Attachment 1 - Redacted JandA.pdf

NCH 53.6-2 (MAR 2013)

V3.0_JANUARY2020

Control #:230007 PR No: 1301028320

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

UNDER FAR 13.5, SIMPLIFIED PROCEDURES FOR

CERTAIN COMMERCIAL ITEMS

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Undersea Warfare Center Division, Code 02, Newport, RI.

2. Description of the Action Being Approved

Request approval to solicit and award a five (5) year indefinite-delivery, indefinite-quantity (IDIQ), firm fixed price (FFP) services contract to Keysight Technologies, Inc.

(Keysight), 1900 Garden of the Gods Road, Colorado Springs, CO 80907-3423, on a sole source basis. This requirement is for calibration and repair services of Keysight’s equipment, the Original Equipment Manufacturer (OEM), in support of Naval Undersea Warfare Center Division, Newport (NUWCDIVNPT) Code 7012, Rapid Prototyping, Calibration, and Survivability Branch, specifically the Metrology and Calibration Laboratory (METCAL).

3. Description of Supplies/Services (including the estimated value)

Estimated Dollar Value FY23 FY24 FY25 FY26 FY27 Totals

$850K

The total estimated value of this requirement is $850K and will be funded with Service Cost Center (SCC) funds. The anticipated period of performance is January 2023 through sixty (60) months thereafter.

The Government requires calibration and repair services of OEM Keysight test, measurement, and diagnostic equipment (TMDE) used throughout NUWCDIVNPT as well as the Fleet. Equipment to be serviced includes TMDE, Automated Test Systems (ATS), and Automated Test Equipment (ATE). Examples of Keysight equipment include Spectrum Analyzers, Network Analyzers, Oscilloscopes, Wave Form Generators, and Isotropic Probes.

NCH 53.6-2

The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

4. Statutory Authority Permitting Other Than Full and Open

Competition

In accordance with 41 U.S.C. 1901, as implemented in Federal

Acquisition regulation (FAR) 13.501(a)(1)(ii): Only one responsible source and no other type of supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

NUWCDIVNPT supports all phases of the acquisition life cycle, which requires the use of calibrated TMDE. TMDE is used by all of the technical codes in support of the Fleet as well as Research, Development, Test and Evaluation efforts at NUWCDIVNPT. TMDE is required to be maintained to ensure confidence in measurements and to minimize measurement risk.

Capability of performing the required services is available from only one responsible source, Keysight, due to the proprietary nature of its manuals, calibration procedures, software, firmware, and coefficients required to provide these calibrations.

Laboratories providing full calibration in support of the Navy METCAL Program must be certified by an accrediting body approved by the NAVSEA METCAL Technical Warrant Holder (TWH) (NAVSEA 04RM) and as required by NAVSEA 04RM/4391, NAVSEA Policy for Use of Certified/Accredited OEM’s Calibrations, Encl. (1). In addition, Laboratories must be accredited to the ANSI/NCSL Z540.3 standard and/or ISO/IEC 17025 Standard.

As required per NAVSEA 04RM/4391, ANSI/NSCL Z540.3 requires, for the competence of testing and calibration laboratories, that the calibration of measuring and test equipment, and the scope of certification and accreditation must cover the measurement parameters and ranges of the calibration performed.

In order to meet the standard, the laboratory shall have:

The specific OEM equipment manual for the equipment model being calibrated and/or repaired.

The specific OEM equipment test procedure for the equipment model being calibrated and/or repaired.

The proprietary OEM software and coefficients required to adjust the specific equipment model as identified in the OEM manual and test procedures.

The required specialized tools identified in the OEM test procedure to make adjustments and/or calibrations to the specific equipment model.

Access to OEM repair parts and components for the specific model of equipment being calibrated and/or repaired.

Non-OEM vendors cannot achieve this standard level because Keysight does not publish its standards and procedures concurrently. Market research reveals that it is common commercial practice for OEMs to publish standards and procedures, but not both at the same time; thus, only the OEM can meet the manufacturer’s warranted specifications for the equipment by model number.

Keysight also does not release its proprietary software to anyone other than end users of the items. The equipment covered under this justification requires the OEM software to update and adjust the equipment. Therefore, no laboratory other than the OEM can meet the manufacturer’s warranted specifications for the equipment by model number.

