JA 21- J O-003 Redacted.pdf

J&A Number: 0233-21-013-00 Code: 0233 P.R. Number: 21-J O-003

BRAND NAME JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Surface Warfare Center, Philadelphia Division (NSWCPD), Code 0233.

2. Description of Action Being Approved

Award of a Firm-Fixed-Price purchase order on a brand name basis for Siemens control system processing hardware and associated equipment in support of an engineering control system technology refresh.

3. Description of the Supplies or Services

The items being purchased are listed below, consisting of thirty-two (32) Siemens S7-1500-series 1518-4 Programmable Logic Controllers (PLCs), expansion modules and power supplies for the PLCs, and mounting hardware. This hardware is being purchased to support a technology refresh effort for the class and will be installed in the Ship Control System (SCS) Land Based Test Environment (LBTE). The part numbers, quantities and estimated costs are as follows:

Equipment Part Numbers Unit Cost Qty Total Cost

SIMATIC S7-1500 POWER SUPPLY 25W 24V DC 32

SIMATIC S7-1500, CPU 1518-4 PN/DP MFP 32

S7-1500 MOUNTING RAIL 245MM (9.6") 12

COMMUNICATION PROCESSOR CP 1543-1 40

S7-1500 DI 16xDC 24V HF, 16 CHANNELS IN 16

MOUNTING RAIL 482MM (19") 20

S7-1500 40-PIN FRONT CONNECTOR SCREW

TYPE 16

TOTAL

These items are Commercial off the Shelf (COTS) parts. The estimated value is . Period of performance is 6 weeks after contract award, there are no option quantities or periods. This order is anticipated to be fully funded using FY21 SCN funds. The Government’s minimum needs have been verified by certifying technical and requirements personnel.

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

PHILADELPHIA DIVISION

5001 SOUTH BROAD STREET

PHILADELPHIA PA 19112-1403

IN REPLY REFER TO:

4. Statutory Authority Permitting Other Than Full and Open Competition

41 U.S.C. 1901(e)(2), a sole source acquisition under the authority of Simplified Procedures for Certain Commercial Items, as implemented by Federal Acquisition Regulation FAR Subpart 13.501(a).

5. Rationale Justifying Use of Cited Statutory Authority

Siemens is a particular brand name peculiar to one manufacturer. The Siemens brand name, product, or feature is essential to the Government’s requirements, and market research indicates other companies’ similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet, the agency’s needs. The above listed Siemens equipment is necessary in order to be technically compatible with the Engineering Control System (ECS) equipment used in the class of ships.

Significant expense has already been incurred in developing ECS programs that are compatible with the existing Siemens equipment. Additionally, the new equipment must maintain interoperability with portions of the control system that are not being replaced, which are also manufactured by Siemens. Due to these compatibility requirements, i.e. the hardware being purchased must be compatible with existing control system hardware and software, the replacement hardware must be Siemens brand name components. While Siemens is the only manufacturer of the selected hardware, its brand name products are sold through various authorized distributors, and the requirements will be competed among them as 100% Small Business set-aside.

The cost of replacing the existing Siemens hardware with non-Siemens brand hardware would be cost prohibitive. Because the ECS is currently built with Siemens hardware, and this tech refresh will only replace a subset of the hardware, using non-Siemens hardware would require widespread changes to system components that are outside the scope of the current technical refresh. Additionally, increasing the scope of the technical refresh to include adapting to non-Siemens hardware would introduce unacceptable risk, as the software development process would need to be revised to support the new brand’s development tools. Initial estimates of the additional expense and time required to implement non- Siemens brand name hardware are $1,000,000 and 10,000 person-hours.

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

This Justification will be posted along with the solicitation on the beta.SAM.gov website in accordance with FAR 5.102(a)(6). Any responses received will be evaluated.

Market research was conducted through a survey and analysis of alternative equipment brands that are available in industry. Although other brands of Programmable Logic Controllers, such as offer some of the technical features necessary for compatibility with the existing system, no brand other than Siemens can satisfy every requirement, the most critical of which is the requirement to be compatible with NSWCPD-managed software and development processes created for the existing Siemens controllers. The analysis concluded that no other brand name equivalents exist that can satisfy the need without a redesign of ECS components that are outside the scope of the current tech refresh effort.

Pre-solicitation notice was posted to beta.SAM.gov website on 18 November 2020, with a response date of 03 December 2020. Two responses were received from both companies provided information as to their ability to provide the subject item.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies covered by the J&A will be fair and reasonable. The acquisition is anticipated to receive multiple offers and allow for adequate price competition to justify the price as fair and reasonable. The Subject Matter Expert and the contract specialist will review the contractors’ proposals. The Contracting Officer will utilize cost and pricing analysis as the basis for negotiating a fair and reasonable price, with the submission of a formal price proposal, as necessary if adequate price competition is not obtained.

8. Actions to Remove Barriers to Competition

NSWCPD will continue to monitor the marketplace and identify potential sources of the supplies identified in this Justification. Any sources discovered that could potentially satisfy this specific procurement will be taken into account for any future requirements.