MEDUSA JA_12464.2_REDACTED.pdf

DEPARTMENT OF THE NAVY

NAVAL UNDERSEA WARFARE CENTER DIVISION

1176 Howell Street

NEWPORT RI 02841-1708

I N REPL Y REF ER T O :

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Undersea Warfare Center Division, Newport, RI, (NUWCDIVNPT) Contracts Department, Code 02.

2. Description of Action Being Approved

This J&A against N66604-11-D-0165 is to allow task order N66604-18-F-2483 completion by

Hydroid, Inc., which includes support of land based government led testing, at-sea endurance testing conducted by Hydroid, delivery of the Mining Expendable Delivery Unmanned Submarine Asset

(MEDUSA) vehicle to the Government, and support of at-sea submarine testing.

This document authorizes an increase to the estimated cost of N6604-11-D-0165 by $1,038,419.81 and the number of hours by 5,580 hours. Note, there are no additional components or capabilities being added to the MEDUSA vehicle.

3. Description of Supplies/Services

The Government’s minimum need for this rapid acquisition effort was verified by the certifying technical and requirements personnel. The supplies and services required are as follows:

• NAVUNSEAWARCENDIVNEWPORT requires technical services from the to modify the Remote Environmental Monitoring Units (REMUS) containing the same basic functionality and core vehicle electronics while delivering an offensive mining payload in a 21”-diameter variant size.

• The MEDUSA prototype effort requires engineering services for technical analysis and evaluation, software and hardware modifications, preparation of engineering drawings and documentation, hardware configuration control, software configuration management, installation and testing of vehicle upgrades, design, and training to prepare for the in-water demonstration. These software and hardware modifications will be integrated into the 21”

REMUS variant.

• The MEDUSA prototype effort requires the fabrication and delivery of the vehicle prototype in order to demonstrate its new functional capabilities. Support hardware for the handling and unique submarine integration elements of this vehicle prototype will also be required.

The increase to ceiling cost and hours are necessary based on technical challenges discovered and detailed in Section 5.0 below. In order to complete of the MEDUSA vehicle, additional funding is necessary for Hydroid support of Government led testing, endurance testing, and provide support for MEDUSA’s REMUS based vehicle during the at-sea submarine demonstration.

A cost increase of $1,038,419.81 is required, broken out as $973,683.85 in cost and $64,736.96 in fee.

The increase will be funded with

The increased costs are required as a result of two (2) ordnance mishaps, a subsequent five (5) month delay and decision by the Government to discontinue use of GFE Mk 30 actuators, support due to requirements of the Rapid Fielding TEMPALT data package, support of Government led hydrostatic and launch testing, performance of a 48-hour endurance test, remediation of any MEDUSA vehicle damage as a result of Government-led testing, and support of the actual at-sea demonstration by

Hydroid.

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) as implemented by Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and

No Other Supplies Will Satisfy Agency Requirements.

5. Rationale Justifying Use of Cited Statutory Authority

The MEDUSA vehicle is a singular 21-inch diameter prototype unit with a combination of Hydroid

REMUS sections (propulsion/navigation/communications) and faired 19-inch diameter inert Mk 13

Explosive sections. Proprietary REMUS vehicle control software is interlaced with a Government developed mission controller through Hydroid’s RECON software package. The proprietary nature of REMUS hardware and software makes consideration of a competitive process for completion of this MEDUSA effort infeasible.

As the REMUS original equipment manufacturer, Hydroid is the only company able to provide technical support of the MEDUSA vehicle, and meet the U.S. Navy’s operational requirement to produce and demonstrate a MEDUSA prototype vehicle capable of in-water demonstration by 2021.

In addition, Hydroid is the only company able to provide the Government with the source code used in the control system for the REMUS vehicles. Under license agreement with , Hydroid has the exclusive data and design rights to manufacture and service REMUS vehicles for the open market.

No Acceptable Substitute: No other UUVs can be substituted. The current REMUS design was specifically modified through the addition of ancillary systems and equipment that integrate with

Navy payloads and host platforms to provide the Navy with unique mission capabilities to support the

MEDUSA prototype effort. Both hardware and software of this unique vehicle are proprietary, making competitive bid for testing and vehicle support infeasible.

Utilizing another company’s vehicle would involve additional, design, and manufacturing considerations which do not align with the Sponsor’s program and schedule. Startup costs for a new vendor would include developing an entirely new UUV and control system, and the extensive testing required to ensure that the system operates as needed. A rough estimate of the costs to develop and test a new UUV capable of performing the same functions as the basic REMUS UUV variant is

$8$10M and would take at least three (3) years to complete.

Unacceptable Delays: Development and modification of a vehicle with similar capabilities to

MEDUSA by an alternate company’s UUV would result in an estimated three (3) year delay.

NUWCDIVNPT’s tasking for overall program delivery is on a short timetable. The Fleet requires the

MEDUSA prototype REMUS UUV system to complete development and support a Fleet operational demonstration in Q2FY2021. Any delay of Government-led testing support, endurance testing, or

Hydroid support of the demonstration TEMPALT technical data package or actual demonstration will be detrimental to MEDUSA at-sea demonstration leading to a Plan of Record.

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

The requirement was posted on 17 September 2020 to Beta.SAM, in accordance with FAR 5.2. If there are any challenges to the sole source, they will be brought to the attention of the Competition

Advocate prior to contract modification award.

7. Determination of Fair and Reasonable Costs

In accordance with FAR 15.404-1(c)-(d), cost/price analysis of the contractor’s proposal will be conducted to ensure that the final agreed-to-price is fair and reasonable.

8. Actions to Remove Barriers to Competition

The MEDUSA prototype effort is in a proof of concept demonstrator for emergent Fleet needs.

Assuming a successful at-sea demonstration, the prototype effort will lead to the establishment of a competitive design, development, and delivery of a first article for verification. The resultant competitive efforts will be based on the MEDUSA prototype objectives achieved, Government software developed, future Government mine payload provided, and Government led and executed

MEDUSA n. This knowledge and data set obtained by the Government will be used to inform and revise Concept of Operations (CONOPS), tactics, techniques and procedures.

Once a program of record (POR) and MEDUSA requirements have been established and codified by

OPNAV, a competitive requirement will be solicited. Resultant competitive POR procurement efforts will be based on the MEDUSA prototype performance specification as modified by inputs from the

MEDUSA at-sea submarine demonstration. The contractual mechanism proposed for this future competitive requirement is the NUWCDIVNPT UUV Family of Systems (FoS) multiple-award contract for award of the first article MEDUSA system/vehicle. Successful testing of the first article unit will result in meeting OPNAV performance requirements, allowing the MEDUSA POR to transition into low rate initial production.

CERTIFICATIONS AND APPROVAL

CONTRACTING NEGOTIATOR IDENTIFICATION:

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.

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 are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

REQUIREMENTS COGNIZANCE:

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

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

Upon the basis of the above justification, I hereby approve, as

Branch Head, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(__).