Attachment I - Redacted Justification Restricting Competition.pdf

Source Selection Information – See FAR 2.101 and 3.104

FEI-Zyfer, Inc. (CAGE Code: 32964) is the sole proprietor of the required firmware and equipment to be upgraded.

The resultant purchase order will be funded with FY26 Navy Operations & Maintenance (O&MN) appropriations.

These funds are currently available.

4. Statutory Authority Permitting Sole Source.

The statutory authority permitting this sole source action is 41 U.S.C. 1901, Simplified acquisition procedures - a sole source acquisition using simplified procedures for the acquisition of commercial products and/or commercial services, as implemented by FAR 12.102(b).

5. Rationale Justifying Use of Cited Statutory Authority.

This is a sole-source action for the provision of firmware upgrades on equipment similar to upgrades previously acquired and performed under Purchase Orders N0018923PZ110 and N0018920PZ247.

Purchase Order N0018920PZ247 was awarded 4 August 2020 and Purchase Order N0018923PZ110 was awarded on 18 September 2023, both on a sole source basis as Firm Fixed-Price Purchase Orders to FEI- Zyfer, Inc., a small business.

TFRMS was developed, procured, and deployed by the USNO and the Defense Information Systems Agency (herinafter, “DISA”) over the past decade to support advanced deployable timing suites. The TFRMS provides unique and robust timing signal capabilities not otherwise available through comparable systems. Currently, 50 operational units, in addition to development units, are fielded. Each operational unit is valued at approximately representing an investment exceeding for operational units alone. This figure does not include the substantial government investment made by DISA and USNO in the original system design, development, testing, and integration efforts.

The proposed firmware upgrade effort, valued at approximately for all existing and future units, represents a significantly more cost-effective solution than replacing or redeveloping the entire system.

The TFRMS architecture leveraged proprietary technology derived from a previously proven and fielded capability. Building upon that proprietary foundation, the contractor developed and refined the system through multiple iterations, resulting in TFRMS Version 2.0 and subsequently Version 4.0. Replacing the existing system with a newly developed alternative would require substantial reinvestment in research, development, testing, integration, and fielding activities that were avoided through use of the existing proprietary technology base.

In addition to the original proprietary technology investment, approximately has been invested in the development of the Very High Performance (VHP) Rubidium Oscillator and the TFRMS platform itself. When combined with the current operational unit value of approximately , the value of four development units estimated at , and approximately in legally mandated M-Code GPS receiver upgrades, the total reinvestment required to replicate the current capability would exceed . This estimate does not include the additional time, cost, and operational risk associated with developing, maturing, testing, certifying, and fielding a replacement system.

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

The Contracting Department posted a Sources Sought Notice to SAM.gov on 01 May 2026 to identify potential sources capable of fulfilling this requirement. The Sources Sought Notice closed on 07 May 2026. One timely response was received from a large business concern. The requiring activity reviewed the capability statement submitted by and determined that the company was not capable of providing the required firmware upgrades to the UPS units. This determination was based on the fact that the firmware requiring upgrading is proprietary to FEI-Zyfer, Inc., and the associated interfaces and underlying technologies are not available to other sources.

At this time, there is no practical financial or technical basis to compete this requirement among additional sources. The system’s proprietary technology, interfaces, and firmware architecture remain integral to the TFRMS design and continue to represent state-of-the-art capabilities essential to system performance and mission effectiveness. As a result, FEI-Zyfer, Inc. remains the only responsible source capable of providing the required firmware upgrade support without unacceptable duplication of cost, unacceptable schedule delays, or substantial risk to the Government.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined that the anticipated cost to the Government of the supplies covered by this Justification will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, USNO has no plans at this time to compete future contacts for the types of supplies covered by this document. If another potential source emerges, (contracting activity) will assess whether competition for future requirements is feasible.

Document Number: 26-153

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS 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.

Technical Cognizance:

Signature Name (Printed) Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Signature Name (Printed) Date

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief. To the extent that the Justification value is > SAT and < $10M, the Contracting Officer’s signature below also represents approval of the document.

Signature Name (Printed) Date