B-SSJ- Redacted.docx

14 July 2021

MEMORANDUM

Subj: SOLE SOURCE JUSTIFICATION FOR PURCHASE OF LCAC LEADING EDGE GUARD PROTOTYPE UNITS FROM TSE INDUSTRIES LLC

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 the Naval Sea Systems Command, Naval Surface Warfare Center, Panama City Division (NSWC PCD), 110 Vernon Avenue, Panama City, FL 32407-7001 (Contracts Department Code 02).

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

This action will award a firm fixed price (FFP) purchase order, on a sole source basis, to TSE Industries LLC, Doing Business as (DBA) TSE, 5180 113th Ave N, Clearwater, FL 33760 (CAGE 1L3L4 – DUNS 004430187) for Propeller Blade – Leading Edge Guard prototypes to support the Landing Craft Air Cushion (LCAC) Program.

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

The purchase is to acquire prototype leading edge guards (LEGs) with the expectation to eventually assist in the supply chain logistics of the LCAC Program assuming a successful first article evaluation. The Government’s minimum needs have been verified by the certifying technical and requirements personnel. This memo does not authorize acquisition for other requirements. This acquisition will be conducted using simplified acquisition procedures with a total dollar value above micro-purchase levels, but not exceeding the simplified acquisition threshold of $250,000.00. All deliverables will be delivered by 30 September 2025.

4. Identification of the justification rationale 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.

The Naval Surface Warfare Center Panama City Division (NSWC PCD), Air Cushion Vehicle Branch, Code E34, has requirements for the support of Naval Sea Systems Command (NAVSEA) by performing necessary In-Service Engineering support services (ISEA) for the LCAC program. The ISEA has determined the need to identify and establish a second source of supply for LCAC propeller blade leading edge guards. The development and production of leading edge guards requires highly specialized rubber engineered materials as well as experienced production expertise.

· The propeller system was originally developed by GE Aviation at its own expense, and provided to the U.S. Navy's LCAC program under a competitively awarded subcontract from the LCAC program's prime contractor, Textron Marine Systems.. As the LCAC propeller system components are proprietary to the GE Aviation, no other manufacturer has supplied these system components or design alteration data since the original contract.

· In order to identify new alternative sources of supply an Request for Information (RFI) was published stating requirements and the need for a product to support the propeller systems. Engineers from the LCAC ISEA were then sent to an elastomer conference to engage the industry’s best vendors on their capabilities. Each company was informed of the RFI and encouraged to submit information.

Only two companies responded to the RFI. Both submitted material capability information that gave high confidence they would meet the operational requirements that had been established. Both companies agreed to (at no cost to the government) supply sample coupons of their proposed materials for lab testing at the University of Dayton Research Institute. Both companies were tested against the OEM GE/Dowty products in order to have a control. TSE Industries LLC completed the testing and surpassed the performance of the OEM GE/Dowty coupon. Consult M & P LLC failed within the first few minutes of the test and illustrated numerous technical inadequacies during the test requirements discussion.

Thus, with the need to supplement deliveries of LEGs to the supply chain logistics group NAVSUP by means of an alternative source of supply it has been determined that a sole source justification for LEG prototype development by TSE Industries LLC is required.

This sole source justification is a continuation of effort under contract 20P0145 to develop (tip) leading edge guard prototypes by TSE. This sole source justification will be used for production of Zone 1: Tip leading edge guard, and development and production of Zone 2: Inner leading edge guard and erosion shoe for first article fabrication and production.

5. A determination by the ordering activity contracting officer that the order represents the best value consistent with FAR13.106-1(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, administrative costs, etc.) to meet the Government’s needs.

6. 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 SAM.gov per FAR 5.2. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 4 above to substitute any other product.

7. Any other facts supporting the justification.

This is a continuation of efforts from previous contract 20P0145 in support of production of zone 1: (tip) leading edge guard, and development of and design for zone 2: inner leading edge guard and erosion shoe guard.

8. 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, TSE Industries LLC is the only qualified vendor with the ability to develop leading edge guards.

Signature page follows