A03_-_Redacted_Simplified_Acquisition_Sole_Source_Justification_over_ 150K_Redacted.pdf

Control Number: 15-58

HOW TO PREPARE A SIMPLIFIED ACQUISITION SOLE SOURCE

JUSTIFICATION (FAR 13.5)

Simplified Acquisition Sole Source Justification Review Document

Program/Equipment: Entangled Photon Systems with associated accessories

Authority: 10 U.S.C. 2340(c) (1) as implemented by FAR Part 13.501(a)

Amount:

Prepared By:

Typed Name: DSN:

Title: Physical Scientist Date: 06-16-2015

Procuring Contracting Officer:

Date Reviewed: 9-07-2015

Technical Representative:

Title: Physical Scientist Date Reviewed: 06-16-2015

Requirements Representative:

Title: Branch Chief Date Reviewed: 6-16-2015

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

DSN:

1.a. Contracting Agency - Specify the contracting agency responsible for this action.

U.S. Army Contracting Command, Aberdeen Proving Ground – Adelphi Contracting Division (ACC-APG-CCAP-SCA), 2800 Powder Mill Road, Building 601, Adelphi, MD 20783-1197.

1.b. Requiring Agency – Specify the agency requiring the supplies/services.

U.S. Army Research Laboratory (ARL), Computational & Information Science Directorate (CISD), Network Science Division (NSD) (RDRL-CIN-T), 2800 Powder Mill Road, Adelphi, MD 20783

2. Description of Action - State whether approval is being requested for a new contract or a modification. Include type of contract, type of funds to be used (R&D, OPA, OMA) and, when applicable, the estimated share and ceiling arrangements. Include the name of the activity for which the purchase is being made. See example in NOTE I below.

Approval is requested to solicit for a new Firm-Fixed-Price (FFP) contract type on an Other Than Full and Open Competition (OTF&OC) basis for an Entangled Photon System from NuCrypt LLC in support of a new Quantum Network research program in NSD, CISD. This contract will support a major research campaign initiative - a Center for Distributed Quantum Information which began on 6 July 2015 as well as ARL collaboration with multiple researchers of that center. Additionally, the contract will support the Quantum Science and Engineering program - a tri-service collaboration between the Naval Research Laboratory (NRL), the Air Force Research Laboratory (AFRL), and ARL that has just been funded and is scheduled to begin in August 2015. The contract’s estimated value is and Army Fiscal Year (FY) 2015 Research, Development, Test & Evaluation (RDT&E) funds will be utilized for this effort.

3. Description of Supplies/Services - Describe the supplies or services to be acquired. Include the estimated total value, including options, if any.

Quantity Two (2):

Telecom band entangled photon source, EPS-1000-CR

Twochannel correlated photon detection system CPDS-1000-2-SFP x 2

Polarization Analyzer PA-1000-P-1-S

Polarization Analyzer PA-1000-P-1-SC

Shipping

Subtotal for One (1) System:

TOTAL:

4. Authority Cited: Identify the statutory authority permitting other than full and open competition, followed by the FAR citation and FAR citation title.

The statutory authority permitting other than full and open competition is 41 USC 1901, implemented by FAR 13.501(a), using the specific authority selected below:

__X__(1) The property or services needed by the executive agency are available from only one responsible source and no other type of property or services will satisfy the needs of the executive agency;

____(2) The executive agency’s need for the property or services is of such an unusual and compelling urgency that the Federal Government would be seriously injured unless the executive agency is permitted to limit the number of sources from which it solicits bids or proposals;

____(3) It is necessary to award the contract to a particular source—

____(A) to maintain a facility, producer, manufacturer, or other supplier available for furnishing property or services in case of a national emergency or to achieve industrial mobilization;

____(B) to establish or maintain an essential engineering, research, or development capability to be provided by an educational or other nonprofit institution or a Federally funded research and development center;

____(C) to procure the services of an expert for use, in any litigation or dispute (including any reasonably foreseeable litigation or dispute) involving the Federal Government, in any trial, hearing, or proceeding before a court, administrative tribunal, or agency, whether or not the expert is expected to testify; or

____(D) to procure the services of an expert or neutral for use in any part of an alternative dispute resolution or negotiated rulemaking process, whether or not the expert is expected to testify;

