ADTS_J&A.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

IN REPLY REFER TO:

J&A SBIR_16-0029

SMALL BUSINESS INNOVATION RESEARCH (SBIR) PHASE III

JUSTIFICATION & APPROVAL FOR USE OF

OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Activity: Naval Air Warfare Center Aircraft Division (NAWC-AD) Lakehurst, NJ

2. Nature/Description of the Action Being Approved.

This Phase III Small Business Innovation Research (SBIR) Production effort is a follow on to Phase I and Phase II SBIR contracts with Physical Optics Corporation under Topic N102-129. Topic N102-

129 sought the development of a storage unit that allows for advancing commercial memory while maintaining compatibility for existing sensor systems, and providing capabilities for interface personalization and on aircraft sensor system testing.

Previous and ongoing Phase II and III efforts include Delivery Orders 0002 and 0003 under Basic

Ordering Agreement #N68335-12-G-0045 to upgrade the Data Transfer System being utilized on the

MH-60 aircraft to an Advanced Data Transfer System (ADTS) for classified and unclassified data, data separation, digital and analog video and audio recording interfaces, Ethernet ports, an RS422 interface, multiple 1553 interfaces, and a method to allow the maintainers to download unclassified maintenance data post flight. An off-board Ground Data Transfer Unit is required to encrypt and decrypt aircraft data between the platform mission planning and the aircraft. The ADTS is a hardware and software solution that includes removable memory, secure data management and storage, data transfer of mission and map data, mission recording and system maintenance diagnostics. The ADTS is planned to undergo Production Readiness Review in 2016.

The MH-60 program has a requirement for the ADTS to be casted in aluminum to reduce production costs. The Government additionally needs Acceptance Test Equipment for use in the lab environment to reduce test time.

3. Description of Supplies/Services.

This SBIR Phase III requirement is for the Contractor, Physical Optics Corporation to provide the supplies and services necessary to deliver an ADTS configuration in support of platform installations on Royal Saudi Arabia Naval Forces (RSNF) MH-60R Aircraft and to provide production sets of that configuration estimated as follows:

Hardware Deliverables

5 ADTS DTUs

2 ADTS G-DTUs

7 ADTS Maintenance Access Cables (MAC)

J&A SBIR_16-0029

28 ADTS Data Transfer Devices (DTD)

This requirement is also to develop and implement two Automated Test Equipment Sets, and to implement casting for the Data Transfer Unit (DTU) Main Enclosure in support of the MH-60R FMS case and the United States Navy MH-60R Aircraft. This effort will be a new Delivery Order under

BOA N68335-12-G-0045.

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

10 U.S.C. 2304(c)(5), as implemented by FAR 6.302-5: Authorized or Required by Statute.

15 U.S.C. 638(r)(1) states:

"In the case of a small business concern that is awarded a funding agreement for Phase II of an SBIR or STTR program, a Federal agency may enter into a Phase III agreement with that business concern for additional work to be performed during or after the Phase II period."

Furthermore, 15 U.S.C. 638(r)(4) states:

"To the greatest extent practicable, Federal agencies and Federal prime contractors shall issue Phase III awards relating to technology, including sole source awards, to the SBIR and STTR award recipients that developed the technology."

5. Demonstration that Proposed Contractor's Unique Qualifications or Nature of Acquisition

Requires Use of Authority Cited.

The nature of the acquisition requires the use of the authority cited. The SBIR/STTR Programs are structured in three phases. Phase I (project feasibility) determines the scientific, technical and commercial merit and feasibility of the ideas submitted. Phase II (project development to prototype) is the major research and development effort, funding the prototyping and demonstration of the most promising Phase I projects. Phase III (commercialization) is the ultimate goal of the SBIR/STTR

Programs. Because the Phase III work derives from, extends, or completes efforts performed under

Phase I and Phase II, use of the authority cited is required.

6. Description of Efforts Made to Ensure Offerors Were Solicited From as Many Potential

Sources as Practicable/Public Notification through Government Point of Entry (GPE).

FAR 5.202(a)(7) - The Contracting Officer need not submit the notice required by 5.201 when the

Contracting Officer determines that the proposed contract action results from acceptance of a proposal under the Small Business Innovation Development Act of 1982 (Pub. L 97-219).

7. Determination of Fair and Reasonable Cost.

The negotiation and establishment of a fair and reasonable price will be conducted in accordance with

FAR 15.4. As stated in FAR 15.402, the Contracting Officer shall purchase all supplies and services at a fair and reasonable price. The Contractor will submit a formal price proposal with certified cost or pricing data and sufficient information to support the accuracy and reliability of the estimate. An analysis of Physical Optics Corporation's proposal will be performed by technical analysts and the

Contracting Officer, with assistance of Defense Contract Management Agency, and Defense Contract

Audit Agency auditors as needed. A detailed report developed as part of the Government's evaluation will be utilized to establish a NAVAIR position. The Contracting Officer will use cost and price analysis as the basis for negotiating a fair and reasonable price for the supplies/services covered by this

J&A.

8. Description of Market Research or Statement of the Reason Market Research was not

Conducted.

FAR 10.001(a)(2) indicates that market research appropriate to the circumstances must be conducted.

SBIR Phase III procurements are such that traditional market research to identify alternative sources is generally unnecessary. As described above, the Phase III work derives from, extends, or completes efforts performed under Phase I and Phase II. Furthermore, Physical Optics Corporation has successfully executed its Phase I, II, and III contracts to date.

9. Any Other Supporting Facts.

Not Applicable.

10. Listing of Interested Sources.

Not Applicable.

11. Actions Taken to Remove Barriers to Future Competition:

The SBIR Program Policy Directive states that SBIR Phase III awards may be made without further competition. Given the preference for award of Phase III procurements to the SBIR company that developed the technology and the fact that Physical Optics Corporation has successfully executed its Phase I and II contracts to date, it was decided that no research to locate companies other than Physical Optics Corporation would be performed for this Phase III effort.

12. Period of Performance.

The end date of this contract is estimated at two (2) years after contract award.

13. Total Estimated Dollar Value of the Acquisition Covered by this Justification, with Funding

Specified by Year and Appropriation:

See Appendix A for Estimated Dollar Value.

14. Actions Attempted to Make Immediate Acquisition Competitive and Cost/Benefit

Analysis.

No actions were attempted to make the immediate acquisition competitive; no cost/benefit analysis was performed. As described above, only Physical Optics Corporation is being considered for Phase III award due to the nature of the acquisition.