G3_JA_Redacted.pdf
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- Attached to
- SUPPLIES, REPAIR MTS COMPONENTS
- Solicitation number
- N0016426DLN05
About this file
This is a Justification and Approval (J&A) document for the use of other than full and open competition, issued by the Department of the Navy, Naval Surface Warfare Center, Crane Division on April 13, 2026.
The Naval Sea Systems Command (NAVSEA) is awarding a five-year Indefinite Delivery Indefinite Quantity (IDIQ) contract on a sole source basis to North Atlantic Industries, Inc. (NAII) for repairs, spares, and test teardown and evaluate services for Multi-spectral Targeting Systems (MTS) components. NAII, located in Bohemia, New York, will provide components including Pulse Width Modulators, Power Converter Chassis, Field Download Kits, JTAG Programmers, 65V DC Power Supplies, 600 Watt components, and future MTS components. The procurement supports repair and sustainment of proprietary MTS systems manufactured by Original Equipment Manufacturer Raytheon Company, with NAII functioning as Raytheon's subcontractor. The MTS components represent approximately three percent of the cost/price of an MTS system purchase or repair and are key internal elements. The services include obsolescence support, technical documentation, and technical reach-back support for Electro-Optic Infrared systems deployed across Navy, Army, Air Force, and Special Operations platforms.
The statutory authority for sole source procurement is 41 U.S.C. 1901. The contracting officer determined costs are fair and reasonable. Market research efforts included an RFI posted to SAM.gov on January 12, 2026 with closure on February 11, 2026, which yielded two responses, neither possessing an operational agreement with the OEM for MTS repair services. Informal market research conducted continuously by the requiring activity found no known alternative source capable of performing the work. The J&A notes that reverse engineering and developing specifications for an alternate source, coupled with development, production, system integration, and test verification, would result in significant delays and excessive duplication costs exceeding the independent estimated value of the buy, making competition impracticable. The Contracting Officer Andrew B. Ficklin approved the sole source procurement on April 13, 2026.
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Text version
CJ&A CR-26111
Based on current engineering estimates, the delay necessitated by reverse engineering of the NAII component and developing specifications, soliciting competitive offers and awarding to an alternate source, development, production, system integration and operational test verification would be a . This delay would seriously jeopardize the ability of program managers to field MTS systems and sustain their use by end users in theater.
The development and sustainment of another source would result in excessive duplication of costs to the Government, and these costs would not be recouped through competition.
Integration and test costs alone are estimated at a minimum of . The independent estimated value of this buy, compared to the estimated integration and test costs, makes it impracticable to pursue competition now or during the course of performance due to higher costs associated with the integration and test costs.
6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.
A Request for Information (RFI) was posted to the SAM.gov website on 12 January 2026 soliciting possible sources for the TT&E and repairs of the NAII MTS Components. The RFI closed on 11 February 2026 and two responses were received. Neither of the responses possessed an operational agreement with the OEM to provide repair type services for the MTS system.
Informal market research was and is conducted on a continuous basis by the requiring technical activity. The informal market research includes contacting knowledgeable individuals in the Government and industry, reviewing previous procurements and in-house contracts, review of catalogs and other product literature, internet searches and attendance at Industry Trade shows. The requiring activity representatives maintain a close working relationship with the EO industries throughout the world. This working relationship with industry facilitates continuous knowledge of the available technologies and manufacturing capabilities throughout the industry. Based upon the aforementioned background and working relationship with industry, it is the technical representat judgment that there is no known source other than NAII capable of performing the work required by this contractor.
CJ&A CR-26111
7. Determination of Fair and Reasonable Cost.
The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable.
8. Actions to Remove Barriers to Future Competition.
Based on the technical and logistical constraints detailed in Paragraph 5, the NSWC Crane Electro-Optic Technology Division has determined that a competitive procurement strategy is currently non-viable for these specific supplies and services. This decision reflects a strategic prioritization of continuity with the current provider to mitigate risk.
However, the Division remains committed to market surveillance; should a qualified alternative source emerge, a feasibility study to support competition will be conducted for future requirements.
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