III.K. J&A Final_Redacted.pdf

v1.1_JULY2020

PID #: 15-0330

PR #: 1301091880

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

1. Contracting Activity

The Naval Sea Systems Command, Naval Undersea Warfare Center Division Newport (NUWCDIVNPT), Contracts Department, Code 02, Newport, RI.

2. Nature and/or Description of Action Being Approved

Award of a purchase order including options on a sole source basis for Compliant Tubes to Teknologic LLC in support of Acoustic Augmentation Support Program (AASP) HX-29 transducers.

3. Description of Supplies/Services (including the estimated value)

Estimated Dollar Value Funds Type Estimate

The Naval Undersea Warfare Center Division Newport, Code 1531, requires Compliant Tubes as part of the HX-29 mid-frequency transducer. Compliant Tubes allow the ceramics to operate with predicted sound pressure levels within their operational use depths. These are required for multiple Fleet functions within the submarine Fleet.

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

4. Identification of the Exception to Fair Opportunity

FAR 16.505(b)(2)(B): Only one awardee is capable of providing the supplies required at the level of quality required because the supplies ordered are unique or highly specialized.

5. Supporting Rationale

HX-29 Compliant Tubes are currently manufactured by Teknologics LLC. The ability to manufacture these items has been established by Teknologics through original equipment manufacturer engineers that joined Teknologics from Honeywell which was the original developer of the Government’s design. No other manufacturer has the expertise to make this part without investing in significant non-recurring engineering costs.

Without these specially designed Compliant Tubes, the HX-29 transducers cannot be equipped as part of the , thereby negatively impacting operational readiness of the submarine Fleet. The alternative would be significant duplicative cost and schedule impacts to qualify a new vendor as described below.

(formerly Federal Business Opportunities). Interested parties had the opportunity to submit a capability statement to be considered by the Government for the purpose of determining whether to conduct a competitive procurement. To the knowledge of the technical code and Contracting Office, no other sources have expressed interest.

8. Actions to Remove Barriers to Competition

The Government is currently contemplating two different acquisition strategies going forward either of which might result in dissolving this sole source requirement. They are as follows:

1. Due to the inherent risk of a sole source the program is contemplating seeking another vendor product to qualify. Doing so at this time is not realistic because there are fleet needs over the next 2-3 years and as detailed above it would take over 3 years to get a new product into the fleet. The present requirement is sufficient to bridge the gap if the program elects to go in this direction.

2. The Government is contemplating replacing the overall HX design with another which would render these specific compliant tubes moot.

The above further supports the conclusion of this J&A and that the duplicative cost and schedule impact cannot be offset by competitive benefits as the product does not have longevity in the fleet.

Therefor

IDENTITY OF NEGOTIATOR:

Type or Print Name Title Code Phone

SIGNATURES:

A. CONTRACTING OFFICER CERTIFICATION (FAR 16.505(b)(2)(ii)(B)(8))

I certify that the supporting data under my cognizance which are included in the justification are f my knowledge and belief.

B. TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 16.505(b)(2)(ii)(B)(9))

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting data, are complete and accurate to the best of my knowledge and belief

C. JUSTIFICATION APPROVAL (FAR 16.505(b)(2)(ii)(B)(10))

Upon the basis of the above justification, I hereby determine the circumstances indicated in paragraph 4, above, apply to this order.

I hereby approve the Justification for an Exception to Fair Opportunity for the procurement of the supplies/services indicated in paragraph 3, above, subject to the availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Signature and Date

Approval Authorities:

Dollar Threshold Approving Authority

SAT - $700,000 PCO

$700,000 - $13.5M Advocate for Competition $13.5M - $93M SES Technical Director

$93M+ Navy Senior Procurement Executive