B16 - JA_Fairmount Hardware_FINAL_Redacted.pdf

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J&A - Fairmount Automation Programmable Automation Controllers and Accessories - N64498-24-RFPREQ-PD-54-0065
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N64498-24-RFPREQ-PD-54-0065
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This Justification and Approval (J&A) document details a sole-source contract with Fairmount Automation, Inc. for procurement of original equipment manufacturer (OEM) control systems hardware components for multiple naval ship classes, including CVN 68, LHD 1, AS 39, LCC 19, and other naval vessels. The proposed acquisition includes Fairmount Automation model FAC-2100+ and Chameleon programmable automation control (PAC) modules, Windows-based configuration software package licenses, and associated accessories for various ship control systems such as Catapult Steam Charging Control System, Reboiler Control System, Auxiliary Steam Control Systems, and Hotwell Level Control Systems.

The contract is a follow-on to a previous Indefinite-Delivery-Indefinite-Quantity (IDIQ) contract, justified as a sole source due to the highly specialized and unique design of Fairmount Automation products. The Navy argues that no alternative supplier can provide compatible replacement equipment without extensive and costly redesign efforts, which would take approximately 10 years and potentially render ships unusable. The required delivery date is set for FY25, with a total estimated contract value redacted, and the procurement is funded through Operations Maintenance Navy (O&MN) and Ship Conversion Navy (SCN) funds. A Request for Information (RFI) was posted on SAM.gov on 05 March 2024, with no contractor responses received.

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J&A No. 0222-24-160-00 and funding request presentations. Due to the Fleet budgeting process (request and approval of funding) for projects of this magnitude, the costs would need to be spread over several years and would take over one (1) year from project proposal approvals until the first increment of funding is received. If started immediately, the planning and estimating time and the one-year delay before receipt of funding would delay the engineering effort until 2026 at the earliest. The engineering and logistics updates could start in 2026, but they would not be completed before 2030. This is due to the number of engineering manning resources required (over 100 man-years of engineering), and the need to spread these costs out over several years to fit the projects within the Navy’s budget.

And finally, due to the number of affected ships and the level of effort involved with these replacements, the installations would need to be done during ship maintenance availabilities. Due to the operating cycles of these ships, the maintenance availabilities for 20 ships would span approximately four (4) years. Since the installations cannot begin until all the engineering and logistics efforts are completed, the installations would not start until 2030, and not be completed until 2034. All these timelines are best case, with the assumption that the Navy budget can support these costs and all the efforts are completed on time and within budget.

Event Time to complete Planning, Estimating and Budgeting Process 2 Years Engineering and Logistics Development 4 Years Installation of Alternate Designs (20 ships) 4 Years Total 10 Years

Table 4: Estimated Alternate Vendor System Development Schedule (Schedule Impact)

Since the Fairmount Automation legacy hardware is already obsolete, the Navy would not be able to keep these existing critical systems in operation long enough to complete this process. This would make these ships unusable for many years and would lead to unacceptable delays in fulfilling the agency’s requirements (See 10 U.S.C. 3204(b)(B)(i) or 10 U.S.C. 3204(b)(B)(ii).

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

In accordance with the Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance, and Information (PGI) 206.302-1, a Request for Information (RFI) was posted to SAM.gov on 05 March 2024. Additionally, a synopsis of this procurement was published on the SAM.Gov on 20 March 2024. No contractors have responded to either posting as of the drafting of this J&A on 14 June 2024. No additional market research was conducted because it is not practicable for any other contractor than Fairmount Automation to provide the required supplies and services, for the reasons discussed in paragraph 5 above.

7. Determination of Fair and Reasonable Cost.

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.

8. Actions to Remove Barriers to Future Competition.

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. Due to the limited remaining service life of the ship’s involved, and the cost and time required for a redesign it is not advantageous to consider alternative suppliers for these systems. If another design opportunity emerges for a different ship or different systems, NSWCPD will ensure a competitive solution is pursued.

As this is a follow-on for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(S-70)(i), the prior J&A was provided to the approval authority for review. Approval of this J&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(S-70)(ii).

CERTIFICATIONS AND APPROVAL

TECHNICAL AND REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents except as noted herein are complete and accurate to the best of my knowledge and belief.

COMBINED TECHNICAL AND REQUIREMENTS COGNIZANCE:

LEGAL SUFFICIENCY REVIEW

I have determined that this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

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

COMPETITION ADVOCATE APPROVAL

Upon the basis of the above Justification, I hereby approve, as Competition Advocate, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 3204(a)(1).

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