22RWQ91_23DWQ91_non-comp.pdf

JUSTIFICATION AND APPROVAL

CR-22108

N0016422RWQ91

Controlled by: Department of the Navy Controlled By: NSWC Crane Code 02

CUI Category: PROCURE Distribution/Dissemination Control: FEDCON

POC: NSWC Crane 0242 Branch Head

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DEPARTMENT OF THE NAVY

CRANE DIVISION

NAVAL SURFACE WARFARE CENTER

300 HIGHWAY 361

CRANE INDIANA 47522-5001

In Reply refer to:

J&A No. CR-22108 Code: 0242 P.R. Number: N0016422RWQ91

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

The Naval Sea Systems Command, Naval Surface Warfare Center (NSWC) Crane, Airborne Expeditionary Electronic Warfare Contracts Branch, Code 0242.

2. Description of the Action Being Approved.

Award of a five (5) year Firm-Fixed-Price, Indefinite-Delivery Indefinite-Quantity (IDIQ) contract on a sole source basis for equipment manufactured by Planar Monolithics Industries, Inc. (PMI), 7311 Grove Rd Ste. F, Frederick, MD 21704-5178. This contract is to procure supplies and services and/or Engineering Change Proposals (ECPs) in support of Crane’s Multi- Agent Radio Frequency Path Simulator (MARPS) system.

3. Description of Supplies/Services.

This procurement consists of supplies and services and/or ECPs to support the MARPS system utilized at NSWC Crane. The MARPS system is a HardWare-In-the-Loop test system that simulates range testing in a laboratory environment. It is utilized at NSWC Crane to reduce the number of range tests required to field a system and improve readiness for the remaining range tests. MARPS is comprised of commercial electronic test equipment and signal generators used to simulate signal paths of open-air environment. For example, a typical field test of the JCREW system requires approximately 25 personnel to operate everything and requires approximately two weeks of range time. The MARPS system allows the same tests to be performed by a single person in a lab environment in approximately 1/3 the time.

This requirement is to procure supplies and services and/or ECPs related to any of the following:

Repair of parts for the existing MARPS I and MARPS II modules; additional MARPS II modules.

Development (Non-Recurring Engineering [NRE]) and purchase of MARPS/ Wireless Infrastructure Test System (WiTS) interface modules.

Repair parts for MARPS/WiTS interface modules.

Development (NRE) and purchase of Node Block modules.

Repair parts for Node Block modules.

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Supplies will consist of procuring piece parts required to repair the system and/or expand its capabilities. Services include NRE to develop new capabilities or revise existing designs per Government requests and may consist of electrical and/or Radio Frequency (RF) design, component selection, component layout, system design, drawings, and manufacturing design.

The Government’s minimum needs have been verified by the certifying technical and requirements personnel supporting the MARPS program. The total estimated value of all orders to be placed under this contract is $5.28M over a five (5) year ordering period. Supplies will comprise approximately 98% of the total dollars, while services will account for the remaining 2% as shown in Table 1. Table 2 below identifies the anticipated funding for this IDIQ contract for years FY22 through FY26. Cost estimates are based on historical data, market research, budgetary estimates from the vendor, and known requirements.

Table 1. Estimated Labor and Parts Cost Breakdown

Amount Percentage Parts $5,174,400.00 98% Labor $105,600.00 2% Total $5,280,000.00 100%

Table 2. Estimated Dollar Value

FY22 FY23 FY24 FY25 FY26 Totals

$5,279,783

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

10 U.S.C. 3204(a)(1), as implemented by FAR 6.302-1(a)(2)(ii), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

The original existing MARPS I system was designed and built by NSWC Crane. The key component, RF digitally controlled attenuators, to be integrated into the MARPS I system were competitively procured under NSWC Crane contract N00164-11-D-WQ42 in the amount of $1,036,750. Only two vendors, PMI and American Microwave Corporation, responded to the solicitation, and PMI was awarded the contract. The MARPS II system was also initially designed and built by NSWC Crane, however a solicitation was issued for a requirement to integrate the path control modules within the MARPS II system using hybrid RF modules which changed the internal design of MARPS II. The integrated modules were competitively procured under NSWC Crane contract N00164-14-C-WQ61 in the amount of $1,155,370. PMI was the only technically acceptable offer and was awarded the contract.

