JA_Cadence_APS__1232018_final_version.pdf

DMEA#18-12

Defense Microelectronics

Activity 4234 54th Street, McClellan, CA

95652

SOW #18-8D0

Justification and Approval for Other Than Full and Open

Competition

1. Agency and Contracting Activity:

Office of Secretary of Defense, Defense Microelectronics Activity (DMEA).

2. Nature/Description of Action:

This is a new contract to acquire Cadence Virtuoso Spectre Multi-Mode Simulator to enable multi-threading simulation in the Cadence design enivronment. This new software tool works in conjunction with all the existing Cadence Virtuoso design environment. This is a 1-year software lease acquisition that includes software support and will be acquired Firm Fixed Price basis using CRADA Funds. The 1-year software lease will support projects for the Raytheon CRADA 13-19 and is more economical than purchasing a perpetual license. The value of this procurement is estimated to be $187,100.00.

3. Description of Supplies/Services:

DMEA requires Computer Aided Design (CAD) software tools in order to design and verify integrated circuits. CAD software companies have created design flow tools called Electronic Design Automation (EDA) that integrate different CAD tools into a single environment to support all steps of integrated circuit design and verification. DMEA uses the Cadence Design Environment EDA to develop custom designs and process design kits (PDK), device modeling, and to support different fabrication technologies. This software tool is used in conjunction with all the other existing DMEA’s Cadence tools.

CADENCE CAD software tools used by DMEA Product Number Product Qty

90005 Virtuoso Spectre Multi-Model Simulation 1

DMEA requires a multi-thread spice-accurate simulator to provide efficient high precision results for large post layout and mixed-signal designs.

A new software license called Virtuoso Spectre Multi-Mode Simulation is shown in the table above. This new software addition shall provide enhance simulation capability to the existing Cadence design environment for large complex System-on-Chip (SoC) design applications.

Additionally, the new software simulator shall provide multi-thread capability and allows higher design integration and verification.

4. Authority Cited:

FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, modified under the authority of 41 U.S.C. 1901, Simplified Acquisition

Procedures (FAR Part 13.5).

5. Reason for Authority Cited:

Cadence Design Systems, Inc. is the only responsible source that can provide the software and support services for the Cadence Virtuoso Spectre Multi-Model Simulation license.

This multi-threading simulator works directly with the Cadence Virtuoso design environment; this is an existing design environment that DMEA currently utilizes for integrated circuit design..

Cadence Design Systems, Inc. is the source of the Cadence design flow CAD software tools.

CAD software designed by Cadence Design Systems contains proprietary scripting support language. This scripting language interprets and automates the execution of tasks throughout the design flow process. Because Cadence Design Systems does not authorize other sources to have access to this scripting support language, only Cadence Design Systems can properly perform software maintenance on the twenty-one Cadence CAD software tools.

6. Efforts to Obtain Competition:

This Justification & Approval (J&A) will be posted on www.fbo.gov.

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

As stated in FAR 13.106-3(a), before making award, the contracting officer must determine that the proposed price is fair and reasonable. The contracting officer will perform price analysis on Cadence’s quote in accordance with FAR 13.106-3(2).

Typed Name: Matthew Duane Date:

Title: Contracting Officer Signature:

8. Market Research:

Cadence generates revenue primarily from licensing and providing maintenance for its software.

In the latest Annual Report filed with the Securities and Exchange Commission, Cadence stated that future revenue is dependent upon its installed customer base continuing to license products and purchase additional services. The data in table below shows how the product and maintenance services revenue as a percentage of Cadence’s total revenue has been increasing.

Fiscal Year Product and Maintenance Percentage of Total Revenue 2012 91% 2013 93% 2014 94% 2015 93% 2016 93%

Based on this market research, Cadence Design Systems, Inc. is the only responsible source that can provide software maintenance and user support services for the twenty-one Cadence design flow CAD software tools.

23 Jan 2018

9. Other Facts:

Because the Cadence Design Suite is broadly used in the integrated circuit manufacturing industry to develop integrated circuits, by DOD Trusted Suppliers, like Harris Semiconductor and IBM, DMEA needs to have properly maintained Cadence Design Suite software.

10. Listing of Sources:

Cadence Design Systems, Inc.

2655 Seely Avenue San Jose, CA 95134 POC: Don Mausali (V): 408-428-5752

11. Actions to Increase Competition:

DMEA will continue to conduct market research to discover if another source can perform maintenance on Cadence software.

12. Technical or Requirements Certification:

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

Typed Name: Vilaysack Savengveska Date:

Title: Senior Design Engineer Signature: