20RGP65_21DGP65 JA Final_Redacted.pdf

J&A Number: CR-20108

NCH 53.6-2 (Apr 2019)

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1). Only one responsible source and no other supply or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

As set forth below, Massa Products Corporation (hereinafter referred to as “Massa”) is the only responsible source capable of providing the required supplies. Award to a source other than Massa is likely to result in substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the agency’s requirements.

From 2005 through 2008, SSP contracted the TR-143 Transducer re-design to Lockheed Martin with Massa as a subcontractor for the design, development, and fabrication of the TR-143A prototype. In 2013 SSP awarded a contract with Lockheed Martin to implement the design improvements. Massa was again subcontracted for the fabrication and certification of two TR-143A Transducers. The certification process was successfully completed in 2017. Lockheed Martin is not a certified source for manufacturing the TR-143A Transducers since they have not produced and certified TR-143A Tranducers. Only Massa has the production personnel, manufacturing space, tooling and testing capability certified to be able to produce the TR-143A Transducers.

Now, SP24 has tasked NSWC-CR to provide TR-143A Transducers support to include production of new units to meet fleet requirements from FY22 through FY26. The TR-143A Transducer has a one year lead time from date of order to delivery.

Therefore, procurement of the FY22 units must start in FY21.

The SP24 program requires critical component vendors complete an extensive certification plan that costs approximately $5,031,184 and require 48 months to complete. Since th -ducers are critical components installed on , the Government has an extremely low tolera for inoperable components. The small tolerance for the

TR-143A operation would exclude any other vendor from successfully building-to-print based on the Government drawings and specifications. Instead, as a risk mitigator the TR-143A Transducer manufacturers themselves have to be certified at three levels of testing – component testing, unit (TR-143A Transducer) testing, and operations testing at sea. The certification process determines and documents a source’s ability to deliver components to meet the Government’s low tolerance for error requirement.

J&A Number: CR-20108

NCH 53.6-2 (Apr 2019) their own knowledge of the industry. No additional vendors were found who have completed the Government testing and certification requirements for the TR-143A Transducers and could meet the timeline to supply units to keep the fleet operational.

In accordance with DFARS Procedures, Guidance, and Information (PGI) 206.302-1, a Request for Information (RFI)/Sources Sought was issued on fedbizopps on 19 February 2020 with a closing date of 05 March 2020. It stated the Government was accepting information from companies potentially capable of meeting the TR-143A Transducer requirements. There were zero responses received in response to the RFI/Sources Sought.

7. Determination of Fair and Reasonable Costs

The Contracting Officer will determine that the anticipated cost to the Government for the supplies covered by this J&A will be fair and reasonable. As required, DCMA pricing assistance will be requested along with a certification of current cost and pricing to support the fair and reasonable determination of the costs. All available information shall be utilized to support the fair and reasonable cost determination.

8. Actions to Remove Barriers to Competition

The Government has not located other vendors capable of ement for the as well as ca e plan in the timeframe required to meet existing requirements. To date Massa Products Corporation is the only vendor who has passed the extensive certification testing and supplying a product that fully meets sponsor requirements.

For the reasons set forth in Paragraph 5, the Naval Surface Warfare Division, Crane Division will continue to investigate multiple sources and monitor industries’ capability to meeting the Government’s extremely low error tolerance requirements for potential competition in the future. At this time, only one source has provided sufficient information to meet the technical and fleet requirements.