21FJ019_REDACTED JA.pdf

CJ&A Number: CR-20140 Code: 0231 PR No.: NA

CLASS JUSTIFICATION AND APPROVAL (CJ&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 (NSWC Crane), Expeditionary Sensors Contracting Branch, Code 0231.

2. Description of the Action Being Approved

Award of firm-fixed price Job Orders under Basic Ordering Agreement (BOA) N0016419GJQ58 for Electro Optical/Infrared (EO/IR) Sensor requirements on a sole source basis to subcontractor Wescam, Inc., North Atlantic Treaty Organization Commercial and Government Entity (NCAGE) Code 3AC24, 649 North Service Road West, Burlington, Ontario, Canada L7P 5B9 via the Canadian Commercial Corporation (CCC), CAGE Code 98247. The CCC serves as the prime contractor and is the gateway between the United States Department of Defense and Canadian suppliers. Authority to act under this CJ&A expires 15 AUG 2025.

3. Description of Supplies/Services

The supplies and services covered by these contract actions are in support of the and its associated supplies, services, repairs, and organic depot support for

NSWC Crane is the EO/IR and Laser multi-sensor systems support agent responsible for executing an Enterprise approach to sustain the EO/IR imaging sensor systems across various Government agencies. The concept of the Enterprise is to consolidate requirements and leverage existing organic infrastructure investments made by the

IN REPLY REFER TO:

DEPARTMENT OF THE NAVY

CRANE DIVISION

NAVAL SURFACE WARFARE CENTER

300 HIGHWAY 361

CRANE INDIANA 47522-5001

MX Sensor Systems are developed by Wescam, Inc., a wholly owned subsidiary of L-3Harris. The MX Sensor Systems are EO/IR imaging sensor systems with laser illumination and range finding capabilities.

Supplies to be procured include the , Technical Data, Hand Control

Units/Joysticks, Laser Boresight Modules, Component Spares, Replenishment Parts, Cabling, Adapters, Connectors and Peculiar Support/Test Equipment Hardware/Software.

Services include Engineering/Technical Services, Logistics Support, Support of embedded System Software/Firmware, Technical Manuals/Source Data, Configuration Management and Status Accounting, Upgrades, Repair, Maintenance, Training, Sustainment, Field Support and Obsolescence Management.

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

The estimated value of this action is $9.12M as tabulated below.

Estimated Dollar Value FY20 FY21 FY22 FY23 FY24 FY25 Totals

OPAF

OPN

OPA

PROC

OMAF

OMN

OMA

O&M Total $0.12M $1.8M $1.8M $1.8M $1.8M $1.8M $9.12M

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

In order to meet the tasking required, the Electro Optic Technology Division (EOTD) must maintain the exact configuration of hardware that is in use. This enables the EOTD to replicate operational issues, support Engineering Investigations (EI), and evaluate proposed upgrades and/or

Engineering Change Proposals (ECP) to enhance the system performance or reliability. In order to procure the configured hardware and perform the support tasks designated to the EOTD, data beyond what the Government has rights to is required.

Wescam is the original equipment manufacturer (OEM) and the owner of the MX Sensor Systems technical data package (TDP) and intellectual property (IP). The OEM has a family of products that fit into the MX line, all of which were developed exclusively at private company expense. The Government requested that the OEM provide cost information to acquire the rights to the MX Sensor System TDP and IP. The company’s response was that the TDP and the IP associated with MX Sensors is not for sale. This results in the Government not having access to the necessary data or rights in the data required to enable another source to produce spare systems or components, provide necessary depot repair services, or provide integration support. Moreover, the spare components associated with MX Sensors are not currently centrally managed and do not have a national stock number. As a result, suitable technical data, Government data rights, or manufacturing knowledge is not available to permit acquisition, qualification from other sources, or qualification testing of another component, nor use of a second source part in the intended application. There are no alternative sources to Wescam MX Sensor Systems spare components and there are no other components that are compatible with the systems.

Furthermore, no other company has the expertise needed to repair and test the MX Sensor Systems or support a Government organic depot through work-share agreements. Therefore, contracting directly with CCC on behalf of Wescam provides the only solution available to support the current inventory of MX Sensor Systems.

