Justification for Other Than Full and Open Competition - Velo3D Sapphire AM System.pdf

Rev.:01/2023

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

George C. Marshall Space Flight Center (MSFC)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

(JOFOC)

For Velo3D Sapphire Additive Manufacturing System Lease Agreement

1. Federal Acquisition Regulation (FAR) 6.303-2(b)(1) – Identification of the agency and the contracting activity, and specific identification of the document as a “Justification for other than full and open competition.”

This document is a justification for other than full and open competition prepared by the National Aeronautics and Space Administration (NASA), George C. Marshall Space Flight Center (MSFC).

The procuring agency is the National Aeronautics and Space Administration (NASA), and the contracting activity is MSFC.

2. FAR 6.303-2(b)(2) – The nature and/or description of the action being approved:

This justification provides the rationale for contracting by other than full and open competition to award a sole-source contract with Velo3D, Inc. for the lease of a Velo3D Sapphire Metal Additive Manufacturing (AM) System.

3. FAR 6.303-2(b)(3) – A description of the supplies or services required, to meet the Agency’s needs (including the estimated value):

This procurement is for a 1-year lease of a Velo3D Sapphire AM system, with a total estimated cost of . The system is expected to be procured and delivered before September 2023.

The Velo3D Sapphire system is currently being used by engine suppliers such as SpaceX on its Raptor engine hardware, and is under evaluation by Aerojet Rocketdyne for Space Launch System (SLS) Liquid Engines, to manufacture flight components for both the Human Landing System (HLS) and SLS vehicles, respectively. NASA will play a critical role in reviewing and approving supplier data in support of safety of flight rationale for these vehicles. During the lease term, NASA MSFC’s Advanced Manufacturing Branch (EM-42) will be conducting extensive testing and study of the Velo3D Sapphire machine to inform review and approval of system certification and safety rationale for spaceflight components manufactured on this particular AM system.

4. FAR 6.303-2(b)(4) – An identification of the statutory authority permitting other than full and open competition:

The statutory authority permitting other than full and open competition is 41 U.S.C. 1901, modified to reflect the procedures of FAR 13.5 – Simplified Procedures for Certain

Commercial Products and Commercial Services.

5. FAR 6.303-2(b)(5) – A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited:

The rationale supporting the use of 10 U.S.C. 3204(a)(1) Only one responsible source and no other supplies or services will satisfy agency requirements as described below.

MSFC must have hands-on experience with the Velo3D Sapphire machine to fulfill its responsibility to provide certification guidance and contribute to NASA’s understanding of the supplier rationale supporting flight safety. An AM machine other than the Velo3D Sapphire cannot contribute to the risk reduction purpose of this lease, regardless of the capabilities of other AM machine vendors.

Leasing the same AM equipment that suppliers are using to build human-rated spaceflight hardware allows NASA to develop an independent technical understanding of the risks and challenges associated with the unique process-structure-property-performance relationships of safety and mission critical components manufactured on the system. Each AM platform exhibits unique process-structure-property-performance relationships which have direct impact on the component and system performance in which they’re used.

Firsthand evaluation of the machines in use by industry partners enables a “smart buyer” approach where NASA can participate in material and process development in lockstep with suppliers developing NASA spaceflight systems. This provides NASA the opportunity to collaborate on development activities, technical evaluations, risk identification and mitigation activities with suppliers, enhancing safety and efficiency.

Specific to the HLS effort, leasing the same AM system that the majority of HLS propulsion hardware will be manufactured on will be instrumental in supporting the technical team’s insight activities leading up to system certification to ensure safety and mission success. Similarly, for SLS Liquid Engines applications, independent technical evaluation undertaken through this lease will support certification activities related to safety of flight.

6. FAR 6.303-2(b)(6) – A description of the efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies:

A notice to the Government Point of Entry (GPE) website (Sam.gov) was published on February 27, 2023, in accordance with FAR Subpart 5.2. This posting informed potential sources of NASA’s intent to award this sole-source contract to Velo3D, Inc.

