24DWP95_JA_REDACTED.pdf

DEPARTMENT OF THE NAVY

CRANE DIVISION

NAVAL SURFACE WARFARE CENTER

300 HIGHWAY 361

IN REPLY REFER TO:

J&A Number: CR-22197 Code: 0241 P.R. Number: N0016423RWP95

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 Crane), Spectrum Warfare Contracting Division, Radar & Infrared and Radio Frequency Systems Contracts Branch, Code 0241.

2. Description of the Action Being Approved

Award of a non-commercial, firm-fixed-price (FFP) & cost-plus-fixed-fee (CPFF), indefinite-delivery, indefinite-quantity (IDIQ), five (5) year contract on a sole source basis to Teledyne Microwave Solutions, 11361 Sunrise Park Drive, Rancho Cordova, California 95742-6532, for evaluation, repair, upgrade, and new manufacture of 10kW and 13kW Traveling Wave Tubes (TWT); Government Furnished Equipment (GFE) maintenance; engineering and technical services in support of a Product Improvement Program (PIP); quality testing (i.e., gold tube testing and phase standards testing) in support of the AN/SPY-1 Radar System.

3. Description of Supplies/Services

This procurement consists of requirements for 10kw TWT Manufacture and Evaluation/Repair/Upgrade, 13kW TWT Manufacture and Evaluation/Repair, GFE Support and Repair for highly specialized manufacturing test equipment, Gold Tube and Phase Standard Testing and Engineering and Technical Support Services for the 10kW TWT for the AN/SPY-1 Radar.

The 10kW TWT is also known as a Driver/Pre-driver TWT and is used in the AN/SPY-1A/B/D Radar Systems. Within the AN/SPY-1D(V) transmitter are three Radio Frequency Amplifier (RFA) cabinets, commonly called the Driver/Pre-Drivers (D/PD cabinets), which provide amplification of the RF signals from the Amplifier Monitor to drive the two Final Power Amplifiers, AM-7491/SPY-1D(V). Of these three D/PD cabinets, only two are online at any one time; the third unit is available for casualty back-up via waveguide switching. The D/PD cabinets contain a pair of amplifier trains, each consisting of a 10kW TWT driving a CFA tube.

The technical and requirements personnel have determined the required TWTs are highly specialized equipment. The original effort to select sources for this product was performed by Raytheon as part of the transmitter component development on the Radar System. Teledyne was the only source certified in 1981 when the AN/SPY Radar System program was transferred to NSWC Crane for management. In an effort to develop a second source and increase competition, Varian Associates (now CPI) and Litton (now L-3) were subsequently awarded contracts by NSWC Crane for development of TWTs. Both vendors delivered TWTs to be tested to determine if they met specification requirements. However, neither Varian nor Litton were successful as their TWTs did not meet the five (5) specification requirements stated in specification WS-21607. NSWC Crane awarded a contract to Teledyne for 159 production TWTs on a sole source basis in 1983. All contracts for TWTs issued by NSWC Crane since that time have also been awarded to Teledyne on a sole source basis. Teledyne has been in continuous TWT production/repair since the 1983 award. The testing equipment for the TWTs is provided as GFE and is also required for use on other Government contracts being performed by Teledyne at the same location.

The TWT design was developed by Teledyne using proprietary critical manufacturing processes to meet the Navy's requirements of specification WS-21607 and NAVSEA Drawing 5730321, which specifies interface requirements. Their design for the 10kW and 13kW TWTs was based on an existing Teledyne design for a similar TWTs. NSWC Crane has government purpose rights on the 10kW and the 13kW TWTs when it comes to research and development of performance improvement experiments, but does not possess unrestricted data rights. In addition to the design rights, Teledyne's manufacturing processes are critical in producing and repairing the TWTs and are proprietary to Teledyne. On 27 April 2022, the Government asked Teledyne if they would sell the Government all of the data rights for the 10kW and 13kW TWTs. They responded on 25 May 2022 stating, “After careful consideration, Teledyne is not interested in selling any Intellectual Property related to the 10kW tube under Prime Contract WP83.” The 13kW TWT’s technical design is based on the 10kW TWT but with higher output. Without unlimited data rights for the 10kW TWT, the Government would not have unlimited data rights to the 13kW TWT as an extension.

NSWC Crane holds unlimited data rights for the Varian Associates (now CPI) and Litton (now L-3) versions of the 10kW and 13kW TWTs; however, as specified above, those versions presented were unsuccessful in meeting the certification and, therefore, are of no benefit to the Government. Teledyne’s R&D on TWT is the only version that meets all specifications and requirements.

Testing of TWTs to meet specification requirements is a lengthy process which takes an estimated five and a half (5.5) years and a total amount of $7,871,670.00 as shown in Tables 1 and 2. Engineering development, which includes the first four (4) identified line items in Table 1, of a TWT design by a competent tube manufacturer is estimated to be five (5) years and

Table 2: Cost of Certification Testing Engineering Development $3,363,750 Test Samples (10 Units) $1,558,170 NSWC-CR Testing $538,200 Pilot Production (12 Units) $1,531,800 GFE Duplication $879,750 Total $7,871,670

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

Market research was conducted in accordance with FAR Part 10; FAR 10.001(a)(2) requires market research appropriate to the circumstances. In this case, the internet was used as a research tool to locate sources for microwave tubes meeting key requirements. Five sources (including Teledyne) were identified as TWT manufacturers. The market research conducted is appropriate for the circumstances because it is not the Government’s position that other microwave tube vendors do not exist, nor is it the Government’s position that it would be impossible for another vendor to perform. It is the Government’s position that substantial and unacceptable schedule delays will be incurred if award is made to a source other than Teledyne.

In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) PGI 206.302-1(d), a Sources Sought was posted on the Government’s Point of Entry on 14 MAR 2022 to further conduct market research for existing sources of manufacturers of TWTs. The posting closed on 12 APR 2022, 16:00 EST. No responses were received.

A synopsis of the proposed procurement was also published on www.sam.gov in accordance with FAR subpart 5.2 on 9 May 2022. All interested parties would have had access to the solicitation and would have been allowed to propose. However, no responses or requests were received.

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.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NSWC Crane Division has no plans at this time to compete future contracts for the types of supplies covered by this document. If other potential sources emerge, NSWC Crane Division will assess whether competition for future requirements is feasible.