V220T.12 - Sole Source or Brand Name SAP Justification-Redacted.pdf

V220T.12 (01/19)

Procurement Request No. V3452312

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE ASSISTANT SECRETARY FOR RESEARCH AND TECHNOLOGY

VOLPE NATIONAL TRANSPORTATION SYSTEMS CENTER (VOLPE CENTER)

V345

SOLE SOURCE OR BRAND NAME SAP JUSTIFICATION

A. Description of Supplies/Services.

The U.S. Department of Transportation’s Volpe National Transportation Systems Center is developing specialized test ranges to evaluate alternative Positioning, Navigation, and Timing (PNT) technologies that could complement GPS. These complementary PNT (CPNT) technologies will be tested against a reliable reference system, known as the Defense Regional Clock (DRC), to measure their absolute accuracy.

The DRC is a high-precision timing system managed by the U.S. Department of Defense (DoD) and maintained by the U.S. Naval Observatory (USNO) that provides essential timing data, particularly in environments where GPS may be disrupted. By utilizing "stratum zero" reference clocks, such as cesium atomic clocks and/or GPS-equipped atomic clocks, the DRC ensures highly accurate time signals. This is essential for maintaining secure, synchronized communications and operations, and particularly relevant as a reference time, where precise timing is critical.

The DRC system is built from a range of highly specialized components, each of which has been rigorously tested and certified by USNO to ensure compatibility and accuracy within this precision timing system. Due to the unique interfaces designed specifically for these components, they are not interchangeable with alternatives, as each connection and functionality is custom-tailored to work seamlessly within the DRC’s architecture. This configuration enables the DRC to maintain the high level of reliability and synchronization required by the Department of Defense for secure and coordinated operations, even in GPS-compromised environments. Consequently, sourcing replacements or equivalent parts from alternate vendors is not feasible without risking system integrity and performance.

The Volpe Center is currently seeking to procure a range of specialized components integral to the DRC system. These components are critical for the DRC’s operation, use as a “truth” reference and are designed to ensure the precise timing capabilities that support testing function. Due to the highly specialized design, these components are available exclusively through Microchip/Microsemi, the sole vendor authorized to supply them. This procurement involves unique components essential for the DRC system’s operations, including the high-precision cesium atomic clock model which is projected to be the most expensive item in this acquisition. The total cost of the components is expected to be as determined by Independent Government Estimate (IGE).

B. Market Research.

The Volpe Center recently conducted an extensive market research initiative to determine if any alternative sources could supply components for the DRC system. This inquiry aimed to identify additional vendors who might provide compatible or substitute components capable of meeting the precise requirements for DRC’s highly specialized timing infrastructure.

In support of this, the Volpe Center utilized multiple channels, including the General Services Administration (GSA) Market Research as a Service (MRAS) platform and sources sought postings on SAM.gov, to maximize visibility and outreach to potential vendors.

The initial market research phase launched on June 11, 2024, when the Volpe Center initiated a request for information via GSA MRAS. This platform, provided by the GSA, is designed to facilitate comprehensive market research by connecting government agencies with prospective best-in-class vendors. This MRAS identified three (3) qualified items all affiliated with Microchip Technology Inc., that are capable of supplying components for the DRC system. No other vendors were identified in the search, suggesting that either no alternative suppliers exist in the market or that the necessary capabilities are currently limited to a single vendor.

Building on this initial outreach, the Volpe Center posted two separate sources sought notices on SAM.gov, the primary online procurement portal for federal agencies seeking goods and services from the private sector. The first posting (6913G6-24-SS-1002) went live on July 11, 2024, under the designated North American Industry Classification System (NAICS) code 423430, which classifies vendors by the types of products or services they provide. After remaining open for 10 days, three responses were received, two from Adtran/Oscilloquartz and one from Microchip Technology, Inc.

Microchip responded with the part specified in the sources sought. Worth noting, Microchip’s response included a recommendation to procure part number instead of the The is same high precision clock but a newer variant. Regardless, both are commercially available off-the-shelf items without modification, are interchangeable, and fit the DRC’s existing infrastructure. Microchip Technology, Inc, is registered in SAM.gov and a contract holder through GSA Global Supply.

Adtran/Oscilloquartz is a known manufacturer in the timing and synchronization industry and produces various high-accuracy timing devices that could potentially serve in similar applications. It responded with its own version of the which presented an opportunity for comparison and possible diversification of suppliers. Adtran/Oscilloquartz is not registered in SAM.gov.

To further explore additional sources, the Volpe Center refined its approach and posted a second notice on SAM.gov (6913G6-24-SS-1003) on September 5, 2024, using an updated NAICS code (334515) intended to better target potential sources in the specialized field of high-precision timing technology. This additional effort prompted two responses from potential alternative suppliers, Adtran/Oscilloquartz and BHPE LLC, both of which expressed interest in meeting the DRC system’s specifications. Adtran/Oscilloquartz provided the same information under the initial sources sought notice.

