JA_-_redacted_-_14_June_2016_-_redacted.pdf

DMEA # 6M16E301

J&A # 16-04

Defense Microelectronics Activity 4234 54th Street, McClellan, CA 95652

PWS/SOW #16-6E3

Justification and Approval for Other than Full and Open Competition

1. Agency and Contracting Activity: Office of the Secretary of Defense, Defense Microelectronics Activity (DMEA).

2. Nature/Description of Action:

The current warranty for the Helios NanoLab 660 and Nova NanoSEM 650 will end in June 2016, and the service contract for Nova NanoLab 600 will end in July of 2016. In order to insure proper operation and support for the three beam tools, a new service agreement/updates/ maintenance contract needs to be purchased from FEI before the end of the warranty/service contract period. In addition, necessary consumable parts for the three Beam tools will be procured to support ongoing equipment operational requirements. This acquisition is planned as a five (5) year acquisition (Base + four (4) option years).

3. Description of Supplies/Services:

The Contractor shall provide product service/updates/maintenance as well as consumable parts for DMEA’s Helios NanoLab 660, Nova NanoLab 600, and Nova NanoSEM 650 beam tools, is anticipated to be required as follows:

Part Number Helios NanoLab 660 Service Contract

1037473 / 9922806 / F7052750 Helios NanoLab 660 1033508 / 9922806.1 FEI Easy Lift 1011754 / 9922806.2 Multi GIS

Consumable Parts 16830 F/G, LMI, GA69, CA, LongLife 4035 273 12631 Extractor Assy, HT-SW 4035 273 12631 Suppressor, SW 4035 273 67441 Strip, Tomahawk, #02 4022 268 00329 Tube assy AIM gauge NW25 4022 268 01694 Assy TLD Elstar 4022 268 02026 Assy aperture holder 1011759 Platinum, Deposition, Fill, MGIS 1011834 TEOS, Fill, MGIS (IDEP II) 1011771 Etch, Delineation 1011767 Etch, Insulator, Enhanced, XeF2, Fill, MGIS 1011761 Carbon, Deposition, Fill, MGIS 1011763 Selective Carbon Milling_MgSO4 (SCE) Part Number Nova NanoSEM 600

Service Contract Nova600 / D46 / f7133152 Nova NanoSEM 600

Consumable Parts 17135 F/G,LMI, GA69, CA, LongLife 24115 Kit, BAA, QIK Change 20nA 1000 24152 Suppressor, LMIS 24151 Aperture std 4022 268 00329 Tube assy AIM gauge NW25 1081277 Platinum, Deposition Pt 20095 Etch, Insulator Enhanced IEE 19249 Insulator, Deposition IDEP Part Number Nova NanoSEM 650

Service Contract NovaNanoSEM650 / 9922805 / f7052751 Nova NanoSEM 650

Consumable Parts

9432 061 74331 Mo strip aperture & holder: 2x30, 40, 50, 100um

4. Authority Cited:

FAR 6.302-1, Only One responsible Source and no other supplies or services will satisfy agency requirements under the authority of 10 U.S.C 2304(c)(1) or 41 U.S.C. 3304(a)(1)

5. Reason for Authority Cited:

It has been determined based on market research that there is only one responsible source to provide the required services and that no other supplies or services will satisfy agency requirements. The following source represents the only source capable of providing the required service and maintenance:

FEI Company 5350 N.E. Dawson Creek Dr.

Hillsboro, OR 97124-5793

Due to the proprietary status of the software used on the Helios NanoLab 660, the Nova NanoSEM 650, and the Nova NanoLab 600, any software support and/or software upgrade(s) must be acquired through FEI as the OEM. In addition to the software, a few of the chemistries (such as ) used by two of the beam tools are also proprietary to FEI.

During market research, FEI reiterated that software must be maintained by FEI service engineers, since third party vendors do not have the software training or expertise on the proprietary FEI systems. Due to the multi-million dollar cost of this equipment and the still current technical capabilities of the equipment, there is no current plan to replace this equipment until it is deemed obsolete. Annual product update(s)/maintenance must be maintained by FEI as the OEM of the proprietary software and chemistries.

6. Efforts to Obtain Competition:

No other sources have been identified that have the required capabilities to provide all services, maintenance, and consumable parts required maintaining the Helios NanoLab 660, Nova NanoLab 600, and the Nova NanoSEM 650. Although FEI, as the OEM, has noted that third party vendors do not have the software training or expertise on the proprietary FEI systems, an Internet search on third party service providers for the three FEI beam tools has been conducted.

Third party service providers do not have provisions to provide consumable parts nor able to perform full service on DMEA’s beam tools.

Notice of proposed contract action is required and will be publicized on FBO, in accordance with FAR Subpart 5.2.

Notice of proposed contract action is NOT required, in accordance with the following exception from FAR 5.202: ___________________

7. Contracting Officer’s Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. Negotiated prices will be determined fair and reasonable based on information in the Independent Government Estimate.

Typed Name: Connie L. Newell

Title: Contracting Officer

8. Market Research:

Internet search on third party service providers for the three FEI beam tools has been conducted.

Third party maintenance service providers such as Superior Technical services Inc., Scan Service Corporation, and SEM Tech Solution claim to provide SEM and FIB system maintenance, but the service they provide is inadequate for DMEA’s beam tools upon evaluation of requirements.

Input from National Security Agency (NSA) employees regarding similar beam tool maintenance contracts revealed that only the Original Equipment Manufacturer (OEM) provided service for NSA beam tools.

9. Other Facts: NONE

10. Listing of Sources:

FEI Company 5350 N.E. Dawson Creek Dr.

Hillsboro, OR 97124-5793

11. Actions to Increase Competition: NONE

12. Technical or Requirements Certification:

I certify that the supporting data included in this justification are accurate and complete to the best of my knowledge and belief.

Typed Name: Yacob Getachew

Title: Project Manager

Project Engineer shall check appropriate box:

National Security Compromised – No posting (Rationale to PCO)

Redacted – Copy will be sent to PCO

No redaction