MEMORANDUM

Subj: SOLE SOURCE JUSTIFICATION MEMORANDUM FOR VERGE INC DRONE

EQUIPMENT

1. Identification of the agency and the contracting activity, and specific identification of the document as a “Sole Source Justification.”

This is a sole source justification. Contracting activity is NSWC-PCD, Code 024, 110 Vernon Ave., Panama City, FL, 32407.

2. Nature and/or description of the action being approved.

This action will award a firm fixed price contract to Verge Inc, CAGE 9KTV4, for the items listed in Paragraph 3 of this document.

3. A description of the supplies or services required to meet the agency’s needs (including the estimated value).

Line Item Description QTY 1 X7 Drone Verge Aero X7 10 2 Verge Flight Control

Hub - Lifetime Verge Flight Control Hub Software, including Verge Show Design Studio. Lifetime Subscription

3 Pro Support Online support, Verge University, content store, In person training, 24/7 Phone Support, Professional Services Access, Skystream Access, Marketing support, Cross rentals enabled, Lead distribution & Co-production, dry hire drones from Verge, express repair

4 X7 Storage Suitcase X7 Storage Suitcase holds 10 Drones 1 5 On-Boarding Fee (OBF) Includes on-site training with the system and software

6 Complete Ground Station Includes all hardware, radios, and tripod 1

This acquisition will be conducted using simplified acquisition procedures with a total estimated value greater than $25,000. The Government's minimum needs have been verified by the certifying technical and requirements personnel. This memo does not authorize acquisition for other requirements. This purchase will be funded with what type of funding.

4. Identification of the justification rationale and, if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service. 10 U.S.C. 2304(c) - Only one responsible source and no other supplies or services will satisfy agency requirements, FAR 6.302-1.

The Naval Surface Warfare Center Panama City Division (NSWC PCD) currently has a requirement for the item(s) listed in Paragraph 3 of this document. This brand drone has been used in the past by the requesting project and, as a result, the engineers and scientists are familiar with their flight characteristics and maintenance as well as the supporting software that is associated with these items. If another brand were to be selected, the users would be required to become knowledgeable of the flight characteristics, maintenance, and software, resulting in project delay. Verge Inc does not sell the items listed in Paragraph 3 through distribution.

Sponsor-directed NSWC PCD Metropolis Project to purchase these specific items due to identical units already in use.

As such, the government does not expect significant savings through competition, and it is more advantageous to the Government to award on a sole source basis to the Verge Inc for the item(s) listed in Paragraph 3 of this document.

5. A determination by the ordering activity contracting officer that the order represents the best value consistent with FAR 13.106-1(b).

The Contracting Officer has determined that the order represents the best value and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the Government’s needs.

6. A description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted.

For the reasons specified in paragraph 4 above, Verge Inc is the only source that can meet the Government’s needs. This requirement will be synopsized in the government point of entry sam.gov because it is estimated greater than $25,000.00.

7. Any other facts supporting the justification.

None.

8. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made.

As stated in paragraph 4 above, Verge Inc is the only source that can meet this requirement.