19RWP60_JA_Redacted.pdf

J&A Number: CR-19069 Code: WXP P.R. Number: N0016419RWP60

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity.

The Naval Sea Systems Command, Naval Surface Warfare Center, Crane Division (NSWC- Crane), Spectrum Warfare Contracting Division, Code 024.

2. Description of the Action Being Approved.

Award of a Firm Fixed Price (FFP) Indefinite Delivery, Indefinite Quantity (IDIQ) contract, on a sole source basis, with an ordering period of five years for the procurment of supplies and engineering services required for the modulator procurement, other spare parts, and services for repairs and upgrades for ETM High Voltage Power Modulators to ETM-Electromatic, Inc., 35451 Dumbarton Court, Newark, California, 94560.

3. Description of Supplies/Services.

The requirement is for spare parts, evaluations, repairs, training of operators and maintainers, obsolescence studies, risk assessments and mitigation, and upgrades, which are expected to maintain, increase reliability, improve performance, and reduce costs of the High Power Modulators. The ETM High Power Modulators are used in Microwave Tube (MWT) acceptance test sets at NSWC Crane and the MWT vendors:

The ordering period is five (5) years from date of contract award. Supplies will comprise 53 percent of the total dollars and services will account for 47 percent of the remaining dollars. The total estimated maximum dollar value for this procurement action is $9,500,000. Funding will primarily be annual Operation and Maintenance, Navy (O&MN), Other Procurement, Navy (OPN), Foreign Military Sales (FMS), and Shipbuilding and Conversion, Navy (SCN) funds.

Specific performance requirements will be delineated in each individual order. This estimated dollar value is based on an Independent Government Cost Estimate that took into account historical pricing from the previous contract with applicable adjustments for inflation. An estimate of the proposed contract funding utilization is listed in the following table.

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

CRANE DIVISION

300 HIGHWAY 361

CRANE INDIANA 47522-5001

IN REPLY REFER TO:

Estimated Dollar Value CATEGORY FY19 FY20 FY 21 FY 22 FY 23 Total

SCN

FMS

OMN

OPN

Total

Deliveries will be delineated in each individual delivery order. The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

4. Statutory Authority Permitting Other Than Full and Open Competition.

Pursuant to 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements”. Also, in accordance with FAR 6.302-1(a)(2)(iii)(B), unacceptable delays in fulfilling the agency’s requirements. As stated in 10 U.S.C. 2304(d)(1)(B):

In the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, or the continued provision of highly specialized services, such property or services may be deemed to be available only from the original source and may be procured through procedures other than competitive procedures when it is likely that award to a source other than the original source would result in-

(i) substantial duplication of cost to the United States which is not expected to be recovered through competition; or

(ii) unacceptable delays in fulfilling the agency’s needs

5. Rationale Justifying Use of Cited Statutory Authority.

ETM is the Original Equipment Manufacturer (OEM) and holds proprietary rights to the design and contruction processes of these modulators. Their knowledge of the design and the manufacturing process is required to provide the engineering support needed for this highly specialized equipment.

The modulators are an integrated high voltage power supply with an embedded system controller. The modulators are each manufactured to very tight specifications so that characteristics of the modulator are not imposed on the microwave device being evaluated.

Typical individual supplies within the modulators are heater, solenoid, ion, bias/ pulse top, cathode with collector depression.

The modulators are used to simulate operating conditions so microwave devices can be evaluated outside of their normal systems. Due to the variable nature of each modulator, adjustments can be made to optimize necessary conditions. Therefore, modulators allow the operator to safely and accurately evaluate a microwave device in a lab controlled environment.

Without modulators, pre-evaluation of microwave devices would not be possible. This would lead to devices without proper testing and evaluation. The modulator is absolutely critical to the production and installation of microwave devices.

ETM holds proprietary rights to the design and construction processes of all of these Microwave Tube Modulators, though the Government does have schematics and interface drawings, they are the property of ETM. Specific expertise and knowledge of the design and manufacturing processes is required to provide the required Engineering support and spare assemblies for this highly specialized equipment. Therefore, no other sources exist which can meet these requirements.

