N00024_63942_FBO.pdf

DEPARTMENT OF THE NA VY

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC HULL A VE SE

WASHINGTON NA VY YARD DC 20376-0001

JUSTIFICATION AND APPROVAL

J&A Number: 63942 Code: 0263 N00024-18-R-6311

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command Undersea Systems Contracts Division (SEA 026).

2. Description of the Action Being Approved

Award of a contract on a sole source basis for procurement of Littoral Combat Ship (LCS) Mission Package Computers, Software, and Trainers (MPCST), including hardware, engineering services, and ongoing development, sustainment, and modernization efforts to Advanced Acoustic Concepts, LLC

(AAC).

3. Description of Supplies/Services

This contract will procure the hardware and software that comprise the MPSCT system, including the computing environment (Mission Package Computing Environment (MPCE)), hosted software (Mission Package Operating Environment (MPOE), Mission Package Services (MPS)), associated training equipment (Common Mission Package Trainer (CMPT) ), and a portable computing environment (Mission Package Portable Control Station (MPPCS)).

Specifically, the contract will develop and deliver 11 MPCE ship sets, install 14 MPCE ship sets (including three that have already been procured under the current contract), develop, deliver, and install two CMPTs at separate training facilities, develop and deliver three MPPCSs, develop, procure, and install technical refresh modernizations for all of these systems, and provide engineering services for the ongoing development and sustainment for all MPCST software. The contract will include one base year and three option years, with the quantities specified above to be procured over the life of the contract, and CPFF LOE engineering services to have a 12-month period of performance each year. If all options are exercised, the contract will run through the end of fiscal year (FY) 2022.

The Individual Streamlined Acquisition Plan with Services (ISTRAP-M) for this procurement, approved on 1 May 2018, included the planned procurement of MPCE Sonar Signal Processing (SSP) Hardware. In the interim, PMS 420 has verified that this requirement will be fulfilled by an existing IWS5 contract, and as such, that hardware will not be procured under the contract authorized by this J&A. This contract vehicle will still require the scope to integrate this future hardware capability into the MPCE and potentially purchase new MPCE hardware in an updated configuration to support this additional capability.

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

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S. C. 2304 ( c) ( 5) , as implemented by FAR 6. 302-5:

Authorized or Required by Statute.

15 U.S.C. 638(r) (1) states:

"In the case o f a small business concern that is awarded a funding agreeme nt fo r Phase II of an SBIR o r STTR program, a

Federal agency may enter into a Phase III agreement with that business concern for additional work to be performed during or after the Phase II period."

Furthermore, 15 U.S.C. 638 (r) (4) states:

"To the greatest extent practicable, Federal agencies and Federal prime contractors shall ... issue ... Phase III awards relating to technology, including sole source awards, to the SBIR and STTR award recipients that developed the technology."

5. Rationale Justifying Use of Cited Statutory Authority

The nature of the acquisition requires the use of the authority cited. The SBIR/STTR Programs are structured in three phases. Phase I (project feasibility) determines the scientific, technical, and commercial merit and feasibility of the ideas submitted. Phase II (project development to prototype) is the major research and development effort, funding the prototyping and demonstration of the most promising Phase I projects. Phase III (commercialization) is the ultimate goal of the SBIR/STTR Programs. Because the Phase III work derives from, extends, or completes efforts performed under Phase I and Phase II, use of the authority cited is required.

AAC was awarded SBIR Phase I contracts N00024-97-C-4140, N66604-98-M-3696, and N66604-03-C-5605 under Topics N97-090, N98-106, and N03-074, respectively. SBIR Phase II contracts N00024-99-C-4020, N00024-01-C-0424, and N66604-05-C-2995 were awarded to AAC under the same respective SBIR Topics.

Finally, AAC was awarded SBIR Phase III contracts N00024-05- C-5486, N00024-11-C-5204, and N00024-12-C-6311 under SBIR Topic N98-106.

Companies that perform work under SBIR contracts are entitled to different data rights than those contained in other Government contracts, as outlined under DFARS 252.227- 7018 Rights in Noncommercial Technical Data and Computer Software - Small Business Innovation Research (SBIR) Program (Feb 2014). Specifically, the Government is restricted from sharing technical data and/or noncommercial software outside of the Government for a period of five years after the completion of a SBIR project. The inability to release this data or software to outside contractors restricts the Government's ability to conduct a full and open competition for the MPCST system. In addition because the system is still undergoing development and optimization efforts, the original SBIR project cannot be considered complete, forestalling the beginning of the five year restriction period. Because of these constraints, ACC is the only source that can fulfill the Government's MSCST requirement.

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

The proposed contract was synopsized on the Federal Business Opportunities (FEDBIZOPS) website on 29 March 2018 and one clarification question was received from a representative of L3 Maritime Systems, but no further responses were received.

As described above, only AAC is being considered for this award due to the nature of the acquisition. In accordance with FAR 5.202(a) (7), this proposed contract action does not require public notification to the GPE. Therefore, no additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than AAC to provide the required supplies and services.

7. Determinat ion of Fair and Reasonabie 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. DCMA pricing assistance and/or DCAA audit of the contractor's proposal will be requested along with the contractor's certificate of current cost or pricing data to support the fair and reasonable price determination. In addition, significant quantities of this requirement have been purchased from this contractor in the past and cost/pricing information was received on those past procurements. This information will be ut i li zed to support the fair a nd reasonable price determination of this procurement.

8. Actions to Remove Barriers to Competition

As part of the Request for Proposal (RFP), SEA 026 will include a provision, p r iced at AAC's discretion, that requests AAC convey at least Government Pu rpose Rights (GPR) for the hardware and software specifications that the Government requires, but will make clear that award of the sole source contract is not contingent upon AAC pricing and selling, granting, or otherwise conveying the Government its data rights. Should the Government obtain at least GPR in technical data, the Government will possess the ability to use technical data, consistent with the rights obtained, in other Government programs or applications and to compete future sustainment and modernization efforts for LCS. If the Government is not able to obtain at least GPR, the Government will evaluate the requirement to determine if any portions may be appropriate for full and open competition.

CERTIFICATIONS AND APPROVAL

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, including Acquisition Plan No. 18-001, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

REQUIREMENTS COGNIZANCE:

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(p} (12))

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) (5).

Director, Undersea Systems Contracts Division (SEA 026)

Ms. Susan W. Tomaiko do {df}rll, Jo1s Date