Redacted J and A_EPIR Inc.pdf

CUI

Control No: [Redacted]

Contractor: EPIR, Inc.

JUSTIFICATION REVIEW DOCUMENT

For Other than Full and Open Competition – FAR Part 6

Programs/Equipment: Research and development services into the application of the state-of-the-art high performance Extended Short-Wave Infrared (eSWIR) sensors suitable for High Energy Laser (HEL) targeting systems for the [Redacted]

Authority: 10 U.S.C. 3204(a)(1) as implemented by Federal Acquisition Regulation (FAR) Part 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Amount: [Redacted]

Prepared by: [Redacted] DSN: 290-9877 Research Engineer Date: May 24, 2023 [Redacted]

Contracting Officer: [Redacted] DSN: 290-4011 Contracting Officer Date: May 24, 2023

Technical: [Redacted] DSN: 290-9877 Research Engineer Date: May 24, 2023 Devcom Army Research Laboratory

Requirements: [[Redacted] DSN: 290-2623 Branch Chief Date: May 24, 2023 Devcom Army Research Laboratory

Controlled by: US Army Controlled by: ACC-APG

CUI Category: General Procurement & Acquisition Distribution/Dissemination Control: FEDCON

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Program Manager: [Redacted], Research Engineer, Database Operations and Signature Research

X

Program Manager

Legal Counsel:

Typed name: [Redacted]

Legal Counsel

Justification and Approval for Other than Full and Open Competition – FAR Part 6

1. Contracting Activity: U.S. Army Contracting Command (ACC) -Aberdeen Proving Ground (APG), Adelphi Contracting Division (CCAP-SCA), 2800 Powder Mill Road, Adelphi, Maryland 20783-1138.

2. Description of Action: [Redacted] requests a follow-on Firm-Fixed Price (FPP) contract with EPIR, Inc., Cage Code: 690U8 located at 586 Territorial Drive, Suite C, Bolingbrook, Illinois 60440. The Government projects award for September 2023 and fiscal year 2023/2024, Research, Development, Test, and Evaluation (RDT&E) funds will be used. Also, the funding for this acquisition is congressional and is earmarked for EPIR, Inc. to support [Redacted]

3. Description of Supplies/Services:

The [Redacted] requires research and development services to develop an optimized Extended Short-Wave Infrared (eSWIR) sensor in the form of an eSWIR camera to support eSWIR HEL based targeting systems. The optimized custom eSWIR camera must be robust, have high levels of performance for detecting challenging target scenarios, and meet Size, Weight, and Power (SWaP) suitable for HEL targeting sensor applications. This effort will conduct research into the development of an eSWIR sensor to create a prototype camera system with high levels of performance beyond present similar systems. Proposed fundamental improvements will focus on material development, sensor development, camera electronics, and testing. The novel approach will investigate several key technical areas including (i) Focal Plane Material Design, (ii) Molecular Beam Epitaxy (MBE) eSWIR Mercury Cadmium Telluride (HgCdTe) optimization, (iii) focal plane material growth and characterization, (iv) Type II Superlattice (T2SL) design and material fabrication for Infrared detectors, (v) Readout integrated circuit (ROIC) testing, analysis and selection, (vi) Focal plane processing, (vii) Focal plane arrays hybridization and testing, (viii) Cooler/Dewar design, fabrication and testing, (ix) Camera electronics, and (x) Focal Plane Array (FPA)/Camera performance, model, testing, application evaluation, and field testing. Specific objectives of the research and development are as follows:

1. Develop a sensor set (advanced Mercury Cadmium Telluride based focal plane arrays with integrated read-out circuit) that can be used in an eSWIR HEL targeting system.

2. Develop a robust, high performance (for detecting challenging target scenarios), low size, weight, power, and cost camera that can be integrated with HEL targeting systems, according to specifications provided [Redacted] The specifications are 14 inches by 8 inches by 8 inches (without lens), weighs less than [Redacted], draws less than [Redacted] Watts of steady state power, and cost less than [Redacted].

An eSWIR sensor in the form of camera is very advantageous for long-range target identification under degraded visual environments. Sensors made from eSWIR materials are mostly not diffraction limited, which means you can have a camera with incredibly high resolution able to discern objects at great distances with extreme detail as well as detect objects in obscured environments.

