21DJQ85_JA_REDACTED.pdf

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-21032 Code: 0231

P.R. Number: N0016421RJQ85

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Surface Warfare Center, Crane Division, Expeditionary Sensors Contracts Branch, Code 0231.

2. Description of the Action Being Approved

Award of an Indefinite-Delivery, Indefinite-Quantity on a sole source, firm-fixed price basis for the AN/PVS-31 series Binocular Night Vision Device (BNVD) spare parts to L3 Technologies, Inc. (hereafter referred to as L3), 9 Akria Way, Londonderry, New Hampshire, 03053 (Cage Code:

0B107). This sole source contract will be for spare parts in the amount of $47,550,000.

3. Description of Supplies/Services

This procurement is for the spare parts of the AN/PVS-31 series BNVD.

The spare parts will be utilized in the repair of United States Special

-31 and AN/PVS-31A BNVDs to counterterrorism worldwide. There are currently over 15,000 AN/PVS-31 and AN/PVS-31A in inventory. The spare parts will also be utilized in the repair of the Navy service common BNVD, which is the AN/PVS-31B.

100% of the spare parts procured will be utilized in the JXQ depot for repairs.

The total estimated value for the ten year period is $47.55M, which includes $34.50M supporting the USSOCOM and $13.05M supporting the United States Navy.

certifying technical and requirements personnel.

The estimated funding profile for this anticipated contract is provided on the following page:

J&A Number: CR-21032

Table 1: Estimated Dollar Value in Millions (M)

FY21 FY22 FY23 FY24 FY25

OMDA $3.00M $3.10M $3.20M $3.30M $3.40M

O&MN $0.87M $1.09M $1.31M $1.53M $1.76M

Total $3.87M $4.19M $4.51M $4.83M $5.16M

FY26 FY27 FY28 FY29 FY30 Total

OMDA $3.50M $3.60M $3.70M $3.80M $3.90M $34.50M

O&MN $2.00M $2.19M $2.30M 0 0 $13.05M

Total $5.50M $5.79M $6.00M $3.80M $3.90M $47.55M

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

L3 is the sole manufacturer and Original Equipment Manufacturer (OEM) of the AN/PVS-31 and AN/PVS-31A and was awarded the previous three competed production contracts for those BNVDs and spare parts: N0016412DJQ01, N0016415DJQ22, and N0016417DJQ21. The AN/PVS-31B is also produced by L3.

The process involved in manufacturing the AN/PVS-31 series spare parts is highly technical and requires specialized facilities, equipment, personnel, and expertise. The OEM is not willing to sell data rights to the technical data package for these systems to the Government. Thus, the Government does not have adequate information to solicit these parts from other sources.

If the Government were to attempt to solicit other sources for these parts, it would require the development of a technical data package consisting of mechanical drawings, electrical diagrams, optical prescriptions, and system-level interactions of these components. Upon receiving proposals, the Government would have to verify that there was no change to form, fit, and function for each part when assembled into the system. Finally, the Government would have to perform compliance testing of every combination of parts between OEM and non-OEM to verify performance in accordance with the specification. This verification of performance would also include environmental survivability testing.

Each monocular assembly that mounts to the bridge is made up of 11 parts, of which seven (7) are custom and four (4) are simple o-rings.

When considering a scenario where seven (7) of those parts are non-OEM, the resulting number of combinations of OEM and non-OEM parts is 117.

This does not take into account all the parts of the BNVD; however, all potential configurations would need to be verified for performance and environmental survivability. The total cost of performance and environmental testing is estimated to be $4,466,500, and the duration of that testing is estimated to be 403 days. These estimates do not include the burden of tracking 117 different configurations of BNVD through the testing process. Furthermore, these estimates assume all testing is successful. If there is a failure during testing, new parts will need to be procured and testing will need to be repeated for the failed configuration. In addition to the burden this would place on the taxpayer (cost) and end user (duration), there would be a burden placed

J&A Number: CR-21032 on the environmental test facility to manage such a massive effort. This burden would be passed to all DoD programs which utilize that environmental facility. The Government does not own the intellectual property required to solicit for compatible image intensifiers, printed wiring assemblies, and bridge assemblies. The Government does not own the drawings for any of the molded parts. The electrical diagrams and optical prescriptions are proprietary to the OEM. For those reasons, the Government cannot solicit sources other than the OEM for the spare parts of the AN/PVS-31 series BNVD.

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

The NSWC Crane Electro-Optic Technology Division maintains in-depth knowledge of BNVD technology developments and the industrial base. This includes insight into technologies that individual companies are focused on and their technical and production capabilities. Electro-Optic Technology Division personnel maintain this knowledge through routine review of industry journals and attendance at industry symposia and conferences. Personnel also periodically visit industry facilities for

Based on its knowledge of the industry and expertise of the AN/PVS-31 BNVD, the Electro-Optics Division has determined that no companies other than L3 have the knowledge and technical capability required to provide the spare parts. The Government has contacted known L3 suppliers in the past in attempts to procure spare parts directly from their sources. The Government has been advised by these suppliers that they have agreements with L3 that prohibit them from selling the propriety components of the AN/PVS-31 series spare parts to any organization other than L3.

Request for Information (RFI) No. N0016420SNB80 was posted to Beta SAM on 07 August 2020. The RFI closed on 21 August 2020, and only one response was received from L3. NSWC Crane released the synopsis to Beta SAM associated with this planned contract on a sole source basis to L3 on 05 October 2020; no firms have replied to the synopsis.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated prices to the Government for the supplies covered by this J&A will be determined fair and reasonable. The Contracting Officer will use price analysis to determine a fair and reasonable price. Past procurements of this requirement have been purchased from the OEM and historical pricing information will be used to aid in determining fair and reasonable prices. This information should be sufficient to support a fair and reasonable price determination for 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 contracts for the types of supplies/services covered by this document. If a new night vision device is required in the future, it will be openly competed and will include spare parts CLINs.

The Component Commands of USSOCOM are beginning the process of writing a requirements document for the next generation of head-mounted night vision devices, which will allow for competitive procurement in the next 2-4 years.