Justification.pdf

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

CARDEROCK DIVISION

9500 MACARTHUR BOULEVARD

WEST BETHESDA, MD 20817-5700

J&A No.: N00167-24-

SIMACQ-CD-63-0006

Code: 0631 PR Number: TBD

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL & OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

Naval Sea Systems Command (NAVSEA), Naval Surface Warfare Center Carderock Division (NSWCCD), Contracting and Acquisitions Department (Code 02).

2. Description of the Action Being Approved

The proposed acquisition is to issue a firm-fixed priced (FFP) Blanket Purchase Agreement (BPA) to Thermo Fisher Scientific, Inc. (TFS) on a sole source basis for the procurement of a maintenance service contract.

3. Description of Supplies/Services

NSWCCD Code 631 requires maintenance (preventative and repair) services for Model 8800 Harshaw TLD Reader Systems located at the Naval Dosimetry Center (NDC) and Naval Nuclear Propulsion Program (NNPP) sites. The proposed requirement provides for the Original Equipment Manufacturer (OEM),TFS, to provide regular maintenance services, including two scheduled on-site maintenance visits per year to the NDC and one scheduled on-site maintenance visit per year to each NNPP location. The acquisition includes provisions for emergency repair and distribution. The maintenance services include preventative maintenance, technical support for the associated software, replacement of spare parts kits, and configuration management requirements for any changes to software, firmware or hardware. This follow-on service contract will support the current inventory of TLD Reader Systems from FY24 to FY29.

This acquisition will begin in FY24 upon expiration of the current maintenance contract N00167-19-D-0003, and the ordering period will be for five years thereafter. The anticipated ordering period and total estimated dollar value of the proposed contracting effort under this acquisition is summarized in Table 1.

required by the Code of Federal Regulations – Nuclear Regulatory Commission.

The Navy manages 500,000 TLD cards and at least 80 readers throughout 15 activity locations, both within the Continental United States (CONUS) and Outside the Continental United States (OCONUS). All TLD reader data (comparisons, dose algorithms, calibration parameters, and coefficients) and TLD card dose data is eventually funneled to the NDC for the master comparison results and official dose records. Standardization among all of the readers and cards is essential because calibration parameters and dose algorithms have been calculated using the same equipment across the entire Navy. Refining the calibration parameters and dose algorithms is an ongoing process that requires collaboration across all Navy activities.

Additionally, all of the equipment is NVLAP accredited to prove that the TLD card doses count as official records of dose for Navy personnel.

In addition, the procurement of new dosimetry and processing equipment would necessitate revisions and rewrites to numerous software programs, the need for the establishment of new processing policies and procedures, and additional testing to support NVLAP accreditation and to ensure system performance and capabilities compliance. It has been estimated by NSWCCD personnel that it would take at least one year for a company to secure NVLAP accreditation.

The introduction of equipment from a different provider would require a complete replacement of calibration parameters and dose algorithms. As shown below, a substantial amount of time would have to be spent in re-calculation and collaboration among all the various CONUS and OCONUS Navy activities. In addition, a significant amount of time and funding would be spent testing, managing, trending, and tracking readers and cards from different providers and in linking those readers and cards with the most accurate calibration parameters and dose algorithms to correctly determine Navy personnel doses. The costs have been estimated to be $52,000,000. A cost breakdown is as follows:

Procurement of new dosimetry and processing equipment:

500,000 TLD cards x $70/card = $35,000,000 80 readers x $200,000/reader = $16,000,000

Revisions and rewrites to numerous software programs written by the NDC:

One man-year of work (2,000 hrs x $100/hr) = $200,000 Establishment of new use and processing policies and procedures:

Two labor-years of work (4,000 hrs x $100/hr) = $400,000

Additional testing for NVLAP accreditation, system performance, and capabilities compliance (based on previous testing and NVLAP fees) = $400,000

Total Estimate = $52,000,000

In summary, TFS is the only company that can provide maintenance services for its proprietary devices.

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

A sources sought notice of the proposed contract was posted on the System of Award Management (SAM) website on 4 December 2023 and only TFS expressed an interest in this requirement. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than TFS to provide the required supplies and services.

The technical code conducted market research by searching market catalogues, conducting internet searches, and contacting market experts. No other company was found to offer maintenance services that can satisfy this requirement, given the need for proprietary knowledge of the reader system.

Notice of this justification will be provided on SAM.gov in accordance with FAR 6.305. The Procuring Contracting Officer (PCO), as required by FAR 5.201, will post a synopsis to the Government Point of Entry – SAM.gov detailing the intended acquisition strategy.

No other vendors at this time have the capabilities to perform this service.

7. Determination of Fair and Reasonable Cost

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

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5 and 6, NSWCCD has no plans at this time to compete future contracts for the types of supplies/services covered by this procurement. If another potential source of emerges, NSWCCD will assess whether competition for future requirements is feasible. As this is a follow-on for services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(S-70)(i), the prior J&A was provided to the approval authority for review.

Approval of this J&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(S-70)(ii).