____(4) The terms of an international agreement or treaty between the Federal Government and a foreign government or an international organization, or the written directions of a foreign government reimbursing the executive agency for the cost of the procurement of the property or services for that government, have the effect of requiring the use of procedures other than competitive procedures;

____(5) Subject to section 3105 of this title, a statute expressly authorizes or requires that the procurement be made through another executive agency or from a specified source, or the agency’s need is for a brand-name commercial item for authorized resale;

____(6) The disclosure of the executive agency’s needs would compromise the national security unless the agency is permitted to limit the number of sources from which it solicits bids or proposals; or

____(7) The head of the executive agency (who may not delegate the authority under this paragraph)—

(A) determines that it is necessary in the public interest to use procedures other than competitive procedures in the particular procurement concerned; and

(B) notifies Congress in writing of that determination not less than 30 days before the award of the contract.

5. Reason for Authority Cited:

The NSD of the CISD of ARL requires custom-built Entangled Photon Systems in order to build a quantum network testbed at ARL supporting a number of internal and external research programs. These programs include a new Quantum Network research program in NSD, CISD, an extensive Center for Distributed Quantum Information collaborative research campaign initiative began on 6 July 2015, as well as Quantum Science and Engineering program - a tri-service collaboration between the Naval Research Laboratory (NRL), the Air Force Research Laboratory (AFRL), and ARL that has just been funded and is scheduled to begin in August 2015.

A quantum network consists of several nodes connected by quantum transmission systems that are capable of distributing quantum entangled states between the network nodes. Thus to build the quantum network testbed, ARL requires telecom fiberoptic entanglement transmission systems. Such a system would need to have a source of entangled photon pairs as well as two (2) detector stations (to be positioned at separate network nodes), each comprised of two (2) single photon detectors and polarization analyzers. Two such systems connected together will represent a quantum network testbed and will be used for research within the framework of the aforementioned programs. In order to effectively study distribution of entangled pairs in fiber optics network, ARL requires the system to meet the minimum specifications listed above (source of entangled photon pairs, two (2) detector station each comprised of two (2) single photon detectors and polarization analyzers). NuCrypt LLC is the only source that can provide a system that can satisfy these specifications. Their http://www.law.cornell.edu/uscode/text/41/3105 entanglement transmission system has the unique capability of creating a pair of entangled photons, routing them via different fibers into two (2) remote detector station and assessing the quality of entanglement via quantum tomography measurements. Without this testbed the research in quantum network is not possible.

ARL CISD Subject Matter Experts (SME) have performed market surveys to identify vendors capable of meeting ARL’s requirements, details of which are in the market research section of this document. Research confirmed NuCrypt is the only vendor in the market who has the knowledge and technology necessary to make the required entanglement transmission system. Their unique technical expertise and production capability allows them to build an entanglement transmission system that can meet ARL’s requirement. No other company has come close to a comparable technical solution.

As mentioned previously, the proposed equipment is needed for a new CISD Quantum Network research program and CISD already recruited new personnel, particularly three (3) researchers and These researchers won't be able to execute their assigned tasks without this equipment and there will be a major loss of productivity if the equipment is not available for their project. Furthermore, a major research campaign initiative - a Center for Distributed Quantum Information began on 07/06/2015 and collaboration with multiple researchers of that center is schedule to begin in August 2015. Another research program - Quantum Science and Engineering program - a tri-service collaboration between NRL, AFRL and ARL has just been funded and is scheduled to begin in August 2015 as well. Again, a major loss of productivity will results if the equipment is not available for these programs and CISD will not be able to advance its research into quantum networks across the various aforementioned programs. Due to the aforementioned, NuCrypt LLC is the only source that will satisfy CISD’s requirements.

6. Efforts to Obtain Competition:

During the market research, submitted an informal request for quote (RFQ) on 28 January 2015 via the CHESS ITES-2H contract vehicle for the required Entangled Photon Systems for market research purposes. The Army CHESS website is the mandatory source for commercial IT products per AFARS

5139.101. CHESS identified the following potential vendors: Unicom, CDW-G, Dell, IBM, World Wide Technology and Iron Bow. However, no bids were received and a CHESS statement of non-availability (SONA) was created on 31 March 2015 and approved on 31 March 2015. In addition Dr. Brodsky then conducted market research outside of CHESS and evaluated several open market companies: NuCrypt, IdQuantique, Magiq Technologies by searching on the internet and contacting chief technology officers of the aforementioned companies via phone and/or email. All but Nycrypt did not have an entangled photon distribution system among their company products. Therefore, based upon the market research described above and in Section 8 below, only Nucrypt LLC can meet the Government’s minimum requirements for Entangled Photon Systems.

