JA-19016.pdf

FOUO

J&A Number: 19016 Code: 02

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Undersea Warfare Center Division, Keyport (NUWC Keyport), Contracts Division (Code 02).

2. Description of the Action Being Approved

Scope increase for contract N0025318C0006 on a sole source basis for rework of existing Acoustic Device Countermeasure (ADC) MK 3 MOD 1 and MK 4 MOD 1 devices in support of PMS415, Undersea Defensive Warfare Systems, to Ultra Electronics Ocean Systems, Inc. (UEOS), Cage Code 2D851. In this context, rework refers to inspection, repair, and replacement of original components that have aged during the shelf and service life.

3. Description of Supplies/Services

The ADC MK 3 MOD 1 and ADC MK 4 MOD 1 devices are 6-inch diameter countermeasures designed for launch from submarines. The ADC MK 3 MOD 1 and the ADC MK 4 MOD 1 . The devices were developed to fulfill

. Both devices operate with the Countermeasure Set, Acoustic (CSA) MK, CSA MK 3, CSA MK 4, and CSA MK 5 , which provide the racks to house and electronics for

. The ADC MK 3 MOD 1 and ADC MK 4 MOD 1 devices are considered mature systems with known obsolete parts.

The goal is to extend the useful life of these devices without replacement of the obsolete components such as the microprocessors and memory.

This sole source contract action is to sustain device inventories during the anticipated production gap between

The certifying technical and requirements personnel have verified the Government’s minimum needs. This scope increase will be added via contract modification to add Contract Line Items (CLIN) 1006, 2007, 3007, and 4007 with annual periods of performance to coincide with contract CLINs for non-recurring engineering services. Also, the contract Statement of Work is to be updated with a revision to paragraph 2.1.3 and the addition of paragraph 3.1.5.

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1). Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

UEOS is the only responsible source capable of reworking existing devices to extend their shelf life in order to meet the Navy’s requirements.

The data rights to major acoustic subassemblies within the ADC MK 3 MOD 1 and MK 4 MOD 1 were not procured in previous acquisitions. The contractor who designed this device is the only party with the capability to repair, retest, and recertify expired ADC devices for fleet use based on the existing data rights. The data rights for the power amplifier and ceramics used in the transducer assembly were developed with UEOS Independent Research and Development funding under UEOS Project ID number .

During the rework of existing devices, the life-limiting parts of already qualified production units are replaced. The specific parts to be replaced are identified during testing by the Technical Design Activity (TDA) to ensure the ADC will continue to meet the performance requirements of the Prime Item Performance Specification (PIPS). Therefore, rework is only performed on UEOS production units that have previously passed factory acceptance testing and the TDA has approved the rework procedure.

The original solicitation for contract N00253-18-C-0006 Statement of Work (SOW) did not include a paragraph for the rework of individual devices. Rework of devices was included in the extension of N00024-10-C-6260 but was not expected to be required on the follow-on production contract.

After evaluating organic capabilities and the data rights restrictions of the contractor, rework was determined to be the only viable alternative.

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

The proposed sole source contract is required due to data rights restrictions from contract N00024-10-C-6260. In order to improve future competition contract N0025318C0006 was competed under full and open competition.

Market research was limited to review of organic rework capabilities due to the Limited Rights applied by UEOS. The TDA and In-Service Engineering Agent (ISEA) have both inquired into developing organic rework capabilities.

Evaluation of organic rework is not only hindered by data rights restrictions, but has also been determined to be cost prohibitive because it would take large amounts of capital, presently not identified within the program office budget, and it would require several years to plan and stand up organic capabilities already available from UEOS.

A Request for Information (RFI) special notice under number identification number N0025318C0006-19016 was published in accordance with DFARS PGI 206.302-1(d) via the governmentwide point of entry beta.SAM.gov website on 6 Mar

2020 by NUWC Division, Keyport with responses due by 13 Mar 2020. The notice provided the Rework Procedure (NUWCNPT- ADC-15-0-01 Rev C). No responses from industry were received.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies/services covered by the J&A will be fair and reasonable.

8. Actions to Remove Barriers to Competition

The ADC MK 3 and MK 4 are built to specification and will continue to be procured under full and open competition.

Data rights for the devices being designed under contract N0025318C0006 are being closely watched to ensure all new modifications to acoustic elements developed under Government funding are provided with Unlimited Rights.

The Government does not anticipate any future rework requirements for the ADC MK 3 and MK 4 devices. Should rework requirements be identified, for the reasons set forth in paragraph 5, NUWC Division, Keyport has no plans to compete future contract actions for the type of supplies and services covered by this document.