Award to any source other than CCC on behalf of Wescam would result in substantial duplication of costs that are not expected to be recovered through competition, and unacceptable delays would occur in fulfilling the agency’s requirement.

The replacement of the existing MX Sensor Systems with a competitor’s EO/IR system would result in the excessive duplication of costs to the Government, and these costs would not be recouped through competition. NSWC Crane supports approx. Sensor Systems. Based on prior procurement data, replacing current inventory of MX Sensor Systems would cost an estimated $24 million.

Alternatively, the development and sustainment of another source would also result in excessive duplication of costs to the Government, and these costs would not be recouped through competition. Based on current engineering estimates, the cost necessitated by reverse engineering the Wescam components and developing specifications, soliciting competitive offers and awarding to an alternate source, development, production, system integration and operational test verification would be a minimum of $3.9 million. Integration and regression testing costs are estimated at a minimum of $1.3 million. The estimated value of the procurements under the contemplated job orders, compared to the estimated development, integration, and test costs, makes it highly unlikely that these costs would be recouped through competition.

Duplication of Cost Redundant Effort Cost Reverse Engineering $2,250,000.00 Developing Specifications $625,000.00 Soliciting Competitive Offers $337,500.00 Development, production, system integration and Operational Test Verification $687,500.00 Integration and regression testing $1,300,000.00 Total Duplication of Costs $5,200,000.00

Based on current engineering estimates, the delay necessitated by reverse engineering the Wescam components and developing specifications, soliciting competitive offers and awarding to an alternate source, development, production, system integration and operational test verification would be a minimum of 2 years. This 2 year delay would seriously jeopardize the ability of program managers to field MX Sensor Systems, and sustain their use by end users in theater.

Task Performed Number of Years to be Performed

Reverse Engineering 1.00 Developing and Soliciting Competitive Offers 0.25 Development and Integration 0.50 Operation Test 0.25 Total 2 years

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

NSWC Crane EOTD is internationally recognized as the Center of Excellence for Night Vision/Electro-Optics within the Department of the Navy. As such, EOTD representatives maintain a close working relationship with this industry throughout the world. They have conducted numerous informal market surveys, host industry sensor demonstration, analysis of alternatives, and trade studies for multiple turreted Electro-Optic targeting systems for similar applications.

Market Research is done on a continuous basis by the requiring technical activity (RTA). The market research includes contacting knowledgeable individuals in the Government and industry, reviewing previous procurements and in-house contracts, review of catalogs and other product literature internet searches and attendance at Industry Trade shows. The requiring activity representatives maintain a close working relationship with the EO/IR industries throughout the world.

This working relationship with industry helps facilities continuous knowledge of the available technologies and manufacturing capabilities throughout the industry.

The Government released a Request for Information (RFI) for the BOA on 17 JAN 2019. Safran Optics 1 and PV Labs (Lockheed Martin) responded that they could meet the requirements. The RTA submitted an evaluation of the responses on 06 March 2019 concluding that neither company provided enough information to prove its solution could mitigate the Government’s sole source basis. Based upon the aforementioned background and working relationship with industry, it is the technical representative’s judgment that there is no known source other than the CCC on behalf of Wescam capable of performing the work required by this requirement.

Additionally, each order issued under the BOA is synopsized on the www.Beta.SAM website in accordance with Federal Acquisition Regulation (FAR) Subpart 5.2. The Government released a RFI for this requirement on 05 MAY 2020 and a synopsis on 12 May 2020 requesting interested vendors provide input. No responses were received in response to the RFI for this Job Order. The lack of responses to the RFI validates the determination that there is no other competent or responsible supplier of the desired supplies or services.

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 CJ&A will be fair and reasonable. Similar quantities of this requirement have been purchased from this offeror in the past and pricing information was received on those past procurements. The contracting office will use price analysis to determine a fair and reasonable price. This information should be sufficient to support the fair and reasonable cost determination of this procurement. Additionally, prices will be endorsed by the CCC in accordance with DFARS 225.870-3(a).

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 this type 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(b))

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:

REQUIREMENTS COGNIZANCE:

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(a)(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 described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1).

Crane Division Competition Advocate

Kelly Siffin, Chief of the Contracting Office, (02) Date