20RWP71_JA_REDACTED.pdf

NCH 53.6-2 (Apr 2019)

J&A Number:CR-20068 Code:WXPV P.R.Number:N0016420RWP71

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command (NAVSEA), Naval Surface Warfare Center, Crane Division (NSWC Crane), Contracts Division (Code 0241).

2. Description of the Action Being Approved

Award of a five-year, Firm Fixed Price (FFP), Indefinite Delivery Indefinite Quantity (IDIQ) contract on a sole source basis to Caton Connector Corporation, hereinafter referred to as Caton, 26 Wapping Road, Kingston, Massachusetts 02364- 1333, CAGE 52196, for the manufacture, repair, and replacement of high voltage cables used in the Aegis System.

3. Description of Supplies/Services

The requirement is for the bulk purchase of long lead-time materials required for the eventual repair, fabrication, and testing of high voltage cables in accordance with NAVSEA drawing 7265688, Naval Ordinance (NAVORD) 3255255, NAVORD 3255068, NAVSEA Drawing 6777971, NAVSEA Drawing 6322165, and in ring the ort emergent fleet needs on both cruisers and class destroyers. The initial anticipated order s are:

one 2,000-foot spool of wire; one 4,000-foot spool of flexible conduit; and 50 terminal connector hardware sets.

DEPARTMENT OF THE NAVY

CRANE DIVISION

NAVAL SURFACE WARFARE CENTER

300 HIGHWAY 361

CRANE INDIANA 47522-5001

IN REPLY REFER TO:

J&A Number: CR-20068 and connectors (terminations) at the Caton facility is anticipated. Bulk procurement and pre-positioning of the materials at the contractor’s facility is anticipated to reduce the production lead-time by 26 weeks, which will better support scheduled and emergent fleet needs.

Caton has historically been the only manufacturer that has satisfactorily made repairs or modifications to the cable assemblies. Caton is the intellectual property owner of the design seal and sealant compound for salt water intrusion of the cable, as well as the process for “booting” (applying the connector). No other manufacturer has been able to duplicate the rebooting process. Caton is the only manufacturing source of the high voltage cable identified in the source control drawings 3255068, 6322165, and 6322166. The Government inquired about purchasing data rights from Caton.

Caton refused to sell or price the data rights that they currently own.

If another source were to emerge for the high voltage cable assembly, it is not anticipated the duplicative costs for development and qualification would be recouped through competition. A new source for the high voltage cable assembly would have to be qualified to meet the referenced specifications. The prod cost for a single wire assembly is estimated at to be borne by the prospective source. This e was derived from the previous contract N00164-16-R-GR86. The estimated cost for conformance testing and documentation is $1,500,000, assuming all testing proceeded without failure. This estimate was derived from previous testing and escalated based on current pricing. The vendor would also need to prove their in-field repair process. The Government would need to provide Government Furnished Material (GFM) in the form of broken cable assemblies for the vendor to restore to operational condition. This process would take approximately 1 year at a cost of $712,000 (assuming two (2) engineers for 1780 hours (1 year) at $200/hour). The total estimated cost to the government for development and qualification of a new manufacturing source is $2,212,009 ($65,000 is not included in this estimate due to it being the cost of GFM).

Delays associated with the development of an alternate source for the high voltage cable assembly would be unacceptable as the Cruisers are in port for modernization and refurbishment (lay-up) for a 3-year cycle. It would take a minimum of 1 year (assuming testing was completed on time) to qualify a source. Assuming a similar production lead-time, selection of another contractor other than the incumbent, would not allow the first Cruiser to receive a new assembly, as it would be ending its scheduled lay-up period.

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

Market research was conducted by the Requiring Technical Activity (RTA) in accordance with FAR Part 10. FAR 10.001(a)(2) requires market research appropriate to the circumstances. The RTA searched the internet to locate sources for high voltage cable meeting key requirements and identified several high voltage cable manufacturers. Previous attempts by the Government to develop a second source for the high voltage cable assemblies have been unsuccessful leading to those purchased cables being replaced or repaired by Caton.

In accordance with Department of Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance, and Information (PGI) 206.302-1 a Request for Information Sources (RFI) Sought Special Notice Bulletin, N0016420SNB16, was released via FedBizOpps on December 4, 2019 to determine market capabilities of the high voltage cable industry to support the requirements of N0016420RWP71. No responses were received in response to the RFI. No respondents provided capabilities statements and no additional parties were determined to be capable of fully supporting the requirement.

A synopsis of the proposed contract was published in the FEDBIZOPS in accordance with FAR 5.2 on January 21, 2020. To date no responses were received in response to the synopsis.

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. DCMA pricing assistance and/or DCAA audit of contractor’s proposal may be requested along with offeror’s certificate of current cost and pricing to support the fair and reasonable cost determination.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, NSWC Crane, Contracts Division has no plans at this time to compete future contracts for the types of supplies and services covered by this document. If another potential source emerges, NSWC Crane, Contracts Division 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.PEO IWS 1.0-12-02, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

Signature Phone No. Date

REQUIREMENTS COGNIZANCE:

Signature Phone No. Date

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

Signature

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 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(s) 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

Signature P Date