Additionally, effective competition is not anticipated for this procurement. A synopsis notice was posted to FedBizOps under W911QX-15-T-0332 on 10 August 2015, with the intent to sole source to Nucrypt LLC, as required by FAR

5.201. Only one vendor expressed interest, but upon further inquiry, the vendor withdrew their interest, as they had thought the notice was for a different requirement. No responses to this notice were received to give an indication that a company other than NuCrypt, LLC is interested in or potentially capable of providing the required items. ARL will continue to pursue web searches and consultations with knowledgeable government and industry personnel to help locate alternative manufacturers that can provide a sy stem that can satisfy its requirement. If CISD discovers another manufacturer could provide a reliable alternative, ARL will not hesitate to purchase the system competitively

7. Actions to Increase Competition:

ARL will continually seek to explore the market to increase competition by attending conferences/exhibition, examining trade journals, conducting World Wide Web research and through open discussion with industry experts. To date, no other vendor but Nucrypt LLC has been identified that can fulfill the Government's minimum requirements for the required Entangled Photon Systems. In the future, multiple suppliers may be able to provide systems with the same capabilities, leading to competition. Before future acquisitions, the market will be surveyed to determine whether another manufacturer has emerged that could meet the Army’s requirements, thus justifying the need for full and open competition.

8. Market Research:

Extensive market research was conducted between January and May of 2015 by a 20-plus year expert in the field of fiberoptic telecommunication and quantum optics. Throughout his career in academia, private industry, and the Government, has kept abreast of the latest technology developments and state-of-the-art advancements in the industry.

consulted with subject matter experts (SMEs) and determine that only NuCrypt makes entanglement distribution systems that meet the minimum requirements of the Government. Due to the Army CHESS website being the mandatory source for commercial IT products per AFARS 5139.101, submitted an informal RFQ on 28 January 2015 via the CHESS ITES-2H contract vehicle for the required Entangled Photon Systems. CHESS identified the following potential vendors: Unicom, CDW-G, Dell, IBM, World Wide Technology and Iron Bow. However, no bids were received and a CHESS statement of non-availability (SONA) was created on 31 March 2015 and approved on 31 March 2015. then conducted market research outside of CHESS via the internet and evaluated several open market companies: NuCrypt, IdQuantiques, and Magiq Technologies. Specifically, Dr. Brodsky emailed and called CTO’s of those companies. During these email/phone conversation Dr. Brodsky established that though IdQuantique and Magiq have the capability of producing single photon detectors and fiber intereforementers that could be used as parts for quantum transmission system, however neither of them is capabale of producing the entire entanglement transmission systems.

9. Interested Sources:

To date, no sources other than Nucrypt LLC have been identified that can meet all of the Government’s minimum requirements. A synopsis notice was posted to FedBizOps under W911QX-15-T-0332 on 10 August 2015, with the intent to sole source to Nucrypt LLC, as required by FAR 5.201. Only one vendor expressed interest, but upon further inquiry, the vendor withdrew their interest, as they had thought the notice was for a different item.

10. Other Facts:

a. Procurement history.

W911QX-14-P-0325 (Awarded 4 August 2014) o Sole Source for a Four channel Correlated Photon Detection

System [CPDS-2000-4] with a temporary loan of a Correlated Photon Detection System [Model #: CPDS-1000] that has since been returned. The Government is now procuring items very similar to Model CPDS-1000 (Two-Channel Correlated Photon Detection Systems [Model #: CPDS-1000-2-SFP]), which the Government merely loaned until CPDS-2000-4 was delivered to the Government under the previous contract W911QX-14-P-0325.

o 10 U.S.C. 2340(c) (1) as implemented by FAR Part 13.501(a) “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements” o N/A - For this contract, there was no Section 7 (Actions to Increase Competition) due to the DnF for OTFOC under $150K form being used. As such, the following is a summary of the Market Research/Efforts to Obtain Competition Section 6 for that procurement:

conducted market research in May and June

2014 to determine if there were other potential vendors for this procurement. Market research was conducted via the internet (www.nucrypt.net/entangled-photon-source.html and http://aureatechnology.net/en/products/nir-tcspc-photon-counter.html), e-mail, and phone call inquires and consultations with subject-matter experts (SMEs).

