IPDS-JA-FINAL-REDACTED.pdf

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

INDIAN HEAD EXPLOSIVE ORDNANCE DISPOSAL TECHNOLOGY DIVISION

3767 STRAUSS AVENUE

SUITE 201

INDIAN HEAD, MD 20640-5150

J&A No. FY23-OCT26-12 Code: 026

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

The Naval Sea Systems Command, Naval Surface Warfare Center Indian Head Division (NSWC IHD), Contracts Office Code 026.

2. Description of the Action Being Approved

Award of a Firm Fixed Price Indefinite Delivery, Indefinite Quantity (IDIQ) contract on a sole source basis for the rocurement of as needed for recouped systems from Bruker Corporation.

3. Description of Supplies/Services

This action is for the procurement of a maximum of sixty (60) full IPDS-LR systems and parts over a five (5) year ordering period to include:

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

The total estimated cost of the proposed contract is $23,395,940.00

Estimated Dollar Value

FY23 FY24 FY25 FY26 FY27 Total

SCN $17,520,690.00

OPN $5,875,250.00

TOTAL $23,395,940.00

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 3204(a)(1), as implemented by FAR 6.302-1 – Only one responsible source or a limited number of responsible sources and no other suppliers will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

United States Navy (USN) and United States Coast Guard (USCG) ships have a requirement for automated chemical and biological detection to protect sailors from chemical and biological attacks/warfare. This capability for threat detection is crucial so crew can act appropriately to save lives, prevent exposure to threats, and to ensure mission success. Currently the fleet uses the IPDS-LR detector from Bruker, which was developed previously under a competitive contract in FY13 - contract W911SR-13-R-0004.

Since FY13, Bruker has not been interested in selling the Technical Data Package (TDP) for the IPDS-LR. The next-generation chemical detector is now under development but has experienced unexpected delays of at least 18-24 months due to system testing failure. There will be a gap in the ability to keep the shipboard environment safe from chemical threats due to this development delay respecting next-generation detectors. In order to prevent interruption of chemical detection capabilities, the contract must be awarded by Quarter 2 FY 23 to be available to shipbuilders by the beginning of FY 24. Selecting a different chemical detector through competitive procedures would lead to unacceptable delays in shipbuilders’ schedules as the acquisition process typically takes 365+ days.

A detector that meets the same specifications and footprint on board a ship must be identified. If this chemical detector has not been Navy Ship Shock qualified it may not be used. These qualifications include MIL-STD-167-1 Type Vibration, MIL-STD-461 EMI requirements, Shock Grade B standards, and Information Assurance (IA) Certification. Each of these tests costs upwards of $100K (another $400K to the government) apiece and results in delays of 12-18 months due to scheduling of the tests.

Additional research and development costs would be incurred to ensure that any new technology could survive the maritime environment. All other detectors available have not been developed to be used in ship-like conditions; the increased humidity, especially, could cause issues. Solutions to solve any of these unforeseen issues would result in new efforts to create a solution. Developing solutions for any new maritime environment issues would result in delays of 365+ days and up to $500,000.00.

If another detector were found to meet the USN and USCG requirements and were able to be incorporated into the existing technology, the new detector would require approval from each sponsor’s office due to deviation from the approved design to which the shipyard had agreed. Each sponsor completes this through a change process review that can take 12 to 18 months before approval is granted. A deviation from the detector that was approved in the design phase of the acquisition process would cost the government between $300,000 - $400,000 per ship, in engineering change approvals alone. This cost estimation is based on shipyard quoted LCS obtained two years ago ($275K per ship) with an adjustment to include inflation.

If transitioned to a new system, the engineering change costs are estimated to be $3,000,000 for a single ship class. These costs will increase with each ship class involved.

As the newest technology for chemical detection is being developed, Bruker currently is the only contractor capable, compatible, and approved to provide these systems for the ships.

Bruker is the sole manufacturer and owner of the technical data rights for the IPDS-LR system. It would be cost- and schedule-prohibitive for the Government to buy the data rights to produce the systems themselves, especially if new technology is being developed.

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

To further broaden market research and to satisfy the requirements of DFARS PGI 206.302-1(d), a Sources Sought notice was posted on beta.SAM.gov on 06/14/2022. The posting yielded 0 results.

As requested by FAR 5.203, a pre-solicitation notice was publicized on the beta.SAM.gov website on 10/25/22. 0 responses were received.

7. Determination of Fair and Reasonable Cost

The Contracting Officer will determine that the anticipated cost to the Government for the supplies covered by the J&A will be fair and reasonable. Significant (or similar) quantities of this requirement have been purchased from this offeror in the past and cost/pricing information was received on those past procurements. This information should be sufficient to support price determination of this procurement.

8. Actions to Remove Barriers to Future Competition

For the reasons set forth in Paragraph 5, NSWC IHD has no plans to compete future contracts for the specific type of supplies covered by this document. A new contract for new technology that meets the mission’s needs has been competed. If another potential source emerges, NSWC IHD will assess whether competition for future requirements is feasible.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

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

COMBINED TECHNICAL/REQUIREMENTS COGNIZANCE:

Signature Name (Print) and Title (Code) Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this justification is legally sufficient.

Signature Name (Print) and Title (Code) Phone No. Date

CONTRACTING OFFICER CERTIFICATION

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

Signature Name (Print) and Title (Code) Phone No. Date

APPROVAL

Upon the basis of the above justification, I hereby approve, as Designee of the Head of the Procuring Activity, 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).

Mr. Ashley Johnson Date Technical Director Naval Surface Warfare Center Indian Head Division (NSWC IHD)