21RGP70_non-comp_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-21139

Code: GXP

P.R. Number: N0016421RGP70

JUSTIFICATION AND APPROVAL

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), Global Department Contracts Branch, Code 0221.

2. Description of the Action Being Approved

Award of a five (5) year indefinite-delivery, indefinite-quantity (IDIQ), firm-fixed-price (FFP) services contract on an other than full and open competition basis for the procurement of full Original Equipment

Manufacturer (OEM) calibration and repair services of OEM equipment from

Keysight Technologies Inc. (Keysight), 1900 Garden of the Gods Rd, Colorado Springs, CO 80907-3423.

3. Description of Supplies/Services

Keysight will perform full OEM calibrations and repairs to Keysight OEM test, measurement and diagnostic equipment. Covered equipment will include Test, Measurement and Diagnostic Equipment (TMDE), Automated

Test Systems (ATS) and Automated Test Equipment (ATE).Covered equipment examples include but are not limited to Spectrum Analyzers, Network

Analyzers, Oscilloscopes, Wave Form Generators and Isotropic Probes.

Calibrations and repairs will be conducted to the full and complete OEM specifications and repair criteria, which requires the necessary hardware, propriety software, equipment manual(s), equipment test procedures and identified test standards required to perform calibrations.

The total estimated value of this requirement is $5M and will be funded with Operations and Maintenance, Navy (O&MN) appropriated funds:

Estimated Dollar Value

Type FY21 FY22 FY23 FY24 FY25 Totals

O&MN

Total

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1) and in accordance with FAR 6.302-1(a)(2), only one responsible source and no other type of supplies will satisfy the needs of the agency.

5. Rationale Justifying Use of Cited Statutory Authority

Capability of performing the required services is available from only one responsible source, Keysight, due to the proprietary nature of the manuals, calibration procedures, software, firmware, and coefficients required to provide these calibrations.

Laboratories providing full calibration and repair in support of the Navy

METCAL Program must be certified by an accrediting body approved by the

NAVSEA METCAL Technical Warrant Holder (NAVSEA 04RM)and as required by

NAVSEA Ser04RM/4391, NAVSEA Policy for Use of Certified/Accredited

Original Equipment Manufacturer’s (OEM) Calibrations. In addition, Laboratories must be certified to the ANSI/NCSL Z540.3 standard and/or ISO/IEC 17025 (17025 Standard). The NAVSEA METCAL technical warrant holder acknowledges NSWC Crane Division’s course of action to use OEM for calibration of their specific equipment.

ANSI/NCSL Z540.3 requires, for the competence of testing and calibration laboratories, the calibration of measuring and test equipment, and the scope of the certification and accreditation must cover the measurement parameters and ranges of the calibration performed. In order to meet the standard, the laboratory shall have:

the specific OEM equipment manual for the equipment model being calibrated and/or repaired.

the specific OEM equipment test procedure for the equipment model being calibrated and/or repaired.

the proprietary OEM software and coefficients required to adjust the specific equipment model as identified in the OEM manual and test procedures.

the required specialized tools identified in the OEM test procedure to make adjustments and/or calibrations to the specific equipment model.

access to OEM repair parts and components for the specific model of equipment being calibrated and/or repaired.

Non-OEM vendors cannot achieve this standard level because Keysight does not publish its standards and procedures concurrently. Market research reveals that it is common commercial practice for OEM(s) to publish standards or procedures, but not both at the same time; thus, only the OEM can meet the manufacturer’s warranted specifications for the equipment by model number.

In addition, Keysight does not release its proprietary software to anyone other than end users of the items. The equipment covered under this justification requires the software to update and adjust the equipment;

therefore, no laboratory other than the OEM can meet the manufacturer’s warranted specifications for the equipment by model number.

Additionally, to fulfill the requirements of the 17025 Standard there are five basic components that compose the structure to meet the detailed clauses of the standard: scope, procedures, control (including conformance and feedback), uncertainties and proficiencies. The NSWC Crane Metrology and Calibration Lab is required to verify the scope of certification for any non-OEM. The scope of competency must be verified to ensure the Navy’s calibration requirements are upheld.

