SSJ - 3D Printer ProX 950.pdf

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

FOR OFFICIAL USE ONLY

18 Jun 2019 FOR OFFICIAL USE ONLY Page 1 of 5

NOTE: If a Justification was approved for the preceding acquisition, a copy of the approved Justification for the predecessor action must be included in the staff package for approval of the instant Justification. This applies to Justification staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor Justification will be used as a reference document by the approving official.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition: >SAT and < $700K > $700K and < $13.5M

Contracting Activity: OL_H/PZIMB

Purchase Request / Local ID Number: Alexys 8010

Program / Project (and PE, if applicable): ProX 950 3D Printer Maintenance contract

Program Type (PEO or Other Contracting): Other Contracting

Authority: AFFARS 5313.501 - 10 U.S.C. 2302b, Implementation of Simplified Acquisition Procedures (41 U.S.C. 1901)

AFFARS 5313.501 - 10 U.S.C. 2304a, Special Emergency Procurement Authority (41 U.S.C. 1903)

Estimated Contract Cost (including options): $267,000.00 Justification Type: Class Individual

COORDINATION (AFFARS 5306.304(a)) Sign and Save Procedure

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Date

27 Apr 2020

Project Lead / Program Mgr / Requiring Activity Justin Marshburn

OO-ALC/OBCA 801-777-2957

Signature

X

APPROVAL (AFFARS 5306.304(a) )

Date

12 May 2020

Contracting Officer Hideo Mera

OL_H/PZIMB 801-777-4626

Signature

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

18 Jun 2019 FOR OFFICIAL USE ONLY Page 2 of 5

I. Contracting Activity.

United States Air Force

AFSC OL:H/PZIMB

6038 Aspen Ave, Bldg 1289 Hill AFB UT 84056-5805 Contracting Officer: Hideo Mera

II. Nature and/or description of the action being processed.

Upon approval to use other than full and open competition procedures, the Air Force will award a new one (1) year basic and four (4) one (1) year options service P-type contract to procure the Premiere Service Plan for a ProX 950 3D printer. The requirement is to provide 309 Maintenance Support Group (MXSG) at Hill Air Force Base (HAFB) with proprietary service parts and certified field labor on the ProX 950 3D Printer that was purchased in August 2019.

This service contract will be awarded to:

3D Systems, Inc 333 Three D Systems Cir Rock Hill, NC 29730 Cage Code: 7CHT8

This acquisition will utilize a Firm Fixed Price (FFP) arrangement

Type J&A: Individual Acquisition Type: Commercial Cost Estimate: $267,000.00 Estimated Award Date: Nov/2020

III. Description of supplies/services required to meet agency needs.

The service required is the Premier Service Plan for ProX 950 3D printer. This service plan includes unlimited phone and remote technical support, 3D Systems certified preventative maintenance at factory recommended maintenance intervals, next business day scheduling of certified field service representative after a problem is reported, on-site labor and replacement parts (excluding laser), and software/hardware updates when available throughout the period of Period of Performance.

This requirement will be funded with 4930 Depot Maintenance Activity Group (DMAG). The estimated yearly cost for the one (1) year basic and four (4) one (1) year options period of performance is listed below.

CLIN - Premier Service Plan Quantity Estimated Dollars Estimated PoP Basic 0001 1 each $53,400.00 Nov 2020 - Nov 2021 Option 1001 1 each $53,400.00 Nov 2021 - Nov 2022 Option 2001 1 each $53,400.00 Nov 2022 - Nov 2023 Option 3001 1 each $53,400.00 Nov 2023 - Nov 2024 Option 4001 1 each $53,400.00 Nov 2024 - Nov 2025 Estimated Total: $267,000.00 Nov 2020 - Nov 2025

3D Systems, Inc. possesses proprietary rights and is the Original Equipment Manufacture (OEM) to the ProX

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

18 Jun 2019 FOR OFFICIAL USE ONLY Page 3 of 5

950 3D printer. This product/service is expected to be procured via sole source unless 3D Systems, Inc. is willing to share or sell the rights. There is no indication that the company intends to share or sell these rights in the near future.

IV. Statutory authority permitting other than full and open competition.

10 U.S.C. 2302b, Implementation of Simplified Acquisition Procedures (41 U.S.C. 1901)

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

The services required to meet the Governments needs are only available through 3D Systems. 3D Systems is the OEM and sole manufacture of the ProX 950. 3D Systems is the only company with the special tooling/ equipment, personnel, and technical data to satisfy the Air Force's minimum need. The required service parts are custom specified, designed, and produced to service the ProX 950 throughout its product life. To utilize another service provider and parts not certified by 3D Systems would jeopardize the integrity of the critical characteristics and/or dimensions of parts produced by the ProX 950. 3D Systems provided a one (1) year commercial warranty upon purchase which expired in August 2019. Therefore, this acquisition will be for service of highly specialized equipment.

3D Systems is the only source for providing certified field labor and service parts that are compatible with the ProX 950. In order to preclude a sole source award to 3D Systems, the Government would be required to replace the ProX 950. The Government will lose $1.03M from the purchase of the ProX 950 printer and incur an additional $676,000 cost to purchase a similar 3D Printer with four (4) years of maintenance services. This process would be costly and time consuming resulting in unacceptable delays to the 309 Maintenance Support Group in fulfilling the requirements of their customers.

Accordingly, 3D Systems is the only firm capable providing the services described in section III above without the U.S. Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition. Therefore, this acquisition will be a P-Type contract to provide a highly specialized service contract for a ProX 950 3D printer.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

Market Research was conducted via Internet searches and contact with the Original Equipment Manufacturer (OEM), 3D Systems Corp. The OEM provided a letter dated December 16, 2019 from Jim Kahler, Vice President of Service Delivery, stating that all service parts are custom specified, designed, and produced for 3D Systems. In order to guarantee part compatibility and equipment warranty, only 3D Systems certified maintenance technicians are authorized to maintain the ProX 950 3D printer.

Internet searches found an authorized distributor of the ProX 3D printer, Atlantic Diving Supply. The Program Manager contacted Atlantic Diving Supply by email to see if they were capable of providing the Premiere Service Plan for the ProX 950 3D Printer. Atlantic Diving Supply did not respond to the program manager's email.

Market research has identified 3D Systems, Inc as the only source capable of providing the Premiere Service Plan.

A combined synopsis/solicitation will be used for this requirement.

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

18 Jun 2019 FOR OFFICIAL USE ONLY Page 4 of 5

Other Actions: N/A

Qualifying Country Sources: N/A

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer will conduct Price Analysis as described in FAR 15.404-1(b). Comparison of proposed prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items. Comparison with competitive published price lists, published market prices of commodities, similar indexes, and discount or rebate arrangements. Comparison of proposed prices with independent Government cost estimates.

Contracting will provide detailed documentation and justification of price reasonableness in a Price Negotiation Memorandum (PNM), to be prepared upon completion of negotiations.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

See Section VI above. Market research, in accordance with FAR Part 10, was conducted.

It is determined that this type of service is offered in the commercial marketplace and meets the definition of a commercial as defined in FAR Part 2.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

No Further Information.

X. List of any sources that expressed, in writing, an interest in the acquisition.

See Section VI above. No other sources have the capability to provide this maintenance package.

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

The agency will continue to evaluate any opportunities to remove barriers on future requirements. The agency will continue to perform market research to see if any new opportunities allow for competition. The Government does not foresee a comparable product entering the market during the period of performance.

Additionally, 3D Systems is the only company capable of providing the services described above without the U.S. Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition. Therefore, the Government intends to pursue a one (1) year basic and four (4) one (1) year options P-type service contract for this requirement.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

18 Jun 2019 FOR OFFICIAL USE ONLY Page 5 of 5

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.

Remove the Guidance pages below.

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items 18 Jun 2019 Page of International Agreement Competitive Restrictions (IACR) March 2018 Page of NOTE: If a Justification was approved for the preceding acquisition, a copy of the approved Justification for the predecessor action must be included in the staff package for approval of the instant Justification. This applies to Justification staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor Justification will be used as a reference document by the approving official.

