Attachment 1 - Justification Approval 23002_Redacted.pdf

CUI

DEPARTMENT OF THE NAVY

N A V A L U N D E R S E A W A R F A R E C E N T E R D I V I S I O N

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I N R E P L Y R E F E R T O :

J&A Number: 23002

PID #:N66604-24-RFPREQ-NPT-34-0002

P.R. #: 1300993546

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

The Naval Undersea Warfare Center, Newport Division, Code 02, Newport, RI (NUWCDIVNPT).

2. Description of the Action Being Approved

Award of a sole source Indefinite-Delivery, Indefinite-

Quantity (IDIQ) contract to L3 Technologies, Inc. (L3T), Northampton, MA, the original equipment manufacturer (OEM) of all Photonics Mast (PM) imaging systems. This contract will provide depot level (D-level) repair, maintenance, overhaul and upgrade services for the Photonics Mast System

(PMS), as well as repair parts, and engineering and technical services in support of Photonics life cycle sustainability efforts.

3. Description of Supplies/Services

The requirement is for depot level repair, maintenance and upgrade services to the PM, Photonics Mast Variants (PMV), ISIS Augmented System (IAS) also known as Low Profile Mast

(LPM), and Low Profile Photonics Mast (LPPM). This contract will serve as the primary vehicle for engineering and technical services for sustainment of these systems, to include the procurement and repair of materials, subassemblies, and parts necessary for mast depot level repairs. An ordering period of five years will be established with contract award scheduled for May 2024 and the period of performance continuing through May 2029. The estimated ceiling value is over the course of six fiscal years (FY) beginning in FY24. The Government intends to fund this requirement as follows:

CUI J&A Number: 23002

Estimated Dollar Value (millions)

Appropriation FY24-29

Other Procurement, Navy

Operations and Maintenance, Navy

Total

4. Statutory Authority Permitting Other Than Full and Open

Competition

10 U.S.C. 3204(a)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

This requirement is a follow-on to IDIQ contract number

N66604-19-D-G900, which was awarded on a sole source basis to

L3T under the authority of 10 U.S.C. 2304 (c)(1)

(subsequently amended to 10 U.S.C. 3204(a)(1)). L3T is the only responsible source capable of providing the highly specialized depot repair services required for sustainment of

PMs, PMVs, IAS LMPs, and LPPMs. Award to any other source would result in substantial duplication of cost to the

Government and create unacceptable delays in fulfilling the

Government’s needs.

D-level services are required to sustain operational capability for these complex mast systems. The existing OEM depot facility is the only source capable of providing the required sustainment services. No other source has access to all the necessary technical data required to perform the repairs for the sustainment of PM systems.

The Government does not have sufficient data rights for several of the assemblies that make up a significant portion of the PM. Under PM production contract N00024-11-C-6293, L3T asserted Limited Rights in 15 out of the 25 assemblies that make up the PM. (The rights assertion does not include LPPM.

LPPM is discussed separately below.) These assemblies account for 60% of the entire PM

. Without this data, the Government cannot provide the Technical Data

Package (TDP) required for a competitive procurement.

Considering the above, L3T is the only contractor capable of performing repair

With respect to the 10 assemblies that make up the remaining

40% of the PM, awarding a separate repair contract strictly for this portion of the PM repairs would result in substantial duplication of costs, unacceptable delays and additional risk to the Government.

The Government estimates that awarding a separate repair contract to another vendor for repair the PM assemblies would result in approximately in duplicative costs and add significant programmatic delay, potentially limiting the

Government’s ability to provide Ready-for-Issue (RFI) PMs to the Fleet. Specifically, the Government has identified the following duplicative costs and delays:

A TDP for the remaining 40% of the PM assemblies would need to be acquired or drafted, and the preceding PM production contract did not provide for the acquisition of a full TDP. The Government estimates that this would require three to four senior engineers and take at least six months to complete. Additionally, the Government estimates that the cost associated with the review and preparation of the TDP would be approximately .