The results of this synopsis are summarized in Section 10 below.

7. FAR 6.303-2(b)(7) – A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable:

The Contracting Officer’s signature on this document indicates that the Contracting Officer has determined that the anticipated cost to the government will be fair and reasonable. The Contractor shall be required to submit a proposal to be evaluated and negotiated by the Government. Prior to execution of the contractual instrument, a proposal analysis will be performed. The proposal analysis will ensure that the final agreed-to price for the contract action is fair and reasonable.

The Velo3D Sapphire system is anticipated to be leased to NASA MSFC at market price, which is appropriate for the caliber of the system. Leasing the machine will enable NASA MSFC to utilize future funding to evaluate a broader set of ever-evolving AM capabilities than purchasing a system.

The non-recurring expenses related to maintenance and support of the machine are included in the lease estimate. The lease agreement is also anticipated to include an end user-based calibration system for the entire machine, a cost savings over traditional systems that will minimize machine down-time.

8. FAR 6.303-2(b)(8) – Description of the market research conducted, and the results, or a statement of the reasons market research was not conducted:

Various engine suppliers and aerospace companies, including SpaceX and Aerojet Rocketdyne, are using or considering the use of the Velo3D Sapphire system as the machine to manufacture a variety of critical and complex engine components. NASA does not direct supplier selection of AM systems. As discussed in Section 5, no other machine will support the Government’s requirement for hands-on experience.

During the planning period of this acquisition, NASA MSFC considered alternative methods to fulfill the requirement, including obtaining sample coupons and/or data sets from suppliers, or traveling to supplier sites to obtain hands-on experience the machine.

Leasing the machine for a limited period of extensive in-house testing is the most efficient and effective way to maximize learning or process-material relationships in order for MSFC to perform its risk reduction responsibilities.

9. FAR 6.303-2(b)(9) – Any other facts supporting the use of other than full and open competition:

The NASA Engineering Safety Center (NESC) is the project manager for this action. The NESC has identified AM on propulsion hardware as a particularly high area of risk requiring independent evaluation. NASA knowledge development in the same AM system as aerospace industry partners will provide a robust foundation via NASA design and construction standard updates for future potential certification efforts that may be undertaken by these teams. Additionally, NASA’s independent evaluation of cutting-edge, and sometimes high risk, technologies like Velo3D’s AM systems will help advance qualification and certification considerations for a broader audience than technical evaluations undertaken by industry. NASA strives to be a leader and steward of advanced manufacturing technologies through public-private partnerships and technology transfers to ensure widest dissemination of knowledge across government, industry, and academia. This prioritization of information sharing will advance understanding of AM process-structure-property-performance relationships for this particular challenge posed by AM certification of safety and mission critical systems.

10. FAR 6.303-2(b)(10) – A listing of the sources, if any, that expressed an interest in writing in the acquisition:

A notice of NASA’s intent to award this sole-source action was synopsized on the GPE website (Sam.gov) per FAR Subpart 5.2 (See Section 6 above). The synopsis was posted on February 27, 2023, and closed on March 14, 2023. The only company that responded to the synopsis was Velo3D, Inc., the identified sole source for this action.

11. FAR 6.303-2(b)(11) – A statement of actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required:

Currently, there are no known actions that the Agency may take to remove or overcome barriers to competition before any subsequent acquisition for the required support is sought.

The Agency will continue to examine the market in the future for alternative solutions or new sources before executing any subsequent acquisitions for the same requirements.

Velo3D Sapphire Manufacturing System Lease Agreement

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SIGNATURE PAGE

I certify that the facts presented in this justification are accurate and complete.

Mallory James Technical Representative Advanced Manufacturing Branch/EM-42

I hereby certify that the above justification is complete and accurate to the best of my knowledge and belief.

APPROVAL:

Hervie B. Williford Contracting Officer

Mallory James Digitally signed by Mallory James Date: 2023.03.14 12:03:00 -05'00'

Hervie Williford Digitally signed by Hervie Williford Date: 2023.03.30 06:53:49 -05'00'