JA_Redacted.pdf

J&A No. 50,175 Ser 02/2757

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

The Naval Sea Systems Command (NAVSEA), Naval Surface Warfare Center, Corona Division (Corona Division), Contracts Department, Code 0221.

2. Description of the Action Being Approved

This Justification and Approval (J&A) authorizes the award of a Firm-Fixed-Price, Contract on a sole source basis for the procurement of Scalar Network Analyzers (SNAs) in support of Naval Air Systems Command (NAVAIR) Metrology and Calibration (METCAL) Program to Liberty Test Equipment (LTE). Authority to act under this J&A shall be effective from the date of approval to the end of the contract term.

3. Description of Supplies/Services

NAVAIR’s METCAL Program has a requirement to procure three (3) Spanawave, Inc. (Spanawave) Model 8003-S5554N systems with an option to buy up to sixty-seven (67) systems. The procurement of these items are used at intermediate level calibration laboratories. METCAL’s current inventory is out of date and considered end-of-life. In order to maintain form, fit and function, these items need to be replaced. The 8003-S5554B is the legacy model manufactured by Giga-tronics, Inc., the previous technical data package owner for that unit.

This J&A has a total estimated value of $3,645,631.25. The type of funds associated with this requirement is Aircraft Procurement, Navy (APN) for Fiscal Year 2020 and 2021.

Funding FY20 FY21 (Options) Total

APN $163,237 $3,482,394 $3,645,631.25

The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

4. Statutory Authority Permitting Other Than Full and Open Competition

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10 U.S.C. 2304(c)(1) Only one responsible source, and no supplies or services will satisfy agency requirements. The procedures in FAR subpart 13.5 will be utilized for this procurement in accordance with 41 U.S.C 1901.

5. Rationale Justifying Use of Cited Statutory Authority

The purpose of this requirement is to replace and upgrade the current SNA’s in order to maintain form, fit, and function.

Spanawave does not directly sell these items to the Government and has identified LTE as the sole distributor. Spanawave owns all proprietary technical data associated with all legacy and current models of the 8003 line of SNA systems. The previous SNAs were produced by Giga-tronics Inc. who sold the technical data rights to Spanawave. Each modernized Spanawave system will offer the Government enhanced reliability and readability in the same type of operational and physical footprint currently fielded to the fleet.

Only Spanawave has the schematic diagrams, calibration procedures, assembly instructions and component technical data to build the 8003 line of SNA systems that will be a form fit and functional drop in replacement of the legacy systems. The 8003 line of systems is used to calibrate support equipment for multiple aircraft platforms including but not limited to the F/A-18, V-22B and the MH-60. This support equipment that is calibrated by the SNA includes coaxial attenuators, power meters, power splitters, Standing Wave Ratio Bridges, Radio Frequency (RF) Filters, isolators, directional couplers, fixed attenuators and other various passive RF components. Most of the support equipment identified here supports radio and radar test sets used to provide Go/No Go decisions on aircraft platforms.

Currently, there are at least 72 Instrument Calibration Procedures (ICPs) that call out the use of the 8003 line of systems. As such, the 8003 series of SNAs is the only approved calibration standard used to calibrate the above identified support equipment. The cost charged by NAVSEA Measurement Science department to create each ICP is $21,285 Each individual ICP being created has a lead time of six (6) months for writing, testing on a bench, validating by another engineer then approval by a supervisory engineer before it can be included in the new SNA. If a new SNA was purchased, it would take approximately 36 months to write all new ICPs to include the new SNA. At least 80% of the support equipment requires calibration on a yearly or shorter interval. Based on the significant time and costs incurred by this process, the availability of the 8003 series of

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SNA systems to the fleet calibration labs has a direct impact on aircraft readiness and overall costs.

The Government has purchased supporting accessories for the 8003 legacy models including but not limited to adapters, cables, power splitters, and power sensors with a cost of approximately $450,000. These supporting accessories can be utilized on the new 8003 SNA produced by Spanawave, but will not fit any other SNA. If another SNA were procured, the corresponding accessories for the new SNA would need to be procured again incurring an additional cost of approximately $450,000 depending on the cost of each corresponding accessory.

Based on the information contained above, a sole source procurement is in the best interest of the Government.

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

Market research was conducted to determine if other firms manufacture a commercially available SNA that’s capable of meeting the Government’s requirement. Market research using web-based searches including GSA Advantage, Google, Bing, and NAVICPmart did not reveal any sources for the requested equipment other than Spanawave through their distributor LTE.

A Sources Sought Notice (SSN) was posted on the beta.SAM website indicating the Government’s intent to sole source this requirement to LTE. The posting was issued on 31 January 2020 and closed on 18 February 2020. At the close of the SSN, one response was received from LTE, which was identified in the posting as the sole distributor for these SNA’s. A capabilities analysis was performed by the certifying technical and requirements personnel, in which concluded that LTE was the only source able to meet the Government’s minimum requirement in the Statement of Work.

Additionally, market research was conducted to verify if Spanawave has other authorized distributors or resellers with the ability to provide the Model 8003-S5554N. An email was sent to Spanawave on 06 February 2020 requesting information on any authorized distributors or resellers with the ability to offer the model 8003 series of SNA. Spanawave responded with confirmation that LTE was the sole authorized distributor and did not intend to authorize other businesses to distribute their products.

7. Determination of Fair and Reasonable Costs

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The Contracting Officer has determined that the anticipated costs to the Government for the items covered by this J&A will be fair and reasonable. Corona Division will utilize price analysis, commercial price lists, historical costs, and cost estimating relationships from previous procurements to determine that the final price to the Government is fair and reasonable.

8. Actions to Remove Barriers to Competition

Corona Division will continue to perform market research to identify capable sources for future requirements related to this effort and if another potential source emerges, Corona Division will assess whether full and open competition is feasible.

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CERTIFICATIONS AND APPROVAL

TECHNICAL AND REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting data, except as noted herein, are complete and accurate to the best of my knowledge and belief.

COMBINED TECHNICAL AND REQUIREMENTS COGNIZANCE:

Patrick Brannick, Phone No. Date Domestic Acq.Task Team Lead NAVAIR Metrology and Calibration Office

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

951-393-5430 Samuel Frazer, Counsel, Code 00L Phone No. Date

CONTRACTING OFFICER CERTIFICATION (FAR 13.501(a)(2)(i))

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

951-393-5240 Chris Hainsworth, Phone No. Date Contracting Officer, Code 0221

APPROVAL BLOCK (FAR 13.501(a)(2)(ii)for Approving Official)

Chief of the Contracting Office

951-393-4976 Sean E. Foley, Code 02 Phone No. Date

BRANNICK.PATRICK.J.1

247027021

Digitally signed by

BRANNICK.PATRICK.J.1247027021

Date: 2020.06.09 17:20:26 -04'00'

FRAZER.SAMUEL.ANTHON

Y.

Digitally signed by

FRAZER.SAMUEL.ANTHONY

Date: 2020.06.09 16:31:49 -07'00'

Chris Hainsworth, 6/9/2020

FOLEY.SEAN.ERIN. Digitally signed by

FOLEY.SEAN.ERIN.

Date: 2020.06.10 10:35:48 -07'00'