Archerfish_J A_redacted_to_be_released_20160311.pdf

DEPARTMENT OF THE NAVY

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC HULL AVE, SE

WASHINGTON NAVY YARD, DC 20376-0001 IN REPLY TO

J&A Number: 63,921

Code: 02633

N00024-14-NR-99509

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Undersea Systems Contract

Division, NAVSEA 026.

2. Description of the Action Being Approved

Award of a sole source contract to BAE Systems Electronics Ltd., Broad Oak, The Airport, Portsmouth, Hampshire, PO3 5PQ, UK to produce Archerfish Neutralizers (Destructor, Mine Neutralization, Airborne MK 64 Mod 0 Archerfish, MK 65 Mod 0 Archerfish), Fiber

Optic Spools, Neutralizer Interface Boards, Neutralizer Interface and Deployment packages, and support equipment required for the maintenance and operation of the Archerfish Neutralizer. This contract is in support of the AN/ASQ-235 Airborne Mine

Neutralization System (AMNS) which is used on the MH-60S helicopter.

3. Description of Supplies/Services

Although this procurement is delayed by one year from the executed Single Acquisition Management Plan (SAMP) revision 2, dated 14 June 2012 due to a review of requirements, it is still in conformance of the overall requirement for the

Archerfish. As a result of the delay, the funding profile and the quantity in the SAMP are slightly different than as stated below. The base year requirement consists of the production, test, and delivery of up to 127 Archerfish Neutralizers, 5,000 hours of Engineering Services, Data, and Provisioned Item

Order to cover the entire performance of the contract. Option

Years 1 through 4 cover the requirement from fiscal year 2015-

2018 and include the same approximate level of Engineering services as the base year and added various support equipment.

However, Option years 1 through 4 have different quantities for the Archerfish Neutralizers, Fiber Optic Spools, and

Neutralizer Interface Boards. Option year 1 includes 197

Archerfish Neutralizers, 175 Fiber Optic Spools, and 3

J&A Number: 63,921

Neutralizer Interface Boards. Option year 2 includes 322

Archerfish Neutralizers, 280 Fiber Optic Spools, and 6

Neutralizer Interface Boards. Option year 3 includes 154

Archerfish Neutralizers, 245 Fiber Optic Spools, and 4

Neutralizer Interface Boards. Option year 4 includes 166

Archerfish Neutralizers, 210 Fiber Optic Spools, and 4

Neutralizer Interface Boards. If all options are exercised, then the total quantity is up to 966 Archerfish Neutralizers, 910 Fiber Optic Spools, and 17 Neutralizer Interface Boards.

The period of performance for delivery of the Archerfish

Neutralizers and associated hardware will be 5 years from date of the contract award.

The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

The following table depicts the approximate total WPN funding for the Archerfish effort by fiscal year:

Estimated Dollar Value

FY13 FY14 FY15 FY16 FY17 TOTAL

WPN $9,527,000 $14,854,000 $24,230,000 $11,592,000 $12,483,000 $72,686,000

WPN Spares $707,000 $0 $0 $0 $0 $707,000

Total $10,234,000 $14,854,000 $24,230,000 $11,592,000 $12,483,000 $73,393,000

4. Statutory Authority Permitting Other Than Full and Open

Competition

10 U.S.C. 2304(c)(1), as implemented in FAR 6.302-1: The supplies or services required by the agency are available from only one responsible source and no other type of supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

Pursuant to 10 U.S.C. 2304(c) (1), BAE is the only responsible source capable of satisfying the Navy’s requirements for the immediate production of the Archerfish Neutralizer that integrates with the existing Airborne Mine Neutralization System

(AMNS). A competitive procurement conducted in 2003 resulted in the Archerfish, provided by BAE, being selected as the AMNS

Neutralizer. The Archerfish Neutralizer being procured by this acquisition is in support of the AMNS Low Rate Initial

Production contract N00024-10-C-6307 and a subsequent follow on production contract. BAE Systems is the sole developer and original equipment manufacturer of the Archerfish neutralizer and related equipment. Only BAE, the original source of the

Archerfish Neutralizer has the required knowledge of the

Archerfish Neutralizer’s design at this time to integrate with the AMNS system and meets the Government’s technical requirements and schedule.

Under the current contract, BAE developed the equipment, interfaces and interface boards which integrate with the AMNS system and comply with the existing vehicle space and power requirements to provide the required performance. In order to integrate another neutralizer into the AMNS system, a contractor other than BAE would require detailed insight into the AMNS design, for which the government has less than full Government

Purpose Rights. Also, a validated Level III build-to-print technical data package (TDP) to fulfill this requirement does not exist at this time.

