JA HOSS 19-0420 rev. 7-30-19 FINAL redacted.doc

J&A Number: 19-0420

J&A Number: 19-0420

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center Aircraft Division (NAWC-AD) Lakehurst, NJ

2. Description of the Action Being Approved.

This Justification and Approval (J&A) authorizes and approves the establishment of a sole source contract with Gardner Technologies, Inc. (GTI), 1993 Moreland Parkway Suite 204 Annapolis, MD 21401, CAGE: 39FT5 for Helicopter Operations Surveillance System (HOSS) obsolescence upgrades. The currently fielded HOSS is obsolete and requires an upgrade to meet the NAVSEA Surface Electro Optic and Infrared (EO/IR) Sensor Requirements and to address its current supportability issues.

3. Description of Supplies/Services.

This procurement will be in support of PMA-251, Aircraft Launch and Recovery Equipment’s Visual Landing Aids HOSS program. HOSS is used to provide low light surveillance, recording and video distribution of flight deck and surrounding airspace. The system aids in safe flight operation and mishap investigations. This acquisition is to address critical system obsolecence of HOSS, P/N 523921-20. The Original Equipment Manufacturer (OEM), Imenco UK Ltd. has recently informed the Government that many of the HOSS system components are unable to be procured and the current system design can no longer be manufactured for Landing Platform Dock (LPD) 31 and follow on LPD Flight II ships.

The contractor will update obsolete components as required, and perform Non-Recurring Engineering (NRE) to integrate the new components into the HOSS baseline. The effort includes replacement camera, controls and display selection, integration and system qualification. The contractor will provide all test hardware, test data and updates to the logistics data packages to reflect the new HOSS baseline.

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. 10 U.S.C. 2304(c)(1), which is implemented by the Federal Acquisition Regulation (FAR) Subpart 6.302-1(b) (1), states, “The head of an agency may use procedures other than competitive procedures only when – (1) the property or services needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or service will satisfy the needs of the agency.”

5. Rationale Justifying Use of Cited Statutory Authority.

Based in the United Kingdom, Imenco is the OEM for HOSS and the only designer of the current configuration, and as such, is the only company who can resolve the current parts obsolescence issues. The currently fielded HOSS was developed by Imenco in 1993 and the Government does not own the HOSS production data package. Imenco does not deal with the US Government directly and has designated GTI as the sole sales provider of their products in the US. As a result, GTI is the only firm who can provide the required upgrades to the US Navy.

The intent of this effort is to efficiently upgrade the HOSS to meet LPD31 required delivery dates. NAVAIR has determined it would take several years for a competitive procurement to develop and qualify a new HOSS system, which would introduce another baseline to support with training, spares, tech manuals, maintenance and in-service engineering. It is anticipated that a full competitive effort could take a minimum of 6 months to award, as well as 3 years to complete the development and qualification which would cost the Government approximately $6.6M. In addition, LPD 31 requires Government Furnished Information (GFI) in FY20 and a Government Furnished Equipment (GFE) procurement in FY21. Based on a multi-year procurement effort to qualify a new system, these dates cannot be met using competitive procedures. Additionally, as the OEM for current fielded HOSS, Imenco has thorough knowledge of unique HOSS design requirements and component functionality, thus they can design and upgrade the HOSS within a year and a half timeframe to meet the LPD 31 GFI and GFE deadlines.

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

Market research was conducted in 2019 to determine whether any other vendor products could meet the requirements of the Navy. Local Government subject matter experts for HOSS and VLA were contacted, as well as industry experts and multiple vendors at National Association for Broadcasters and International Security Conference. Through collective research obtained through the above efforts, it was discovered that analog surveillance technology is obsolete and comparable digital surveillance options have emerged in the market. However due to operational functionality and environmental hardening requiring NRE, a Commercial off-the-shelf solution is currently unavailable.

Based on the above, it has been determined at this time, that only Imenco UK Ltd, operating through their authorized US distributor GTI, is the sole provider of HOSS. No other sources are available to upgrade the HOSS for the Navy.

A Request for Information (RFI) and Synopsis of this procurement were released to Federal Business Opportunities in accordance with DFARS 206.302-1(d) and FAR 5.201 on 09 July 2019 and 15 July 2019, respectively, to assist the NAVAIR Lakehurst team in identifying other potential companies. Three (3) RFI responses were received from Sparton Aydin, LLC, (CAGE: 70MF8), a large business, Delta Digital Video, (CAGE: 3T573) a small business and a division of Delta Information Systems, Inc., and Ampex Data Systems Corp., (CAGE: 0PN68) a small business and wholly owned subsidiary of Delta Information Systems, Inc. All 3 companies provided capabilities brochures that were reviewed by the HOSS/ALLSS Engineering Team.

Based on the information provided, each company was determined to be able to partially meet the requirements. Sparton Aydin Display offers rugged displays and Delta Digital Video can provide rugged encoders, decoders and servers. Ampex Data Systems offers a solution through their Data Servers/Recorders, however neither of the companies were found capable of being able to provide the full solution that USN requires.

The engineering team also stated that none of the companies demonstrate Naval Marine CCTV "Full System Architecture" experience, nor possess knowledge of HOSS components or requirements. For obsolescence demands, the HOSS OEM is the only company that can design components to mesh with existing HOSS/ALLSS systems/technologies due to the proprietary data/knowledge with over 20 years of experience. In the event that Sparton Aydin, Delta Digital, or Ampex were able to acquire the necessary proprietary knowledge of HOSS design and requirements, an extensive NRE investment would be required, followed by full MIL-SPEC testing in order to meet USN standards. Each of the company’s products have not been tested and approved to meet any of the MIL Specs required for a USN Program of Record (especially Shock, Vibration and Electromagnetic Interference), nor do they demonstrate any experience with qualifying products for the intended environment.

Sparton Aydin Display, Delta Digital Video and Ampex Data Systems were notified of the Government’s decision and feedback regarding their product capability.

No responses to the synopsis were received. Any future responses will be evaluated by the Procuring Contracting Officer prior to award.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402, the Contracting Officer shall ensure that all supplies and services provided under this contract are procured at a fair and reasonable price. The Contractor will provide a formal price proposal with sufficient information to support the accuracy and reliability of their proposal estimate. An analysis of the GTI’s proposal will be performed by technical analysts and contract specialists, with the assistance of Defense Contract Management Agency (DCMA) and Defense Contract Audit Agency (DCAA) auditors as needed. The Contracting Officer will analyze the various cost elements that are presented in the proposal, as well as review the actuals from previous procurements, if applicable. The Contracting Officer will use Government expertise, including DCMA, DCAA, and other Government resources, to evaluate the proposal material, labor, and subcontracts. A detailed report, developed as part of the Government evaluation, will be utilized to establish a NAVAIR position. As discussed in this paragraph, the Contracting Officer will use cost and price analysis as the basis for negotiating a fair and reasonable price for the supplies covered by this J&A.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, at this time, only GTI can meet the Navy’s requirement. NAVAIR Lakehurst will continue to conduct market research on an annual basis. If another potential source emerges, NAVAIR will assess whether competition for future requirements is feasible.

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

IN REPLY REFER TO:

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