIS FOR DETERMINATION FOR USE OF OTHER THAN FULL & OPEN COMPETITION

Market research was conducted in accordance with FAR Part 10 and documented in the SAP Technical Market Research / IGE. Research confirms that Carl Zeiss Industrial Quality Solutions, LLC (CAGE: 9DRR4) is the Original Equipment Manufacturer (OEM) of the ZEISS ATOS and TRITOP systems and the sole developer and provider of the proprietary software that operates them.

A. BRAND NAME. The item required must be a brand name product, or feature of a product, particular to one manufacturer.

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.

NSWCCD SAP Non-Competitive Procurement Justification Memo Effective April 2025

2. Exclusive Licensing Agreements. The item or service is only available from the Original Equipment Manufacturer (OEM).

3. Federal Supply Schedule (FSS) IAW FAR 8.405-6(b).

4. Other Reasons.

B. SOLE 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.

The source, Carl Zeiss Industrial Quality Solutions, LLC, has established proprietary rights and secret processes in the hardware and software required. The hardware components, calibration procedures, and diagnostic tools are specific to ZEISS systems. The software is protected by copyright, and the maintenance agreements provide access to critical, proprietary updates, patches, and firmware that are not available from any other source. These updates are essential for the equipment's functionality and cybersecurity posture. Attempting to use a third-party vendor would void existing warranties and could lead to equipment damage, as other vendors do not have access to the OEM's proprietary schematics, diagnostic software, or genuine replacement parts. Therefore, only the OEM is capable of providing the required services without compromising the integrity and operational capability of the equipment.

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. Other Reasons.

4. Federal Supply Schedules (FSS): IAW FAR 8.405-6(a)(1)

a. An urgent and compelling need exists, and following the procedures would result in unacceptable delays;

b. Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized; or

c. In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order or BPA must not have been previously issued under sole-source or limited-sources procedures.

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.

Customer/Requestor Signature Name / Title / Phone Date