JA_N64498_19-DR-045_Prism_Redacted.pdf

J&A Number: 0222-19-240-00 Code: 0222 P.R. Number: 19-DR-045

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

The contracting activity is the Naval Surface Warfare Center, Philadelphia Division (NSWCPD) Code 0221, Philadelphia, Pennsylvania.

2. Description of Action Being Approved

The proposed contract action is a sole source, Firm-Fixed-Price (FFP) Indefinite-Delivery, Indefinite-Quantity (IDIQ) procurement for Original Equipment Manufacturer (OEM) Combat Systems Interface and Steering Control hardware components with incidental cost reimbursable services, to be awarded to Prism Maritime of Chesapeake, VA 23320.

3. Description of Supplies/Services

The items being purchased under the proposed contract action are manufactured by Prism Maritime. Prism Maritime will be required to provide hardware items in support of Combat Systems Interface and Steering Control Systems currently installed on the following ship classes:

Aircraft Carrier, Nuclear Powered (CVN); Landing Ship, Dock (LSD); Amphibious Transport Dock (LPD); and Multi-Purpose Amphibious Assault Ship (LHD). These systems include the Navigation Data Distribution Systems and Steering Control Systems. Prism Maritime will provide data conversion hardware equipment and associated components and supporting product technical manuals.

The proposed action will utilize a five (5) year contract without incorporation of any option periods. The list of items to be procured under the proposed contract action over a five (5) year period are as follows:

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

PHILADELPHIA DIVISION

5001 SOUTH BROAD STREET

PHILADELPHIA PA 19112-1403

IN REPLY REFER TO:

Yr 1 Qty Yr 2 Qty

Yr 3 Qty

Yr 4 Qty

Yr 5 Qty

TOTAL

Max Qty

Item

0 2 1 1 3 7 Ship Control Electronic Unit (LHD Class)

1 2 0 0 3 Ship Control Electronic Unit (LSD Class)

3 0 0 0 3 Ship Control Electronic Unit LSD Class Hybrid Kit

8 2 4 4 12 30

Digital Analog Navigation Interface Standard Configuration (Includes 1‐60 Hz D/S Converter Circuit and 2‐400 Hz D/S Converter Circuits)

16 16 8 6 18 64 Digital Analog Navigation Interface with (Additional 60 Hz Interface)

48 48 24 20 60 200 Digital Analog Navigation Interface (Additional 400 Hz Interface)

4 4 3 1 3 15 Digital Analog Navigation Interface (Includes Sync Amp Booster W/ Shelf)

2 2 2 6 Digital Analog Navigation Interface (Additional Sync Amp)

8 4 2 0 0 14 Network Boundry Security System

2 0 0 0 0 2 Situational Awareness Bridge Display System Electronic Unit

5 3 3 3 3 17 LSD Navigation Converter Upgrade (FFP)

5 5 5 5 5 25 Technical Data Package (FFP)

500 500 500 500 500 2500 Hardware Maintenance Support (CPFF)

$125,000 ODC/Travel

The total estimated dollar value of this requirement is $13,063,200. The following is a breakdown of the estimated funding amounts for this proposed contract action:

Estimated Dollar Value Funding Type

FY20 FY21 FY22 FY23 FY24 Total

SCN $1,045,056 $1,045,056 $1,045,056 $1,045,056 $1,045,056 $5,225,280

OPN $1,045,056 $1,045,056 $1,045,056 $1,045,056 $1,045,056 $5,225,280

RDT&E $261,264 $261,264 $261,264 $261,264 $261,264 $1,306,320

O&MN $261,264 $261,264 $261,264 $261,264 $261,264 $1,306,320

Totals $2,612,640 $2,612,640 $2,612,640 $2,612,640 $2,612,640 $13,063,200

The Government’s minimum needs have been verified by the certifying technical and requirements personnel. The minimum guarantee order for this IDIQ contract will be $100,000.00. Completion dates are not feasible to predict at this time due to the IDIQ nature of this procurement.

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. 2304 (c) (1), “Only One Responsible Source and No Other Supplier or Services Will Satisfy Agency Requirements”, as implemented by paragraph 6.302-1 of the Federal Acquisition Regulation

(FAR).

5. Rationale Justifying Use of Cited Statutory Authority

Prism Maritime hardware is an integral part of Combat Systems Interface and Steering Control Systems installed on numerous ship platforms in the U.S. Navy. Prism Maritime, as the Original Equipment Manufacturer (OEM), is the sole designer and fabricator of this equipment, and as such, possess the proprietary technical data necessary to manufacture and provide maintenance for this specialized equipment.

Only Prism Maritime hardware possesses the essential interoperable design and functional properties necessary for the current requirement. As this is Combat Systems Interface and Steering Control Systems hardware, the Navy cannot afford the risk associated with hardware incompatibility.

