0122-05_-_DM_Studio_System_-_J&A_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

DAHLGREN DIVISION

6149 WELSH ROAD SUITE 203

DAHLGREN VIRGINIA 22448-5130

IN REPLY REFER TO

J&A Number: 14003

Code: 026

03 April 2018

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Surface Warfare Center, Dahlgren Division (NSWCDD), Contracts Department

2. Description of the Action Being Approved

Award of a firm fixed priced contract on a sole source basis for critical equipment to be used by Gun & Electric Weapon Systems

Department , Systems Development & Rapid Fielding

, and Battle Management Systems (BMS), manufactured by Desktop Metal, Inc. Authority to act under this

J&A expires 30 September 2018.

3. Description of Supplies/Services

Desktop Metal, Inc. will provide the following equipment:

DESCRIPTION PART NUMBER QTY

Desktop Metal Studio Printer BMD-PP0000 1

Desktop Metal Studio Debinder BMD-PD0000 1

Desktop Metal Furnace BMD-PF0000 1

DM Cloud Software for items 1-3 BMD-SA0000 1

Material Consumables Starter Kit (CSK) BMD-KA0003 1

Service Consumables Kit (SCK-1) BMD-KA0001 1

Installation & Basic on-site training BMD-TA0000 1

Continental USA shipment, handling & insurance

BMD-HA0000 1

Warranty & Premium Service - Year 1

(items 1-4) Cloud Software

BMD-WA0000 1

J&A Number:

NCH 53.6-2

Delivery is required as soon as possible after receipt of the order. Premium software support and warranty are required for 12 months from installation.

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

The estimated cost of the proposed contract action is

$159,900.00. Fiscal year 2016 Defense Procurement will be utilized for this procurement.

4. Statutory Authority Permitting Other Than Full and Open

Competition

41 U.S.C 1901 – Simplified Acquisition Procedures

5. Rationale Justifying Use of Cited Statutory Authority

These systems

. In addition, this technology allows for a level of geometric optimization that is unachievable with traditional technologies. This will allow for stronger, lighter parts that will allow BMS engineers full advantage granted by the continuing investment in Altair topology optimization software. In addition, this product will produce parts made from exotic materials, such as Hiperco 50, a high magnetic permeability alloy.

. The first of these was the use of traditional metal injection molding powders carried in a polymer matrix allowing for low temperature, and office safe printing of metals without requiring local environmental controls, hazmat, or specialized facilities. This low temperature environment in turn, allowed parts to be printed with ceramic break-away supports, removing one of the barriers to productive metal additive manufacturing. Finally, the core technology, microwave enhanced sintering, allows the part to be rapidly and precisely sintered from green state. Desktop Metal is the only manufacturer to have achieved a production turnkey version of this technology and owns key intellectual property related to its development. Any effort to duplicate the machinery and associated hardware and software in-house would result in a duplication of costs in excess of $12,000,000.00 and take an additional 24 months for research, development, certification, and testing.

. This estimate is to be considered non-conservative as it does not take into account existing intellectual property owned by Desktop Metal nor the vendor’s extensive expertise.

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

Offerors as Practicable

The BMS Hardware team has conducted comprehensive market research in the past via trade shows and online specification reviews.

This technology was a recent development with initial publication at the RAPID 2017 Additive Manufacturing Conference. This market research has shown that intellectual property limits competition.

It has been confirmed that Desktop Metal is the original equipment manufacturer (OEM) and only permits direct sales at this time. No other companies are authorized for the resale of

Desktop Metal proprietary equipment to the Federal Government.

One vendor has been found as an authorized service provider, Trimech Solutions.

The proposed contract was synopsized on the Federal Business

Opportunities (FEDBIZOPPS) website on 16 March 2018 and only

Desktop Metal expressed interest in this requirement. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than Desktop Metal, Inc. to provide the required equipment.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the equipment 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, Dahlgren Contract

Department has no plans at this time to compete future contracts for the type of equipment covered by this document. If another potential source emerges, Dahlgren Contract Department 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, which are included in this justification and its supporting data, are complete and accurate to the best of my knowledge and belief.

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.

Angela Bowling, Contracting Officer, 026, Phone No., Date

10 Apr 18