3. The process of making excellent state-of-the-art HgCdTe material for infrared detectors includes [Redacted]. These growths are done with high purity, few precipitates and low defect densities. They are highly uniform, grown on large areas and exhibit state of the art performance.

4.. Investigate the differences in SWIR and eSWIR so that effective eSWIR cameras can be better optimized into HEL systems.

5. Train doctoral students in the development of eSWIR focal plane arrays.

Period of Performance: September 2023 - September 2024 (12 months).

Total Value: [Redacted]

The Independent Government Estimate (IGE) was derived by using standard rates from several online sources, as well as historical data collected from other similar type of contracts involving eSWIR technologies. The IGE worksheet determined a fair estimate of the work to the

Government to be approximately [Redacted] A breakdown of the full IGE, which forms the basis of the J&A is illustrated in the table below (the totals for all numbers/calculations have been rounded off).

4. Authority Cited:

10 U.S.C. 3204(a)(1), as implemented by FAR 6.302-1, Only one Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited:

As described at FAR 6.302-1(a)(2), when the supplies or services required by the agency are available only from one responsible source, or for DoD, NASA and the Coast Guard, from only one or a limited number of responsible sources, and no other types of supplies or services will satisfy agency requirements, full and open competition need not be provided for.

A thorough search of custom material developers for infrared camera sensors has revealed no other company or organization, except the proposed source, makes custom eSWIR material or sensors. See Section 8-Market Research for a full outline of findings.

Additionally, no other company has been found to have the necessary skill set and capabilities to make custom eSWIR materials and cameras for customer eSWIR HEL targeting systems. The few commercially available eSWIR cameras are designed for commercial applications and are not optimized for military HEL targeting systems. Being such a new technology, there are very few commercially available eSWIR cameras and more specifically no manufacturer of military HEL application for specific eSWIR targeting cameras. This conclusion is also supported by the [Redacted]

Sensors made from eSWIR materials, which operate in the [Redacted] um band, are not typically diffraction limited like other SWIR sensors operating in the 1-1.7um band. Such eSWIR sensors can have extremely high resolution focal plane arrays making them much better at detecting targets at longer ranges as well as degraded visual environments. eSWIR sensors are made of special materials requiring very special material development and processes. As noted above in Section 3, material development is a key part of the fundamental improvements focus. The team at EPIR, Inc. has unique expertise in the growth of high-quality Mercury Cadmium Telluride (HgCdTe) material using Molecular Beam Epitaxy (MBE) technique. Utilizing customized MBE equipment and technology, EPIR grows state-of-the-art HgCdTe material for infrared detectors. This material includes [Redacted] These growths are done with high purity, few precipitates and low defect densities. They are highly uniform, grown on large areas and exhibit state of the art performance. No other company has been found that provides the quality of HgCdTe detector material growth that EPIR, Inc. consistently delivers, and which is suitable and necessary for military use eSWIR targeting cameras.

EPIR, Inc. has maintained a strong track record of developing strategic business alliances and developing cutting-edge infrared technologies with leading United States Infrared (IR) imaging companies and Department of Defense (DoD) agencies, including Army Research Laboratory (ARL), the Night Vision Electronic Sensors Directorate (NVESD), the Air Force Research Laboratory (AFRL), the Defense Advanced Research Projects Agency (DARPA) and the Missile Defense Agency (MDA). Through previous work with these agencies, EPIR Inc. has developed a state-of-the-art facility for infrared material manufacture and device fabrication with various research and development service capabilities needed for the current eSWIR project at ARL. Materials manufactured by EPIR, Inc. have been previously used successfully to fabricate IR cameras that were sold for integration into multi/hyperspectral infrared systems. EPIR, Inc. is able to use this unique expertise in growing HgCdTe to provide the material needed for the fabrication of eSWIR focal plane arrays.

EPIR, Inc. also has extensive expertise in IR device fabrication and has demonstrated the fabrication and successful testing of a variety of Focal Plane Arrays (FPAs) in all IR wavelength bands (LWIR, MWIR, SWIR, extended SWIR, and NIR). Best management practices and process controls following ISO 9001 are implemented at EPIR, Inc.

EPIR, Inc.’s proven success in the past with the MBE growth and processing of high-performance HgCdTe is a major enabling demonstration for this proposed effort. The yield of the FPA has been improved significantly over the past few years which made EPIR, Inc. a successful HgCdTe based material and device manufacturer. EPIR, Inc. will expand the current available technology to provide the eSWIR focal plane arrays for the camera systems needed to be integrated into the HEL targeting systems.

