G7_J_A_Redacted Addendum_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

CRANE DIVISION

300 HIGHWAY 361

CRANE INDIANA 47522-5001

IN REPLY REFER TO:

(C)J&A No. CR-25199.1

ADDENDUM 01 TO

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Surface Warfare Center, Crane Division (NSWC Crane), Code 0221.

2. Description of the Action Being Approved.

The purpose of this Justification and Approval (J&A) Addendum is to increase the award authority by $272,000 from an estimated $500,000 to $772,000. Following solicitation, the quote received totaled above $771k. The price was reviewed by the Contracting Officer and determined to be fair and reasonable in accordance with FAR 15.404-1(b)(ii) Comparison of proposed prices to historical prices paid, and FAR 15.404-1(b)(vi) Comparison of proposed prices with prices obtained through market research for the same or similar items. As such the original J&A authority is insufficient to award at the quoted price. The justifications set forth in Section 5 of the original J&A have not changed. The Contracting Officer has therefore determined that the determination of fair and reasonable pricing coupled with the justifications set forth in Section 5 is sufficient reason to approve this J&A addendum.

Award of a Firm-Fixed Price (FFP), Modified Commercial supply contract on a sole source basis to Wartech Engineering, LLC (Wartech) of Romulus, Michigan 48174 (Cage Code 5M9K0) for the acquisition of two modified commercial flatbed trailers to support transportation of weapon system.

3. Description of Supplies/Services.

The hardware being procured are two, modified commercial 53-foot flatbed trailers per Wartech Top Level Assembly Drawing CD000028932. These trailers are equipped with subsystems to include an environmental control unit (ECU) to maintain temperature requirements for the payload, rolling tarp (Conestoga) system to conceal the payload, fuel tank for the ECU, and toolboxes for storage.

The trailer configuration identified within Drawing CD000028932 has a valid air certification issued 31 OCT 2024 by USAF Air Transportability Test Loading Agency (ATTLA) to allow for airlift via fixed wing military aircraft. Wartech performed the following tasks to ensure compliance to requirements outlined with MIL-STD-1791 (Interface Standard – Designing for Internal Aerial Delivery in Fixed Wing Aircraft):

• Completed restraint analysis to determine number of tie-downs required to restraint the trailer to the aircraft deck

• Determined type and size of tie-downs to be utilized for restraint

• Performed structural analysis of trailer chassis to determine where strengthening is required to comply with specific load factors and factors of safety

• Developed sequence diagrams for loading trailers onto aircraft utilized ramps dimensions provided by the Government.

• Generated a technical data package (TDP) which compiled on generated data into a single file

The Government reviewed the drawing package for completeness and provided to ATTLA for review and issuance of the air certification. The TDP, as generated by Wartech Engineering, was sufficient upon initial delivery with no additional requests for information.

The cost for each trailer is estimated at $250,000.00, totaling $500,000.00 for both. This cost is estimated utilizing known configuration identified within Drawing CD000028932. Non-recurring engineering (NRE) is anticipated given the ECU identified in Drawing CD000028932 is obsolete and will require modification to the configuration for installation of the succeeding ECU model.

The funding to be received is FY25 Direct Cite RDT&E funds.

The estimated lead time of delivery is twelve months for delivery of both trailers post receipt of air certification from ATTLA. The lead time is largely predicated on the availability of the COTS trailers, which can vary significantly depending on the number of manufacturing orders for the given year. It is imperative for the contract to be awarded by the previously documented date of 01 AUG 2025 (see section 5 for more detail).

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 3204(a)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

In accordance with (IAW) FAR 6.302-1(a)(2)(ii), supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued production of highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition or (B) Unacceptable delays in fulfilling the agency’s requirements.

The previous contract, N0016421CGW13, was initially solicited through open competition and awarded to Wartech Engineering LLC. It involved the design/build of two trailers with an option for third trailer via Government-provided system requirements document (SRD) and statement of work (SOW). The first two trailers were identical, however the development of a third trailer included modification of requirements to support airlift via military fixed-wing aircraft.

Rationale extenuating circumstances which preclude full and open competition include:

No Technical Data Package (TDP) - The Government does not currently possess necessary “Level 3” Product level TDP which would enable full and open competition with additional manufacturers. Therefore, the Government must contract directly with Wartech referencing specific Wartech drawing/part numbers to procure additional units.

These additional units would yield near identical configuration to previously procured trailers; near identical configurations are required to enable operability and interchangeability. This reduces overall lifecycle cost by employing a single configuration across the trailer fleet.

Transport Refrigeration Unit (TRU) Design/Integration - The baseline trailer configuration includes a commercial-off-the-shelf (COTS) Thermo King UT-1280 TRU, which Wartech collaborated explicitly with Thermo King to integrate onto the flatbed trailer chassis. These systems are typically integrated on refrigerated van trailers.

Wartech developed a custom solution that enabled environmental conditioning of the payload. The Government conducted independent testing within an environmental chamber to validate configuration Drawing CD000028932 and establish a performance baseline for which the trailer could be operated in various climates. The cost to conduct the chamber testing was approximately $350,000 and required to complete the testing and receive a technical report capturing the results and findings. If another vendor were selected, the Government would have to fund and perform similar testing, which would result in a significant cost and schedule impact.

Air Certification - The trailer configuration captured in Drawing CD000028932 has a current air certification issued by ATTLA. If another vendor was selected, the Government would incur costs associated with performing structural analyses, generate a technical report, and coordinating with ATTLA to obtain another air certification for a different configuration. Additionally, the methodology to restrain the trailer to the aircraft would likely be different resulting in two different air certifications for each trailer.

Mission Impact (Schedule) - If the contract is not awarded by 01 AUG 2025, this delayed award will impact original equipment manufacturer (OEM) to the destination in fiscal year 2026 (FY26). The weapon system OEM is projecting completion of additional systems beginning 3Q . This impact is derived from an estimated delivery timeline from contract award, manufacturing, delivery of hardware, testing, and acceptance for previous trailer builds. This estimated timeline will be very close to the need for the additional trailers and will be requested to accelerate the award prior to 01 AUG 2025.

If a new vendor is selected, the delivery timeline does not include 1) additional months required for NRE, and 2) additional time required for environmental testing. It is estimated an additional would be required for NRE and to perform environmental testing to validate the design, generate a test report, and conclude that the system meets the requirements. This total timeline of is unacceptable to meet mission need.

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

IAW Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance, and Information (PGI) 206.302-1(d), the Government issued a Request for Information (RFI) Notice N0016425SNB22 on the Government Point of Entry (GPE), SAM.gov website, on 17 December 2024. The RFI closed on 14 January 2025. No responses were received. The Government performed additional market research and did not identify any additional sources.

A combined synopsis and solicitation will be posted IAW FAR 12.603 (b) Streamlined solicitation for commercial products or commercial services.

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.

The Government expects to develop a TDP that will support competition for future acquisitions of the same or similar items. This will result in a “Level 3” Product-Level TDP, establishing a baseline configuration that fully defines the item, and enabling full and open competition among qualified manufacturers. This TDP is expected to be fully developed in preparation for the first competitive acquisition, projected for Fiscal Year