If the Navy opted to pursue full and open competition, it would have to purchase the TDP necessary for integration from both BAE and Raytheon, and pursue a lengthy and expensive weapon certification, which would present the Navy with a cost of

$12,000,000 to obtain the TDP and compete the production of these 966 units. Based on prior expenses associated with similar upgrades, there would be approximately another $2,000,000 needed to support a competition and the duplicative costs of weapons certification of $17,400,000 for Insensitive Munitions and 331 testing. Program Executive Office for Littoral Combat Ships (PEO

LCS), Program Management Ships for Mine Warfare (PMS495) does not have sufficient funding to purchase the data rights or conduct a new weapon certification at this time based on the above analysis.

In addition to the limited data rights, the substantial duplication of cost to the Government is not expected to be recovered through competition. A Business Case Analysis (BCA) was performed in 2003 which identified a cost avoidance of

$74.4M over the life of the program, associated with a common neutralizer vs. multiple neutralizers in the Fleet.

The Government will also incur unacceptable delays to fulfill the program requirements if a new source is selected to replace the Archerfish Neutralizer. Market research has determined that no other source has completed the required testing for the integration of the AMNS system test data. Therefore, any competitive solicitation would require additional time to test, generate, and analyze the required test data. Based on the delays associated with prior similar efforts, a contractor other than BAE would require an additional 5 years from design to production of the Common Neutralizer to be incorporated in the current AMNS configuration, including all efforts to meet Weapon

System Explosive Safety Review Board concurrence.

In addition to the above delays associated with obtaining a TDP, completing the design, and undergoing testing of a new neutralizer, it would take approximately fifteen additional months to conduct a full and open competition based on prior PMS

495 solicitations. This estimate includes the time necessary to prepare a solicitation for a major acquisition, allow the minimum proposal response time, evaluate proposals, and conduct discussions (if necessary). Based on the estimates above, PMS

495 determined that it would take approximately sixty-five months for a source other than BAE to be at the same production capacity for an AMNS neutralizer.

There is no other known neutralizer that is integrated and tested with the current AMNS system and meets the existing technical requirements. For the reasons outlined above, BAE is the only source capable of producing the Archerfish neutralizer that supports the LCS Mine Countermeasure Mission Package within the necessary timeframe required to meet the LCS Mine Counter

Measure Mission Package TECHEVAL/OT scheduled in FY15.

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

Offerors as Practicable

The proposed action was synopsized via posting on the Federal

Business Opportunities (FedBizOps) website on 29 January 2014.

ATLAS North America LLC responded to the notice questioning the sole source and indicating that its product, SeaFox, is a direct competitor to the Archerfish.

The NAVSEA PCO issued a letter to ATLAS North America LLC stating that the Government would incur a substantial duplication of costs and unacceptable programmatic delays if a new/different subsystem is introduced into the AMNS program at this time. SeaFox is significantly different than the Archerfish system. It will require major design changes and modifications to the current launch and retrieval system installed on the MH-

60 helicopter. The Letter also stated that the Government does not own the rights to the technical data for Archerfish to conduct a full and open competition.

Atlas sent an email to the PCO dated 21 February 2014 which stated that they do not continue to express interest in this procurement.

On 15 March 2014, the Chief of Naval Operations (CNO) received a similar inquiry via email from Mr. Malcolm Fages, Board of

Directors for Atlas North America. SEA 026 and PMS 495 responded to this inquiry through PEO LCS and COMNAVSEA to the

Chief of Naval Operations (CNO), detailing the justification for the sole source. No further inquires have been received.

No additional market research was conducted because it is not practicable, for the reasons discussed above, for any company other than BAE Systems, Maritime Services to provide the required supplies and services.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies/services covered by the J&A will be fair and reasonable.

8. Actions to Remove Barriers to Competition

The Government expects to obtain budget approval from Congress in fiscal year 2015 to procure a new neutralizer. If the budget is approved, then the Government plans to conduct a competitive neutralizer acquisition in fiscal year 2020.

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 Single Acquisition Management

Plan No. 07-004 (Revision 2), except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

Melissa L. Kirkendall, PEO LCS (PMS495) Phone Date

REQUIREMENTS COGNIZANCE:

Carl R. Siel, PEO LCS Phone Date

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

Rizlane Riahi, NAVSEA 00L Phone Date

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(a)(12)):

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

Jun Ji, NAVSEA 02633 Phone Date

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, Designee of the Head of the Contracting Activity, the solicitation of the proposed procurement described herein using other than full and open competition, pursuant to the authority of

10 U.S.C. 2304(c)(1).

____________________________________________________5/13/2014_____

Cindy Shaver, Director, Undersea Systems Contracts Division Date