Sole Source Justification.docx

MEMORANDUM FOR FILE

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. 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.

3. 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

The Naval Surface Warfare Center, Carderock Division (NSWCCD) has a requirement to purchase a 5-year maintenance contract for its dedicated classified 3D printer. This maintenance contract is required to ensure that the machine remains in an operational status.

The printer is currently under a 1-year maintenance agreement and expires on September 14, 2024. To comfortably avoid a lapse in maintenance (which, if one were to occur, would subject the machine to a re- certification process) and ensure funding is available, award of the following item is required NLT September 1st, 2024:

· QTY 1: SC-PJ00109 - Emerald Care CONNEX500 570508 maintenance renewal (1 year) 09/15/2024- 09/14/2025 In addition, independently exercised option years for the following items are to be exercised by April 1 of the calendar corresponding with the beginning of that respective maintenance period:

· QTY 1: SC-PJ00109 - Emerald Care CONNEX500 570508 maintenance renewal (1 year) 09/15/2025- 09/14/2026

· QTY 1: SC-PJ00109 - Emerald Care CONNEX500 570508 maintenance renewal (1 year) 09/15/2026- 09/14/2027

· QTY 1: SC-PJ00109 - Emerald Care CONNEX500 570508 maintenance renewal (1 year) 09/15/2027- 09/14/2028

· QTY 0.3: SC-PJ00109 - Emerald Care CONNEX500 570508 maintenance renewal (1 year) 09/15/2028- 12/31/2025 (Note: the OEM considers the current end of life of the machine as 12/31/2028 and will no longer offer support after that date) The above can be purchased from the following source:

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

SUGGESTED MANUFACTURER:

Stratasys (direct OEM):

7665 Commerce Way Eden Prairie, MN 55344

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

· A. BRAND NAME:

· 1. Restrictive Rights:

· 2. Exclusive Licensing Agreements:

· 3. Other Reasons:

☒ B. SOLE SOURCE (select all that apply)

X 1. Restrictive Rights:

The requiring activity is the Naval Surface Warfare Center, Carderock Division (NSWCCD). NSWCCD relies upon this 3D printer to print classified components that are critical to model testing. For security reasons, this work is not outsourced.

Without the ability to print these components on-demand, model testing becomes behind schedule, over budget, and/or canceled completely. As such, it is vital that this continued operation of this machine is ensured, which is attained through an active service contract. Current testing requirements project that this printer will be heavily utilized for the next 8 years.

The OEM only authorizes themselves to perform maintenance on their equipment and offers a 5 option- year maintenance contract. Any other entity performing maintenance on the machine jeopardizes the ability to obtain maintenance contracts in the future. Further, there is no authorized resellers; the OEM require payment to be invoiced to the OEM and can only offer a 3-year maintenance contract, all of which must be paid up-front and technicians for this service are all exclusively available from the OEM. Allowing for a renewable maintenance agreement through the use of option years gives the government the flexibility to cancel the contract at a future date if unforeseen circumstances arise. For these reasons, the OEM is the only available vendor able to provide this service.