529 - JA-24-0014 Draft Fuel Cell Watercraft NexGen_Redacted.pdf

Navy Marine Corps Acquisition Regulation Supplement APRIL 2018 (Change 18-25)

JA-24-0014

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

The requiring activity is Naval Facilities Engineering and Expeditionary Warfare Center (NAVFAC EXWC), 1100 23rd Ave, Port Hueneme, CA. The Contracting Officer Representative (COR) is

, who can be reached at . The contracting activity is NAVFAC EXWC, 1100 23rd Ave, Port Hueneme, CA. The NAVFAC EXWC CON71 point of contact is who can be reached at .

2. Description of the Action Being Approved.

Approval is sought to authorize an exception to the full and open competition process under the authority of 41 U.S.C. 3304(a)(1). Approval will result in contract award to NexGen Integrated Energy Systems (NexGen IES) on a sole source basis.

3. Description of Supplies/Services.

The technical development goal is to develop a fuel cell watercraft that integrates state-of-the art and commercial-off the shelf (COTS) components. The requirement is to design, develop, test, and demonstrate a fuel cell watercraft. The project will be broken down into four phases: Phase I: Marine Electric Drive, Phase II: Fuel Cell Integration, Phase III: Fuel Cell Watercraft Control, and Phase IV: Fuel Cell Watercraft Demonstration.

The funding type utilized for the base period will be FY24 Research and Development (R&D) from Department of Defense (DoD) Operational Energy Capability Improvement Fund (OECIF). The total for the initial base award is . Additional funding will be provided for option periods.

The anticipated contract will have a base period of seven (7) months plus three (3) option periods. Option periods one and two will have a period of performance of 12 months each. Option period three will have a period of performance of six (6) months. The contract will have a total period of performance of 48 months or four (4) years.

Tasks and Costs:

Schedule Fuel Cell Watercraft Cost Phase I: Marine Electric Drive Phase II: Fuel Cell Integration Phase III: Fuel Cell Watercraft Control Phase IV: Fuel Cell Watercraft Demonstration Total RDT&E Funds:

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

The statutory authority for the use of this sole source action is 41 U.S.C. 3204(a)(1) as implemented by FAR subpart 6.302-1 – Only one responsible source and no other supplies or services will satisfy agency requirements. Only one responsible source can provide this highly specialized service, and no other supplies or services will satisfy the agencies requirements described above.

5. Rationale Justifying Use of Cited Statutory Authority.

Market research conducted by the agency shows that (1) fuel cell watercraft that meets agency requirements are not available from a single manufacturer; and (2) state-of-the art and COTS components that meets the Government need for the marine electric drive power train; fuel cell, hydrogen storage, batteries, DC-DC bus, and electric outboard are not available from a single manufacturer.

The available expertise in industry is limited to small manufacturers/integrators with experience in prototype development of fuel cell vehicles for on-highway applications as opposed to the agency requirement of fuel cell watercraft for marine applications. The configuration of the COTS equipment for the purposes of a fuel cell watercraft for marine applications has not been done before, so the testing of this unique assembly is considered advantageous to the Government.

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

The agency established the requirements for the fuel cell watercraft performance for maturation of Desired Attribute 4.4 Hydrogen Fuel Cell Mid-Tier Capability for the Long Range Unmanned Surface Vessel (LRUSV). The requirements are based upon the requirement that the performance of the marine electric drive power train for the fuel cell watercraft with electric outboards is the same as for watercraft with diesel outboards.

The agency conducted market research to determine the availability of companies to provide existing complete electric fuel cell watercraft. The market research results concluded that there are no existing electric fuel cell watercraft that meet the requirements as specified in the Performance Work Statement.

The agency then conducted market research of all the fuel cell watercraft components. A COTS high performance aluminum hull was determined to be the most advantageous due to the low cost in comparison to the other components; the identified COTS hull is already in use by the Navy for conventional watercraft; and the familiar form factor will streamline test and evaluation. Market research determined that there is only one COTS manufacturer for electric outboards that meets the requirements of this RDT&E effort. Only one manufacturer of commercially available hydrogen gas storage cylinders met the specifications for the large size. Market research for the fuel cell determined several options for a fuel cell that meets the Kilowatt capacity, however, only one source of supply for the marine application.

Through market research, NexGen IES was identified as the only company capable of performing the integrator role for the assembly of the COTS components and developer of this electric fuel cell watercraft for test and demonstration. NexGen IES is an experienced developer and small manufacturer of highway fuel cell vehicles. Through this knowledge and experience, NexGen IES demonstrates the unique capability of performing the test and demonstration of the configuration of the COTS equipment which is unique and state-of-the-art.

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.

This determination is based upon the Independent Government Cost Estimate with labor rates representative of comparable services from competitive bid and material costs representative of development and supply for similar items.

8. Actions to Remove Barriers to Future Competition.

As this is for Research and Development this project will develop a prototype intended to advance the state-of-the-art watercraft using only COTS components in order to establish the military standards.

Successful completion and technology transfer will promote the development of a future marketplace for this technology capable of sustaining competition for broader adoption. Future competition for production will be evaluated when applicable.

The Government expects to obtain a technical data package and develop a performance specification that will support competition for future acquisitions of the same or similar items for production and use by the DoD.

APRIL 2018 (Change 18-24)

JA-24-0014

CERTIFICATIONS AND APPROVAL

TECHNICAL 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.

Contracting Officer’s Representative / NAVFAC EXWC

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Legal Counsel / NAVFAC EXWC

CONTRACTING OFFICER CERTIFICATION

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

Contracting Officer CON71 / NAVFAC EXWC

ECHELON III CHIEF OF CONTRACTING OFFICER CERTIFICATION

I certify that the facts and representations for this request for authorization of this Justification are accurate and complete to the best of my knowledge and belief.

Chief of the Contracting Office (CCO) (Acting) / NAVFAC EXWC