B1 - 20-DR-015 JA Review Draft 20210303_redacted - Final.pdf

J&A Number: 0222-20-312-00

Code: 0222

P.R. Number: 20-DR-015

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

The Naval Sea Systems Command (NAVSEA) Naval Surface Warfare Center, Philadelphia

Division (NSWCPD) Code 0221, Philadelphia, Pennsylvania.

2. Description of Action Being Approved

Award of a Cost-Plus-Fixed-Fee (CPFF) Indefinite-Delivery Indefinite-Quantity (IDIQ) contract on a sole source basis to L3Harris Technologies, Inc. for Design Agent Engineering Services for

CVN 78, DDG 1000, LSD 41/49, LPD 17, LHD 1, LHA 6, and LCS 1 and LCS 2 ship class

Steering Control and Navigation Control Systems and Machinery Control Systems. This contract is a follow-on contract for continuing engineering services previously supported under

IDIQ Contract No. N65540-14-D-0011. A separate contract is in development for material procurements required in support of the services to be supplied under this acquisition.

3. Description of Supplies/Services

The planned acquisition will provide for highly specialized design agent engineering and technical services for the overall management, development, testing, troubleshooting, repair, configuration, maintenance and fleet sustainment of fielded steering control and navigation control systems, including the CVN 78 class Steering Gear Control System (SGCS), DDG 1000 class Integrated Bridge System, LSD/LHD/LHA Ship Control System (SCS) and Automated

Bridge System (ABS), Navigation Critical Distribution System (NCDS), and LPD/LCS

Engineering Control System (ECS).

The contractor shall provide engineering services, planning, integrated logistics support, homeport technical support, fleet support, land based test environment support and maintenance, technical data package (TDP) maintenance, equipment management, configuration management, systems change development and integration, software support, system testing & troubleshooting, material support and obsolescence management.

The Government’s minimum needs have been verified by the certifying technical and requirements personnel (PMS 407, PMS 377, PMS 500, PMS 312, and PMS 443).

MOPAS No. 0222-20-312-00 covers this acquisition.

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

PHILADELPHIA DIVISION

5001 SOUTH BROAD STREET

PHILADELPHIA PA 19112-1403

IN REPLY REFER TO:

The total estimated dollar value of this procurement is $17,700,000 as detailed below.

Table 1 – Acquisition/Appropriation Schedule

Appropriation

Type

FY21 FY22 FY23 FY24 FY25 Totals

OMN $2,000,000 $2,000,000 $2,000,000 $2,100,000 $2,100,000 $10,200,000

OPN $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $5,000,000

SCN $500,000 $500,000 $500,000 $500,000 $500,000 $2,500,000

Total $3,500,000 $3,500,000 $3,500,000 $3,600,000 $3,600,000 $17,700,000

The Period of Performance (POP) for this effort will be a 60-month contract.

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S. C. 2304 (c) (1), “Only One Responsible Source and No Other Supplies or Services Will

Satisfy Agency Requirements,” as implemented by Part 6.302-1 of the Federal Acquisition

Regulation (FAR).

5. Rationale Justifying Use of Cited Statutory Authority

The continued provision of these highly specialized services are deemed to be available only from the original source, L3Harris Technologies; Ayer, Massachusetts. The award of this follow-on contract to any other source is not feasible as other sources will not be able to provide the required software and hardware support for the currently fielded systems. Other sources will be required to develop new systems, which would result in substantial costs to the Government associated with designing new systems and fielding these new systems; this cost is not expected to be recovered through competition and would also result in unacceptable delays in fulfilling the agency’s requirements.

As the OEM, L3Harris is the sole designer and fabricator of this equipment, and the only known vendor with the complete technical data and software source code, necessary to provide the associated engineering and technical services. The Government attempted to purchase the source code on 26 August 2014. L3Harris Technologies is not willing to sell the license to the

Government at this time. Since the software source code is a required prerequisite in supporting the steering and navigation control systems, and L3Harris is the only known vendor with complete access to the technical data, the government is required to procure such services from

L3Harris and does not allow for open competition.

By way of background, L3Harris Technologies was the selected Original Equipment

Manufacturer (OEM) via various shipbuilders (such as Newport News Shipbuilding, Ingalls

Shipbuilding, and General Dynamics Bath Iron Works) for steering and navigation control systems on board CVN 78, DDG 1000, LHD 1, LHA 6, LSD 41/49, LPD 17, LCS 1, and LCS 2 ship classes. As these hulls transitioned from new construction to in-service, L3Harris has continued to supply these highly specialized lifecycle engineering and support services.

L3Harris was awarded a sole source cost-plus-fixed-fee contract for life cycle engineering and support (LCE&S) services for multiple ship class steering and navigation control systems by

NSWCPD under IDIQ Contract No. N65540-14-D-0011 on 22 September 2014. Under Contract

No. N65540-14-D-0011, L3Harris provided engineering services and material support for the steering and navigation systems in which they were the primary designer and producer of the equipment during the new construction phase of ship acquisition programs.

L3Harris exclusively developed the technical data and software source code privately prior to the execution of IDIQ Contract No. N6550-14-D-0011.

