N00024_53371.pdf

CJ&A Number: 53,371

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1), Property or services needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency.

5. Rationale Justifying Use of Cited Statutory Authority

Use of other than full and open competition is justified in this case because there is only one responsible source for these supplies/services, as defined under FAR 6.302-1(a)(2). Award to another source would likely result in unacceptable delays in fulfilling the agency’s requirements.

BAE is the only source possessing the requisite knowledge and specialized experience to ensure continuity of supplies and services and to prevent unacceptable delays in fulfilling Government requirements to service the MK 110 GM. A Level 3 Technical Data Package (TDP) is required to manufacture spare parts and Ordnance Alteration (ORDALT) kits which are regarded as form, fit, and function to the MK 110 GM. BAE is the design authority for the MK 110 GM and owns the technical data rights necessary for successful production and testing of the complete MK 110 GM. Therefore, without the technical data, any other source would not be capable of providing the necessary supplies and services required by this effort.

The Government cannot procure these engineering services and spares from any other source without unacceptable delays to the U. S. Navy (USN). This is based on the Government’s estimate that an alternate vendor would require 18 months to develop the Level 3 TDP plus an additional four (4) months of Government review to validate the TDP. Additionally, once a validated Level 3 TDP is provided, any other source would require a production lead time of 36 months to build and successfully complete qualification testing to perform the overhaul and upgrade of the Gun Mount. A 58 month lead time would result in unacceptable delay to the USN shipbuilding and overhaul schedule for FFGs and USCG cutters that are scheduled to procure equipment and spares during the projected delay.

For the procurement of spares, ORDALTs, and Engineering Change Proposals (ECP), another source would first require access to the TDP (22 months), and then it would take at least six months to acquire specialized tooling, train personnel, and establish a vendor/supplier base for unique components. No other source could provide these requirements earlier than 28 months, which would result in unacceptable delays and jeopardize operational availability of the Gun Mount. Based on the above timelines, the requirements cannot be procured using full and open competition and still support the Fleet readiness or LCS program ECP backfits.

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

On December 8, 2021, the Government released a request for information (RFI) for the MK 110 GM seeking interested sources capable of performing one or more of the following requirements: engineering, logistics, maintenance and overhaul support; ordnance alterations;

and/or procurement of components and spares. The RFI closed on January 14, 2022. Two

CJ&A Number: 53,371 sources responded to the RFI: BAE and BAE is the incumbent for MK 110 GM production and lifecycle support. conditioned its response on the Government’s ability to furnish a Level 3 TDP

No additional market research is anticipated because it is not practical, for reasons described in paragraph 5, for any company other than BAE to provide the required supplies and services.

Orders issued under this BOA will be synopsized on the SAM.gov website. Any responses received will be considered.

7. Determination of Fair and Reasonable Cost

The Contracting Officer has determined that the anticipated cost to the Government of the supplies covered by this CJ&A will be fair and reasonable. NAVSEA contracting office will use cost and price analysis to determine a fair and reasonable price. Assistance from the Defense Contract Audit Agency and the Defense Contract Management Agency will be utilized to analyze, evaluate, and negotiate based on detailed cost and pricing data. Further, when applicable, BAE will be required to certify that any cost and pricing data is current, accurate, and complete at the conclusion of negotiations.

8. Actions to Remove Barriers to Future Competition

The Government does not have a validated TDP that would enable the use of full and open competition to meet the requirements covered by this document, and BAE has recently confirmed that they do not intend to make the TDP available for procurement or to provide a price estimate.

Absent the TDP, the circumstances surrounding the need to obtain the required supplies without providing full and open competition will be reviewed annually by the Contracting Officer. If another potential source emerges, the Government will assess whether competition for future requirements is feasible.

As this is a follow-on for supplies and 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).