22Q0138_JA REDACTED.pdf

N REPLY REFER TO:

J&A Number: CR-22193

Code: 0234

P.R. TBD

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

The Naval Sea Systems Command (NAVSEA) Naval Surface Warfare Center, Crane Division (NSWC Crane), Expeditionary Simplified Acquisition Contracting Branch (0234)

2. Description of the Action Being Approved.

The use of other than full and open competition to award a firm-fixed-price, five year, indefinite-delivery, indefinite-quantity, for the procurement and repair of processor cards in support of the Multi-spectral Targeting Systems (MTS) electronics unit to DY4 Inc. (aka Curtiss-Wright Defense Solutions), 20130 Lakeview Center Plaza, Suite 200, Ashburn, VA 20147. Anticipated components include Video Processor Assemblies/Dual Core Power PC Processors. In accordance with 41 USC 1901, this action will utilize Federal Acquisition Regulation Subpart 13.5 for the use of Simplified Procedures for certain commercial items and services.

3. Description of Supplies/Services.

This procurement is for the purchase of P/N: DMV-184-2810-1 processor cards and P/N:

DMV-184-2837-1, Rhino-10 Cards to facilitate a shortened repair turnaround time of the MTS to operational use. This procurement also includes repairs, obsolescent and sustainability analysis support, and technical documentation.

The supplies required by this contract are for the replacement and sustainment of the proprietary MTS systems. The parts will be utilized in the repair support of the Raytheon family of Electro-Optic Infrared (EO/IR) Systems, also known as MTS Models A, B, C and D. This family of EO/IR systems includes the variants of AN/AAS-52; AN/DAS-1, 2, 3, 4;

AN/AAS-53; AN/AAS-54; AN/ZSQ-2; and future derivatives. These EO/IR systems provide intelligence surveillance and reconnaissance, detection, identification and targeting capability in day/night operations for both manned and unmanned platforms. The processor cards are key elements of the MTS. The Government�s minimum needs have been verified by certifying technical and requirements personnel.

The estimated total value of this acquisition is $3,000,000. This estimate was derived from previous contract pricing and accounting for current market increases.

DEPARTMENT OF THE NAVY

CRANE DIVISION

NAVAL SURFACE WARFARE CENTER

300 HIGHWAY 361

CRANE INDIANA 47522-5001

Estimated Dollar Value

FY 22 FY 23 FY 24 FY 25 FY 26 Total

PROC $ 500.00 $500.00 $500.00 $500.00 $500.00 $2,500.00

O&M $100.00 $100.00 $100.00 $100.00 $100.00 $ 500.00 Total $ 600.00 $600.00 $600.00 $ 600.00 $600.00 $3,000.00

* Values stated in thousands

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 2304(c)(1)Only one responsible source and no other supplies or services will satisfy agency requirements as implemented by FAR 6.302-1(c).

5. Rationale Justifying Use of Cited Statutory Authority.

The items/services being procured under this J&A are in direct support of the replacement and repair of the MTS, which has been deployed on manned and unmanned fixed-wing and rotary-wing air vehicles for the Navy, Army, Air Force, and Special Operations. The MTS OEM, Raytheon Company, subcontracted design and production of the Video Processor Assemblies/Dual Core Power PC Processors to DY4 Inc.

The Government has been purchasing the EO/IR systems from Raytheon for over twenty

(20) years and has deployed more than five hundred systems in multiple manned and unmanned platforms. All prior requirements for DY4 Inc. components, repairs, and obsolescent support were covered by sole source contracts/orders placed with Raytheon Company, the MTS system OEM. The requirement for the DY4 Inc. components comprises approximately five percent of the cost/price of purchase or repair of a MTS system. In an effort to shorten repair turnaround time, the Government seeks to purchase supplies and services required for sustainment of the MTS directly from the OEM subcontractor. The Government further intends to develop Organic Depot testing and screening for minor repairs for which the OEM�s knowledge and experience is not necessary.

Manufacturing of the DY4 Inc. components by any source other than the OEM is not practicable. DY4 Inc. processor cards have been customized to both meet the Government�s performance specifications and to interface with Raytheon�s MTS system.

The Government does not own design specifications adequate enough to allow for competition, and on March 2022, DY4 Inc. advised that, �DY4 Inc. would not be selling the license and proprietary data to the Government or to any entity.� Based upon their unique system design, test and component interface knowledge and experience, this Raytheon Company subcontractor is the only contractor possessing the capability to provide the required supplies/services.

Award to any source other than DY4 Inc. 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. Based on current engineering estimates, the delay necessitated by reverse engineering of the DY4 Inc. components and developing specifications, soliciting competitive offers and awarding to an alternate source, development, production, system integration, operational test verification and formulation of repair capabilities would be a minimum of 38-months. This 38-month delay would seriously jeopardize the ability of program managers to field MTS systems, and sustain their use by end users in theater.

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.

Integration and test costs alone are estimated at a minimum of $1.6 million. These estimates are based off actual costs incurred from prior integration and testing. The 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 due to higher costs associated with the integration and test costs. The below table represents the total delays and duplicative costs to the Government:

DMV-184-2810-1 and DMV 184-2837 New Product Supplier Cost Schedule

Develop & Validate TDP $240,000 6 Months Non-Recurring Engineering $420,000 6 Months Establish Production $306,250 6 Months System Level Integration & Test $105,000 3 Months Documentation $62,500 1 Month

$1,133,750 22 Months

New Repair Vendor Cost Schedule Develop Diagnostics Capability $180,000 6 Months Develop Repair Capability $112,500 6 Months Verify Performance $112,500 3 Months Documentation $62,500 1 Months

$467,500 16 Months

Total Integration & Test Costs $1,601,250 38 Months

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

A Request for Information (RFI) was posted to the System for Award Management website on 12 April 2022 soliciting possible sources for the manufacture and repairs of the processor card assemblies. The RFI closed on 19 April 2022 and no responses were received.

Informal market research was and is conducted on a continuous basis by the requiring technical activity. The informal 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 Electro-Optics industries throughout the world. This working relationship with industry 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 judgment that there is no known source other than DY4 Inc. capable of performing the work required by this contractor.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer will determine that the anticipated cost to the Government for the supplies covered by the J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NSWC Crane Code 0234 has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, NSWC Crane Code 0234 will assess whether competition for future requirements is feasible.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

Signature Brian Banks Phone No. Date

Requirements Cognizance:

Signature Brandon Boeglin Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Signature Kathleen Robertson Phone No. Date

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

Signature Andrew Ficklin Phone No. Date

APPROVAL

Upon the basis of the above justification, I hereby approve, as Competition Advocate for the Procuring Activity, 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).

Richard McGarvey (Acting CCO) Date

8/10/22

812-854-4477