An alternate source selection for the previously mentioned ship classes and unique systems, would result in an estimated twenty-four (24) to thirty-six (36) month delay in performance/support. Additionally, this would incur an estimated cost of $21M to establish an alternate source with the knowledge and infrastructure required to replace L3Harris in order to support all of the systems currently installed on CVN 78, DDG 1000, LHD 1, LHA 6, LSD

41/49, LPD 17, LCS 1, and LCS 2 ship classes. An alternate source would need time to procure, install, and configure lab assets based on the Technical Data Package (TDP), followed by testing and evaluation to fully understand the functionality of the systems and the lifecycle maintenance requirements. The estimated cost is based on personnel experience and expertise with this type of work as well as historical costs of previous LHD SCS support contracts associated with development, integration, and lifecycle support of the Automated Bridge System and Ship

Control Systems.

In addition, the highly specialized systems listed above, have undergone and passed extensive tests and received certification by the Navy. The qualification tests include environmental qualification testing (shock, vibration, and electromagnetic interference), Ship Control System testing and Navigation testing. Deviating from these certified systems would require re-certification efforts, redesign of the Ship Control Systems, navigation systems and Machinery

Control Systems estimated at a cost of $3,000,000 per ship class. This cost impact would be directly related to the additional funding required to procure, test and certify new hardware equipment, develop and test new software, conduct interface testing, as well as the time and effort expended to develop and qualify any other component parts. Any new hardware equipment certified would also have a significant amount of non-recurring engineering cost to redesign the system interface and software. In addition, it is estimated that the time required for another contractor to produce services that meet the required certifications is at least 36 months, which is unacceptable to meet Navy ship installation schedules. The cost and delay to the

Government to acquire an alternative source to perform the Design Agent engineering support services contained in this requirement would adversely impact the mission readiness and/or mission capability of the CVN 78, DDG 1000, LHD 1, LHA 6, LSD 41/49, LPD 17, LCS 1, and

LCS 2 ship classes.

Phase Schedule Cost

Requirements Analysis

-Software Requirements

6 months (+10 different system configurations) $500,000

Thus, in accordance with FAR 6.302-1(a)(2)(iii), the continued provision of these highly specialized services is deemed to be available only from the original source, L3Harris

Technologies, Ayer, Massachusetts. In the case of this follow-on contract, it is likely that award to any other source would result in substantial costs to the Government associated with designing new systems and fielding these new systems and this cost is not expected to be recovered through competition and would also result in unacceptable delays in fulfilling the agency’s requirements.

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

A Request for Information (RFI)/Source Sought was posted to Federal Business Opportunities

(FedBizOps) website on 05 November 2019 with responses due no later than 18 November 2019.

The RFI/Source Sought was extended to 13 February 2020 due to changes in the Sources Sought.

Two (2) responses from Life Cycle Engineering, Inc. (LCE) and Continental Tide Defense

System, Inc. (Continental Tide) were received as a result of the RFI/Sources Sought notification.

The Government reviewed the capability statements provided by LCE and Continental Tide and found both firms incapable of fulfilling the requirement.

In accordance with FAR Part 5, a synopsis was issued on Beta.Sam.gov on 24 September 2020 with a response date no later than 06 October 2020. The synopsis resulted in zero (0) responses.

Additional market research was not conducted, as it is not practicable, for the reasons discussed in paragraph 5 above, for any other contractor other than L3Harris to provide the required services.

7. Determination of Fair and Reasonable Costs

The Contracting Officer will make a determination that the price negotiated under the proposed contract is fair and reasonable pursuant to FAR Part 15. Assistance from the Defense Contract

Audit Agency (DCAA) and the Defense Contract Management Agency (DCMA) will be utilized as appropriate to analyze, evaluate, and assist in negotiations based upon detailed cost and pricing data which will be certified by the Contractor at the conclusion of negotiations. Services similar to those in this solicitation has been procured previously from L3Harris. Cost/pricing information will be requested on the past procurement and should prove sufficient to lend further support the fair and reasonable cost determination of this procurement.

-Hardware Requirements

Equipment Procurement 8 months $2,000,000

Configure Lab/Familiarization 12 months (+10 different system configurations) $14,000,000

Environmental Qualification Tests 12 months

(Items @ $200K each) $1,000,000

Test and Evaluation 6 Months $1,500,000

Installation 6 Months $2,000,000

Total Duration / Cost 36 months $21,000,000

8. Actions to Remove Barriers to Competition

This requirement is considered to be a follow-on procurement in accordance with FAR

6.302(a)(2)(iii) and DFARS PGI 206.303-2(b)(i)(B). For the reasons set forth in paragraph 5, NSWCPD has no plans at this time to compete future contracts for the services covered by this justification. All requirements that arise under this IDIQ will be reviewed by the Contracting

Officer to ensure that L3Harris is the only company that can satisfy agency requirements. The technical team and the Contracting Officer will assess any potential future sources that may be discovered to determine whether competition for future requirements is feasible.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 6.303-2(c)):

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting data, including MOPAS No. 0222-20-312-00.1, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL AND REQUIREMENTS COGNIZANCE:

John Bozewicz Department Head (Code 50) 215-897-7603 Date

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90)):

I have determined that this justification is legally sufficient.

Suzanne Steffen Office of Counsel (Code 00L) 215-897-3058 Date

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(b)(12)):

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Michael Ford Contracting Officer (Code 0222) 215-897-1805 Date

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as Designee of the Head of the

Procuring Activity, the solicitation of the proposed procurement described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1).

Competition Advocate for the Procuring Activity

Thomas Perotti Technical Director (Code TD) 215-897-1540 Date