JA_CIP Microscope_0012_v2 signed FINAL.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

LAKEHURST, NJ 08733

J&A Number: 21-0034

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center Aircraft Division (NAWCAD) Lakehurst, NJ

2. Description of the Action Being Approved.

This justification and approval authorizes and approves on a sole source basis acquisition of an

Ultra High Resolution (UHR) Variable Pressure (VP) Field Emission Scanning Electron

Microscope (FESEM), as well as the servicing of the items, from Hitachi High Technologies

America, Inc. located at 1375 N. 28th Avenue, PO Box 612208, Dallas, TX 75261-2208. This instrument will be used by the NAWCAD Lakehurst Materials Engineering Branch to support operational readiness of Aircraft Launch and Recovery Equipment (ALRE) and Support

Equipment (SE) programs by performing a number of analyses including failure analyses.

3. Description of Supplies/Services.

This Firm Fixed Price procurement is to Hitachi High Technologies America, Inc. for one

SU7000 UHR VP Schottky FESEM, and four (4), twelve month option periods of servicing after the warranty period of the instrument.

The FESEM instrument includes: one SU7000 main unit with VP mode, one Energy Dispersive

Spectrometer (EDS), one chamber camera navigation system, one transformer, one air compressor, one vacuum pump, one pump enclosure, one water-cooled water circulator, one chamber plasma cleaner, one active isolation platform, one redundant backup battery system, one operation table, two controller computers, one trackball, one joystick, two controller monitors, shipping, rigging, installation, and training. All deliveries, installation, and training will be completed within FY2021.

Each servicing year includes: two Preventative Maintenance services, non-consumable parts, one thermal FESEM tip replacement, response time of 48 hours or less, on-site emergency service, and minor version software updates.

Estimated Dollar Value in Thousands

The total estimated cost of the instrument and servicing years is $792K, as shown in the following table. The instrument will be obligated and executed in FY2021 using NWCF funds from the Capital Investment Program (CIP). Servicing will be obligated and expensed each year from FY2022 through FY2025 using Service Cost Center (SCC) funds.

FY2021 FY2022 FY2023 FY2024 FY2025 Total

NWCF – CIP 672 $672

NWCF – SCC 30 30 30 30 $120

Total $672 $30 $30 $30 $30 $792

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.

41 U.S.C. 1901, Simplified acquisition procedures (Certain Commercial Items).

5. Rationale Justifying Use of Cited Statutory Authority.

The SU7000 manufactured by Hitachi High Technologies America, Inc. is the only product that satisfies all technical requirements of the NAWCAD Lakehurst Materials Engineering Branch.

The notable requirements are as follows. It is required that five or more signals of the UHR VP

FESEM can be viewed simultaneously, where one of those is the camera navigation system. It is required that dry air is the only necessary venting gas for full performance, to accommodate facility space. It is required that the beam resolution is 1.0nm or better for traditional operation at 1kV, beam resolution is 1.5nm or better for VP mode at 1kV, maximum magnification is

2,000,000x or greater, and the chamber stage holds 4.0lbs or greater, all to support expected use cases. In concert, these requirements eliminate all models except the SU7000.

All FESEMs are potential sources of radiation. NAWCAD radiation safety requirements include servicing by the Original Equipment Manufacturer (OEM) or OEM-authorized servicers.

Hitachi High Technologies America, Inc., as OEM of the SU7000, holds the proprietary rights to the technical data for this item. Hitachi High Technologies America, Inc. does not have any authorized retailers or servicers. Therefore, Hitachi High Technologies America, Inc. is the only source able to provide and service this instrument as part of this instant effort.

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

Market research for a thermal UHR VP FESEM began in July 2018, where several Materials

Engineers of the NAWCAD Lakehurst Materials Engineering Branch attended the Microscopy

& Microanalysis (M&M) Conference to determine what the latest technology was on the market.

From there a number of FESEMs were demonstrated. At that conference, it was determined that

Hitachi High Technologies America, Inc. made the only product that satisfies all our instrument requirements. The conference also showed there were four other manufacturers developing similar products, but none met all our instrument requirements. Since then, searches of Google, the Federal Procurement Data System – Next Generation, and Small Business Search confirmed the five manufacturers seen at the conference: Hitachi High Technologies America, Inc., FEI

Company, TESCAN USA, Inc., Carl Zeiss Microscopy, LLC., and Jeol USA, Inc. Each of those manufacturers were contacted between November 2019 and July 2020 for additional information on existing and newly released products, with the exception of FEI, as their products did not satisfy our requirements as viewed by the materials on their website. The remaining four companies provided a wealth of data on their products, and each was evaluated in a matrix in comparison to our technical requirements. These evaluations determined only one manufacturer, Hitachi High Technologies America, Inc., satisfies all instrument requirements.

Additionally, a Request for Information (RFI) for the proposed instrument was posted to the beta.SAM website from August 21, 2020 to August 31, 2020. Two vendors expressed interest:

Hitachi High Technologies America, Inc. and Carl Zeiss Microscopy, LLC. Evaluations of both instruments suggested by Carl Zeiss Microscopy, LLC found that neither satisfied the instrument requirements. Specifically, one instrument did not satisfy the requirement for minimum sample weight held by the stage and the other instrument did not satisfy the requirement for maximum magnification. The instrument proposed by Hitachi High Technologies America, Inc. satisfies all instrument requirements.

A second RFI of the proposed contract was posted on the beta.SAM website from September 22, 2020 to September 28, 2020 including the instrument, as before, but this time adding the servicing of the items for four, twelve month option periods after the instrument warranty period.

Three vendors showed interest: Hitachi High Technologies America, Inc., Carl Zeiss

Microscopy, LLC, and Jeol USA, Inc. Evaluation of the suggested instrument by Jeol USA, Inc.

found it did not meet the instrument requirements. The instrument did not satisfy the requirements for minimum sample weight held by the stage and the venting gas(es) required for optimal operation. The instrument packages submitted by Carl Zeiss Microscopy, LLC and

Hitachi High Technologies America, Inc. were unchanged. While the proposed servicing packages submitted by all three vendors satisfied all servicing requirements, only Hitachi High

Technologies America, Inc. can provide the instrument that satisfies all instrument requirements as well.

Finally, a synopsis was posted to the beta.SAM website on November 17, 2020 and closed

December 2, 2020. No responses were received during that time.

Therefore, only Hitachi High Technologies America, Inc. has the ability to satisfy all requirements. Hitachi High Technologies America, Inc. is the only authorized retailer and servicer of their equipment.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402, the Contracting Officer shall ensure that all supplies and services provided under this contract are procured at a fair and reasonable price. Based upon historical cost data from procurements of similar equipment by the Government, the Contracting

Officer, Defense Contract Management Agency, and Defense Contract Audit Agency auditors have adequate information and background to determine a fair and reasonable price.

8. Actions to Remove Barriers to Future Competition.

The instrument is a one-time procurement. NAWCAD Lakehurst, NJ has no plans at this time to compete future contracts for this type of instrument.

There are no actions that the Government can take at this time to remove barriers to competition for the types of services covered by this document. The Government does not possess the technical data that would be required to solicit full and open competition. If another potential source emerges, NAWCAD Lakehurst, NJ will assess whether competition for future requirements is feasible.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this

Justification and its supporting acquisition planning documents, except as noted herein are complete and accurate to the best of my knowledge and belief.

_____________________________ David Piatkowski__ 732-323-2716 _________

Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

_____________________________ Evan Schlisserman_ 732-323-4763 _________

APPROVED

Upon the basis of the above justification, I hereby approve the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1).

Thomas F. Hill

Chief of Contracting Office