AIXTRON CRIUS CCS MOCVD

Trade Agreement: WTO-AGP/NAFTA/AIT/Canada-Peru FTA/Canada-Colombia FTA Tendering Procedures: Attachment: None Non-Competitive Procurement Strategy: Interchangeable Parts Comprehensive Land Claim Agreement: No Vendor Name and Address: AIXTRON, Inc. 1139 Karlstad Drive Sunnyvale California United States 94089 Nature of Requirements: 1. An ACAN is a public notice indicating to the supplier community that a department or agency intends to award a contract for goods, services or construction to a pre-identified supplier, thereby allowing other suppliers to signal their interest in bidding, by submitting a statement of capabilities. If no supplier submits a statement of capabilities that meets the requirements set out in the ACAN, on or before the closing date stated in the ACAN, the contracting officer may then proceed with the award to the pre-identified supplier.

2. The National Research Council of Canada (NRC) Canadian Photonics Fabrication Centre (CPFC) has a requirement for one (1) close coupled showerhead (CCS) Metal-Organic Chemical Vapor-Phase Deposition (MOCVD) system, specifically the AIXTRON CRIUS. Given NRC's vast experience with the with the CCS technology, NRC wishes to utilize this expertise in scaling up its volumes. It is intended to negotiate with AIXTRON, Inc. for the supply of CCS Integrated Concept Metal-Organic Vapour Phase Epitaxy System, including Gas Handling Systems, Purification, Extensions, Process Demonstration, Reactor Tools, and Spare Parts.

3. Minimum Essential Requirements

Any interested supplier must demonstrate by way of a statement of capabilities that its system meets the following requirements:

1.0 CCS technology (or equivalent) MOCVD system allowing for seamless scalability of existing processes (developed over the last 7 years) of epitaxial growth capabilities from NRC's existing Thomas Swan CCS 6x2" MOCVD to a minimum of twelve(12) 76mm diameter wafers.

2.0 System easily configurable to allow for future epitaxial growth on III-V semiconductors of larger wafer diameters. Specifically seven(7) 4" diameter or three(3) 6" diameter wafers as minimum acceptable quantities.

3.0 System must be capable of orienting major flats of semiconductor wafers to center of rotation.

4. This procurement is subject to the following trade agreement(s):

Agreement on Internal Trade (AIT) World Trade Organization - Agreement on Government Procurement (WTO-AGP) North American Free Trade Agreement (NAFTA) Canada-Peru FTA (CPFTA) Canada-Columbia FTA (CCOFTA) Canada-Chile FTA (CCFTA)

5. Justification for the Pre-Identified Supplier

AIXTRON, Inc. is the exclusive manufacturer of the CRIUS, which operates with unique features as identified in the "Minimum Essential Requirements" above. Canada has confirmed the functionality of the proposed systems as meeting all the operational requirements of NRC for its intended use.

6. Government Contracts Regulations Exception(s)

Section 6 of the Government Contracts Regulations contains four exceptions that permit the contracting authority to set aside the requirement to solicit bids. These are:

a. the need is one of pressing emergency in which delay would be injurious to the public interest;

b. the estimated expenditure does not exceed

(i) $25,000,

(ii) $100,000, where the contract is for the acquisition of architectural, engineering and other services required in respect of the planning, design, preparation or supervision of the construction, repair, renovation or restoration of a work, or

(iii) $100,000, where the contract is to be entered into by the member of the Queen's Privy Council for Canada responsible for the Canadian International Development Agency and is for the acquisition of architectural, engineering or other services required in respect of the planning, design, preparation or supervision of an international development assistance program or project;

c. the nature of the work is such that it would not be in the public interest to solicit bids; or

d. only one person or firm is capable of performing the contract.

The following exception to the Government Contracts Regulations is invoked for this procurement under Section 6(d) - "only one person is capable of performing the work".

