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NSWCCD Sole Source/Brand Name Justification SAT rev 1 Effective September 2020

USE OF OTHER THAN FULL AND OPEN COMPETITION LESS THAN

SIMPLIFIED ACQUISITION THRESHOLD MEMO

FROM: Christopher Hendricks

CODE: 635

SUBJECT: Sole Source/Brand Name Justification / Limited Source Justification for Use of Other than Full &

Open Competition for an Acquisition under the Simplified Acquisition Threshold (SAT)

I. BACKGROUND

1. FAR 13.106-1(b)(1)(i) states for purchases not exceeding the simplified acquisition threshold, Contracting Officers may solicit from one source if the Contracting Officer determines that the circumstances of the contract action deem only one source reasonably available.

2. As required by FAR 13.106-3(b)(3)(i), this memorandum explains the absence of competition for this acquisition, as only one source will be solicited for this requirement (or for a portion of the requirement) and the requirement is not expected to exceed the simplified acquisition threshold.

3. This memorandum is derived from Enclosure 3, Department of Navy Simplified Acquisition Procedures Guide (April 2018) and is only applicable to acquisitions under the SAT.

II. DESCRIPTION OF ITEM OR SERVICE (include manufacture/sole source name and address) Repair and maintenance service for the VersaProbe II Scanning X-ray Photoelectron Spectroscopy (XPS) Microprobe. The material and service requested under the service contract are as follows: (1) On-site response time within 5 working days from the date of reporting the issue to the manufacturer, (2) Technical telephone support with coverage hours Monday - Friday, 8:00a.m. - 5:00 p.m., excluding 10 Physical Electronics USA recognized holidays & two (2) in-house meeting days, (3) One scheduled preventative maintenance service on an annual basis, (4) Up to three on-site emergency service and troubleshooting visits annually on an as needed basis,

(5) All system parts are covered, including consumables as shown in Attachment Table 1, (6) Labor for the repair of optics, which includes consumables, and (7) Exchange or loaner equipment, if available. The estimated value of this material and service contract is $55,000 with a period of performance twelve (12) months from award with three (3) option years totaling $220,000.

MANUFACTURER: Physical Electronics USA ADDRESS: 18725 Lake Drive E, Chanhassen, MN 55317-9384

PHONE: 952-828-6442

POC: Susan Wright

III. BASIS FOR DETERMINATION FOR USE OF OTHER THAN FULL & OPEN COMPETITION

Code 635 performed an internet survey and no other manufacturer is capable of providing a service contract for a spectrometer that is manufactured by a different company. In the past, Thermo Fisher Scientific and Kratos Analytical were asked about supporting our XPS spectrometer which was manufactured by Physical Electronics USA. Thermo Fisher Scientific said it does not offer support for a non- Thermo Fischer instrument. Kratos Analytical did not respond to our request.

A. BRAND NAME:

Item required must be a brand name product, or feature of a product, particular to one manufacturer.

N/A

NSWCCD Sole Source/Brand Name Justification SAT rev 1 Effective September 2020

1. Restrictive Rights: The source has established proprietary rights, limited rights in data, patent rights, copyrights, or secret processes in the item or service required.

2. Exclusive Licensing Agreements: The item or service is only available from the Original Equipment Manufacturer (OEM).

3. Other Reasons: N/A

B. SOLE SOURCE (select all that apply)

1. Restrictive Rights: The source has established proprietary rights, limited rights in data, patent rights, copyrights, or secret processes in the item or service required.

Physical Electronics USA is the only qualified vendor to service the VersaProbe II Scanning XPS Microprobe due to their technology being proprietary, which precludes other manufacturers or vendors from being able to perform the services or provide the supplies. In addition, Physical Electronics USA has a vast inventory of spare parts and owns proprietary drawings for the expeditious fabrication of parts not in stock. Furthermore, Physical Electronics also has a large inventory of loaner/exchange equipment which they will provide to expedite repairs. Since Physical Electronics USA is the original manufacturer of the VersaProbe II system and holds the proprietary technologies for the system, there is no feasible way to have another vendor to provide the services and supplies which meet the Navy's minimum requirements as described in Section 1. There are other manufacturers which build XPS systems but they offer service contracts that only cover their own systems. The alternative to not purchasing a service contract from the original manufacturer of any XPS system is to purchase a new system every year at a cost of roughly $800K, which is cost prohibitive.

2. Exclusive Licensing Agreements: The item or service is only available from the Original Equipment Manufacturer (OEM), or there is only one authorized distributor or technical representative for the OEM.

Physical Electronics USA is the original manufacturer of the VersaProbe II system and holds the proprietary technologies for the system, there is no feasible way to have another vendor to provide the services and supplies which meet the Navy's minimum requirements. There are other manufacturers which build XPS systems, but they only offer service contracts that cover their own systems.

3. Other Reasons: Various options were explored with the manufacturer for market research purposes and we believe that the option being selected with a total of 4 visits (one preventative maintenance visit and 3 emergency visits) best suits our needs at a reasonable cost. For example, a typical 4 day visit outside of the service contract was costed at roughly $16k for a total of $80k per 4 visits, which exceeds the total cost of the service contract.

The service contract option yields a saving of roughly 32%.

IV. CERTIFICATIONS & APPROVALS