JA HX Compliant Tubes Redacted.pdf

J&A Number: 24075.0 PID Number: 15-0438

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

UNDER FAR SUBPART 13.5, SIMPLIFIED PROCEDURES FOR

CERTAIN COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES

1. Contracting Activity.

Naval Undersea Warfare Center Division Newport, Code 02.

2. Description of the Action Being Approved.

Request approval to solicit and award a firm fixed price (FFP) purchase order on a sole source basis to Teknologic LLC. (Cage code 1SQH3) 170 W Dayton ST., STE 106B Edmonds, Washington 98020- 4162. This requirement is for Compliant Tubes in support of

3. Description of Supplies/Services.

The Naval Undersea Warfare Center Division, Newport (NUWCDIVNPT), Code 1531, requires Compliant Tubes as part of the HX-29 mid-frequency transducer. Compliant Tubes allow the ceramics to operate with predicted sound pressure levels within their operational use depths. These are required for multiple

The estimated value of this procurement is $1,385,230, using Other Procurement, Navy (OPN) funding as follows.

Estimated Dollar Value FY24 FY25 FY26 Total

OPN

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

In accordance with 41 U.S.C. 1901, as implemented in Federal Acquisition regulation (FAR) 13.501(a)(1)(ii), “Only one responsible source and no other type of supplies or services will satisfy agency requirements.”

5. Rationale Justifying Use of Cited Statutory Authority.

HX-29 Compliant Tubes have been in use for and are currently manufactured by Teknologic LLC. The ability to manufacture these items has been established by Teknologic through original equipment manufacturer engineers that joined Teknologic from Honeywell, which was the original developer of the Government’s design. Teknologic has no resellers and is the only source that can provide the government with the HX-29 Compliant Tubes. No other manufacturer has the expertise to make this part without investing in significant non-recurring engineering costs.

Without these specially designed Compliant Tubes, The alternative would be significant duplicative cost and schedule impacts to qualify a new

DEPARTMENT OF THE NAVY

NAVAL UNDERSEA WARFARE CENTER DIVISION

1176 HOWELL STREET

NEWPORT RI 02841-1708

IN REPLY REFER TO

vendor as described below.

The risk to another company of not being able to meet qualification requirements is due to the highly complex and specific processes needed to meet the Government’s required tolerances. Specifically, the challenges would center around Heat forming, welding complexity/challenge, and material source challenges, which would require investigation and testing by another company to confirm valid sources of material.

In order for a vendor other than Teknologic to be able to produce these compliant tubes, it would require a full qualification of the design and product as well as a full requalification of the overall system. This would include design review and first article testing. The estimated monetary and schedule impact is as follows:

Event Cost Schedule Delay

Market Research and/or vendor development First Article test plan including proper review Fabrication of First Article for destructive testing First Article testing Shock Testing: labor and facility Drawing revisions Drawing review and acceptance Drawing database updates Integrated Logistics Support (ILS)

Total

The Government estimates this requirement satisfies the need for at least the

Based on the above, it is not reasonable to conclude the potential savings from competition can offset the significant duplicative cost and schedule/mission impact associated with purchasing this product from a new source. Therefore, it is in the best interest of the Government to solicit and award this requirement on a sole source basis.

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

A combined synopsis and solicitation notice was published publicly on the Government-wide Point of Entry (GPE), SAM.gov. The notice stated the intention of NUWCDIVNPT to award a contract on a sole source basis to Teknologic LLC and it invited all responsible sources to submit a capability statement for the consideration of the Government. No additional sources came forward during the solicitation period.

No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than Teknologic LLC to fulfill this requirement.

Determination of Fair and Reasonable Cost.

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

Significant 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 the fair and reasonable cost determination of this procurement.

Actions to Remove Barriers to Future Competition.

The Government is currently contemplating two different acquisition strategies going forward either of which might result in dissolving this sole source requirement. They are as follows:

1. Due to the inherent risk of a sole source the program is contemplating seeking another vendor product to qualify. Doing so at this time is not realistic because there are fleet needs over the next and as detailed above it would take over to get a new product into the fleet. The present requirement is sufficient to bridge the gap and provide the needed time to seek and qualify another vendor while fielding the current HX-29’s for Fleet needs. Furthermore, this open order can potentially service the Fleet

2. The Government is contemplating replacing the overall HX design with another which would render these specific compliant tubes moot.

The above further supports the conclusion of this J&A and that the duplicative cost and schedule impact cannot be offset by competitive benefits as the product does not have longevity in the fleet.