18r18_a10__J&A_Redacted.pdf

Brand Name Justification for Other Than Full and Open Competition

1. Contracting Activity

Requiring Activity: AFRL/RITA, 525 Brooks Rd, Rome NY 13441, J. Rooks x2618

Contracting Activity: AFRL/RIKO, 26 Electronic Pkwy, Rome NY 13441

Solicitation #: FA8751-18-R-0018

2. Nature and/or Description of the Action Being Processed

This is a justification for other than full and open competition for Integrated Circuit (IC) Layout Software from the sole source Cadence Design Systems, 2655 Seely Ave Bldg. 5, San Jose CA 95134.

3. Description of Supplies or Services Required to Meet Agency’s Needs

Quantity 1 each software license bundle for Integrated Circuit (IC) Layout software. The value of this requirement is estimated at .

4. Statutory Authority Permitting Other Than Full and Open Competition

10 USC 2304(c) (1) Only one responsible source and no other supplies or services will satisfy the agency requirement.

5. Demonstration the that Contractor’s Unique Qualifications or Nature of the Acquisition requires the use of the authority cited above

AFRL/RITA has developed design scripts that are based on the software design and capabilities of Cadence software tools. As a result, the design scripts only function correctly with Cadence software tools. While there are other synthesizers available on the market, given the development already completed by the program office, the estimated cost to develop new design scripts, including engineering man hours, is and one year of time. Furthermore, the in house chip design (that utilizes this software) supports work with 4 contractors and 2 CRADA partners; a one year delay would have major technical and cost impacts beyond the impact to the Government team. This represents a substantial duplication of cost that is not expected to be recovered through competition. Cadence software tools will be needed daily by Government personnel during this effort, and procuring access to Cadence layout tools is necessary to successfully complete multiple contracts and in house tasks valued at .

No other contractor has software that runs with the Government’s existing scripts used to control the software;

the Government has worked with all major competitors but has only developed scripts for Cadence. Cadence software has a unique capability to run with the existing scripts, and going directly to them is the only way of licensing that software.

6. Description of Efforts Made to Ensure Offers are solicited from as many Potential Sources as

Deemed Practicable.

A Notice of Proposed Contract Action was synopsized as a Pre-solicitation Notice on the Federal Business

Opportunities website (www.FBO.gov) between 08 December 2017 and 26 December 2017. No responses to this notice were received to give an indication that a company other than Cadence Design Systems is interested in or potentially capable of providing the required items.

7. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable.

It is anticipated that the quotation received from Cadence Design Systems will be determined fair and reasonable in accordance with FAR 13.106-3(a) (2) (iii) Current price lists, catalogs, or advertisements and

FAR 15.404-1(b) (2) (vii) Other than certified cost or pricing data in the form of invoices and sales orders with other customers for the same parts or similar custom orders as the AFRL’s contemplated purchase. Based on the data provided, Cadence Design Systems has provided discounts to the government for the listed items and fairly priced the requested customizations based on prices charged to other customers for similar instances.

8. Description of the Market Research Conducted and the results, or a statement of the reasons why market research was not conducted.

There are two major commercial vendors for Integrated Circuit (IC) synthesis and layout tools, 1) Synopsys and 2) Cadence. The Government is a very minor player in the field of IC design; commercial entities (IBM, Intel, Apple, etc.) are much larger purchasers of software from Synopsys and Cadence. Commercial industry drives the competition between these two companies. Synopsys and Cadence understand this Government

R&D application has limited funding and will produce a limited number of chips. They also understand the two are constantly competing for Government business. The Government ultimately minimizes cost by using a combination of software from the two companies. Each competitor’s software is evaluated for each of the many steps in designing an IC. AFRL considers tool cost, prorating factor (cost for a week, month, etc.

compared to a standard year license), and labor cost. The result is a decision of which tool to use for each step.

This decision (which tool for each step) is complete for our ongoing designs, but will be re-evaluated as AFRL use the licenses that are being purchased now.

9. Any Other Facts Supporting the use of Other than Full and Open Competition.

As explained in paragraph 8 to continually minimize the total cost of the program, AFRL purchases and uses each competing software type in their IC design process to see which tool works best and/or is more cost efficient during the IC design steps. AFRL can switch between each companies tools, if needed, but it would be 1 year and in both time and money to switch. Additionally, was awarded to Cadence for Innovus Implementation Software .

10. List of Sources, if any, that have expressed in writing an Interest in the Procurement.

Cadence Design Systems is the only source that has expressed an interest in this procurement.

11. Statement of Actions, if any, that Agency has taken to Remove/Overcome any Barriers to

Competition before making subsequent acquisitions for the supplies or services required

We seek to continually minimize the total cost of the program (labor and software tool cost). AFRL/RITA purchases and uses each competing software type in their IC design process to see which tool works best and/or is more cost efficient during each of the IC design steps. AFRL/RITA can switch between each companies tools with some time and effort, so we evaluate which tool to use for each step as we continually upgrade our design flow. This software was last purchased which does not allow for time to implement a new software system without substantial duplication of cost as this software is highly specialized and completes multiple contracts valued at several million dollars. Any change would require 1 year of engineering hours and in time and money to switch.

12. Contracting Officer’s Certification. The contracting officer’s signature on the justification evidences that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

13. Technical / Requirements Personnel Certification. As evidenced by their signature on the justification, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.