Additionally, to fulfill the requirements of the ISO/IEC 17025 Standard, there are five basic components that compose the structure to meet the detailed clauses of the standard: scope, procedures, control (including conformance and feedback), uncertainties, and proficiencies. The NUWCDIVNPT METCAL is required to verify the scope of certification for any non-OEM.

The scope of competency must be verified to ensure the Navy’s calibration requirements are upheld.

To use a source other than Keysight, the NUWCDIVNPT METCAL would have to perform an extensive review of the calibration capability of any interested calibration vendor. This effort would include reviewing its scope of certification and performing pre and post-Test Uncertainty Ratio calculations for every measurement required. NUWCDIVNPT has analyzed the population of equipment requiring calibration at NUWCDIVNPT and based on the expertise of experienced calibration laboratory personnel, it has been determined that NUWCDIVNPT METCAL staffing would have to be increased by an estimated two (2) work years during the time period associated with this Justification and Approval to conduct the extensive review.

Review and testing of capability can take a total of 6 hours per each piece of the extensive list of equipment, Encl. 2.

Review is estimated at two (2) hours followed by pre and post- TUR calculations which can take, on average, four (4) hours at $168 per hour, per engineer, totaling $1,008 per piece. This would result in substantial duplication of cost to the Government that is not expected to be recovered through competition and in unacceptable delays in fulfilling the agency’s requirements.

Repair of TMDE is not required to be accomplished by an accredited body approved by NAVSEA 04. Having the OEM make repairs rather than sending the equipment to another vendor will result in a cost savings each time repair services are required. For example, if a piece of equipment is sent to the OEM for calibration and the calibration fails, it is in the Government’s best interest to have the OEM repair the equipment so that the calibration can be completed. If not sent to the OEM, this action would result in schedule impacts and the additional cost of having the equipment rejected, returned to NUWDIVNPT, resolicited to another vendor for repair, and then potentially resolicited and returned to the OEM, Keysight, for repair and calibration, assuming another vendor could not be found to conduct the required repair. Additionally, most vendors require an evaluation before committing to a repair and will not provide a repair cost until that evaluation is complete. If the equipment is sent to a vendor for evaluation and the vendor determines it cannot repair, and recommends OEM repair, substantial time and cost to the Government would be incurred and not expected to be recovered. Utilizing the OEM for both calibration and repair services will reduce the amount of time the equipment is not in the Government’s possession and will reduce effort required to track Government Furnished Property. Also, some of the NUWCDIVNPT TMDE is currently under OEM warranty. Therefore, sending the equipment to another vendor is not cost effective, since the warranty is already in place.

Market research reveals the standards for commercial and non-commercial activities requiring calibration are derived from the European Guide to Measurement Uncertainties (GUM). The American authority for calibration is the National Institute of Standards and Technology (NIST) whose specifications are derived from the GUM. All programs supported by NUWCDIVNPT provide specifications to meet its respective mission requirement. These specifications are uniquely particular to the equipment and the mission. OEMs build its standards and procedures both from the GUM and NIST specifications. Market research has shown that only the OEM can provide standards and procedures required to meet not only the GUM and NIST specifications, but also the program specific calibrations as well.

Based on the above, it is in the Government’s best interest to satisfy this requirement on a sole source basis to Keysight Technologies, Inc.

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

Offerors as Practicable

A combined synopsis and solicitation notice was published publically on the Government-wide Point of Entry (GPE), SAM.gov on 12 December 2022. The notice stated the intention of NUWCDIVNPT to award a contract on a sole source basis to Keysight Technologies, Inc. If a responsible source submits a capability statement for consideration by the Government prior to contract award, it will be brought to the attention of the Approving Official.

No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than Keysight to fulfill this requirement.

7. Determination of Fair and Reasonable Costs

The contracting officer will conduct price and/or cost analysis using FAR Parts 13.106-3 and/or 15.404-1(b) and 15.404-1(c) methods, in accordance with FAR 13.003(g)(2) to determine the prices fair and reasonable prior to contract award.

8. Actions to Remove Barriers to Competition

The Government’s requirement for Keysight calibration and repair services does not allow for substitution of another contractor’s services. In the event that any future acquisition of these services is required, the information contained in Section 5 will be revisited and validated to confirm the sole source requirement still exists.