20RJQ75 JA Redacted.pdf

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J&A Number: CR-20011

Code: 0231

PR No.: N0016420RJQ75

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

Naval Sea Systems Command, Naval Surface Warfare Center, Crane Division (NSWC-CR), Contracting Operations Division 0231.

2. Description of the Action Being Approved

Award of a five-year Indefinite Delivery Indefinite Quantity Commercial and Non-Commercial contract to FLIR Systems, Inc. (FSI), 27700 SW Parkway, Avenue, Wilsonville, OR 97070-

8213. Included in the contract will be Electro-Optic Sensor (EOS) Systems, separate subsystems including Hand Control Units, Central Electronic Units, Provision Item Ordering Spares, Test, Tear Down and Evaluation (TT&E), Non-Warranty Over and Above Repairs, Field

Repair/Technical Assists, Operator/I Level Maintenance Training, Travel, Engineering Services for Engineering Change Proposal Development/Obsolescence Management, and Data.

3. Description of Supplies/Services

The SEA STAR SAFIRE III™ (SSS III) EOS System (Commercial) is a rugged and ship mountable system to provide surface ships with a day/night, high-resolution, infrared and visible band imaging capability, as well as range finding capability, to augment existing optical and radar sensors for the purpose of detecting and identifying asymmetric threats. Also included in the requirement are hand control units and spare parts, TT&E, Repairs, Field Repairs / Tech

Assists, Engineering Services and Upgrades for SSS III™.

The BRITE Star II™ (BSII) EOS System (Non-Commercial) functions as the fire control system for the missile system. It uses infrared and Charged Coupler Device (CCD) cameras to detect, identify, and track targets. BS II uses a Laser Range Finder (LRF) to determine the distance and position of the target. The BS II provides terminal guidance to the launched missile seeker head with a Laser Designator. Also included in the requirement are Universal Hand Control Units, Central Electronic Units, spare parts, TT&E, Repairs, Field Repairs / Tech Assists, Engineering

Services and Upgrades for BSII™.

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

CRANE DIVISION

300 HIGHWAY 361

CRANE INDIANA 47522-5001

IN REPLY REFER TO:

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The TacFLIR 380-HD system (Commercial) is a multi-sensor stabilized gimbal system used to provide increased situational awareness and long-range surveillance on maritime platforms or as a ground based mast mounted application. The TacFLIR 380-HD provides Mid-Wave Infrared

(MWIR), Low Light, and Color imagery that is used for object detection, identification, and classification. It has an integrated LRF. The TacFLIR 380-HD allows for visual verification of potential threats and obstacles. Also included in the requirement are hand control units, spare parts, TT&E, Repairs, Field Repairs / Tech Assists, Engineering Services and Upgrades for

TacFLIR 380-HD Systems.

The Maritime SeaFLIR 380-HD system (Commercial) is used as part of the Situational

Awareness System (SAWs) to provide increased situational awareness for US Navy Aircraft

Carriers. The FLIR 380HD provides MWIR, Short-Wave Infrared, Low Light Daytime, and 3

CCD Daylight imagery that is used for object detection, identification, and classification. It also has a LRF that displays object distance and latitude/longitude information. The SeaFLIR 380-

HD along with the SAWs software provide 360 degree situational awareness and allows for visual verification of potential threats and obstacles. Also included in the requirement are hand control units, spare parts, TT&E, Repairs, Field Repairs / Tech Assists, Engineering Services and

Upgrades for Maritime SeaFLIR 380-HD Systems.

The EOS systems will be primarily operated on military maritime crafts or ground based mast-mounted applications, and will be exposed to harsh operating and environmental conditions. The

EOS systems will be used to detect threats as they are entering into a US Navy exclusion zone.

The EOS systems will be capable of being interfaced remotely with operator station(s) for both operations and maintenance. As such, all information related to the EOS systems interface, operations, and maintenance will be required.

The estimated total value of this acquisition is $62,639,678.

The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

Estimated Dollar Value

FY21 FY22 FY23 FY24 FY25 FY26 TOTALS

O&MN $0 $6,659,639 $6,655,760 $6,846,754 $7,267,684 $7,452,417 $34,882,254

OPN $0 $4,530,623 $3,082,551 $3,732,329 $4,160,061 $3,222,287 $18,727,851

OGA $993 $2,227,994 $2,250,675 $1,723,480 $1,399,735 $1,426,696 $9,029,573

TOTAL $993 $13,418,256 $11,988,986 $12,302,563 $12,827,480 $12,101,400 $62,639,678 Note: Contract performance will begin in July 2021 (partial year FY21).

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1), Only one responsible source.

