SSJ-NEC-13Jun14_Final_Signed.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. Contracting Organization.

U.S. Army International Technology Center Pacific (ITC-PAC) is the requiring activity. 374th CONS/LGCZ is the contracting activity. Document number W90GQZ- 40150016 for Research and Development Project “NEC Rapid DNA System Enhancement and Validation Studies”.

II. Nature of Action.

This justification provides the rationale for contracting by other than full and open competition for research and development project “NEC Rapid DNA System Enhancement and Validation Studies”.

III. Description of Service.

This requirement is to provide financing in support of the research project titled “NEC Rapid DNA System Enhancement and Validation Studies” on NEC Corporation’s portable DNA analyzer. The proposal will allow collaborative efforts between United States Special Operations Command (USSOCOM), ITC-PAC, and US Army Criminal Investigation Laboratory (USACIL) to support foreign rapid DNA capabilities not yet readily available in the United States. This effort will be funded in three phases: Phase I will evaluate NEC's Rapid DNA device in the current configuration, Phase II will support a research/development effort to eliminate the only manual step in the DNA process, and Phase III will assess the enhanced automated step incorporated in the machine.

All Phases of this acquisition will be a firm-fixed price purchase order. Phases I and III are in the amount of $50,000 each with the research and development of Phase II in the amount of $76,000.

This acquisition will be a firm-fixed price purchase order in the amount of $176,000.

The proposed contractor is:

Yukinobu Kimoto Manager NEC Corporation 7-1, Shiba 5-chome, Minato-Ku, Tokyo 108-8001, Japan Tel: +81 3 3798 2893 Email: y-kimoto@cp.jp.nec.com URL : www.nec.com/dna

IV. Authority.

10 USC 2304 (c) (1) as implemented by FAR 6.302-1, as “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirement."

V. Applicability of Authority.

DNA profiling is required by the Sensitive Site Exploitation (SSE) Program and until recently, no technology has been available to meet its requirement. The SSE Program Office and other Agencies must collectively look at DNA capabilities to identify persons of interest for evidentiary, prosecution, and intelligence purposes. Currently there is no ruggedized rapid DNA equipment available in the United States that is portable, easy to operate, ruggedized, and can produce results in an hour. Through USACIL, NEC was identified as a foreign company that has a device that meets the attributes stated above. Their demonstrated capability is potentially ahead of similar capabilities currently in development. The SSE Program has partnered with the Rapid Capabilities Insertion (RCI) Program Management Office, USACIL and ITC-PAC to test and further NEC's DNA technology. Funds have been provided to the SSE Program to compare and/or evaluate foreign equipment, and an additional R&D fund provided by other PMO's to fund the enhancement step. These funds for the three Phased approach will allow the SSE Program Office to test foreign rapid DNA devices and evaluate its suitability and effectiveness while furthering science.

VI. Efforts to Obtain Competition.

ITC-PAC reviewed this research and development proposal and requests a contract with the primary/lead organization. ITC-PAC found the primary/lead organization of this technology to be the NEC Corporation.

VII. Fair and Reasonable Costs.

The forensics community has monitored rapid DNA capability for more than four years. NEC's DNA device is one of the most advanced solutions available for foreign comparison and assessment that will address the requirements in the scientific user community, as well as meet the urgent combat need in a forward deployed environment.

Because this project demonstrates the latest scientific innovation in this field, USSOCOM, ITC- PAC, USACIL certifies the total price of $176K is fair and reasonable for this type of project. Costs are reasonable considering the travel costs, support, training, validation, and the expertise of NEC Corporation that will accompany this effort. This certification is based on the following facts:

Phase I (Testing-$50K FCT Funds): Total cost $50,000.00

1. Materials: $0

2. Consumables: $10,000.00

$500 x 20analysis = $10,000 (1set: Chip, Reagent, Container, Swab sticks, Reagent package)

3. Labor: $23,000.00 for 1/2 month. Based on the labor cost in Japan for experts in DNA device research and development, labor cost per year per expert (which includes salary, benefits, and oncost) is $276,000. Therefore, labor cost per man/person per month (per MM): $23,000/MM ITC-PAC certifies that the labor cost of $23,000/MM is fair and reasonable for this type of work.