Is this a new or amended J&A Document?

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan?

Funding level for this acquisition:

Authority:

Justification Type:

COORDINATION (AFFARS 5306.304(a)) ** The text in the signature blocks below is editable, including the title.

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APPROVAL (AFFARS 5306.304(a)) NOTE: A signature block will appear here based on the funding level selected above.

(See "Specific Guidance for Completing this Template" below.)

I. Contracting Activity.

II. Nature and/or description of the action being processed.

III. Description of supplies/services required to meet agency needs.

IV. Statutory authority permitting other than full and open competition.

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

X. List of any sources that expressed, in writing, an interest in the acquisition.

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

XII. Certification by the Contracting Officer.

XIII. Certification by the technical/requirements personnel.

Specific Guidance for Completing this Template

I. Contracting Activity. (FAR 6.303-2(b)(1))

Fully identify the contracting agency and organizational activity responsible for the proposed contracting action.

II. Nature and/or description of the action being processed. (FAR 6.303-2(b)(2))

State whether the action will be awarded as a new contract or by modification to an existing contract (identify contract number) and identify the type contract planned (FAR 12.207 and DFARS 212.207).

An individual Justification cannot be used to support more than one contract irrespective of the quantities or the dollar value stated therein. If a proposed contract will contain unpriced options (including NTE prices), those options must be supported by a separate Justification prior to option exercise or the Justification supporting the basic contract must be a Class Justification. For Class Justification situations (covers more than one contract) where the number of contracts in the class can be identified: (1) Provide a brief general description of actions; (2) identify the supplies and services that are being acquired; and (3) for each contract in the class identify the contractor, estimated value, type of contract and rationale for contract length, and estimated award date. Where the same information applies to more than one contract within the class, it need only be stated one time.

III. Description of the supplies/services required to meet agency needs. (FAR 6.303-2(b)(3))

Specifically describe the supplies and/or services to be acquired, the total estimated value of the acquisition - including options (provide cost estimate by year and, for class Justifications, by contract action), and the estimated delivery dates/periods of performance If commodities are being procured, provide quantities. All contract line items (CLIN) -- e.g., technical data, support equipment, support services, etc. -- should be listed. If all of the ancillary requirements associated with a particular item are not specifically described in the Justifications, those ancillary requirements cannot be included in the resulting contract and would require a second Justification. Also, state the type of appropriation (e.g., 3010, 3400) that will be used to fund each requirement listed.

If approval for more than one fiscal year requirement is needed, give the rationale for this request. Generally, the scope of these actions is limited to current requirements only, so that actions may be taken to facilitate competition for out-year requirements.

In some cases, there are no feasible actions that could develop future competition, and it is reasonable to seek approval for more than one fiscal year's requirements.

For ID/IQ or requirements contracts, use the maximum dollar value of the total estimated orders as the estimated Justification dollar value.

IV. Statutory authority permitting other than full and open competition. (FAR 6.303-2(b)(4)) V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority). (FAR 6.303-2(b)(5))

Provide, in narrative form, a detailed explanation supporting and clearly relating to the conditions described by the FAR for using the particular authority cited. This section is normally the most detailed part of the justification as the essence of the justification is presented here. For acquisitions that include both supplies and services, separately justify the use of the authority for the services and supplies.

Contracting without providing for full and open competition shall not be justified on the basis of lack of advance planning by the requiring activity or concerns related to the amount of funds available (e.g., funds will expire) (10 U.S.C. 2304(f)(4)).

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

(FAR 6.303-2(b)(6))

Describe all efforts taken (or to be to be taken) to ensure that offers are solicited from as many potential sources as practicable under the circumstances. Although Market Research is covered in Section VIII, the information in Section VI should correlate with the Market Research described in Section VI. The following issues should be addressed in this paragraph:

Sources Sought Synopsis (used as part of market research). If a sources sought synopsis was issued, state the date the synopsis was issued and a brief description of its content. If any responses were received, describe in detail the results of the screening process and the rationale for determining the unacceptability of any synopsis respondents. Reference FAR 13.105, Synopsis and Posting Requirements.

