JA_ELEC FY25 08182025_r1_Final_Signed_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND MARIANAS

PSC 455, BOX 195

FPO AP 96540-2937

IN REPLY REFER TO:

J&A NO. ACQ22B-25-0003

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

The requiring activity is Department of the Navy, Naval Facilities Engineering Systems Command (NAVFAC) Marianas.

2. Description of the Action Being Approved.

This justification and approval (J&A) seeks authority to award, on a sole-source basis, a contract to Schweitzer Engineering Laboratories, Inc. to provide software and hardware updates for the Electrical Supervisory Control and Data Acquisition (SCADA) system installed at Naval Base Guam (NBG), in support of operational and Risk Mitigation Framework (RMF) systems authorization requirements.

The period of performance is 550 calendar days from contract award.

3. Description of Supplies/Services.

This project is intended to provide for additional improvements to harden pathways, provision equipment spares, incorporate alternate system networking infrastructure, and provide resilience to known and demanding operational and cybersecurity hazards. The current Electrical SCADA system is running using Schweitzer Engineering Laboratories, Inc. (SEL) integrated electronic devices, real-time automation controllers and their applications, as well as network devices from SEL and Cisco.

The project is divided into work elements consisting of base effort and options for continued support throughout the contract period of performance. The base effort and options include but are not limited to: SCADA front end replacement(s); core network and primary substation network integration; SCADA front end dispatch workstations; substation SCADA rack replacement(s); substation SCADA repairs; provide new or replacement electrical SCADA equipment; replace substation SEL communication processors; waterfront substation SCADA integration; provide a video wall system; and provide meter replacements.

Facilities affected include: Building 3190 (server placement), Building 4918 (workstation placements at Piti Dispatch), Buildings 3012/1995/4434 (network switch placements only), Orote substation, Cold Storage substation, SRF substation, Piti substation, Naval Hospital switching station, Nimitz Hill switching station, Barrigada substation, Marine Corps Base, Camp Blaz (MCBCB) substation (limited integration work), Wharf substations: Alpha, Bravo, Kilo, Lima, Mike/November, Romeo, Sierra 1/2, Uniform, Victor 1/2/3. Affected electrical substations and switching stations are intended to be integrated and networked to front-end SCADA servers at Building 3190 with workstations to be placed at Piti dispatch.

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

The statutory authority permitting other than full and open competition is 10 U.S.C. 3204(a)(1), as implemented by FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

SCADA is a system of software and hardware elements that allows industrial organizations to:

Control industrial processes locally or at remote locations Monitor, gather, and process real-time data Directly interact with devices such as sensors, valves, pumps, motors, and more through human-machine interface (HMI) software Record events into a log file

SCADA systems are crucial for industrial organizations since they help to ensure safety, maintain efficiency and reliability, process data for smarter decisions, and communicate system issues to help mitigate downtime. Specialized hardware, software, and services are required for installation and configuration of the SCADA system.

Due to the age of the system, network failures and component problems have been noted on the Navy’s SCADA system, with noted hardware failures of some system components. To mitigate these problems and risks, hardware replacements are required to restore reliable system operations. Additionally, network integration is required for implementation of cybersecurity controls on multiple subsystems, for which network failures occurred or comprehensive system integration was never completed during construction efforts.

If not provided, the NBG Electrical SCADA system will continue to be extremely low-functioning, with zero visibility to system operators at Piti dispatch, low accessibility of power quality information, as well as lack of substation HMI breaker controls at all locations except for Orote, SRF, and Cold Storage substations. Cybersecurity vulnerabilities and system operational management challenges will not be mitigated without the hardware implementation requirements of this contract performance work statement (PWS), leaving NBG at greater risk of contractor security breaches and insufficient ability to manage an effective cybersecurity response to exigent cybersecurity attacks and incidents.

Market research for Small Business concerns was conducted using the Dynamic Small Business Search (DSBS) and GSAbuy.gov, with search criteria set for Keyword “SCADA system” and NAICS code 541511 (Custom Computer Programming Services). Results rendered multiple companies nationwide that are capable of providing these services and no companies on Guam that are able to provide these services. Of the companies identified in the DSBS research, only Schweitzer Engineering Laboratories, Inc. has experience working with NAVFAC Marianas SCADA systems to repair and consolidate electrical SCADA systems at NBG. The results of the sources sought, as discussed in paragraph 6, further supported this determination as no additional company expressed their capabilities and interest for this requirement.

