J&A_-_Redacted_for_Posting_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC HULL AVE, SE

WASHINGTON NAVY YARD, DC 20376-0001 IN REPLY TO

CJ&A No. 53,218 Code: SEA 02534

N00024-14-NR-42003

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Surface Systems Contracts Division (SEA 025).

2. Description of the Action Being Approved

Award of a sole source, firm fixed price contract to Sechan Electronics, Inc. (Sechan), 525 Furnace Hills Pike Lititz, PA 17543-8954, with a one (1) year base period and four (4) one year options, starting in fiscal year (FY) 2015 for fabrication and delivery of MK 53 Decoy Launching System (DLS) ship sets, provisioned items orders (PIOs), data, and engineering services, in support of continuing installations on Fleet operational units. Authority to act under this CJ&A expires September 30, 2019.

3. Description of Supplies/Services

The anticipated contract will provide for fabrication and delivery of a maximum of 22 MK 53 DLS ship sets, plus PIOs, data, and engineering services. The Government's minimum needs have been verified by the certifying technical and requirements personnel.

The contract will include the following quantities:

FY MK 53 DLS

Ship Sets

FY15 3

FY16 6

FY17 5

FY18 3

FY19 5

TOTAL: 22

As seen in the above table, the total quantity in this CJ&A includes award of a maximum of 22 MK 53 DLS Ship Sets dependent upon Sponsors obtaining Congressional approval to fund new construction for DDGs, LHAs, and Department of Homeland Security (DHS) USCG vessels. The prospect for projected vessels is realistic based on the current ship construction authorizations and out-year planning.

This CJ&A has a total estimated value of for maximum quantities inclusive of the base year and four option years. Table 1 displays the estimated funding amounts and appropriations for the FY15-19 DLS ship set requirements.

Table 1: Estimated Funding for 22 systems($M).

FY15 FY16 FY17 FY18 FY19 Totals

SCN

OPN

Eng Svcs

OPN-2*

Total *NOTE: OPN-2 is DHS USCG funding source.

The estimated period of performance will be from the date of contract award through work completion date. If all options are exercised, the expected work completion date is 30 September 2021.

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1). Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

This contract is a follow-on to the current sole source contract (N00024-10-C-5350) to Sechan awarded under CJ&A Number: 53,153 of 1 Jul 2009. Despite having a validated MK 53 DLS Level III Technical Data Package (TDP), Sechan is the only company currently able to meet Government requirements. Based on continuous market surveillance, including the Government’s synopsis of this procurement, no other company has expressed interest in performing the work. Moreover, a full and open competition would result in unacceptable delays in fulfilling the Government’s requirements.

The Government previously competed a build-to-print production contract for the MK 53 DLS twice. In the first competition in 2000, the Government received proposals from

. The Government awarded the contract to Sechan. In the second competition in 2005, however, and the Government awarded Sechan the contract. Subsequently, Since the award of the most recent contract (N00024-10-C-5350), no other company has expressed an interest to perform this contract. Also, the Government has not received any response to its synopsis, released 13 January 2014, for this proposed sole source award to Sechan. Moreover, the NAVSEA Small Business Advocate, who regularly surveys the market on relevant small businesses capable of fulfilling NAVSEA requirements, approved the DD Form 2579 for no set-aside based on a sole source purchase requisition to Sechan. Finally, while the previous contracts were relatively large and purchased up to 18 units a year, the current effort is comparatively small, approximately 4 units per year (or a third of the size of the competitive contract). Given the relatively small size of this contract and expense at qualifying new manufacturers, larger companies, such as the , are also unlikely to bid on this work. As a consequence, the Government believes that Sechan is the only company currently able to meet Government requirements.

In addition, at this point, award to any other source would result in unacceptable delays in fulfilling the Government’s requirements. The first unit from a new manufacturer would not be available to the government for an

This is based on the following schedule:

to develop a competitive solicitation;

to compete the requirement, evaluate proposals, and award the contract;

to produce a first article;

to perform first article testing;

for physical configuration audit performance and verification; and

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 6.303-2(b))

I certify that the facts and representations under my cognizance which are included in this justification and its supporting acquisition planning data, including Acquisition Plan No. PEO IWS 2DI-NULKA-FY13-001, except as noted herein, are complete and accurate to the best of my knowledge and belief.

COMBINED TECHNICAL AND REQUIREMENTS COGNIZANCE:

Signature Name (Print) and Title (Code) Phone No. Date

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

Signature Name (Print) and Title (Code) Phone No. Date

CONTRACTING OFFICER CERTIFICATION (FAR 6.303(a)(12))

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Signature Name (Print) and Title (Code) Phone No. Date

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as Designee of the Head of the Procuring Activity 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)(1).

DIRECTOR, SURFACE SYSTEMS CONTRACTS Division

Signature Name (Print) Date