B1 - 0222-21-366-00 JA w Sig Page_Redacted.pdf

J&A Number: 0222-21-366-00 Code: 0222 P.R. Number: 21-K B-084

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

Naval Sea Systems Command (NAVSEA) Naval Surface Warfare Center, Philadelphia Division (NSWCPD), Contracts Division Code 0222.

2. Description of Action Being Approved

This Class Justification and Approval (CJ&A) will cover Delivery Orders placed against the Basic Ordering Agreement (BOA) being awarded on a sole source basis to MacTaggart Scott & Company LTD, Hunter Avenue Loanhead, Midlothian EH20 9SP, United Kingdom for the procurement of Original Equipment Manufacturer hydraulic motor assemblies for use on submarines. Authority to act under this CJ&A expires five years after issuance of BOA master agreement.

3. Description of Supplies/Services

This procurement will provide hydraulic motor assemblies for a critical submarine system. These assemblies are MacTaggart Scott. These specific assemblies have been explicitly designed and tested for use onboard submarines.

The total estimated dollar value of this procurement is $3,250,000. This BOA will be funded at the delivery order level.

The Government’s minimum needs have been verified by the certifying technical and requirements personnel in accordance with FAR 6.303-2(c).

The table below shows the estimated breakdown of funding, by appropriation type, per year for the duration of this BOA.

Base Option Year 1

Option Year 2

Option Year 3

Option Year 4

Total

SCN $1,300,000 $650,000 $650,000 $325,000 $325,000 $3,250,000

Total $1,300,000 $650,000 $650,000 $325,000 $325,000 $3,250,000

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

PHILADELPHIA DIVISION

5001 SOUTH BROAD STREET

PHILADELPHIA PA 19112-1403

IN REPLY REFER TO:

The resultant BOA’s period of performance will be a base period of 12-months and four 12-month option periods.

4. Statutory Authority Permitting Other Than Full and Open Competition

The statutory authority permitting other than full and open competition is 10 U.S. C. 2304 (c) (1), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements,” as implemented by Federal Acquisition Regulation (FAR) Subpart 6.302-1.

5. Rationale Justifying Use of Cited Statutory Authority

MacTaggart Scott is the Original Equipment Manufacturer (OEM) for hydraulic motor assemblies currently employed on a critical submarine system across the fleet. This is a follow-on to contract N6449818C4005 issued on a sole source basis to MacTaggart Scott (ref: J&A 0222-18-185-00 approved13 June 2018). Under contract N6449818C4005, MacTaggart Scott, as the OEM for the in-service fleet motors, designed, prototyped, and tested a new motor assembly with proprietary internal technology to meet all technical requirements for application on an additional class of submarines, to include acoustic levels, operational parameters, and physical interface requirements.

MacTaggart Scott is the only vendor to have demonstrated their motor meets all requirements and specifications through land based and shipboard testing. MacTaggart Scott is the sole owner of the proprietary design that has been demonstrated to meet the requirements and they do not provide this design to any outside sources. Under contract N6449818C4005, MacTaggart Scott provided the Government motor assembly drawings required for shipboard interfaces and installation, but due to the proprietary technology internal to the motor, they did not provide manufacturing level drawings. During a teleconference between MacTaggart Scott and NSWCPD C/437 on 10 March 2021, MacTaggart Scott declined to sell the proprietary technical documentation which would be required to build the assembly to the Government. Without access to the manufacturing detailed drawing, no other source would be able to manufacture these units that are confirmed to fit the Government’s requirement.

If awarded to a new contractor, a completely new submarine hydraulic motor would have to designed, developed, manufactured, tested and installed, at the Government’s expense. If the Government were to pursue this option in order to pursue full and open competition, an estimated timeframe to achieve these requirements are presented in Table 1. This development timeframe would not meet the Government’s need to have a minimum of three (3) motors built, qualified, and ready for installation by FY23 to meet critical submarine shipbuilding schedules. This is considered an unacceptable delay that would impact the Government’s ability to support its mission to provide continued and uninterrupted strategic nuclear deterrence.

Table 1 – Schedule Impact Events Duration

Develop technology to reach required performance requirements

4-6 years

Inspection and qualification of technology 1-2 years Develop design of new submarine hydraulic manifold 2-3 years Qualification Testing 1-2 years Total Time 8-13 years

The schedule impact is based on MacTaggart Scott’s previous acquisition associated with the manufacture of the single prototype hydraulic motor assembly.

MacTaggart Scott, as the OEM, is the sole developer, designer, and fabricator of the equipment to be supported by this BOA, and as such, is the only contractor with the background, technical knowledge and expertise, design familiarity, and access to proprietary information and processes necessary to comply with the requirements of this BOA. No other firm possesses the requisite capabilities or access to proprietary information necessary to execute the tasking that will be promulgated on this BOA. As a result, MacTaggart Scott is the only contractor qualified to provide the required hydraulic motor assembly.

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

This Justification will be posted along with the synopsis and solicitation on the beta.sam.gov website in accordance with FAR 6.305. Any responses received will be evaluated.

In accordance with DFARS PGI 206.302-1, a Sources Sought was posted to the beta.SAM.gov website with a closing date of 3 May 2021. One (1) response was received from Bosch Rexroth Corporation. The response included a capabilities statement detailing the vendors’ abilities to provide the required equipment. The technical SME and the Contract Specialist reviewed the submission. It was determined Bosch Rexroth capability statement did not meet all of the requirements for this procurement, to include requirements for displacement and torque rating. No additional market research was conducted because it is not practicable, for the reasons discussed in Paragraph 5 above, for any company other than MacTaggart Scott to provide the required equipment.

A synopsis was posted to the beta.SAM.gov website on 14 June 2021 and closed on 29 June 2021.

No responses were received.

Individual orders to be issued under this BOA will be published on the beta.SAM.gov website.

Any responses received will be considered.

7. Determination of Fair and Reasonable Costs

The Contracting Officer will make a determination as to whether the cost to the Government for the supplies covered by this CJ&A are fair and reasonable, prior to the placement of each BOA order. Similar quantities of this requirement have been purchased from this company in the past and cost/pricing information was received on those past procurements. This information should be sufficient to support the fair and reasonable cost determination of this procurement. The Contractor will be required to submit a formal price proposal and sufficient information to support the accuracy and reliability of the estimate for each solicitation issued under this BOA.

Technical analysts and contract specialists will perform analysis of the proposal, with assistance, as needed, from the Defense Contract Management Agency and Defense Contract Audit Agency.

Experienced technical analysts and contract specialists with the aid of field pricing support, if necessary, will review the Contractor’s proposal. The Contracting Officer will use the results of this price analysis as the basis for determining a fair and reasonable price.

8. Actions to Remove Barriers to Competition

The circumstances surrounding the need to obtain the required supplies/services without providing full and open competition will be reviewed annually by the Procuring Contracting Officer (PCO) to ensure MacTaggart Scott is still the only company that can satisfy agency requirements.

NSWCPD will continue to monitor the marketplace and identify potential sources of the supplies identified under Section 3 in this Justification. Any sources discovered that could potentially satisfy this specific procurement will be taken into account for any future requirements.