7. Exclusions and/or Limited Tendering Reasons

The following exclusion(s) and/or limited tendering reasons are invoked under the section of the trade agreement(s) specified:

Agreement on Internal Trade

AIT Article 506(12)(a) to ensure compatibility with existing products, to recognize exclusive rights, such as exclusive licences, copyright and patent rights, or to maintain specialized products that must be maintained by the manufacturer or its representative; and Article 506(12)(b) where there is an absence of competition for technical reasons and the goods or services can be supplied only by a particular supplier and no alternative or substitute exists;

World Trade Organization - Agreement on Government Procurement WTO-AGP Article XV(b) when, for works of art or for reasons connected with protection of exclusive rights, such as patents or copyrights, or in the absence of competition for technical reasons, the products or services can be supplied only by a particular supplier and no reasonable alternative or substitute exists; and Article XV(d) for additional deliveries by the original supplier which are intended either as parts replacement for existing supplies, or installations, or as the extension of existing supplies, services, or installations where a change of supplier would compel the entity to procure equipment or services not meeting requirements of interchangeability with already existing equipment or services(5);

North American Free Trade Agreement NAFTA Article 1016(2)(b) where, for works of art, or for reasons connected with the protection of patents, copyrights or other exclusive rights, or proprietary information or where there is an absence of competition for technical reasons, the goods or services can be supplied only by a particular supplier and no reasonable alternative or substitute exists; and Article 1016(2)(d) for additional deliveries by the original supplier that are intended either as replacement parts or continuing services for existing supplies, services or installations, or as the extension of existing supplies, services or installations, where a change of supplier would compel the entity to procure equipment or services not meeting requirements of interchangeability with already existing equipment or services, including software to the extent that the initial procurement of the software was covered by this Chapter;

The procedural elements of the CCFTA, the CCOFTA, and the CPFTA are satisfied through compliance with the limited tendering provisions of NAFTA.

8. The system must be delivered and installed by 31 March 2014.

9. The estimated value of the contract is $2,951,761.74 (GST/HST extra, as applicable).

10. Name and address of the pre-identified supplier

Name: AIXTRON, Inc. Address: 1139 Karlstad Drive, Sunnyvale, California, USA, 94089

11. Suppliers' right to submit a statement of capabilities

Suppliers who consider themselves fully qualified and available to provide the goods, services or construction services described in the ACAN, may submit a statement of capabilities in writing to the contact person identified in this notice on or before the closing date of this notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.

12. The closing date and time for accepting statements of capabilities is 1 March 2013, at 2:00 p.m. EST.

13. Inquiries and statements of capabilities are to be directed to:

Michelle N. Mascoll Team Leader Scientific, Medical and Photographic Division - PV Commercial and Consumer Products Directorate Public Works and Government Services Canada 11 Laurier Street, Gatineau, Quebec, K1A 0S5 Telephone: 819-956-3467 Facsimile 819-953-3814 Email: michelle.mascoll@tpsgc-pwgsc.gc.ca Delivery Date: Above-mentioned

You are hereby notified that the government intends to negotiate with one firm only as identified above. Should you have any questions concerning this requirement, contact the contracting officer identified above.

An Advance Contract Award Notice (ACAN) allows departments and agencies to post a notice, for no less than fifteen (15) calendar days, indicating to the supplier community that it intends to award a good, service or construction contract to a pre-identified contractor. If no other supplier submits, on or before the closing date, a Statement of Capabilities that meets the requirements set out in the ACAN, the contracting authority may then proceed with the award. However, should a Statement of Capabilities be found to meet the requirements set out in the ACAN, then the contracting authority will proceed to a full tendering process.

Suppliers who consider themselves fully qualified and available to provide the services/goods described herein, may submit a statement of capabilities in writing to the contact person identified in this Notice on or before the closing date of this Notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.

The PWGSC file number, the contracting officer's name and the closing date of the ACAN must appear on the outside of the envelope in block letters or, in the case of a facsimile transmission, on the covering page.

The Crown retains the right to negotiate with suppliers on any procurement.

Documents may be submitted in either official language of Canada.