24DJQ87_JA_REDACTED.pdf

JUSTIFICATION AND APPROVAL

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-CR), Expeditionary Sensors Contracting Branch, Code

0231.

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 to the

Canadian Commercial Corporation (CCC), North Atlantic Treaty

Organization (NATO) Commercial and Government Entity (NCAGE) Code

98247, 350 Albert St. Suite 700, Ottawa, Ontario, K1A OS6, Canada;

100% subcontracted to the Original Equipment Manufacturer (OEM) L3

Harris Wescam, hereinafter referred to as Wescam, CAGE code 3AC24, 50 Leavitt Blvd, Waterdown, Ontario, L9H 0C5, Canada. The CCC serves as the prime contractor and is the gateway between the

United States Department of Defense (DoD) and Canadian suppliers.

3. Description of Supplies/Services

The NSWC-CR EOTD provides engineering, logistics, and acquisition support to multiple programs that utilize Wescam MX Systems.

The purpose of this contract is for the direct procurement of the

Wescam MX Family of Electro Optic/Infrared (EO/IR) MX Sensor

Systems, supplies, services, and technical data to support the integration and sustainment of the MX systems on various Maritime, Expeditionary, and Airborne platforms to support military operations worldwide. This is a follow-on contract to one competitively awarded contract (N0016417DJQ94) and three sole source Basic Ordering Agreements (BOAs) (N0016416GJQ69, N0016418GJQ35, and N0016419GJQ58) that will also include requirements not currently covered by the awarded contracts.

The MX Sensor Systems (hereinafter MX Systems) are a family of multi-sensor payloads which vary in size and weight, which provide

Intelligence Surveillance and Reconnaissance (ISR) Detection, Identification and Targeting Capability in day and night

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

CRANE DIVISION

300 HIGHWAY 361

CRANE INDIANA 47522-5001

N REPLY REFER TO

J&A Number: CR-22023

Code: 0231

P.R. Number: N0016422RJQ87 operations using High Definition (HD) Full Motion Video (FMV).

The MX Systems family includes MX-10, MX-15, MX-20, MX-25, and future variants with or without lasers. The proposed sole source contract is for the direct procurement of new MX Systems, lay-in materials, low quantity spares, test equipment, repairs, and sustainment support directly from Wescam and will facilitate a shortened overall repair turn-around time of the MX Systems to increase operational availability. Associated specialized test equipment used to test and screen the condition of currently fielded systems will be procured if available. This effort supports Organic Government Depot Level support of the fielded systems.

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

The total funding planned for the acquisition by appropriation is as depicted in the following table:

Table 1 - Funding

Type Funds ($M) Total (FY23–FY27)

Total Cost ($M) $399.42

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.

5. Rationale Justifying Use of Cited Statutory Authority

The Government has limited data rights to the required MX Systems.

Wescam developed the MX Systems at private expense. Data delivered in support of the MX Systems under current and prior contracts is proprietary to Wescam. The Government does not own a

Technical Data Package (TDP) nor does it have sufficient rights in any data related to its development to allow for competition. The

Government has contacted Wescam numerous times in the past and asked Wescam if they would quote data rights or a license agreement to the Government. Wescam has consistently replied that they will not sell data rights or a license agreement. The most recent request was emailed to Wescam on 21 April 2021. Wescam responded that they will not sell data rights or create a license agreement to other vendors or the Government. Award to any other vendor would therefore result in substantial duplication of costs that are not expected to be recovered through competition and in unacceptable delays in fulfilling the agency’s requirements.

Other manufacturer’s systems would require extensive reengineering to permit use on specific platforms. The Government has invested over a decade and significant funds to develop Interface Control

Documents to interface with other platform fire control, digital outputs, and ISR software interface components. As the EO/IR

Sensors are tightly integrated into multiple weapons systems, multiple mounting locations on the different types of military aircraft, expeditionary and maritime platforms, multiple mission management consoles and software programs, as well as the Systems

Integration Lab and Mission Training Devices, the Government estimates the total duplication of cost to be in excess of $128M, which are not expected to be recovered through competition.

Further, based upon its unique product design, Wescam is the only source that can supply the MX systems, spare parts and product support technical services without unacceptable delay. Standard production lead time for Wescam MX System is nine to twelve months. Software interfaces would require additional engineering to update control interfaces, update data transmission protocols, and verify interoperability with various Government and commercial software systems. Concurrent with integration and testing, each platform’s logistic elements would require updating. This would include revising technical manuals and training curriculum to include information for the other manufacturer’s systems.

Training systems would require retrofit to add the capability to train the other manufacturer’s systems. Upon delivery of another vendor’s sensors, an additional 12 months of developmental testing to verify performance and interoperability would be required.

Following developmental testing at least 6 months would be required for operational testing to validate interoperability with the weapons systems. The additional time required to satisfy all of the requirements to integrate another vendor’s systems would impact the program with a 2.5 year schedule delay and have a severe impact on the platform integration schedules, supportability of fielded systems, and program costs.

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

Offerors as Practicable

The Government released a Request for Information (RFI)

N0016420SNB38 on 26 March 2020 on Beta.SAM.gov, and the Government received no responses to the RFI. A synopsis was subsequently released on 19 November 2020, and the only response was from

Wescam. A second synopsis was released on 20 December 2021, and no responses were received. The lack of any additional responses to the RFI and synopsis validates the determination that there is no other 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 J&A will be fair and reasonable.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, NSWC-CR 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-CR will assess whether competition for future requirements is feasible. As this is a follow-on for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(S-70)(i), the prior J&A was provided to the approval authority for review. Approval of this

J&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(S-70)(ii).