A03_-_JandA_-_Studio_3d_Printer_-_REDACTED.PDF

Control No: [REDACTED] Contractor: Desktop Metal Inc.

Supply/Service: Studio 3D Printer fJUSTIFICATION REVIEW DOCUMENT FOR COMMERCIAL ITEMS

FAR PART 13 SIMPLIFIED ACQUISITION JUSTIFICATION AND APPROVAL FOR

OTHER THAN

FULL AND OPEN COMPETITION

Programs/Equipment: Purchase of Studio 3D Printer with non-laser/beam based additive manufacturing system with associated debinding and sintering components for the [REDACTED]

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]

Prepared by: [REDACTED]

Contracting Officer: Phillip J. Amador

[REDACTED]

Technical: [REDACTED]

Requirements: [REDACTED]

Reviews: I have reviewed this justification and find it adequate to support limiting competition.

Program Manager:

X Program Manager

Supply/Service: Studio 3D Printer

FAR PART 13 SIMPLIFIED ACQUISITION JUSTIFICATION AND APPROVAL FOR

OTHER THAN

FULL AND OPEN COMPETITION

1. Contracting Activity: Army Contracting Command – Aberdeen Proving Ground (ACC-APG) Adelphi Contracting Division

2. Description of Action: [REDACTED] requests a firm-fixed price (FFP) contract with Desktop Metal Inc. Located at 63 3rd Avenue Burlington MA, 01803 (CAGE: 7XFH3) for the purchase of Studio 3D Printer with non-laser/beam based additive manufacturing system. The Government projects award for January 2019 and fiscal year 2018 Research, Development Test and Evaluation (RDTE) funds will be used.

_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: [REDACTED] requires the purchase of one (1) DM Studio System+, non-laser/beam based additive manufacturing system with associated debinding and sintering components. The base 3D Printer System shall include the following components:

Qty Part # Description Price

1 BMD-PP0002 Studio System+ Printer (to include 10 cartridges of custom material - no custom interface material)

1 BMD-PD0002 Studio System+ Debinder [REDACTED] 1 BMD-PF0002 Studio System+ Furnace [REDACTED] 1 BMD-WA0003 Studio System+ Year 1 Standard Warranty [REDACTED] 1 BMD-SA0008 Fabricate Cloud Software Annual Site

License - 1

[REDACTED]

1 BMD-KA0003 Consumables Starter Kit (CSK) [REDACTED] 1 BMD-KA0001 Service Consumables Kit (SCK-1) [REDACTED] 1 BMD-TA0000 Installation & Basic On-site Training Studio

System+

[REDACTED]

1 BMD-WA0004 DM Care Premium Maintenance Contract - Year 1 Full Studio System+

DM Studio System+ Total Offer Price [REDACTED]

Supply/Service: Studio 3D Printer

Additional Materials and Options are as follows:

Qty Part # Description Price

1 BMD-HA0000 Continental USA Shipment, Handling &

Insurance (Pre-Pay & Add)

[REDACTED]

1 BMD-CP0006 Studio System+ Printer Stand [REDACTED] 1 BMD-SA0001 Fabricate Local Software Installation [REDACTED] 1 BMD-SA0009 Fabricate Local Software Annual

Maintenance

[REDACTED]

Additional Items Subtotal: [REDACTED] Total [REDACTED]

Delivery Estimate: [REDACTED] 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: : [REDACTED] requires a Studio 3D Printer with non-laser/beam based additive manufacturing system with associated debinding and sintering components. [REDACTED] The Studio 3D Printer system that [REDACTED] requires must be based on powder technologies, which allow for improved control of feedstock material. [REDACTED] This printer system required by [REDACTED] must also be able to print at a layer resolution of [REDACTED] and have minimum build volume of [REDACTED] to enable printing of full scale component prototypes. These requirements are due to the fact that [REDACTED] requires a highly complex printing, debinding and sintering system in order to maintain compatability [REDACTED]. The printing, debinding and sintering system must be compatible with technologies developed and patented by [REDACTED], which leads to specific requirements outlined above. [REDACTED]

The 3D Printer manufactured by Desktop Metal Inc. includes printing, debinding and sintering capabilities with several patents, on each of these individual pieces of equipment. Desktop Metal Inc.’s 3D Printer is compatible with existing [REDACTED] to produce [REDACTED]. The separate stages (printing, debinding and sintering) of AM production are compatible with existing [REDACTED] developed in house that are compatible with AM technology, which allow for R&D studies of each critical stage of powder metallurgical AM manufacturing technologies Desktop Metal Inc. is the sole provider of a suite of equipment for non-beam based, metal additive manufacturing (AM).

