Simplified Acquisition Sole Source Justification (FAR 13.5) (REDACTED) (f).docx

JUSTIFICATION REVIEW DOCUMENT FOR COMMERCIAL ITEMS

FAR PART 13 SIMPLIFIED ACQUISITION JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

Programs/Equipment: The Government requires two (2) High Energy Ball Milling Systems (HEBMS) which consists of two (2) Zoz High Energy Ball Mill Units, two (2) Julabo Chillers with a Highly Dynamic Temperature Control System including a fully integrated computer system to be installed with training and shipping to Aberdeen Proving Ground, MD.

Authority: 41 U.S.C. 1901(e)(2), implemented by FAR 13.501(a) -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Amount: $REDACTED

Materials Engineer Email: REDACTED

DSN: REDACTED

Date: 04 September 2020

Date: 04 September 2020

Email: cristina.m.watkins.civ@mail.mil

Materials Engineer Email: REDACTED

DSN: REDACTED

Date: 04 September 2020

Date: 04 September 2020

Email: REDACTED

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

Program Manager:

REDACTED

X REDACTED

Program Manager Signed by: REDACTED

Legal Counsel:

Control No:JA-20-Adel-362 Contractor: Matsys, Inc. Supply/Service: Supply

REDACTED

X REDACTED

Legal Counsel

FAR PART 13 SIMPLIFIED ACQUISITION JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

1. Contracting Activity: U.S. Army Contracting Command-Aberdeen Proving Ground, 2800 Powder Mill Rd, Adelphi, MD 20783.

2. Description of Action: The U.S. Army Research Laboratory’s, Metals Branch within the Weapons and Materials Research Directorate (WMRD) requests a new Firm Fixed Price (FFP) contract with Matsys Inc. in Sterling, VA 20164 for the procurement of two

(2) High Energy Ball Milling (HEBM) Systems for a total value of $REDACTED. The Government anticipates award for October 2020 and Fiscal Year (FY) 2021 Army, Research Development Test & Evaluation (RDT&E) funds will be utilized.

_X_ An acquisition plan is not required because this procurement either does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i), or is an R&D acquisition and does not meet the definition of services in 10 U.S.C. 2330(c)(2).

3. Description of Supplies/Services: The Metals Branch of the WMRD requires two (2) High Energy Ball Milling (HEBM) Systems which consists of two (2) Zoz High Energy Ball Mill Units, two (2) Julabo Chillers with a Highly Dynamic Temperature Control System including a fully integrated computer system to be installed with training and shipping to Aberdeen Proving Ground, MD 21005-5066. The aforementioned procurement includes a $REDACTED discount offered by the manufacturer for procuring two (2) HEBM and Julabo Chiller systems as follows:

Discount

-$REDACTED

Total Price

$REDACTED

Delivery Date: Twelve(12) weeks After Contract Award (ACA) Installation: Four (4) weeks after Government acceptance Training: Four (4) weeks after Government acceptance Total value: $REDACTED

4. Authority Cited: 41 U.S.C. 1901(e)(2), implemented by FAR 13.501(a) -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited: Matsys Inc. (Sterling, VA) is the only source capable of providing the High Energy Ball Milling System (HEBMS) manufactured by Zoz GmbH (Wenden, 57482, Germany) in accordance with the specifications as stated in Section 3. Zoz GmbH has two authorized sales representatives, (one in the East Coast and the other in the West Coast), each assigned to a specific territory that cannot sell outside of their designated location. Matsys Inc. is the only authorized sales representative for Zoz GmbH in the US East Coast and as such, is the only capable source that can meet the Government’s minimum requirements.

The Army Research Laboratory (ARL) currently owns a similar Zoz HEBMS procured via contract W911QX-14-P-0113, which is utilized to REDACTED Weapons and Materials Research Directorate (WMRD) Materials and Manufacturing Science Division (MMSD). REDACTED. The Zoz GmbH HEBMS products have a unique combination feature for ball milling powders with high specific milling energy and fast milling kinetics at controlled low temperatures, to include the ability to produce kilogram-quantities of nanocrystalline powders per batch. The Zoz GmbH HEBMS has a Specific Energy of 0.55 kilowatt/liter (kW/L) which is at least five (5) times higher than any other existing HEBMS where large volumes of materials could be ball milled. For example, ball milling systems from companies such as REDACTED produce a Specific Energy of only 0.1 kW/L and 0.01 kW/L in which the desired nanocrystalline microstructures cannot be obtained using such low specific energy ball mills.

The Zoz HEBMS offers an unmatched level of milling energy, which greatly minimizes milling time while increasing efficiency. This combination is crucial and absolutely necessary to create certain unique nanocrystalline microstructures in the powders while producing them in large quantities per batch. REDACTED.

As a result of REDACTED, it is necessary to procure the two (2) HEBMS manufactured by Zoz GmbH as described in Section 3, as they are the only vendor capable of meeting the Government’s minimum requirements.

Procurement of the two (2) HEBMS’s will allow for the utilization of three (3) very similar and compatible systems processing larger quantities (thrice the amount) of powders with similar characteristics (e.g microstructure, average particle size, etc.). Achieving similar characteristics of the powder processed in three (3) systems is extremely important and absolutely necessary to obtain the desired physical properties of the parts made out of the powder. Utilizing three (3) systems at the same time will reduce the time by one third compared to using just one (1) system. REDACTED.