Currently, the NSWC Crane Metrology and Calibration Lab supports five system commands (SYSCOM) for the United States Navy. Each SYSCOM has procured equipment to meet its programmatic needs. To use a source other than Keysight, the NSWC Crane Metrology and Calibration Lab would have to perform an extensive review of the calibration capability of any interested calibration vendor. NSWC Crane has analyzed the population of equipment requiring calibration at NSWC Crane, and based on the expertise of experienced calibration laboratory personnel, it has determined that

NSWC Crane Metrology and Calibration Lab staffing would have to be increased by an estimated ten (10) work years during the time period associated with this Justification and Approval to conduct the extensive review. This would 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.

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

Practicable

In accordance with Defense Federal Acquisition Regulation Supplement

(DFARS) Procedures Guidance and Instruction (PGI) 206.302-1(d), NSWC Crane issued a RFI/Sources Sought at the Government-wide point of entry (GPE) on

04-FEB-2021 under special notice number N0016421SNB33. The notice closed on 10-FEB-2021 at 12:00 PM EST with one (1) response received from , . asserts capability to perform calibration and repair services;

however, as explained in Section 5 above, does not have capability to perform the full and complete OEM calibration and repair that the

Government requires. Additionally, is not certified by an accrediting body approved by the NAVSEA METCAL Technical Warrant Holder

(NAVSEA 04RM). The Government acknowledged capability to perform partial calibration and repair on the OEM equipment but not the full OEM calibration that is required.

Additionally, market research revealed the standards for commercial and non-commercial activities requiring calibration are derived from the

European Guide to Measurement Uncertainties (GUM). The American authority for calibration is the National Institute of Standards and Technology

(NIST) whose specifications are derived from GUM. All programs supported by NSWC Crane provide specifications to meet its respective mission requirement. These specification are uniquely particular to the equipment and the mission. OEM(s) build its standards and procedures both from the

GUM and NIST specifications. Market research has shown that only the OEM can provide standards and procedures required to meet not only the GUM and

NIST specifications, but also the program specific calibrations as well.

Some less complex equipment, such as hand tools, meters, and similar products, can be calibrated by non-OEM sources. NSWC Crane currently relies on non-OEM calibration sources for requirements of these types of equipment.

Keysight is the only source capable of satisfying the Government’s requirement. In accordance the details provided above, it is confirmed that no other source is able to provide the required services.

Additionally, the Government will synopsize the proposed contract action to the GPE. Any responses from interested sources received prior to contract award will be considered.

7. Determination of Fair and Reasonable Prices

The Contracting Officer has determined the anticipated prices for the requirements covered by the J&A will be fair and reasonable prior to contract award. The Contracting Officer anticipates using price analysis for proposal evaluation; comparison to historical prices paid for same and similar items; and comparison with competitive published price lists.

8. Actions to Remove Barriers to Competition

For reasons set forth in Section 5, NSWC Crane has no plans to compete further contracts for calibration and repair of Keysight equipment.

NSWC Crane has, and is currently utilizing a blanket purchase agreement

(BPA) for the procurement of calibration services. Through the utilization of this BPA, NSWC Crane has been unsuccessful receiving acceptable calibrations from non-OEM vendors for complex equipment similar to the equipment being covered under this J&A. This BPA will continue to be utilized for less complex equipment, and will provide calibration and repair service opportunities to non-OEM vendors.

Additionally, future requirements not covered under any existing contracts are anticipated to be solicited at the GPE, providing additional opportunities to compete for NSWC Crane calibration requirements.

Finally, this J&A will be made publicly available at the GPE in accordance with FAR 6.305(a). Any responses from interested sources will be considered.

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 data, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

Branch Manager, Code GXPR Phone No.

REQUIREMENTS COGNIZANCE:

, Division Manager, Code GXP Phone No.

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303-90(a))

I have determined this justification is legally sufficient.

, Associate Counsel, Code 00L Phone No.

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.

, Contracting Officer, Code 0221 Phone No.

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).

Competition Advocate

Kelly M. Siffin, Chief of the Contracting Office, Code 02 Phone No.