Even if another vendor had the necessary infrastructure available to perform the PM repairs of the remaining 40%

(such as a working Depot, test equipment, hydrostatic testing capabilities, a tower facility, a secure storage facility, etc.), a new vendor would still be required to obtain tooling, support fixtures and other Special

Support Equipment (SSE) required to interface with the

PM hardware and perform repairs. This type of SSE is not readily available and the Government estimates it would take approximately two years to deliver, concurrently with the TDP review and validation, and cost at least

Training and developing a proficient workforce would take a new vendor significant time and require substantial duplication of labor costs. Based on the complexity of the PM design and the anticipated learning curve, the Government estimates it would take a minimum of one to two years to fully train a secondary depot workforce and for that workforce to obtain certification required by the PM Program and PM Variant PEO SUB 435

Depot Certification Manual (PMS 435, 032511). The

Government estimates the additional cost in labor to be approximately 40% or per year.

The Government would be required to duplicate spare parts inventory used for PM repairs. Based on historical purchases, the Government estimates the additional required spare inventory would cost approximately .

Segregating the PM repair process across multiple repair facilities would also require additional level of effort from Government personnel in order to successfully manage the process between two vendors. The Government estimates that two man-years of Government support from senior level engineers would be required in order to successfully manage this effort, at an approximate cost of .

The Government estimates that it would take approximately for a new D-level facility to be operational and capable of performing this 40% of PM repairs, resulting in unacceptable delays in the Government’s ability to provide

RFI masts to the Fleet. By way of comparison, the Navy maintains an organic Intermediate level (I-level) repair facility to reduce the meantime to repair assets. This I-level facility is capable of only a fraction of the scope of repairs conducted at L3T’s D-level facility, yet it cost the Government approximately and to establish. The additional complexity required for establishing a D-level repair facility as compared to an

I-level repair facility provides the basis for the

Government’s estimate of approximately to establish the D-level facility. The Government cost estimate to standup and certify a secondary D-level repair source is approximately three times the cost of establishing the I-level facility, totaling an estimated in addition to the estimated described above, which is not expected to be recovered through competition.

With respect to LPPM, the Government holds Unlimited Rights or Government Purpose Rights for all hardware and software data. However, the LPPM design and the corresponding TDP is not yet complete.

As a result, the TDP is not yet adequate for a competitive solicitation for repairs of the

LPPM. After receipt of a TDP for LPPM, the Government estimates an additional one year to review and validate the

TDP to confirm it is suitable for competition.

Considering this information, the Government intends to include LPPM repairs in this sole source follow-on repair contract to L3T, as award to any other source would result in unacceptable delays in the Government’s ability to provide

RFI PM to the Fleet. However, the Government intends to solicit repairs for the LPPM masts on a competitive basis once the TDP package is completed and approved.

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

Offerors as Practicable

A Request for Information was posted on the System for Award

Management (SAM) website on 4 April 2023, with a closing date of 18 April 2023, in accordance with DFARS PGI 206.302-

1. The Request for Information included the draft Statement of Work for this requirement and allowed for all responsible sources to submit a capability statement to be considered by the Government. L3T submitted the only response to the

Request for Information.

Following the closure of the Request for Information, the proposed contract action was synopsized on the SAM website on 28 April 2023, with a closing date of 12 May 2023, in accordance with FAR 5.2. The synopsis stated the intention of NUWCDIVNPT to award a contract on a sole source basis to

L3T. No responses, questions, or other inquiries have been received. If a potential source submits a capability statement prior to the date of award, it will be considered and brought to the attention of the Competition Advocate.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined the anticipated costs to the Government of the supplies and services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Competition

For the reasons set forth in paragraph 5, NUWCDIVNPT has no plans at this time to compete future requirements associated with the services and supplies in relation to the repair of the PM. If another potential source emerges, NUWCDIVNPT will assess whether competition for future requirements is feasible.

With respect to repairs of the LPPM, NUWCDIVNPT intends to solicit repair requirements on a competitive basis as soon as practicable; i.e., as soon as the Level III TDP is completed.

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).

CUI J&A Number: 23002.1

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 6.303-2(c))

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning data, including Individual Streamlined Acquisition Plan With Services (ISTRAP-M) No.

23002.0, except as noted herein, are complete and accurate to the best of my knowledge and belief.

SENIOR PROCUREMENT EXECUTIVE APPROVAL

Upon the basis of the above justification, I hereby approve, as Senior Procurement Executive of the Navy, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 3204(a)(1).

Signature Date Frederick J. Stefany, Assistant Secretary of the Navy Research, Development and Acquisition