N00164_16037_FBO.pdf

NCH 53.6-2 (SEP 2011)

J&A Number: 16-037

Code: GXM

P.R. Number: N00164-16-R-GM49

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

Naval Sea Systems Command, Naval Surface Warfare Center, Crane

Division (NSWC Crane), Code 0221.

2. Description of the Action Being Approved

Award of a firm fixed price indefinite delivery indefinite quantity contract with a five year ordering period on a sole source basis for calibration, maintenance and repair services on the Meridian IV Scanning Optical Microscope

(SOM) in support of the requirements to FEI Company, 5350 NE Dawson Creek Drive, Hillsboro, OR, 97124-5793 (Cage Code: 1FJ95).

3. Description of Supplies/Services

This procurement is for the continued maintenance of the

Meridian IV Scanning Optical Microscope (SOM) Serial

Number: 7512. This award will provide continual maintenance and repairs needed in order to maintain the system in a fully-operable status.

The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

Estimated Dollar Value

FY17

FY18 FY19 FY20 FY21 Totals

$500,000

IN REPLY REFER TO:

DEPARTMENT OF THE NAVY

CRANE DIVISION

NAVAL SURFACE WARFARE CENTER

300 HIGHWAY 361

CRANE INDIANA 47522-5001

Total

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

DCG Systems is the original manufacturer of the Meridian IV

Scanning Optical Microscope (SOM). DCG Systems was sold to

FEI Systems along with all the data rights, patents and proprietary information. Only FEI Systems (FEI) now possesses the following attributes critical to the timely and successful analysis, repair and maintenance of this equipment: (1)FEI possesses all proprietary rights to all data, drawings and schematics; (2) FEI employs trained and licensed technical personnel in-house; and (3) FEI maintains a supply of certified repair/replacement parts. These attributes are all necessary and critical to enable both timely and accurate repairs of the SOM.

The Meridian IV SOM is used five days a week for eight hours a day to perform failure analysis on key microelectronic devices within the to determine the root cause of failures. Reliability is of utmost importance for the and solving these failures is critical. Not having the system operational would severely impact the government’s ability to find the root cause of failure and would impact schedules. Due to the sensitivity of the components this work must be done in a government facility so contracting out this effort is not feasible. To purchase another SOM would cost around $2M and would take

10-12 months for delivery. In addition to the cost and estimated 10-12 months before a new system could be delivered additional time would be needed to procure a replacement item, provide and complete training on a new system and any testing that may need completed prior to using the equipment. Without operational equipment for an extended period would add stress to the programs supported.

If the equipment is not properly calibrated, maintained and repaired the government will experience excessive downtime and negatively affect schedules related to the

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

Offerors as Practicable

Market research was performed to locate a competitive vendor but none was discovered. There are a number of vendors that sell spare parts but none of them can provide periodic calibration, emergency repairs, and trained field technicians. Additionally, the spare parts offered by other vendors are not certified and are of unknown origin. A source sought notice was posted to the government point of entry (fedbizopps.gov) on 23 March 2016; no responses were received.

7. Determination of Fair and Reasonable Costs

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

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, the government has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, the government will assess whether competition for future requirements is feasible.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 6.303-2(b))

I certify that the facts and representations under my cognizance except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE (Technical Lead):

Signature Name (Print) and Title (Code) Phone No. Date

REQUIREMENTS COGNIZANCE (Project Manager):

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(a)(12))

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

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as

Contracting Officer, the solicitation of the proposed procurement described herein using other than full and open competition, pursuant to the authority of 10 U.S.C.

2304(c)(_1_).

CONTRACTING OFFICER

Signature Name (Print) Date