Mk70 Fin Kits - Justification and Approval_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

INDIAN HEAD DIVISION

3767 STRAUSS AVENUE

SUITE 201

INDIAN HEAD, MD 20640-5150

ANNEX 1 - JUSTIFICATION AND APPROVAL

J&A No. FY23-DEC08-43 Code: 026

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

The Naval Sea Systems Command, Naval Surface Warfare Center Indian Head Division (NSWC IHD), Contracts Division 026.

2. Description of the Action Being Approved.

Award of a Firm Fixed Price (FFP) contract to Anderson Metals Industries, Inc.(cage code 6V279), 1385 Pittsburgh Road, PO Box 631, Franklin, Pennsylvania 16323, on a sole source basis, for Mk 70 Booster Fin Kits, in support of the GQM-163A Supersonic Sea Skimming Target (SSST) Program.

3. Description of Supplies/Services.

The Mk 70 Booster Fins are a critical item designed to maintain the aerodynamics and stability in flight of the GQM-163A SSSTs. An Mk 70 Booster Fin is comprised of a honeycomb structure with hexcel honeycomb core with a bonded aluminum skin. The filler plate, channel, and bottom fitting are made of aluminum; the leading and trailing edges are made of stainless steel. The fin shaft is made of heat-treated steel. A single (1) Mk 70 Booster Fin Kit consists of four (4) complete fins.

NSWC IHD requires a contract for fabrication, inspection, assembly, test, and delivery of the fin kits in accordance with Dwg. ME46195 Rev. E and 1030-5082-002 Rev. A. The following maximum fin kits are required annually to remain fully operational:

Item Requirement Max. QTY FY23 Base Year Fin Kit 28

FY24 Option Year 1 Fin Kit 26

FY25 Option Year 2 Fin Kit 59

FY26 Option Year 3 Fin Kit 46

FY27 Option Year 4 Fin Kit 46

J&A No. FY23-DEC08-43 Code: 026

FY24. Given contract and manufacturing lead times, there is insufficient time to qualify a new source. Any delays in contracting or production will negatively impact the fleet.

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

To further broaden market research and to satisfy the requirements of DFARS PGI 206.302-1(d), a Sources Sought notice was posted on beta.SAM.gov on 11/09/2023. The posting yielded 4 interested parties with only 2 of the vendors, D Gillette Industrial Services and PACON, seemingly capable of satisfying the statement of work. However, neither party is currently an approved vendor.

As required by FAR 5.203, a pre-solicitation notice was publicized on beta.SAM.gov on 01/07/2023. One company, LCI Industries, responded to the notice. However, they are not capable to fulfill this requirement.

7. Determination of Fair and Reasonable Cost.

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

Significant (or similar) quantities of this requirement have been purchased from this offeror in the past and cost/pricing information was received on those past procurements. This information should be sufficient to support the fair and reasonable cost determination of this procurement.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NSWC IHD Contracts Department 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, NSWC IHD Contracts Department will assess whether competition for future requirements is feasible.

For future efforts, in order to change conditions that preclude the use of full and open competition, the procuring activity intends to perform market research. If through market research, it is deemed that one or more potential candidates have the technical capabilities, then a qualification contract will be competed to develop a second source.