REDACTED Sole Source.docx

`MEMORANDUM FOR FILE

FROM:

CODE:

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. FAR 8.405-6(b)(1) states Brand name specifications shall not be used unless the particular brand name, product, or feature is essential to the Government’s requirements, and market research indicates other companies’ similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet, the agency’s needs.

3. 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.

4. 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) Provide one configured Shaft Taper Analysis Verification Evaluation (STAVE) reprojection system and associated hardware to support the STAVE system at Portsmouth Naval Shipyard (PNSY). The reprojection system is not just a projector, it’s an Augmented-Reality (AR) camera/projection system, with AR targets custom made to fit a taper. The STAVE system is required to efficiently achieve accurate and repeatable results for the inspection of submarine main propulsion shaft tapers. The Required Delivery Date for the purchase is 28 June 2024.

MANUFACTURER: Direct Dimensions Inc.

ADDRESS: 10310 S Dolfield Rd, Owings Mills, MD 21117

PHONE: 410-998-0880

POC: Michael Raphael

ESTIMATED TOTAL PRICE INCLUDING OPTIONS: $

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

☐ A. BRAND NAME:

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

☐ 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:

☒ B. SOLE SOURCE (select all that apply) The Shaft Taper Analysis Verification and Evaluation (STAVE) systems are built-to-order, specialty integrated systems developed by DDI and Propulsor Technology Inc. (PTI) for the US Navy. The system development was a multi-year effort and STAVE systems have been successfully installed and are in use at all four US Naval Shipyards including Norfolk (NNSY), Pearl Harbor (PHNSY), Portsmouth (PNSY) and Puget Sound (PSNSY).

DDI performed research and developed a reprojection system for the STAVE system and in 2019, via contract SPMYM219P2620, provided three configured STAVE reprojection systems to the NNSY, PHNSY, and PSNSY shipyards.

A reprojection system is required for the STAVE system at the Portsmouth Naval Shipyard (PNSY). Code has determined that competition is not practical for this purchase as only the DDI-configured STAVE reprojection system has the features, capabilities and compatibility for integration into the existing STAVE system.

☐ 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), or there is only one authorized distributor or technical representative for the OEM.

Reference SS BNJ Attachment, Email as of Oct. 10, 2023. The configured STAVE projector system was designed and built by DDI to enhance the shaft taper inspection. There is no other company besides DDI with knowledge of the STAVE software and an existing design from which to fabricate additional units.

☒ 3. Other Reasons: Other reason not identified above. Provide details on mission and/or cost impact if requirement is not solicited from only one source.

The STAVE system is a one-of-a-kind digital scanning technology and inspection process that requires a compatible reprojection system, that will allow the machinists to visualize the features on a measured shaft taper. If the requirement is not solicited from the one source, then other potential sources will have a very steep learning curve to understand the technology associated with the existing system installed at the PNSY. The time needed to reverse engineer a compatible reprojection system and develop a compatible software for it to be integrated with the STAVE system, will further limit the PNSY’s ability to efficiently perform refurbishment work on shaft tapers which can lead to a delay in the maintenance schedule. The estimated cost for a different company to develop the software and to integrate the reprojector system with the STAVE system is about $ and will take at least man hours.

☐ C. LIMITED SOURCE (FAR 8.405-6):

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

Select “Limited Source” for items available on DoD ESI, GSA Federal Supply Schedules, or NASA Solutions for Enterprise Wide Procurement (SEWP) and select a reason below.

☐ 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:

IV. CERTIFICATIONS & APPROVALS

NSWCCD Sole Source/Brand Name Justification Under SAT Rev 3 Template Page 1 of 3 Effective February 2023 NSWCCD Sole Source/Brand Name Justification Under SAT Rev 3 Template Page 1 of 3 Effective February 2023 NSWCCD Sole Source/Brand Name Justification Under SAT Rev 3 Template Page 3 of 3 Effective February 2023