In summary, EPIR, Inc., is the only group of researchers who were found that can successfully perform the research effort required, starting with applied research and continuing through system development. Not only does this team possess distinct skills, experience, knowledge, and capabilities to be successful, but are the only researchers who have worked with leading Government labs and organizations on cutting-edge infrared technologies and has the recommendation of the [Redacted]

[Redacted] mission would be seriously disrupted and setback if EPIR is not chosen as the developer of the eSWIR sensors supporting the High Energy Lasers (HEL) weapon’s research development. The present HEL targeting sensors in the SWIR and MWIR provide insufficient targeting capability, primarily contrast, clarity, and resolution. Without excellent targeting, the HEL laser targeting system may not precisely hit the target and disable or destroy the object of interest. This could cause the HEL targeting system to fail its mission and allow the targeted object of interest to complete its destructive mission.

Based upon the market research performed in Section 8 below and the Intent to Sole Source Synopsis-RFI Synopsis findings outlined in Sections 6 and 9 below, no source other than EPIR, Inc. can provide Research and development services into the application of the state-of-the-art high performance Extended Short-Wave Infrared (eSWIR) sensors suitable for High Energy Laser (HEL) targeting systems which will allow the Government to field highly effective operational systems in the near future.

6. Efforts to Obtain Competition:

In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) 205.205-71, DFARS 206.302-1(d), and DFARS Procedures, Guidance and Information (PGI) 206.302-1(d), the Government posted a combined intent to sole source synopsis- Request for Information (RFI) to sam.gov on 14 June 2023 to 28 June 2023. The Contracting Officer posted an intent to sole source RFI/Synopsis and attached the PWS stating the Government requirements. The Government did not receive any responses from industry regarding the synopsis.

a. Effective Competition: Effective competition is not anticipated for this acquisition based on the market research (see section 8) of this document.

Market research and intent to sole source RFI/ Synopsis failed to identify any sources or alternative products that can satisfy the Government requirements.

The market research revealed that EPIR Inc. of Bolingbrook, IL is the only entity capable of fulfilling the requirement.

b. Subcontracting competition: Subcontracting requirements do not apply to this acquisition due to the awardee, EPIR Inc., being a small business concern in accordance with FAR 19.702(b)(1).

7. Actions to Increase Competition:

The Government does not intend any future acquisition of these research services as they do not foresee additional effort in this area beyond the present acquisition effort.

However, the Government will continuously monitor the market to increase competition by attending conferences/exhibitions, examining trade journals, conducting Internet research, and holding open discussions with industry experts should the need for additional effort in this area arise.

The Government will have Government Purpose rights and will seek full and open competition if any of the technologies developed under this R&D effort are incorporated in the future into larger systems including production or fielded systems.

Prior to future acquisitions, the market will be surveyed to determine whether another vendor has emerged that could meet the Army’s requirements, thus justifying the need for Full and Open Competition. If the Government becomes aware of other sources with the capability to meet the Government’s requirements, then a determination will be made for suitable competition. If another source is discovered, the Government will technically evaluate the response, and if the new source is deemed capable, the Government will seek a competitive procurement.

8. Market Research:

Market research was conducted by the lead researcher at ARL with over 35 years of experience from April 2023 to May 2023 via querying Government-wide databases of contracts and other procurement instruments intended for use by multiple agencies available at https://www.contractdirectory.gov/contractdirectory/ and other Government and commercial databases that provide information relevant to agency acquisitions, searching on the General Supply Schedule (GSA) website at https://www.gsaadvantage.gov/advantage/main/start_page.do, contacting knowledgeable people and subject matter experts within Government and industry, reviewing catalogs and other generally available product literature published by manufacturers, distributors, and dealers or available on-line and searching the internet for available sources. Market research revealed that the EPIR, Inc. is the only organization or company currently working in the area of eSWIR custom design material development for advanced eSWIR cameras for HEL targeting systems and applications.

Therefore, it was found that EPIR, Inc. is the only company capable of meeting the Government’s minimum requirements.