No other source was identified that offers the same type of 3D Printer that is compatible, see Market Research, Sources Sought Synopsis. Desktop Metal Inc. is the manufacturer of the required 3D printer, and is the only source capable of providing the

Supply/Service: Studio 3D Printer system due to the patent, copyright, or proprietary data limits present with Desktop Metal Inc.’s systems.

If this J&A is not approved, there would be a significant impact to the [REDACTED] ability to complete tasks outlined to modernize equipment for the warfighter, which may result in mission failure for [REDACTED].

6. Efforts to Obtain Competition: A Sources Sought Synopsis notice under reference W911QX-19-Q-0004 was posted on Fed Biz Ops for seven (7) days from 23 Oct. 2018 – 29 Oct. 2018 in an effort to determine if any new vendors were capable of providing the required Studio 3D Printer system. Only Desktop Metal Inc. responded as an interested source. At closing there were no additional responses received to this notice.

7. Actions to Increase Competition: This requirement is for the one-time purchase of Studio 3D Printer System. It is not anticipated that this will be a recurring requirement.

However, [REDACTED] will continue to pursue web searches and hold discussions among the 3D Printing community to help locate other sources that can provide compatible items and meet the requirements as discussed in section 5 above. Any known sources that can provide the necessary components and interfacing design will be sought after for competitive interest in the future. Until such potential sources are revealed, Desktop Metal Inc. will provide the required 3D Printer. Any known sources that can provide the requirement will be sought for competitive interest.

8. Market Research: Market research was performed by [REDACTED], [REDACTED] to identify potential sources with the capability to satisfy [REDACTED] requirements.

Only Desktop Metal Inc. was identified as the only potential source for the required supplies. [REDACTED] Furthermore, Desktop Metal has a unique and proprietary debinding and sintering system that do not require venting for the sintering of standard metallic powders [REDACTED], which is believed no other source can provide. A Source Sought Synopsis was posted on fbo.gov on [REDACTED] to publicize the Government’s requirements for the 3D Studio Printer System, to which only Desktop Metal Inc. responded to and no other source showed any interest. Desktop Metal Inc.

provided an initial market research quote in response to the requirements set forth in the Sources Sought Synopsis posting. Based on the aforementioned market research results, Desktop Metal Inc. remains the only vendor capable of satisfying the Government’s requirement given their unique capabilities in 3D Printer development for this particular requirement. Market research will be continually performed to survey the market’s capabilities and identify any other vendors who are reasonably expected to submit offers that are competitive in terms of market price, quality and delivery if the requirement reoccurs.

Supply/Service: Studio 3D Printer

9. Interested Sources: As discussed above in section 6, a Sources Sought Synopsis was posted on Federal Business Opportunities (FBO) for seven (7) days, to which Desktop Metal Inc. (CAGE: 7XFH3, 63 3rd Ave, Burlington, MA, 01803-4430) responded as the only interested source. To date, no other firms have expressed any interest.

10. Other Facts:

a. Procurement History:

There is no procurement history for these same requirements, this is a first time buy for the required Studio 3D Printer System.

b. Other facts. Provide any other facts necessary to justify limiting competition that were not previously stated. 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: [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: [REDACTED]

Requirements Certifier

Supply/Service: Studio 3D Printer

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:

__ Price analysis

__ IGCE

_X_ Other: Detailed documentation and justification of cost/price reasonableness will be disclosed in the official contract file to include a published price list, and comparison of the proposed price with prices found reasonable on previous purchases. Cost or Pricing data is not required, in accordance with the threshold at FAR 15.403-4(a) (1).

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.

Contracting Officer (KO)

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

Supply/Service: Studio 3D Printer

Approval Based on the foregoing justification, I hereby approve the procurement of Studio 3D Printer with non-laser/beam based additive manufacturing system with associated debinding and sintering components for an estimate of [REDACTED] on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(1), subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

(End of J&A)