A27 SSJ HII Redacted.doc

03 August 2022

MEMORANDUM

Subj.: SOLE SOURCE MEMORANDUM TO ACQUIRE DIGITAL ULTRA-SHORT BASELINE (DUSBL) FIRMWARE UPGRADES TO SUPPORT REMOTE ENVIROMENTAL MONITORING UNIT (REMUS) UNMANNED UNDERWATER VEHICLES (UUV) ( 1301029412 )

Identification of the agency and the contracting activity, and specific identification of the document as a “Limited Source Justification.”

This is a sole source justification. Contracting activity is the Naval Sea Systems Command, Naval Surface Warfare Center, Panama City Division (NSWC PCD), 110 Vernon Avenue, Panama City, FL 32407-7001 (Contracts Department Code 02).

Nature and/or description of the action being approved.

This action will award a firm fixed price purchase order, on a sole source basis, to HII Unmanned Systems Inc.( Formerly Hydroid, Incorporated), 1 Henry Drive, Pocasset, MA 02559, to acquire digital ultra-short baseline (DUSBL) firmware upgrades to support Remote Environmental Monitoring Unit (REMUS) unmanned underwater vehicle (UUV).

A description of the supplies or services required to meet the agency’s needs (including the estimated value).

This procurement is for non-recurring engineering (NRE) and labor to upgrade the DUSBL Firmware for Twelve (12) Government Furnished Equipment (GFE) DUSBLs and Testing.

The Government’s minimum needs have been verified by the certifying technical and requirements personnel. This memo does not authorize acquisition for other requirements. This acquisition will be conducted using simplified acquisition procedures with a total dollar value above micro-purchase levels, but not exceeding the simplified acquisition threshold of $250,000.00. All equipment will be delivered no later than twelve months after award of the order. The contract action will be funded with FY22 Operation and Maintenance, Navy (OMN) funds.

Identification of the justification rationale and, if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service. 10 U.S.C. 2304(c) (1) - Only one responsible source and no other supplies or services will satisfy agency requirements, FAR 6.302-1.

This acquisition is sole source for the following reasons. HII Unmanned Systems Inc. is the Original Equipment Manufacturer (OEM) and is the only source for the REMUS UUV and its subsystems. HII Unmanned Systems Inc. maintains the proprietary design and data rights to the REMUS. As such, only HII Unmanned Systems Inc. Inc. has the expertise, technical data, equipment and experienced personnel to successfully complete all tasking. As the OEM, HII Unmanned Systems Inc. Inc. is the only source with sufficient in-depth knowledge of the REMUS design that could make required the required design modifications, and deliver on schedule. In summary, there are no other possible sources that can satisfy this requirement without significant additional cost, significant schedule risk, and significant technical risk to the Government. No other firm other than the OEM possesses the requisite technical expertise necessary to perform the work required in the allotted repair-time frame.

A determination by the ordering activity contracting officer that the order represents the best value consistent with FAR 13.106-1(b).

The Contracting Officer has determined that the order represents the best value and results in the lowest overall cost alternative (considering price, reoccurring cost, administrative costs, engineering and redesign costs, etc.) to meet the Government’s needs.

A description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted.

As stated in paragraph 4 above, HII Unmanned Systems Inc. is the only company that can meet the requirement. This requirement will be synopsized via posting on the Government point of entry website SAM.gov per FAR 5.2.

Any other facts supporting the justification.

None.

A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made.

As stated in paragraph 4 above, HII Unmanned Systems Inc. is the only company that can meet the requirement.

Signature Page follows