As stated above in Section 6, the Contracting Officer posted an intent to sole source synopsis – Request for Information (RFI) to sam.gov on 14 June 2023 and closed on 28 June 2023. A Performance Work Statement (PWS) was attached to the RFI/Synopsis stating the requirements of this procurement. The Government did not receive any responses from industry regarding the synopsis.

https://www.contractdirectory.gov/contractdirectory/ https://www.gsaadvantage.gov/advantage/main/start_page.do

Based on the above market research, it was determined that EPIR Inc. of Bolingbrook, IL is the only contractor capable of fulfilling the requirement.

9. Interested Sources:

Name: EPIR, Inc.

Address: 586 Territorial Dr. STE C, Bolingbrook, IL 60440 Cage Code: 690U8 Unique Entity ID: CC7WWF3GJ253 SAM Expiration: April 24, 2024

10. Other Facts:

EPIR has worked on several government contracts involving the development of infrared materials (shortwave infrared, mid-wave infrared, and longwave infrared) for various government applications, including Department of Energy, Department of the Army, and Missile Defense Agency, such as the use of infrared detectors for nuclear radiation detection. EPIR’s efforts in the past on government contracts has included infrared detectors and materials; however, none of the previous applications were for high energy laser targeting sensors nor were the materials being developed in the extended Shortwave Infrared (eSIR) spectral band. The government intends to leverage general infrared technology developed under previous government contracts on this effort to meet [Redacted]

a. Procurement History:

Summary: Objective: Evaluate, develop and demonstrate the novel application of emerging commercial technologies for heterogeneous integration of infrared photodetector arrays and CMOS-based multiplexing circuitry to support infrared tactical sensors. Outcome: Government received a trade study analysis, including technical, cost, and security considerations of various processes and parameter constraints in the processing of Infrared Focal Plan Array development operations.

b. Non-procurement facts:

If the Government were to attempt to procure these services from a Contractor other than the EPIR, Inc., success of the research and development effort of an optimized custom eSWIR camera specially developed for HEL targeting is highly unlikely.

Furthermore, the proponent and customer supporting this effort has a mission to expedite critical technology into the field to meet combatant commanders needs and requirements. Given the acquired knowledge, subject matter expertise, acquired knowledge of the existing HEL systems, resources, and existing relationship with [Redacted] the cost and amount of time to procure through other means is significant based on the following:

1. Significant cost and time are required to replace EPIR as the performer of this effort. Central to the EPIR research effort, the principal investigator has unique capabilities and experience in the areas of optics, eSWIR materials, and infrared detectors. The cost to train or replace the principal investigator would cost a minimum of $9,000,000.00 and 30 years of time based on 30 FTE using a fully loaded government salary for senior Science and Technology positions.

2. In addition to at least 30 years of training and experience, the cost to replace the principal researcher at EPIR is a significant cost and time to the government. The government has invested a significant amount of time and resources in EPIR for the development of infrared detector material development. The government has invested six (6) years of research effort with EPIR in design and development of infrared materials for detection through various research collaboration and contracts with the Department of Defense (DoD) agencies, including Army Research Laboratory (ARL), the Night Vision Electronic Sensors Directorate (NVESD), the Air Force Research Laboratory (AFRL), the Defense Advanced Research Projects Agency (DARPA) and the Missile Defense Agency (MDA). Choosing someone other than the EPIR will cost the government six (6) years of research effort in the development of a future infrared material development for military applications.

3. The factors mentioned above strongly suggest at least a five (5) year delay in utilizing contractors other than EPIR . This will impact the [Redacted]

11. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Signer’s Title: Research Engineer

Technical Certifier (Tech)

12. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Signer’s Title: Branch Chief

Requirements Certifier

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable.

This determination will be made using the following: The Contracting Officer shall utilize price and cost analysis to verify that all work performed under this acquisition are fair and reasonable. In addition, an IGE has been prepared by the requiring activity and will be used to compare the contractor’s proposal.

Contracting Officer (KO)

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Contracting Officer (KO)

Approval Based on the foregoing justification, I hereby approve the procurement of research and development services into the application of the state-of-the art high performance Extended Short-Wave Infrared (eSWIR) sensors suitable for High Energy Laser (HEL) targeting systems in the estimated amount of [Redacted] and for a period of performance of 12 months, on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 3204(a)(1), as implemented by FAR Part 6.302-1 – Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency, subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

Command Advocate for Competition:

Command Advocate for Competition