N00164_CR22299_SAM.pdf

DEPARTMENT OF THENAVY

NAVAL SURFACE WARFARE CENTER

CRANE DIVISION

300 HIGHWAY 361

CRANE, INDIANA 47522-5001

IN REPLY REFER TO:

J&A Number: CR-22299 Code: 0243 Number: N0016423RWM41

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea System Command, Naval Surface Warfare Center Crane Division (NSWC-CR), Spectrum Warfare Contracts Division, Maritime Electronic Warfare and IR/RF Systems Contracts Branch, Code 0243.

2. Description of the Action Being Approved

Award of a follow-on, five (5) year, Indefinite-Delivery Indefinite-Quantity (IDIQ) contract on a sole source basis to Lockheed Martin, Corp. (hereafter referred to as LMCO), CAGE code 03538, 497 Electronics Pkwy, Liverpool, N.Y. The contract award will procure spares, engineering services, repairs and Depot Stand-up in support of the Surface Electronic Warfare Improvement Program (SEWIP) Block 2 Program, also commonly referred to as the AN/SLQ-32(V)6 System.

3. Description of Supplies/Services

The Government requires AN/SLQ-32(V)6 supplies to be procured under this contract for Fleet Modernization Program (FMP) installation requirements, as well as for anticipated Engineering Change Proposal (ECP) and Research Development Test and Evaluation (RDT&E) requirements.

Supplies consist of approximately 81% of the contract scope. The required spares and repairs include material required to repair, modify, refurbish and/or replace electronic, electrical, and mechanical components, including software and firmware components, and associated testing, installation and checkout.

J&A Number: CR-22299 little reliability data exists. LMCO has significant empirical knowledge regarding the Block 2 system’s historical Fleet performance and the interaction of system components and software that could not be quickly replicated. The highly specialized and complex architecture of this system requires an immense knowledge base and familiarity in order to meet the Agency’s requirements. The Government requirements for this effort are in accordance with the Block 2 Fielding Plan.

While Unlimited and Government Purpose Rights were procured for data delivered during the initial acquisitions, many of the drawings delivered are Source Control Drawings and lack the technical detail to resolve many installation, maintenance and reliability issues, or to develop depot level repair capability. LMCO is currently the only source with the requisite specialized understanding of the Block 2 system architecture, software, firmware, hardware and historical Fleet performance.

The Government projects based on engineering estimates that an award to another source would result in a delay of approximately months in fulfilling these requirements due to the need for development of technical expertise development of test procedures and processes and development of test sets and equipment in addition to the requirement to reverse manufacture processes and procedures and develop updated product support documentation and TDP .

Further, a source other than LMCO would require extensive duplication of costs. The Government projects the duplicative cost to be in excess of based on engineering estimates of the cost to develop technical expertise, to reverse manufacture processes and procedures, to develop updated product support documentation and TDP, to develop test procedures and processes, and to develop test sets and equipment. Based on these considerations, only LMCO has the required highly specialized knowledge and experience to deliver the required supplies and perform the required services without substantial duplication of cost that is not expected to be recovered through competition.

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

Offerors as Practicable

Market research was conducted by searching previous purchases of similar or identical supplies and services and only LMCO was identified as having the capabilities to perform the requirements in support of the Block 2 system.

A Request for Information (RFI) was issued on SAM.gov under Special Notice No. N0016422SNB73 on 24 June 2022. An official response was received from LMCO. One additional inquiry was received from Frequency Electronics, Inc. (FEI).

FEI provided a capabilities statement which was reviewed by NSWC-CR Technical POCs and it was determined that FMI did not have the technical capability to perform the requirements. FEI was notified on 1 November 2022 that they did not have the technical capability to perform the requirement and acknowledged receipt of correspondence. To date, no further subsequent communication has been received from FEI.

The proposed contract was synopsized on the SAM.gov website on 18 July 2022 and only LMCO expressed an interest in this requirement. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than LMCO 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 and services covered by the J&A will be fair and reasonable.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, NSWC-CR has no plans at this time to compete future procurements for the required supplies and services covered by this document. If another potential source emerges, NSWC-CR will assess if 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)(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)(ii).

Furthermore, the Government is working to transition to an organic depot establishment to support these requirements.

This procurement is in support of the organic depot establishment and will build NSWC-CR’s engineers’ technical and sustainment capabilities by improving the Government’s level of expertise on the SEWIP Block 2 system. NSWC-CR’s engineers’ acquired technical and sustainment capabilities from prior actions but not sufficient to avoid the need for this J&A.