Other Actions. In this paragraph, discuss any other actions taken or planned to facilitate competition for this acquisition. The discussion should include actions tried or considered even if the actions were unsuccessful. If the efforts were unsuccessful, so state and describe why.

Qualifying Country Sources. If qualifying country sources have expressed interest, but are to be excluded, provide supporting rationale.

VII. Determination by the Contracting Officer that the anticipated cost to the government will be fair and reasonable. (FAR 6.303-2(b)(7))

Include a statement by the contracting officer that the anticipated cost will be considered fair and reasonable and provide the basis for this determination. The steps that will be taken to ensure the final contract price will be fair and reasonable are also described here. Describe the extent of cost or price analysis anticipated including the requirements for certified cost or pricing data, technical evaluations, and audits.

VIII. Description of the market research conducted and the results, or explain why market research was not conducted. (FAR 6.303-2(b)(8))

Generally, some form of market research should be conducted. Discuss any market research conducted pursuant to FAR Part 10 and describe results of that research. Market research is any effort undertaken to determine if sources capable of satisfying the agency's requirements exist and to determine if commercial items or non-developmental items are either available or can be modified so that they will satisfy the agency's needs. Market research should be focused not only on identifying alternate sources, but also on alternate equipment or substitutes that might fulfill the Government needs with only minor modification. Regardless of the approach used, the results should provide a high level of confidence that no other qualified sources exist.

When other exceptions from the requirement to obtain full and open competition are relied upon, the market research might be limited to an examination of the acquisition history and experience with the marketplace under previous acquisitions for the same or similar items.

If no market research was conducted, so state and provide the rationale.

IX. Any other facts supporting the use of Other Than Full and Open Competition. (FAR 6.303-2(b)(9)(i))

Provide any other facts supporting the use of other than full and open competition, including an explanation of why technical data packages, specifications, engineering descriptions, statements of work, statements of objectives, or purchase descriptions suitable for full and open competition have not been developed, are not being developed, are not being used, or are not available.

X. List of sources, if any, that expressed interest in the acquisition. (FAR 6.303-2(b)(10))

If a sources sought synopsis was done and all interested sources are included in Section VI, it is acceptable to state, “See Section VI above.”

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required. (FAR 6.303-2(b)(11))

Describe any actions taken or to be taken to foster competition for future acquisitions of the supplies or services being acquired. Describe potential actions that could be taken to remove the barriers to competition that have been identified in the justification and include a milestone schedule, where available, for accomplishing these actions. For example, if a follow-on competitive acquisition is planned, so state and provide the planned award date, or state that the Government will attempt to acquire rights in technical data and computer software sufficient to compete follow-on acquisitions as a priced option in the contract action that is the subject of this Justification, or (if applicable) state how the Government intends to challenge nonconforming markings on technical data and computer software delivered to it under previous contracts so those markings can be removed in order that the technical data and computer software may be used in support of a follow-on competitive acquisition, or describe plans to qualify additional sources.

Address efforts to ensure competition for future spare parts and maintenance in support of systems or equipment covered by the justification, even when these acquisitions will be accomplished by other organizations. Include a discussion on available breakout data.

If no actions are planned, so state and provide reasons. If approval is sought for more than one year, explain why a sole source effort is required for the planned time duration.

For a non-competitive follow-on acquisition to a previous award for the same supply or service supported by a Justification citing the same authority, include a discussion of the actions planned to overcome barriers to competition established in the previous justification, the status of those actions, and the results of those actions. The approval authority shall determine whether the planned actions were completed. If the planned actions were not completed, the justification for the follow-on acquisition shall be approved by the approval authority one-level above the approval authority for the previous justification (see FAR 13.501(a)(2)). If the previous justification was approved by the Senior Procurement Executive (SPE), the approval remains at the SPE level.

[DFARS 213.501(a) and DFARS PGI 206.304(a)(S-70)(ii)] XII. Certification by the Contracting Officer. (FAR 6.303-2(b)(12))

As evidenced by his/her signature, the contracting officer has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

XIII. Certification by the technical/requirements personnel. (FAR 6.303-2(c))

As evidenced by their signatures, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.

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