The Subject Matter Expert in Code 50 developed the below estimate based on personal knowledge and similar hardware data rights procured in the past. Award to any source other Prism Maritime would result in unacceptable delays in fulfilling the requirements and substantial duplication of cost that is not expected to be recovered through competition. Below is an estimate at an approximate schedule/cost to develop an alternate of Prism Maritime hardware.

*FTE= Full Time Equivalent

Based on the above estimate, it would cost the Government an additional $2,940,000 to re-engineer the existing proprietary equipment of Prism Maritime. Also, it would require an additional 48 months of engineering and testing, which would not support the planned procurement and shipboard installation schedule to start in FY20.

Phase Schedule Cost Requirements Analysis 6 months (3 FTE*) $360,000 Hardware Design 12 months (3 FTE*) $720,000 Equipment Prototype Fabrication 6 months (3 FTE* + HW) $860,000 Environmental Qualification Tests 24 months

(Qty 5 Items @ $200K each) $1,000,000

Total Duration / Cost 48 months $2,940,000

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

A Sources Sought was posted to the Federal Business Opportunities (FedBizOps) website on 16 May 2019, which closed on 28 May 2019. There was one response from Sabre Systems, Inc.

obtained as a result of the RFI/ Sources Sought notification. The Government reviewed Sabre System’s capabilities in regards to this requirement. Code 52 responded on 30 May 2019 with the following in regards to Sabre System’s capabilities:

Sabre Systems, Inc. (Sabre) has the experience with aviation engineering support, but they do not show the abilities to provide the production capacity to support multiple shipboard installations.

Sabre does not possess the proprietary data necessary to manufacture or provide maintenance for the specified equipment needed. As this is Combat Systems Interface and Steering Control Systems hardware, the Navy cannot afford the risk associated with hardware incompatibility.

These items are needed for FY20 scheduled shipboard installations and the schedule does not allow for additional delays or risks.

A synopsis was posted to the Federal Business Opportunities (FedBizOps) website on 17 September 2019, which closed on 02 October 2019. There were no responses to the synopsis.

Due to incompatibility with current ship installed hardware and non-environmentally qualified items, only Prism Maritime is deemed capable of supporting the requirements, availability and installation support schedule for this equipment.

No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any other contractors to provide the required supplies and services.

7. Determination of Fair and Reasonable Costs

The Contracting Officer will determine whether the cost to the Government for the supplies/services covered by this Justification and Approval will be fair and reasonable, prior to award, in accordance with FAR 15.402 & 15.404. The contractor will submit a formal price proposal and sufficient information to support the accuracy and reliability of the estimate.

Defense Contract Management Agency pricing assistance and/or Defense Contract Audit Agency audit of the Contractor’s proposal will be requested. The Contractor’s proposal will be reviewed by experienced technical analysts, cost analysts, and contract specialist with the aid of necessary field pricing support, including historic pricing. The Contracting Officer will utilize cost and price analysis as the basis for negotiating and determining a fair and reasonable price.

8. Actions to Remove Barriers to Competition

Efforts are currently in progress for the Government to develop, own and control all interface specifications and hardware design requirements for all related Combat Systems Interface and Steering Control Systems. Although progress has been made in the last year, these development efforts cannot support procurement requirements related to shipboard installations scheduled between FY2020 through 2025. When these efforts become more mature and are able to provide specific direction and requirements to future engineering requirements, open competition for all Combat Systems Interface and Steering Control Systems related efforts would be possible. It is anticipated that a competitive environment will exist within the next five (5) years. However, until this occurs it is essential that the Government continue to rely on Prism Maritime to provide the existing certified hardware components. The circumstances surrounding the need to obtain the required supplies/services without providing full and open competition will be reviewed annually by the Contracting Officer.

NSWCPD Code 524 plans to develop a Level III Build-To-Print Technical Data Package (TDP) or Performance Based Specification (PBS) that will support competition for future acquisitions of the same or similar items. This TDP is expected to be available in the third-quarter of Fiscal Year 2023 and the first competitive acquisition is planned to be solicited around the first-quarter of Fiscal Year 2024. All components to be acquired must still satisfy all environmental tests for ATO eligibility.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 6.303-2(c)):

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning data, including Acquisition Plan No. N/A , except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL AND REQUIREMENTS COGNIZANCE:

215-897-7672 Signature: MICHAEL IACOVELLI Phone No. Date Department Head (Code 50)

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90)):

I have determined that this justification is legally sufficient.

215-897-3058 Signature: SUZANNE STEFFEN Phone No. Date Office of Counsel (Code 00L)

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(b)(12)):

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

215-897-1805 Signature: MICHAEL FORD Phone No. Date Contracting Officer (Code 0222)

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as Designee of the Head of the Procuring Activity, the solicitation of the proposed procurement described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1).

Competition Advocate for the Procuring Activity

Karen Gutmaker Signature Name (Print) Date