B - Redacted Sole Source Justification.doc

Subj.: SOLE SOURCE MEMORANDUM TO ACQUIRE COMMERCIAL LIQUID CRYSTAL DISPLAYS (LCD'S) FOR THE LSF-II REPUBLIC OF KOREA NAVY LANDING CRAFT AIR CUSHION (LCAC) FOREIGN MILITARY SALES (FMS) CASE KS-P-GRL

1. 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 Naval Sea Systems Command Naval Surface Warfare Center Panama City Division (NSWC PCD) 110 Vernon Avenue Panama City, FL 32407-7001

2 Nature and/or description of the action being approved.

This action will award a firm fixed price order to procure commercially available parts from the following:

Sekai Electronics 38 Waterworks Way Irvine, CA 92618 (CAGE Code: 8V398)

This purchase will be on a sole source basis for the required equipment.

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

This requirement is to purchase the following:

Item Manufacturer# Description Quantity

IVT-90200070

10.4" Control Op Display - Ruggedized (LCAC), includes UID Label

16EA

IVT-90200071

17" Control Op Display - Ruggedized (LCAC), includes UID Label

8EA

IVT-FPl 7M 90200071-D Credit for 17" Display processed as a completed LCD Panel Subassembly (previously purchased)

8EA

NIA

Shipping Costs for Line Items 001 and 002

24EA

The Government's minimum needs have been verified by the certifying technical and requirements personnel. This memo does not authorize acquisition for other requirements. All equipment will be delivered no later than 210 days after award of the order. The contract action will be funded with FMS funds.

Identification of the justification rationale (see FAR 8.405-6(a) and (b)) 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: NSWC PCD is the design authority for the Landing Craft Air Cushion (LCAC) Command, Control, Communications, Computers, and Navigation (C4N) Systems Baseline Configuration Four (SBC4). This system is part of the FMS case KS-P-GRL. The Defense Acquisition Program Administration (DAPA) is in the process of building two (2) LSF-II craft configured with SBC4. The items being purchased are being provided under FMS case KS-P-GRL to DAPA for integration with LSF-II craft under construction. The parts being purchased are slightly modified commercial items manufactured by Sekai Electronics and used in the SBC4 configuration. With LSF-II craft under construction. The parts being purchased are slightly modified commercial items manufactured by Sekai Electronics and used in the SBC4 configuration. This procurement is not suitable for full and open competition and it is in the best interest of the Government to acquire this item using a non-competitive procurement because Sekai Electronics is the only company that makes this slightly modified commercial item that is compliant with the SBC4 Technical Data Package (TDP).

The items being purchased underwent full environmental qualification testing for the LCAC operational environment to ensure 100 percent compatibility with the product specification, MIL-STD-810G and MIL-STD-461F. Full integration testing was accomplished to ensure that the display met the signal requirements of the LCAC system. These displays are specified in a TDP and as the design authority of the IVT Multi-Platform Display (MPD), Sekai Electronics has sole proprietary (limited) rights to their Technical Data Package (TDP), which would be required for a build-to-print competitive acquisition.

Due to the proprietary nature of the TDP, Sekai is listed as the single source of supply by NAVSUP for the MPD. No other source for these modules currently exists. Developing another source for these items would be cost and schedule prohibitive. The cost to develop, test and evaluate the MPD requirement is estimated at $2.5 Million. And the lead time associated with the development, test and evaluation of this requirement is estimated at 36 months.

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

The Contracting Officer has determined that the order represents the best value and results in the lowest overall cost alternative (considering price, special features, 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.

This requirement will be synopsized on the Contract Opportunities website at sam.gov per FAR Part 5.2. No additional market research was conducted for the reasons discussed in paragraph 4 above, for any company other than Sekai Electronics to provide the products.

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, Sekai Electronics is the only source that can meet the requirement.