JA 22-0167 Amyris Redacted.pdf

J&A Number: 22.0167

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center Weapons Division (NAWCWD) China Lake, CA

2. Description of the Action Being Approved.

This justification and approval authorizes and approves on a sole source basis for a Cost-Plus- Fixed-Fee (CPFF) contract with Amyris, Inc. (CAGE 47QN9), 5885 Hollis ST STE 100 Emeryville, California 94608-2059, United States to procure biosynthetic caryophyllene and humulene or cadinene [Redacted] Sesquiterpenes, including caryophyllene, humulene, and cadinene, are 15-carbon molecules that can be produced from sugars via fermentation.

[Redacted]

3. Description of Supplies/Services.

The contract will include the optimized production and delivery of 15-25+ kg of both biosynthetic caryophyllene and humulene from sugar substrates. Caryophyllene and humulene are members of a class of compounds called sesquiterpenes. The delivered sesquiterpenes will consist of >95% sesquiterpenes and >90% of a specific sesquiterpene (caryophyllene or humulene). The estimated cost of this project is $360,000, with funding provided by ONR. The work should be completed within 6 months of contract award.

Estimated Dollar Value in Thousands

FY 22 Total [Redacted] 360 360 Total $360K

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 2304(c)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

This action is a logical follow-on to Defense Advanced Research Projects Agency (DARPA) technology investment agreement HR0011-15-3-0001, which was focused in part on the development of high-throughput routes to biosynthetic sesquiterpenes; the DARPA contract awarded to Amyris was competitive [Redacted] ONR’s requirement for the current contract is to scale-up and optimize the production and purification of caryophyllene and humulene to the 25 kg scale from sugar substrates. Optimization of the biosynthetic process will include efforts to maximize the sesquiterpene titer and reduce energy inputs while delivering sesquiterpenes of sufficient purity for DoD applications. Although caryophyllene derived from clove oil can be obtained from chemical suppliers, these existing commercial sources of caryophyllene do not fulfill the requirement because they are not produced from sugar substrates. Production of these molecules from readily available sugar feedstocks will allow for domestic production of sesquiterpenes without relying on a limited supply of cloves. There are no current sources of commercial biosynthetic caryophyllene or humulene produced from sugar substrates at the levels necessary to meet this requirement. Amyris is ideally suited to meet the requirement because they have developed proprietary engineered microorganisms and process technology for the production of sesquiterpenes. In addition, they maintain appropriately sized infrastructure (pilot scale facilities and bioreactors) to domestically produce between 1-100 kg of the desired sesquiterpenes. Amyris has previous experience in [Redacted] at high purity from sugar substrates at their Emeryville, CA pilot plant. Previous sesquiterpene substrates produced by Amyris were used in DARPA and ONR-sponsored projects and found to have a purity profile suitable for [Redacted] Although several companies have developed routes for the production of sesquiterpenes via fermentation, typical concentrations are on the order of mg/L and methods for the purification of these molecules have not been adequately developed. The process development required for other companies to achieve suitable titers (concentration) of sesquiterpenes in high purity will require a significant investment in time and money, estimated to be ~18-24 months and ~$2M. This estimate is based on timelines and funding from a previous contract and the expertise of a NAWCWD subject matter expert (SME).

Sesquiterpenes must be produced in an expeditious manner due to the need for NAWCWD and other DoD entities to conduct a follow-on demonstration program with materials synthesized from the sesquiterpenes.

In accordance with FAR 6.302-1(a)(2)(ii)(B), the biosynthetic caryophyllene and humulene or cadinene are deemed available only from Amyris, as award to any other source would result in unacceptable delays in fulfilling the Government’s requirement. To develop an alternative capability source is not considered practical and would result in programmatic delays. To address the timeline specified by the ONR, as well as reduce the cost to DoD, it is necessary to identify an entity that has already produced the required materials, with an acceptable impurity profile, at an intermediate scale. Amyris is the only company currently capable of producing multi-kilogram quantities of biosynthetic sesquiterpenes in the timeframe required.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

A small community is currently conducting research, development and production of biosynthetic composite materials. A review was conducted of those companies by performing research, attending conferences with other experts on the subject, collaborating with other SMEs, touring laboratory and production facilities, and reviewing the latest literature and research. As a result of these efforts, the SME determined that no other companies besides Amyris were capable of meeting the requirement.

In accordance with DFARS PGI 206.302-1(d), a Sources Sought announcement was posted to the Government Portal of Entry website SAM.gov on 13 January 2022. No responses were received. In accordance with FAR 5.024, a Pre-Solicitation Synopsis was posted to the Government Portal of Entry website SAM.gov on 7 March 2022 with a response date of 22 March 2022. One response was received from Amyris, Inc. No additional market research was conducted because it was not practicable, for the reasons discussed in paragraph 5 above, for any company other than Amyris, Inc. to provide the required supplies and services.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

This is a one-time purchase. The feasibility of utilizing biosynthetic caryophyllene and humulene in propellant formulations will be evaluated by NAWCWD researchers under an existing ONR grant. Long-term acquisition of these materials would likely proceed through the Defense Logistics Agency under a competitive bidding process.