B1 - 22-JNS-003 JA (Redacted) 2 Nov 21 Final.pdf

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J&A Number: 0222-22-002-00

Code: 0222

P.R. Number: 22-JNS-003

BRAND NAME JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

The Naval Sea Systems Command, Naval Surface Warfare Center, Philadelphia Division

(NSWCPD), Code 0222.

2. Description of Action Being Approved

Award of a Firm-Fixed-Price (FFP), Indefinite-Delivery Indefinite-Quantity (IDIQ) contract on a brand name basis for Leidos, LLC (Leidos) display equipment.

3. Description of the Supplies or Services

The planned acquisition will provide for Commercial Off-The-Shelf (COTS) industrial-grade display hardware manufactured by Leidos procured on a brand name basis from a Leidos authorized distributor/reseller/dealer/partner. The display equipment is used for installation on operational hulls across multiple ship classes (LSD 41/49, LHD 1/8, LPD 17, and CVN 68/78) as part of the Navigation Critical Distribution System (NCDS) and Ship Control System (SCS) infrastructures.

The table below shows the list of Leidos Brand Name Parts, as well as the estimated quantities per year.

Item

Item Name

Year 1

Qty

Year 2

Qty

Year 3

Qty

Year 4

Qty

Year 5

Qty Total Qty

12" Intelligent Display System

(PN: AB219-32101)

10 10 10 10 10 50

12" Intelligent Display System

(PN: AB219-32301)

70 70 50 50 30 270

20.1" Intelligent Display System

(PN: AB219-32300)

20 40 20 20 20 120

20.1" Intelligent Display System

(PN: AB219-32100)

10 10 10 10 10 50

20.1" Intelligent Display with

Remote LC (PN: AB219-32211) 10 10 20 10 10 60

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

PHILADELPHIA DIVISION

5001 SOUTH BROAD STREET

PHILADELPHIA PA 19112-1403

IN REPLY REFER TO:

20.1" Intelligent Display with

Remote LC (PN: 219-32111) 10 10 10 10 10 50

20.1" Operator Control Console

Display (PN: AB219-32102) 10 10 20 10 10 60

12" HMI Panel Mount Adapter

(PN: AB219-32112)

10 10 10 10 10 50

The estimated value is $11,002,581. There are no option quantities or periods. This contract will be funded at the delivery order level. The following is a breakdown of the estimated funding amounts for this proposed contract action by appropriation type, per year for the duration of this contract.

Estimated Dollar Value

Funding

Type FY22 FY23 FY24 FY25 FY26 Total

SCN $446,168 $522,305 $443,075 $401,455 $387,513 $2,200,516

OPN $1,561,588 $1,828,068 $1,550,763 $1,405,092 $1,356,295 $7,701,807

RDT&E $111,542 $130,576 $110,769 $100,364 $96,878 $550,129

O&MN $111,542 $130,576 $110,769 $100,364 $96,878 $550,129

Totals $2,230,840 $2,611,526 $2,215,376 $2,007,275 $1,937,564 $11,002,581

The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

The resultant contract will have a five-year ordering period from the date of award, and will serve as a follow-on to an existing contract (N64498-16-D-0005).

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 Federal Acquisition Regulation (FAR)

Subpart 6.302-1.

5. Rationale Justifying Use of Cited Statutory Authority

Leidos was awarded the previous FFP IDIQ contract, N64498-16-D-0005, on a sole-source basis. Under this contract, Leidos supplied display equipment that was and/or will soon be installed on various ship classes (LSD 41/49, LHD 1/8, LPD 17, and CVN 68/78). The proposed acquisition will provide for the continuing supply of Leidos display equipment to be installed as part of mission critical systems on the same ship classes listed above.

This requirement is for support of NSWCPD responsibilities as the In-Service Engineering

Agent (ISEA)/Software Support Agent (SSA) for ships/ship classes having Leidos products installed in their Navigation and Ship Control Systems. This equipment provides data display capabilities to mission critical systems, including the NCDS and SCS. The Navy’s objective of

COTS usage is to reduce Total Ownership Cost (TOC) while improving reliability, maintainability, efficiency and commonality across ship classes.

The brand name, Leidos, is peculiar to one manufacturer. Leidos display equipment was originally introduced into the U.S. Navy operational fleet in 2011 as part of the NCDS upgrades and the Ship Control System – Government (SCS-Gov) initial fielding on the CVN 68 Class.

Based on the excellent performance of the Leidos display equipment on the CVN 68 Class, PMS

407 proceeded to approve the procurement and use of Leidos display equipment on LPD 17

Class and LHD 1 Class future ship modernization programs. Additionally, PMS 378 has approved the use of Leidos equipment for the CVN 78 class and PMS 317 is moving forward with using this display equipment for LPD 30AF. Leidos equipment is essential to the

Government’s requirements, thereby precluding consideration of a product manufactured by another company. It is essential that NSWCPD have a Leidos hardware contract in place to properly fulfill its ISEA/SSA obligations and provide adequate fleet support as funded by the various ship class sponsors. This will allow continuity of technical compatibility throughout the system modernization lifecycle plan.

Leidos display equipment is heavily integrated into Navy ships and in laboratories supporting each ship class. There are over one thousand Leidos display products currently installed throughout the fleet as part of Navigation and Ship Control Systems. Leidos provides display equipment that meets military environmental qualifications as part of their commercially available product lines. Furthermore, the proliferation of this equipment throughout the U.S.

