JA (Sole Source Justification) - Sargent Follow-On_N64498_02412506000_Redacted.pdf

J&A No. 0241-25-060-00

Isolation Ball Valve 23408-401-1 EA 4 Servo Valve 52120-001 EA 2

The total estimated dollar value of this procurement is $3,094,797.69.

Budgeted funds will include FY25 Shipbuilding and Conversion, Navy (SCN) funding. The total estimated dollar value of the proposed acquisition is $3,094,797.69. The costs above are based upon the above quantities described in the chart above. The anticipated completion date is for all items is 9/22/29. 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.

10 U.S.C. 3204(a)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

Sargent Aerospace & Defense is the Original Equipment Manufacturer (OEM) for the required hydraulic manifold and valve assemblies. The hydraulic manifolds and valves must be compatible with the interfaces and requirements in support of the Columbia Class ship design and must meet the qualifications for U.S. Navy submarine use as outlined in Government document Project Peculiar Documents (PPD) 802-6337452, General Specification for Hydraulic Directional Control Valves, and 802-6337453, Electrohydraulic Servo Flow-Control Valve.

As the sole owner of the design of these units, Sargent does not provide this design to any outside sources. No other firm possesses the requisite capabilities or access to proprietary information necessary to execute the tasking that will be promulgated on this contract.

In addition, NSWCPD has not had success obtaining the full data rights for the equipment due to the proprietary nature of the drawings. As of 25 Feb 2022, Sargent declined to sell the technical documentation to the Government and has remained firm on this stance through today. Without access to the manufacturing detailed drawing, no other source would be able to manufacture these units to fit the Government’s requirement. As a result, Sargent is the only contractor qualified to provide the required manifold and valve assemblies.

If awarded to a new contractor, a completely new submarine hydraulic manifold would have to be designed, developed, manufactured, tested and installed, at the Government’s expense - resulting in unacceptable delays in fulfilling the agency’s requirements.. In addition, the new vendor’s design would have to meet the performance requirements outlined in Government document Project Peculiar Documents (PPD) 802-6337452, General Specification for Hydraulic Directional Control Valves, and 802-6337453, Electrohydraulic Servo Flow-Control Valve.

If the Government were to pursue this option in order to pursue full and open competition, an estimated timeframe to achieve these requirements are presented in Table 1.

Table 1 – Schedule Impact, Manufacture of Manifold and Winches

Events Duration Develop technology to reach required performance requirements

8-10 years

Inspection and qualification of technology 1-2 years Develop design of new submarine hydraulic manifold 2-3 years Qualification Testing 1-2 years Total Time 12-17 years

Based on the above, Sargent is the only known responsible source capable of providing the required supplies.

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

In accordance with the Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance, and Information (PGI) 206.302-1, a Request for Information (RFI) was posted to SAM.gov on 08 October 2024. Additionally, a synopsis of this procurement was published on the SAM.Gov on 21 November 2024. BHPE LLC, Einhorn Engineering, PLLC, and Bosch Rexroth Corporation responded to the sources sought notice, but after further review of the contractors, it was determined they do not have the correct proprietary rights to move forward. No contractors have responded to the posting of the synopsis as of the drafting of this J&A on 09 December 2024. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any other contractor than Sargent to provide the required supplies and services.

7. 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.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NSWCPD has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, NSWCPD will assess whether competition for future requirements is feasible.

NSWCPD will continue to monitor the marketplace and identify potential sources of the supplies identified in this Justification. Any sources discovered that can potentially satisfy this specific procurement will be taken into account for any future requirements. The circumstances surrounding the need to obtain the required supplies/services without providing full and open competition will be reviewed annually by the Procuring Contracting Officer (PCO).