18r89_b05_Sole_Source_J&A_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

COORDINATION AND APPROVAL DOCUMENT

CONTRACTING ACTIVITY: Air Force Research Laboratory/RIK, 26 Electronic Parkway, Rome NY 13441-4514

PURCHASE REQUEST/LOCAL IDENTIFICATION NUMBER:

PROGRAM NAME: Extended Warranty Coverage in support of Quantum Information Science Program

ESTIMATED CONTRACT COST:

TYPE PROGRAM: Other Contracting

AUTHORITY: 10 USC 2304(c)(1)

TYPE J&A: Individual

COORDINATION:

Program Manager: _________________________________ _____________ Date Signed

Local Small Business Office: See DD Form 2579 for local Small Business Office approval.

APPROVED:

Date Signed

CONTRACTING OFFICER, AFRL/RIKO

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

a. Requiring Activity:

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

c. Purchase Request:

2. Nature and/or Description of the Action. This action is a new firm fixed price contract, to include a base year plus four, one year options, for extended warranty coverage on lasers systems in the Quantum Information Systems (QIS) Laboratories located at Air Force Research Laboratory Information Directorate, Rome Research Site (AFRL/RRS), 525 Brooks Road, Rome NY and the Stockbridge Test Site, Stockbridge NY.

The Government intends to negotiate a sole-source contract with: M Squared Lasers, Inc., Cambridge Innovation Center, 1 Broadway, 14th Floor, Cambridge, MA 02142.

3. Description of the Supplies/Services required to meet the Agency’s needs. Under the contemplated contract, M Squared Lasers, Inc will provide the extended warranty coverage in sustainment of the Quantum Information Science program on the following systems:

System: SolsTIS; Serial Numbers: 230442, 590379, 501065 System: ECD-X; Serial Numbers: 37433, 329916, 165528 System: ECD-X Crystals; Quantity: 3 System: Sprite XT; Serial Number: 700848 System: Sprout G18; Serial Numbers: G18NDBH20180422, G18NDBH20170619 System: Sprout G15; Serial Number: G15NSBH20170630

The extended warranty covers equipment troubleshooting and service when some type of repair is required.The warranty covers the disassembly, replacement and reassembly of parts of defective equipment. This obligation extends to the costs of moving, packing and transporting the equipment, if required for refurbishment or replacement. Addtionally, the following means of diagnosis and resolution is provided:

•1st line of support (within 48h): Telephone Assistance and Remote Access: Software included in the system enables M Squared Lasers technical staff to remotely access client's SolsTiS. This allows M Squared Lasers personnel to test the key elements of the laser for remote diagnosis and problem solving.

•2nd line of support: Diagnostic visit. When the problem cannot be identified remotely, service engineers will visit the site to identify the problem.

•3rd line of support: Back to the factory. If the laser requires further diagnosis and repair it can be shipped back to the factory where a dedicated team can focus on a timely resolution of service issue.

1st, 2nd, and 3rd lines of support are all included during the systems’ warranty period.

The total estimated cost for all 5 years of this contemplated contract is: $

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

5. Justification or Authority for Action

The highly specialized laser systems mentioned contain designs proprietary to M Squared Lasers. Due to the proprietary nature of the system designs M Squared is the only source capable of warrantying these units. Servicing these units requires access to company specific proprietary configuration and calibration data. If this warranty contract is not procured, failure of any one of these items could cost the Government in excess of in repair costs each occurrence and unacceptable time delays with large schedule disruptions to Government programs.

6. Efforts Made to ensure Offers are Solicited from as many Sources as Practicable.

A Notice of Contract Action (NOCA) was synopsized as a Pre-Solicitation Notice on the Federal Business Opportunities (FBO) website from 03 - 20 August 2018 and outlined a proposed sole source award to M Squared Lasers. No responses were receivved to incidate that any other company other than M Squared had interest or capability to fulfill the requirement.

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

The Contracting Officer determined that the anticipated cost to the Government is fair and reasonable in accordance with FAR 13.106-3(a)(2)(iii) Current price lists. The contractor provided a pricing document for Warranty Extension Options. This price list yeilded annual fees for the Enhanced Warranty Extensions for the SolsTiS and ECD-X laser systems. The annual fees were priced at – the contractor has offered a discount for this purchase, therefore the Government is purchasing the identified systems for and respectively. The pricing for these can also be used in justifying the unit price for the Sprite systems, as they are simliar lasers and being procured for the same unit price of (Note:

the base year pricing for some of the SolsTis and ECD-X systems are prorated as the standard warranty is still in effect on the systems until October of 2018 – Option Year 1 reflects the full year pricing for these systems) Additionally the contractor is providing the warranty for a third party product owned by the Government – the Sprout systems. The contractor provided the price list they were given by the manufacturer, in which the price lists for the Sprout G-15, G-18, and H-12 laser systems were identified - and respecitvely. As the contractor is handling and taking all responsibility for this third party product, a handling fee was applied to the manufacturer’s standard warranty pricing, therefore the Government is procuring the Sprout G-15, G-18, and H-12 laser systems for respectively. (Note: the pricing for some of the Sprout systems for the base year are N/A as they are covered under the standard warranty currently -and for Option Year 1 are prorated until the standard warranty is no longer in effect on the systems until October of 2019 – Option Year 2 reflects the full year pricing for these systems)

Costs were also determined to be fair and reasonable in accordance with FAR 15.404-1(b)(2)(vii) Other than certified cost or pricing data was analyzed. The contractor supplied a redacted invoice, in which a SolsTis one year warranty was purchased for

The contractor has supplied a discount for the current procurement for the SolsTis warranty, priced at

Additionally, costs have all been determined to be fair and reasonable in accordance with FAR 13.106-3(a)(2)(ii), Comparison of proposed price with prices found fair and reasonable on previous purchases of the same or similar items in the same industry. Previous AFRL/RIKO purchase was awarded on , for a Laser Tracker Standard Warranty, at a unit price of This is comparable to the unit prices for the laser systems we are procuring, as the warranty was for a simliar item, not exact, as well as the warranty coverage was not exactly the same as to that of which we are procuring.

8. Market Research/Other Facts

No other known manufacturer is capable of providing the extended warranty coverage on the Government owned lasers systems, due to proprietary nature of the system hardware, only M Squared Lasers as the manufacturer is capable of servicing these units. M Squared does not have any authorized third party companies due to the proprietary nature of their designs and data contained in their products.

A Notice of Intent to enter into a sole source with M Squared Lasers, Inc. to provide the extended warranty coverage was posted to FedBizOpps from 03 - 20 August 2018, zero (0) responses were received.

Previous AFRL/RIKO purchases for products from M Squared Lasers Inc. have been awarded on a sole source basis, reference Contract No. and

9. Any other facts supporting Other than Full and Open Competition

There are no other facts supporting this justification.

10. List of Sources, if any, That Expressed Interest in the Acqusition

M Squared Lasers Inc.

11. Statement of Actions to Remove/Overcome Barriers to Competition

In the future we will make every action to procure a system that does not require a sole contractor to calibrate and repair the item. As well as, consult the company to see if there are any authorized 3rd party companies that can perform warranty servicing and repair to these systems.

12. Contrtacting Officer’s Certification

The contracting officer’s signature on the Coordination and Approval Document 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 signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.