3.1. Preparation (Planning, Check the machine, Shipment etc.) in Japan:

$23,000/MM x 1/4 Month x 2 people = $11,500.00

3.2. Field Evaluation in Atlanta:

$23,000/MM x 1/4 Month x 2 people = $11,500.00

4. Transportation: $7,000.00 for Tokyo - Atlanta (Device, Consumables etc.)

4.1. Fee of custom clearance for import and export: $4,000.00

4.2. Shipment fee: $3,000.00

5. Travel Cost: $10,000.00 for Flight, Accommodation

5.1. Flight (Tokyo - Atlanta: 2way): $2,000 x 2people = $4,000.00

5.2. Accommodation: $150.00 x 15 days x 2 people = $4,500.00

5.3. Meals per Diem: $50.00 x 15 days x 2 people = $1,500.00

Phase II (R&D Effort-ITC-PAC $50K and RCI PMO $26K): Total cost $76,000.00

1. Materials: $30,000.00

1.1. Plastic mold: $20,000.00

1.2. Prototype chips for new model: $10,000.00

Chip is manufactured by the means of plastic injection molding. Mold is a carved steel object and has cavity, in which heated plastic is injected.

2. Consumables: $0

3. Labor: $46,000.00 for 6 month

3.1. Development for Mold plastic 1 Month

3.1.1. Design: $23,000/MM x 2 people x 1/2 month = $23,000.00

3.1.2. Production: $23,000/MM x 2 people x 1/4month = $11,500.00

3.1.3. Test: $23,000/MM x 2 people x 1/4month = $11,500.00

3.2. Development for Prototype chips for new model (5 Month): $0 (NEC bears the cost here in this project.)

4. Transportation: $0

5. Travel Cost: $0

Phase III (Validation Testing- FCT $30K and RCI PMO $20K): Total cost $50,000.00

1. Materials: $0

2. Consumables: $10,000.00 $500 x 20 analysis = $10,000.00 (1set: Chip, Reagent, Container, Swab sticks, Reagent package)

3. Labor: $23,000.00 for 1/2 Month

3.1. Preparation (Planning, Check the machine, Shipment etc.) in Japan

$23,000/MM x 1/4Month x 2people = $11,500

3.2. Field Evaluation in Atlanta

$23,000/MM x 1/4Month x 2people = $11,500

4. Transportation: $7,000.00 for Tokyo - Atlanta (Device, Consumables etc.)

4.1. Fee of custom clearance for import and export: $4,000.00

4.2. Shipment fee: $3,000.00

5. Travel Cost: $10,000.00 for Flight, Accommodation

5.1. Flight (Tokyo - Atlanta: 2way): $2,000 x 2people = $4,000.00

5.2. Accommodation: $150 x 15days x 2people = $4,500.00

5.3. Meals per Diem: $50 x 15days x 2people = $1,500.00

Because this project demonstrates the latest scientific innovation in this field, and is one-of-a-kind with no parallel and no precedent in this world, USSOCOM, ITC- PAC, and USACIL certify that the total price of $176K is fair and reasonable for this type of project.

The Government will receive the following deliverables:

Phase I:

Phase I testing will occur 30 days after contract award.

Phase I Technical Report and Test Report approximately 60 days after contract award.

Phase II:

180 days after the contract is signed, final design of automated lysate step will be demonstrated in Tokyo Phase II Technical Report 30 days after Phase II demonstration

Phase III:

Phase III testing will occur 50 days after Phase II has been demonstrated.

Phase Ill Technical Report and Test Report will be submitted to US Government 30 days after Phase III testing.

Final Deliverable:

Approximately three (3) months after the completion of Phase III testing, a final report is due to the USSOCOM’s SSE Program Office, ITC-PAC, and USACIL

VIII. Market Research.

There are only a couple of portable rapid DNA devices in production by NEC, and no one else in this world. NEC Corporation has developed a unique rapid DNA system which is listed below:

1) NEC Corporation has a mature Rapid DNA processing and identification capability producing a result in 55 min.

2) The NEC device is ruggedized and portable.

3) This is one of the most advanced solutions available for foreign comparison testing assessment featuring DNA capability.

IX. Other Facts. N/A

X. A Listing of the Sources. N/A

XI. Steps to Foster Competition. This is a one-time purchase action.

XII. Technical/Requirements Personnel’s Certification

As evidenced by their signatures on the Determination Review Document, the technical and/or requirements personnel have certified that any supporting data contained herein which is their responsibility is both accurate and complete.

APPROVED:

E-Signed by ANDERSON.KATHLEEN.1122175207 VERIFY authenticity with ApproveIt

KATHLEEN ANDERSON

Operations Officer, RFEC-PAC DATE 13 Jun 2014

JAN A. MANGUBAT DATE

Chief, Specialized Flight