BHPE LLC’s response was incomplete, lacking key details requested in the sources sought, including essential commercial product specifications. This omission prevented an effective evaluation of the product's suitability for the DRC system.

The Volpe Center shared information about the Oscilloquartz products with the U.S. Naval Observatory (USNO), which oversees the technical specifications and configuration standards for DRC components. The USNO conducted a preliminary assessment of the Oscilloquartz technology to evaluate its compatibility with the stringent requirements of the DRC system. The feedback from USNO highlighted several critical points:

Compatibility: The USNO indicated that the Oscilloquartz clock is currently not approved for integration with the DRC system. This response underscores that, although Oscilloquartz manufactures timing products, they have not undergone the certification and testing processes required to meet DRC’s strict standards.

Configuration Standards: The DRC operates under a defined configuration, with highly regulated controls in place to ensure all components meet exacting performance standards. Any change to this configuration, including the introduction of new hardware or adjustments to the existing setup, could compromise system integrity and operational reliability.

Testing and Calibration Requirements: The DRC’s test procedures, software, and calibration methods have been specifically tailored for components sourced from the authorized supplier, Microchip/Microsemi. Integrating a new product, like Oscilloquartz’s clock, would necessitate comprehensive redesign and recalibration of these processes, representing a significant investment of time and resources.

Although the USNO’s initial feedback confirmed that Oscilloquartz’s products are not yet suitable replacements, the USNO acknowledged that ongoing testing could eventually yield new options. The USNO is actively conducting long-term testing to evaluate whether Oscilloquartz’s components could potentially meet DRC standards in the future.

However, given the complexity and rigor of these evaluations, the USNO anticipates that a final determination on the viability of Oscilloquartz as a replacement source could take up to two years to complete.

In summary, the Volpe Center’s extensive market research, conducted through MRAS and multiple sources sought postings, demonstrated the current limitations in sourcing qualified alternative vendors for DRC components. Despite efforts to engage a broader range of suppliers, Microchip/Microsemi remains the only vendor capable of supplying DRC-compatible components in the near term. While Oscilloquartz presents a potential future option, it will require extensive testing, validation, and potential modifications to the DRC’s current configuration to ensure it meets the exacting standards upheld by the USNO. The Volpe Center will continue to monitor the progress of these testing efforts and reassess market options as more information becomes available from the USNO.

C. Supporting Rationale.

(1) Sole Source: Only one responsible source and no other supplies or services will satisfy agency requirements.

(i) .

A high level of expertise is essential for working with the Defense Regional Clock (DRC) system because the DRC relies on precise and highly technical components that maintain secure and accurate timing. This requirement is driven by the DRC’s role in ensuring reliable timing in scenarios where GPS may be unreliable or compromised. Components in the DRC system must meet strict specifications, demanding expertise in high-precision timing technology, atomic clock operation, and secure, resilient time distribution. The DRC also requires unique system configurations, and strict testing and calibration protocols set by the USNO. Only suppliers with established expertise in these areas can ensure the DRC components function reliably, securely, and accurately across various environments.

(i)

Extensive market research conducted by the Volpe Center confirmed that Microchip/Microsemi is the only vendor with the necessary expertise and certified products to meet the DRC’s stringent requirements. The Volpe Center conducted a RFI via GSA’s MRAS and posted multiple sources sought notices on SAM.gov using targeted NAICS codes. These efforts, however, yielded no viable alternatives for Microchip/Microsemi, aside from a single response from Oscilloquartz, which was deemed unsuitable by the USNO. The USNO’s assessment highlighted that Oscilloquartz’s timing components do not meet the required configuration standards for the DRC, nor are they compatible with existing

DRC test procedures, software, and calibration methods. Given this lack of alternative vendors and USNO’s current certification for Microchip/Microsemi’s components, the findings of this research support that Microchip/Microsemi is uniquely qualified to supply the DRC components.

(ii) .

Educating another contractor to meet the DRC’s requirements would likely be infeasible in the short term, especially given the need for USNO certification, specialized test procedures, and familiarity with timing and synchronization protocols.

Training an alternative vendor would involve significant time and financial investment. The contractor would need to develop and validate new test procedures and calibration techniques compatible with the DRC, conduct rigorous testing to achieve certification, and establish a track record of reliable operation for intended applications. USNO’s evaluation indicated that validating Oscilloquartz’s components alone would take one to two years, which underscores the time and complexity required for alternative suppliers to achieve the necessary expertise and certification. This timeline would lead to delays in using the DRC for testing and introduce additional costs for reconfiguring test procedures, software, and calibration methods, making it both economically and operationally unfeasible in the short term to bring a new contractor up to the required level of expertise.

(2) Brand Name: A specific brand that is available from multiple vendors.

N/A

(3) Unusual and Compelling Urgency.

N/A

D. Required Signatures. The following signatures represent concurrence/approval of this justification:

PR Technical Initiator Date PR Technical Initiator’s Supervisor Date

Contracting Officer Date Chief, Contracts Branch (or designee) Date (Signature required for procurements over $25,000)