consulted SMEs http://www.nucrypt.net/entangled-photon-source.html http://aureatechnology.net/en/products/nir-tcspc-photon-counter.html http://aureatechnology.net/en/products/nir-tcspc-photon-counter.html to identify vendors capable of providing the needed quantum technology components that meet the Government’s requirements. After an extensive search, determined that there were no identical parts made by any other manufacturer. NuCrypt affirmed that the requested four channel CPDS-2000 and loaner CPDS-1000 equipment are compatible with and designed specifically for the current/existing Government owned NuCrypt quantum entangled photon source, polarization analyzers and two channel correlated photon detection systems. Therefore, Market Research concluded that NuCrypt is the only vendor that can satisfy the Government’s requirements. NuCrypt does not have any authorized resellers of their products.”

again surveyed the market as noted in Sections 6-9 above. No new vendors have been identified that can meet the minimum requirements of the Government.

o This prior award was NOT accomplished by full and open competition.

o No unusual procurement patterns.

o N/A – As stated above, for this contract, there was no Section 7

(Actions to Increase Competition) due to the DnF for OTFOC under $150K form being used. again surveyed the market as noted in Sections 6-9 above. No new vendors have been identified that can meet the minimum requirements of the Government.

W911QX-13-P-0322 (Contract awarded on 20 August 2013) [PA-1000-L-

2-SC]

o Sole Source for an Electronically Controlled Polarization Analyzer with Two (2)-Channels [Model #: PA-1000-L-2-SC] and an Upgrade of a Government-owned Correlated Photon Detection Systems (CPDS) to Q4 2012 version [Model #: CPDS-1000-C-2012-upgrade]. The Government is now procuring similar Polarization Analyzers [Model #s: PA-1000-P-1-SC and PA-1000-P-1-SC] and Two-Channel Correlated Photon Detection Systems [Model #:

CPDS-1000-2-SFP] as subcomponents of its overall Entangled Photon System requirement.

o 10 U.S.C. 2340(c)(1) as implemented by FAR 6.302-1 “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements” o N/A - For this contract, there was no Section 7 (Actions to Increase Competition) due to the DnF for OTFOC under $150K form being used. As such, the following is a summary of the Market Research/Efforts to Obtain Competition Section 6 for that procurement:

“ , conducted market research in May 2013 to determine if there were other potential vendors for this procurement. Market research was conducted via the internet (www.nucrypt.net/correlated-photon-detection and www.boselec.com), e-mail, and phone call inquires and consultations with subject-matter experts (SMEs).

consulted SMEs to identify vendors capable of providing the needed quantum technology components that meet the Government’s requirements. After an extensive search, determined that there were no identical parts made by any other manufacturer. NuCrypt affirmed that the requested equipment and system upgrade are compatible with and designed specifically for the current Government owned NuCrypt quantum systems. Therefore, Market Research concluded that NuCrypt is the only source that can satisfy the Government’s requirements.”

again surveyed the market as noted in Sections 6-9 above. No new vendors have been identified that can meet the minimum requirements of the Government.

o This prior award was NOT accomplished by full and open competition.

o No unusual procurement patterns.

o N/A – As stated above, for this contract, there was no Section 7

(Actions to Increase Competition) due to the DnF for OTFOC under $150K form being used. again surveyed the market as noted in Sections 6-9 above. No new vendors have been identified that can meet the minimum requirements of the Government.

W911NF-05-1-0197/P00010 (MURI Grant awarded 1 May 2005)

Information not available in PD2/PCF. Under this grant, a Telecom Band Entangled Photon Source [Model #: EPS-1000] and a Two- Channel Correlated Photon Detection System [Model #: CPDS- 1000-2] were procured. These items are similar models to two (2) of the required items listed under Section 3 of the current procurement: Telecom Band Entangled Photon Sources, [Model #:

EPS-1000-CR] and Two-Channel Correlated Photon Detection Systems [Model #: CPDS-1000-2-SFP].

b. Other Facts – N/A

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:

http://www.nucrypt.net/correlated-photon-detection http://www.boselec.com/

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:

13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable.

14. Procuring Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of the Entangled Photon Systems on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2340(c) (1) as implemented by FAR Part 13.501(a), subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.