CR-20197 JA_Redacted.pdf

J&A Number: CR-20197

The contract value is estimated at $47,811,950 during the five-year term. The estimate is based on historical information obtained through contract N00024-15-C-5319. Other Procurement Navy (OPN) and Operations & Maintenance, Navy (O&MN) funding are anticipated for this effort.

The estimated dollar values for fiscal years FY21 through FY25 are identified below in Table 1:

Table 1: Estimated Dollar Value

The Government’s estimate for this procurement consists of 63 percent spares, 21 percent engineering services, and 16 percent repairs. The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1) as implemented at FAR 6.302-1(a)(2). Only one responsible source and no other type of supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

As the developer and producer of the SEWIP Block 3 system under competitively awarded contract N00024-15-C-5319, NGC is the only source capable of providing the highly specialized capabilities required for the SEWIP Block 3 system. The unique and complex architecture of this system makes completion of required engineering and field engineering services similarly complex.

NGC is currently the only source with the detailed understanding of the SEWIP Block 3 system architecture, software, firmware, and hardware necessary to provide the required services and supplies in a timely manner.

FY21 FY22 FY23 FY24 FY25 FY26 TOTALS

OPN $8,142,258 $5,954,321 $6,318,982 $4,778,780 $4,485,066 $1,944,361 $31,623,768

O&MN $0 $2,129,636 $2,725,320 $3,491,029 $4,074,908 $3,767,289 $16,188,182

TOTAL $8,142,258 $8,083,957 $9,044,302 $8,269,809 $8,559,974 $5,711,650 $47,811,950

While Unlimited and Government purpose data rights (with the exception of the Quad Multifunction Transceiver (QMFX) Module) were procured during the initial acquisition, many of the drawings delivered are Source Control Drawings and lack the technical detail to resolve many installation, maintenance, and reliability issues, or to develop depot level repair capability.

NGC maintains the intellectual property rights for critical system component hardware, software, and firmware (e.g., QMFX LRU). Additionally, no contract vehicle exists to capture changes and updates to the engineering baseline data (i.e., Software Requirements Specification, Algorithm Description Document) once the Engineering and Manufacturing Development contract N00024-15-C-5319 ends. The majority of the contract expires in calendar year 2020, however there are two CLINs, the LRIP hardware CLIN and the Engineering Services CLIN, that expire in calendar year 2021. Thus, a new contract is required to provide the Government accurate insight to resolve software and firmware algorithm issues that occur during AN/SLQ-32(V)7 integration and test. Specialized manufacturing and repair capability residing at NGC facilities consists of unique equipment developed specifically for test and diagnostics of critical system components.

As mentioned above, the establishment of a similar capability would require extensive investment of labor, time, and money for a competing vendor to accomplish. This assumes Government procurement of NGC proprietary technical design data, and data required to build and operate the unique test sets developed under Internal Research and Development (IR&D) funding used in the performance of contract N00024-15-C-5319.

Any vendor other than NGC would require extensive duplication of costs. Development of procedures, expertise, and equipment needed to test and diagnose SEWIP Block 3 system failures would cost in excess of $18,201,000 as delineated in Table 2 below.

Table 2: Duplicative Costs Task Description Cost Competitive Contract Development $924,000 Source Selection $463,000 Reverse Engineering $5,476,000 Development of Level III Drawings $2,062,000 Buildup of test equipment needed to test $652,000

Task Description Cost components Development of Test Procedures $692,000 Development of Fault and Failure Analysis $376,000 Firmware Proficiency $617,000 Establishment of fixtures needed to repair components

$685,000

Development of technical expertise $3,086,000 Installation of test equipment $246,000 Development of Root Cause Analysis $309,000 Component Testing and integration $1,237,000 Develop Depot Test & Repair Plans and Test Sets $751,000 Develop Product Support Documents (TDP, IETM, APLs, etc.)

$625,000

Total $18,201,000

Based on these considerations, only NGC has the required highly specialized knowledge and experience to perform the required services and required supply delivery without acceptable delays and impacts to the SEWIP Block 3 installation and fleet operation schedules.

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

Market research was conducted by searching previous purchases of similar or identical acquisitions and only NGC was identified as having the capabilities to perform all the requirements in support of the SEWIP Block 3 system. The Government also conducted market research by participating in several meetings and telecoms directly with NGC to discuss the SEWIP Block 3 system. The Government issued a Request for Information (RFI) on the Government Point of Entry (GPE), Beta.SAM website, on 10 March 2020. The RFI closed 10 April 2020. There were no responses.

A synopsis for this requirement was issued on the GPE on 21 April 2020. To date, there have been no responses to the synopsis.

Any responses from interested sources received prior to contract award will be reviewed.

No additional market research was or will be conducted, because it is not practicable for any company other than NGC to provide the required supplies and services based on reasons discussed in Paragraph 5.

7. Determination of Fair and Reasonable Costs

The Contracting Officer will use cost and price analysis to determine a fair and reasonable price. Defense Contract Management Agency (DCMA) and/or Defense Contract Audit Agency (DCAA) assistance and/or audit will be requested along with NGC’s certificate of current cost or pricing data to support the fair and reasonable cost determination.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, NSWC-CR has no plans at this time to compete future procurements for the required supplies and services. If another potential source emerges, NSWC-CR will assess competition for future requirements is feasible.

Furthermore, this procurement will build NSWC-CR’s engineers’ technical and sustainment capabilities by improving the Government’s level of expertise on the SEWIP Block 3 system.