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PMI is the Original Equipment Manufacturer (OEM) and owns the proprietary rights to the design of the internal components of the MARPS test equipment currently in use. The Technical Data Package provided by PMI under NSWC Crane contract N00164-14-C-WQ61 did not disclose the design of the internal components and those data rights were not purchased under that contract due to financial restraints and PMI’s unwillingness to sell the data. The design of the new equipment requirements builds upon the design of the existing units. All new equipment requirements must match in form, fit and function with the existing units while utilizing existing MARPS software. Therefore, the Government cannot meet the goals of the upgrade’s requirement without PMI’s proprietary data.

PMI developed the necessary product/model drawings and associated lists, assembly procedures, technical data package, factory acceptance test procedures, and build configuration lists, and is not willing to license or sell this intellectual property to the Government or another commercial activity, as stated in an email received from PMI’s representative on January 6, 2022.

If a vendor other than PMI were selected, they would have to start with a new test system to ensure that their products would be compatible with the existing MARPS I and MARPS II systems. Furthermore, a new vendor would have to custom design new repair parts for the existing system that match PMI’s parts in performance, size and shape. Therefore, establishing an alternate source(s) would result in substantial duplication of costs (Table 3), based on the Government’s historical expenditures developing and contracting the original two MARPS systems. It is estimated that the Government would incur an additional $1,230,000.00 in NRE costs with no guarantee for success to reverse engineer the MARPS systems and develop the product/model drawings and associated lists, assembly procedures, technical data package, factory acceptance test procedures, and build configuration lists. It is not feasible, based upon the limited number (quantity two) of MARPS systems in inventory at NSWC Crane, to recoup the investment of the non-recurring costs through competition.

Table 3. Duplication of Costs

Task Description Cost Design $630,000 Drawings $60,000 Test Procedures $75,000 Software $465,000

Total Cost $1,230,000

Furthermore, it is estimated that the Government would incur an unacceptable schedule delay of 31 months (Table 4) based on Government historical design projects to develop another source, which would jeopardize operational requirements at NSWC Crane. Additional procurement lead time of approximately 6 months would be required to purchase and receive materials before the Government would be able to successfully install into the MARPS system.

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Table 4. Duplication of Time

Delay Time in months Technical data package Development 12 months Competitive contract award 10 months Production Lead Time 6 months Validation 3 months Procurement Lead Time 6 months

Total Time 37 months

The Government does not own, nor have rights to, proprietary pieces of data in the technical data package associated with the creation and sustainment of the PMI supplied equipment. Utilizing full and open competition to select an alternative source is expected to result in significant duplication of costs and would provide components that only functionally meet the requirement.

The procurement of components which are not form, fit, and functionally interchangeable would result in significant developmental and sustainment costs. Therefore, award to any source other than PMI would not fulfill the agency’s requirements.

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

An initial Request for Information was issued on beta.SAM.gov website on 14 October 2021 and only a response from PMI was received. A synopsis was issued on beta.SAM.gov website on 29 October 2021 and no responses were received. Historical contracts for this system were reviewed by the requiring activity and contracts personnel, including N00164-14-C-WQ61 for which PMI was determined the only vendor technically capable. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than PMI to fulfill the requirements.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable prior to award. The Contracting Officer will use cost and/or price analysis to determine a fair and reasonable price and may request other than cost and pricing data if applicable. Assistance from the Defense Contract Management Agency may be requested to analyze, evaluate, and negotiate based upon pricing data. Comparisons to prior contracts for same items may be used as necessary.

8. Actions to Remove Barriers to Future Competition.

For 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 other potential source(s) emerge, NSWC Crane Division will assess whether competition for future requirements is feasible.

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J&A No. CR-22108

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:

Requirements Cognizance:

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

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

COMPETITION ADVOCATE FOR THE PROCURING ACTIVITY 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. 3204(a)(1).

Kelly Siffin Date