Navy fleet has led to increased product reliability and support and has streamlined the areas of fleet training and maintenance, resulting in significant savings in TOC. The Leidos brand name equipment is necessary to ensure interoperability of mission critical systems currently installed throughout the fleet as part of Navigation and Ship Control Systems. The NAVSEA Network

Infrastructure Competency, which includes NSWCPD Division 52 and the respective Technical

Warrant Holders in NAVSEA 05Z, 05H and 05W, regularly review equipment from other companies, but to date no one company has been able to produce similar products that meet U.S.

Navy operational requirements and military environmental qualifications. Thus, in order to ensure 100 percent interoperability with existing relevant systems, procurement of the specified

Leidos brand name equipment is required. Utilization of other components would result in a.)

the inability to provide necessary support to in-service vessels, b.) invalidation of approved design and testing efforts for modernization programs presently in execution, and c.) lack of adherence to NAVSEA established commonality initiatives; the combination of which would jeopardize NSWCPD’s ability to successfully deliver systems to the fleet on time and within budget.

Certification efforts have been completed using the Leidos hardware specified, including Combat

Systems Certification, Ship Control Certification, and Navigation Certification. Modifying the hardware that has already been certified would cause recertification efforts to occur, costing the

Navy approximately $4,850,000 in total potential requalification efforts. Requalification efforts will also take approximately four years to complete, which would prohibit the Navy from meeting critical procurement milestones for New Acquisition and In Services shipboard installations. In addition, any distributor/reseller/dealer/partner must be authorized by Leidos in order to ensure equipment authenticity which is vital to successful operability.

This cost impact is related to the additional funding required to procure and test new hardware equipment, as well as accounting for the amount of labor expended to develop and qualify the associated systems and components. See below table for cost details of actual certification testing and the associated engineering support:

Item

EMI

Testing

Shock

Testing

Vibration

Testing

Shipboard Certifications

(Per Hull; Qty 15)

Grand

Total

12" Intelligent Display

System $75,000 $150,000 $50,000

$250,000

20.1" Intelligent Display

System $75,000 $150,000 $50,000

20.1" Intelligent Display with

Remote LCD & Touchscreen $75,000 $150,000 $50,000

20.1" Operator Control

Console Display $75,000 $150,000 $50,000

Total $300,000 $600,000 $200,000 $3,750,000 $4,850,000

The noted costs were derived by known costs to environmentally qualify electrical components and previous actual costs associated with certification testing and shipboard delivery events.

These costs will not be recouped through competition.

The schedule impact related to the additional time associated with procuring, testing and certifying new equipment would be significant. The following hulls would not receive critical system installations:

FY22

o LHD 2 Ship Control System o LSD 41 Ship Control System o LSD 44 Ship Control System o LHA 7 Navigation Critical Distribution System o LPD 23 Navigation Critical Distribution System o LHD 3 Navigation Critical Distribution System

FY23

o LHD 8 Navigation Critical Distribution System o LHD 5 Navigation Critical Distribution System o LPD 19 Navigation Critical Distribution System o LPD 20 Navigation Critical Distribution System o LPD 21 Navigation Critical Distribution System

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 SAM.GOV website in accordance with FAR 6.305. Any responses received will be evaluated.

Market research was conducted through a survey and analysis of alternative equipment brands that are available in industry. The analysis conducted reviewed the available brands to see if there were any possible alternatives. At this time, no other brand name equivalents exist that meets the interoperability requirements and commonality methodology.

An RFI was posted to SAM.GOV on 8 October 2021 and closed on 14 October 2021. The RFI requested that interested small businesses submit capability statements that 1.) address their ability to provide products to meet the requirements of the parts list, which was provided as an attachment to the RFI, and 2.) demonstrate their status as a Leidos authorized distributor/reseller/dealer/partner. Responses were received from three interested companies –

ThunderCat Technology, Kampi Components Co Inc., and Atlantic Diving Supply, Inc. (ADS).

ThunderCat Technology is a service-disabled veteran-owned small business (SDVOSB).

ThunderCat Technology expressed interest in the requirement and confirmed its status as an authorized partner of Leidos. Additionally, ThunderCat is capable of providing the required equipment.

Kampi Components Co Inc. is a small business. Kampi Components Co expressed interest in the requirement and confirmed its status as an authorized partner of Leidos. Additionally, Kampi is capable of providing the required equipment.

Atlantic Diving Supply, Inc. (ADS) is a small business. ADS expressed interest in the requirement and confirmed its status as an authorized partner of Leidos. Additionally, ADS is capable of providing the required equipment.

There is reasonable expectation that quotes will be received from two responsible small businesses; therefore, it is the intent of the Government to procure the required supplies as a small business set-aside.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies/services covered by the J&A will be fair and reasonable. Similar quantities of this requirement have been purchased from this manufacturer 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. 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. The Contracting Officer will utilize cost and pricing analysis as the basis for determining a fair and reasonable price.

8. Actions to Remove Barriers to Competition

The J&A for the previous contract states that efforts were in progress for the government to develop, own and control all interface specifications and hardware design requirements for all related Navigation and Ship Control Systems. This effort has been suspended for the time being at the direction of PEO IWS, as a broader Navigation Hardware Acquisition Strategy is in progress to support all ship classes. Although competition may be available in the future, the circumstances supporting the Brand Name Leidos requirement as set forth herein are not expected to change during the duration of this J&A.

NSWCPD will continue to monitor the marketplace and identify potential sources of the supplies identified in this Justification. Any sources discovered that can potentially satisfy this specific procurement will be taken into account for any future requirements. For the reasons set forth in

Paragraph 5, NSWCPD has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, NSWCPD will assess whether competition for future requirements is feasible.