To develop a source other than ETM would result in substantial duplication of costs and unacceptable delays in fulfilling the Navy requirements. The US Navy has invested

These costs would not be recouped by developing another source. Also, to develop another source would result in a delay of up to 18 months in the MWT production due to the down time of these modulators. These modulators are used in the MWT acceptance test sets and provide the high power and high voltage to the tubes which is required to allow the tubes to be operated at the specification required voltages and currents during manufacture and testing. These modulators are an integrtal part of used during factor acceptance testing at the MWT vendors and validation testing at NSWC Crane. These modulators are complex and a new source would have to develop the expertise to evaluate the failures causing the previously mentioned delays. A delay to the production line of the MWT’s would result in a work stoppage at NSA Crane or the contractors’ facilities. This work stoppage would result in delays in MWT deliveries from the vendors that could potentially impact ship readiness. Work stoppages at NSWC Crane would result in up to $13,202.00 cost per day in lost productivity to the Government depending on the tube type supported by the out of service modulator.

Based on the reasons detailed above, ETM is the only contractor that can provide the expertise needed at a reasonable cost and meet the delivery requirements of maintaining the modulators to allow continuous production of the MWT’s. The delivery of MWT’s is extremely critical in order to maintain in operational status thus allowing the fleet to safely perform their missions. If the modulators do not perform, then MWT’s will not be delivered in a timely manner. This will lead to unacceptable delays resulting in Navy Caualty Reports (CASREPs) as well as and critical equipment being unable to perform its missions, i.e.,

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

A Sources Sought notice was posted in accordance with Defense Federal Acquisition Regulation Supplement (DFARS) PGI 206.302-1(d) on January 4, 2019. One response was received and the capability statement was assessed by the Requiring Technical Authority (RTA) and Legal counsel. After review, it was decided that though Quarterware appears to have the experience with the Traveling Wave Tube (TWT) technology, the requirement we are seeking is for the maintenance, and life cycle support of the high voltage VED modulators that we use with the TWT. Based on the presentation materials, the company’s experience with TWT does not match our needs for support of the ETM brand of high voltage modulator. A letter was sent to Quarterware on February 21, 2019, explaining to them the reason that we palnned to continue this procurement as a sole source.

Market research was conducted with companies performing similar parts, repairs, maintenance, and services with history of this type of work. Many companies perform a similar type of work, but their parts, repair and maintenance equipment, and expertise is unique to their product lines.

A substantial rework would be required to the modulators to develop the level of expertise needed.

Market research verifies that it is not practical for the reasons discussed in Section 5 to utilize any vendor other than ETM, Inc.

In accordance with DFARS 205.205-71, the proposed contract was synopsized on the Government Point of Entry (GPE), Federal Business Opportunities (FedBizOps) website on 08 February 2019. To date, no additional parties have expressed interest or provided feedback concerning this requirement. There is one known source for this requirement, ETM. Any response received will be evaluated to determine whether to conduct a competitive procurement.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer will use cost or price analysis to determine a fair and reasonable price.

Comparisons to prior contracts for the same or similar items and the Independent Government Estimate may be used as necessary. Assistance from the Defense Contract Aministrative Agency may be utilized to analyze, evaluate, and negociate based upon detailed cost or pricing data. Significant quantities have been purchased from this company in the past and pricing information was received. This information should be sufficient to support a fair and reasonable determination.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Section 5, NSWC Crane has no plans at this time to compete future contracts for the types of supplies covered by this document. Market conditions are continuously being monitored, and if another potential source emerges, NSWC Crane will assess whether competition for future requirements is feasible.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 6.303-2(c))

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning data, including Acquisition Plan No. CR- 19010, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

Signature Name (Print) and Title (Code) Phone No. Date

REQUIREMENTS COGNIZANCE:

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(b)(12))

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

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as Competition Advocate for the Procuring Activity, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)( 1 ).

Competition Advocate

Signature Name (Print) Date

DEPARTMENT OF THE NAVY