JA _Redacted.pdf

V3.1_JULY2020

Control #:

P.R. Number:

[Type here]

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

UNDER FAR 13.5, SIMPLIFIED PROCEDURES FOR

CERTAIN COMMERCIAL ITEMS

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Undersea Warfare Center Division, Code 02, Newport, RI.

2. Description of the Action Being Approved

Request approval to solicit and award a Firm Fixed Price (FFP) Purchase Order on a sole source justification, no substitutions allowed, basis to South Bay Cable (CAGE Code:

51173). This requirement is for the procurement of 5,168 feet of raw fiber optic and pulse power cabling.

3. Description of Supplies/Services

FY23 FY24 FY25 FY26 FY27 Totals

Naval Undersea Warfare Center, Division (NUWCDIVNPT), Code 8541 requires raw outboard cabling to support requirements.

cables are , which connect the system to the . When cables are removed. When the routine maintenance is completed, new reinstalled. If are not available at the time of the maintenance availability, than will not be installed on the

Support for 5,168 feet of raw fiber optic and pulse power cabling is required because supply chain issues have and may continue to create unacceptably long lead times for procuring raw cabling. If raw cabling is not available for transformation into finished outboard cable assemblies, then the program may not be able to . This in turn creates the risk of the program not meeting

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

Control #

4. Statutory Authority Permitting Other Than Full and Open Competition

The proposed action specifies sole source components using the procedures in FAR Subpart 13.5 and in accordance with 41 U.S.C. 1901 and 10 U.S.C. 2304 (c)(1), Limited Number of Responsible Sources and No Other Supplies or Services Will Satisfy Agency Requirements as implemented by FAR 6.302- 1(c).

5. Rationale Justifying Use of Cited Statutory Authority

The cabling used for pulse power and fiber optic cables are custom designed and only one company is capable of manufacturing them, due to South Bay Cable being the only vendor currently federally qualified to do so, and the prohibitive costs in time and money of qualifying another vendor. In addition to being complex to manufacture, the raw cabling is also a long lead-time material where lead times range from 6-12 months. Due to the sole source environment, if this raw cabling manufacturer shuts down for any reason, has no way of . This scenario played out during the onset of the Covid-19 pandemic, where .

To hedge against future supply chain disruptions, Code aims to procure 5,168ft of raw pulse power and fiber optic cabling. The raw cabling will be used as GFM to support existing contracts, where

The process for vendors to enter into this trade space is extensive. The pulse power cables use a non-standard American Wire Gauge (AWG) sizing, non-standard jacketing material, and Kevlar impregnated with sodium polyacrylate (compound used in baby diapers) for water blocking. Fiber optic cables use a non-standard design with an internal steel K-tube, free strands of fibers suspended in a gel filling, and Kevlar impregnated with sodium polyacrlate for water blocking. Due to these highly customized designs, contractors will need to have existing highly sophisticated and customizable manufacturing equipment, or make a capital investment into customized manufacturing equipment. Once the contractor has access to the manufacturing equipment, they then will need to complete Qualification Testing. There are thirteen (13) qualification tests for pulse power (figure 1) and twenty-five (25) for fiber optic (figure 2). These

Control #:230231 P.R. Number: 1301064618 destructive tests are performed on 1,640ft test length cables which are valued at roughly total. Factoring in the labor hours needed to run the qualification testing, it is estimated to cost around to qualify the two cable variants. In addition to the costs, it would take the vendor around one (1) year to complete the qualification process.

Figure 1: Pulse Power Cable Test Requirements

Figure 2: Fiber Optic Test Requirements

In an effort to maximize competition and continue market research, in accordance with FAR 5.2, a combined synopsis and solicitation will be posted to SAM.gov inviting all potential offerors to submit a capability statement. Any challenges to this sole source action will be brought to the attention of the Competition Advocate prior to contract award.

7. Determination of Fair and Reasonable Costs

The contracting officer will conduct price analysis using FAR 13.106-3 and or 15.404-1(b) and 15.404-1(c) methods, in accordance with FAR 13.003(g)(2) to determine proposed prices are fair and reasonable.

8. Actions to Remove Barriers to Competition

The cable drawings are distribution A to allow any and all contractors the ability to become qualified. Since is the that procures these cables, there is little room for competition in this market space.

The only action that could be done to increase competition is for the Government to personally fund another vendor’s qualification. This qualification would cost and would take around one year to complete. The qualification cost would be around of the two cables and the schedule would be more than twice as long.

Due to the excessive costs and schedule delays associated with qualifying another vendor, it is not feasible to qualify another vendor at this time.