After an exhaustive market survey, it was determined that there are two (2) suppliers (East Coast and West Coast) of the HEBMS manufactured by Zoz GmbH. The only authorized sales representative for Zoz GmbH on the US East Coast is MATSYS Inc.

Failure to procure the proposed system will REDACTED.

6. Efforts to Obtain Competition: In accordance with FAR 5.201, the Contracting Officer published a Notice of Intent to Sole Source to the Federal Business Opportunities (FBO) website on 25 August 2020 with a response date of 08 September 2020. Only the intended sole source, Matsys Inc. responded. Based on the market research (referenced in Section 8) conducted for this requirement, there are no vendors other than Matsys, Inc. able to provide the HEBM system that meets the Government’s specifications. Market research efforts included online inquiries and contacting Subject Matter Experts (SME) in industry, and other milling vendors, however, Matsys Inc. was the only one found to meet the Government’s requirement. Based on the aforementioned, effective competition is not possible.

7. Actions to Increase Competition: The Government will continue to perform market research to locate other sources that meet future requirements for a HEBMS. If the Government becomes aware of other sources with the capability of providing a system with a minimum specific energy of 0.55 kwW/L, then a determination will be made for suitable competition. When another source is discovered, the Government will technically evaluate the response against current systems, and if the new source is deemed acceptable, then the Government will seek a competitive action.

8. Market Research: Market research was conducted by a Materials Engineer during the period of January 2020 to February 2020. Market research consisted of online inquiries and contacting SMEs in industry, academia, and Other Government Agencies (OGAs). On 14 February 2020, discussions were held with a SME within ARL, who is a Materials Engineer with over ten years of experience in ball milling. Based on his ball milling experience, discussions confirmed that the Zoz High Energy Ball Mill Unit has a unique combination feature for ball milling powders with high specific milling energy and fast milling kinetics at controlled low temperatures, which are necessary to produce nanocrystalline powders in large quantities with the specific characteristics as discussed in Section 5.

In addition, discussions were held with customer service representatives at milling equipment vendors, specifically REDACTED. The discussions held confirmed that REDACTED cannot produce kilogram quantities of powders and that REDACTED does not provide the unique combination of high specific milling energy and fast milling kinetics that is absolutely necessary to create the desired unique nanocrystalline microstructure. In addition, discussions further confirmed that none of them are equipped to allow control over milling temperature.

Lastly, internet searches confirmed that no other company had a Specific Energy of 0.55 kilowatt/liter (kW/L) which is at least five (5) times higher than any other existing HEBMS where large volumes of materials could be ball milled. It was determined that only one

(1) company is able to provide Specific Energy of 0.55 kilowatt/liter (kW/L), and that is the HEBMS manufactured by Zoz GmbH. Zoz GmbH has two authorized sales representatives, (one in the East Coast and the other in the West Coast), each assigned to a specific US territory that cannot sell outside of their designated location. The only authorized sales representative for Zoz GmbH on the US East Coast is MATSYS Inc. and as such, they are the only source capable of meeting the Government’s minimum requirement.

9. Interested Sources: In accordance with FAR 5.201, the Contracting Officer published a Notice of Intent to Sole Source to the FBO website. Only the intended sole source Matsys Inc. responded. No other responses were received to date.

10. Other Facts:

a. Procurement History

Contract: W911QX-14-P-0113 Contractor: Zoz GMBH Award Date: 10 April 2014 Period of Performance: Six (6) months after award Dollar Value: $REDACTED Competitive Status: Full and Open Competition

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: Materials Engineer

REDACTED

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

REDACTED

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:

Cost analysis _X_ Price analysis

As a part of this basis, certified cost or pricing data:

will be required.

_X_ will not be required and the following exception applies (FAR 15.403):

Prices that will be agreed upon are based on adequate price competition.

Prices that will be agreed upon are based on prices set by law or regulation.

_X_ A commercial item is being acquired.

A waiver has been granted by the head of the contracting activity (HCA) in accordance with DFARS PGI 215.403-1.

The contract action is a modification to a contract or subcontract for commercial item(s).

The estimated cost of the contract action is less than the threshold for certified cost or pricing data.

REDATED

X Cristina M. Watkins

Contracting Officer (KO) Signed by: WATKINS.CRISTINA.MUSSE.REDACTED

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

REDACTED

X Cristina M. Watkins

Contracting Officer (KO) Signed by: WATKINS.CRISTINA.MUSSE.REDACTED

Approval

Based on the foregoing justification, I hereby approve the procurement of two (2) High Energy Ball Milling Systems (HEBMS) which consists of two (2) Zoz High Energy Ball Mill Units, two (2) Julabo Chillers with a Highly Dynamic Temperature Control System including a fully integrated computer system for an estimate of $REDACTED to be delivered and installed with training four (4) months after award on an other than full and open competition basis pursuant to the authority of 41 U.S.C. 1901(e)(2), subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

Digitally signed by

REDACTED REDACTED

REDACTED Date: REDACTED

Special Competition Advocate (SCA)