5. Rationale Justifying Use of Cited Statutory Authority

FSI is the Original Equipment Manufacturer (OEM) of the SSS III, BS II, and TacFLIR 380-HD and SeaFLIR 380-HD EOS systems and associated hand control units, and spare parts. The SSS

III EOS Systems being supported were originally acquired through competitive procurement under N00164-10-D-JQ88 and acquired under sole source procurement N00164-16-D-JQ96.

This requirement is a follow-on to these contracts with the 380-HD requirements added. The BS

II EOS Systems being supported were originally acquired under N00164-12-C-JQ42 on a sole source basis (Unusual and Compelling Urgency) and through competitive brand name or equal procurement under N00164-12-D-JQ18. The Government has been purchasing the SSS III and

BS II EOS Systems from FSI for over nine (9) years.

Based on the OEM’s knowledge and expertise, it has been documented that there is no other company that has the knowledge and technical capability to perform these requirements. The

Government does not own the proprietary design specifications for drawings and other associated documents that would allow for competition or TT&E and repairs, field repairs / tech assists or engineering services / upgrades for the systems. FSI advised NSWC Crane that it would not license or sell its proprietary data to the Government or to any other entity. The development and sustainment of another source would result in excessive duplication of costs to the Government, and these costs would not be recouped through competition. Independent estimated value of this buy, compared to the estimated integration and test costs, makes it impracticable to pursue competition now or during the course of performance. Total Duplication of Costs for both standing up the organic repair facility and preparing for competitive solicitation total $24,400,000.

Duplication of Cost

Redundant Effort Cost Per

Platform

Number of

Platforms

Total

New Software Development to incorporate new systems $500K per each of 6 platforms (NSC, PCEO, LCS< BS II, TacFLIR 380-HD and

SeaFLIR 380-HE EOS)

$500,000

$3,000,000

New Ship Drawing Packages $500,000 6 $3,000,000

New Ship Integration Packages $500,000 6 $3,000,000

Safety and Cyber Certifications $300,000 6 $1,800,000

Updates to Government O, I, and D Level Manuals $600,000 6 $3,600,000

Combat Certifications for LCS $1,000,000 1 $1,000,000

Operational Testing and Verifications $500,000 6 $3,000,000

Costs to Stand Up Organic Repair Capability $6,000,000 1 $6,000,000

Total Duplication of Costs $24,400,000

Based on history, there would be a total delay of 3.25 years attributed to reverse engineering, and specification development. There would be a further program delay of 1.25 years after contract award for development, production, and delivery of new systems. Additional delays of 2.25

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years would be necessitated as a result of new software development, new ship drawings, new ship integration packages, safety and cyber certification, and combat certifications for LCS.

There would be a delay of 3 years to stand up the organic repair capability. Total delay to procure competitively and stand up repair facility is 9.75 years.

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

Given the nature of the end users and their missions, a formal market survey was not appropriate.

However, informal market research was and is conducted on a continuous basis by the requiring activity. The informal market research includes contacting knowledgeable individuals in the

Government and industry, reviewing previous procurements and in-hours contracts, review of catalogs and other product literature, internet searches and attendance at Industry Trade Shows.

The requiring technical activity representatives maintain a close working relationship with the

EOS industries throughout the world. This working relationship with industry provides a base of knowledge as extensive as would normally be obtained through a formal market survey, and facilitates continuous knowledge of the available technologies and manufacturing capabilities throughout the industry. Based upon the aforementioned background and working relationship with industry, it is the technical representative’s judgement that there is no know source other than FSI that is capable of performing the work required.

In an effort to broaden competitive resources, a Request for Information (RFI) Sources Sought was posted on the Federal Business Opportunities (FEDBIZOPS) website 25 September 2019, in accordance (IAW) with FAR 15.201, exchanges with industry before receipt of proposals. To date no responses have been received.

The proposed contract was synopsized via posting on FEDBIZOPS website on 28 October 2019

IAW 5.2. To date, no responses have been received.

Based upon the facts that no responses were received in regards to the RFI and synopsis and the other facts included in this justification document, there are no know sources other than FSI capable of performing the requirements described in this document without substantial duplication of cost to the Government that is not expected to be recovered through competition and without unacceptable delays in fulfilling the agency’s requirements.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies / services covered by the J&A will be fair and reasonable. As certified cost or pricing data is not required for these commercial items, and is required for the non-commercial items, similar quantities of this requirement have been purchased from this offeror in the past and pricing information was received on those past procurements. This information should be sufficient to support the fair and reasonable cost determination on this procurement.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, NSWC Crane has no plans at this time to compete future follow-on contracts for the types of supplies / services covered by this document. 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.

__N/A__, 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:

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

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

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

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.

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

APPROVAL BLOCK (FAR 6.304 for Approving Official)

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

Senior Executive of the STRL

(812) 854-3539

Signature Dr. Brett Seidle, NSWC Crane Technical Director Phone No. Date