Electrical SCADA subsystems were installed at Naval Base Guam (NBG) as part of various construction contracts for the construction of electrical substations, including WR58753 Replace 13.8kV Switchgear Building at Naval Hospital (2007), P494 (2008), J001 (2009), MMRP Replace 13.8kV Switchgear at NCTS Barrigada (2014), and a services contract for SCADA Human Machine Interface (HMI) Replacement (2017). In all cases, SEL parts were used for protection relays, meters, automation controllers, communications processors, and applications, due to SEL local market penetration and high service and support availability.

For such contracts, SEL was subcontracted for automation controller installation, SCADA integration, and programming tasks. Cybersecurity initiatives from Department of the Navy (DON) leadership have aided in providing baseline configuration requirements and processes targeting SEL-based SCADA systems, for which NAVFAC Marianas Command Information Office (CIO) recognizes that continuity is necessary to continue standardization and implementation of cybersecurity measures for critical electrical distribution infrastructure.

NAVFAC Marianas Public Works (PW) also recognizes the need for critical vendor support for existing SCADA endpoints for a secure system integration strategy.

As the existing protection relays, meters, automation controllers, communications processors, and application software are from SEL, and the overall system design, installation and integration services were all provided in partnership with SEL and/or its industry partners, it is SEL which possesses the unique expertise as the software developer and system integrator to be able to effectively provide hardware and software solutions and support.

SEL’s role as hardware manufacturer, as well as past work on the Navy’s Electrical SCADA system, provides them with intimate knowledge of the system components and operational characteristics. As stated above, the market availability for these services is quite limited in the U.S., let alone Guam itself.

In accordance with FAR 6.302-1(a)(2)(iii), SEL is deemed to be the only responsible source for this follow-on contract for the provision of highly specialized equipment and services as selection of another vendor provides significant risk for compatibility issues which will result in significant cost over runs and time delays, as well as additional time and effort in developing new cybersecurity processes and standardization measures. As discussed in detail above, awarding this requirement to other than SEL would result in substantial duplication of cost to the Government. Such duplicated cost is not expected to be recovered through competition.

Competing the requirement will require brand naming SEL components and significant amount of the statement of work, which consequently may result in additional prime contractor cost that may be avoided by awarding the contract directly to SEL. In addition, duplication of effort will result in unacceptable delays in fulfilling the agency’s requirements, which subsequently results in degradation of the Navy’s Electrical distribution system supplies electrical power to Department of Defense (DOD) installations on the island of Guam. Any system failure will result in a negative impact to operations of critical infrastructure which consequently would result in negative impact to the Navy’s mission and to quality of life for Navy warfighters.

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

Per Defense Federal Acquisition Regulation Supplement (DFARS) Procurement, Guidance, and Information (PGI) 206.302-1, a Notice of Intent to Sole Source was published on SAM.gov on August 4, 2025 which provided interested parties the opportunity to identify their interest and capability in response to the requirement and to determine availability of other providers.

The noticed closed on 11 August 2025. There were no responses from the industry. Receiving no responses from competing vendors indicates that there are no other available providers that can fulfill the requirement.

7. Determination of Fair and Reasonable Cost.

The Government will negotiate this requirement to reach price fair and reasonableness consistent with FAR 15.404. Furthermore, awarding this project to another service provider would result in a significantly higher price because the other firm would have to conduct extensive research to be familiarized with the existing systems equipment, network, and software, systems redesign and reprogramming to align with products and/or programming practices of the other firm’s technicians, mobilization to an OCONUS site for which the other firm does not already have an on-site presence, redevelopment of systems documentation and processes from a much lower baseline, and a higher risk deployment. Significant added costs and time would be expended by the Government in order to properly evaluate an alternate solution and to ensure that critical operational systems can be replaced and made resilient in a timely manner.

8. Actions to Remove Barriers to Future Competition.

Prior to competing future requirements for the type of supplies/services covered by this document, NAVFAC Marianas will conduct a market survey to ascertain whether other potential sources are capable of meeting the Government’s needs. If another potential source emerges, NAVFAC Marianas 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 documents, except as noted herein are complete and accurate to the best of my knowledge and belief.

Technical/Requirements Cognizance:

Signature Printed Name Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

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

ECHELON IV CCO ENDORSEMENT

Phone No. Date

APPROVING OFFICIAL

Upon the basis of the above justification, I hereby approve, as the Commanding Officer, 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), as implemented by FAR 6.302-1.