N00164_CR24033_SAM.pdf

NAVSEA CONTRACTS HANDBOOK

JUSTIFICATION AND APPROVAL

FOR USE OF

OTHER THAN FULL AND OPEN COMPETITION

N0016425RWP18

J&A Number: CR-24033

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

Naval Sea Systems Command (NAVSEA), Naval Surface Warfare Center, Crane Division (NSWC Crane), Spectrum Warfare Contracts Division, (024).

2. Description of the Action Being Approved

Award of a Firm-Fixed Price (FFP), Indefinite Delivery, Indefinite Quantity (IDIQ), supply contract with an ordering period of five (5) years on a sole source basis for the repair, upgrade, and/or manufacture of Solid State High Voltage Switches (SSHVS) and 2kV Bias Power Supplies (BPS), in support of AN/SPS-49A(V)1 series of radar systems to Polarity, Inc., 11294 Sunshine Park Drive, Rancho Cordova, CA 95742 (CAGE 1KQE1).

3. Description of Supplies/Services

The requirement is for repair, upgrade, and/or manufacture of SSHVS and 2kV BPS. The SSHVS and 2kV BPS are used in a Solid-State Modulator (SSM) for the AN/SPS-49A(V)1 series of radar systems to manufacture the existing switch tube modulator design used to pulse modulate a Varian/CPI VA-889F Klystron. The SSMs are part of Field Change Kit (FC5) for installation aboard Navy ships. This requirement will also include Engineering Services to support Engineering Investigations and redesign efforts for replacement of Diminishing Manufacturing Sources and Material Shortages (DMSMS) components identified and confirmed by the Government to be critical parts in the SSHVS and BPS assemblies. It is anticipated that this will be a cost-plus-fixed-fee (CPFF) CLIN; however, the preponderance of the contract will be a firm fixed supply contract.

Award of a 5-year supply FFP IDIQ contract is intended. This IDIQ will be for a maximum of $6,600,000 over a 5-year period and will be funded with appropriations from Navy Working Capital Funds (WCF), Operations and Maintenance Navy Funds (OM&N), and Foreign Military Sales (FMS). An estimate of the proposed contract utilization is listed in the following table.

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

CRANE DIVISION

300 HIGHWAY 361

CRANE INDIANA 47522-5001

IN REPLY REFER TO:

J&A Number: CR-24033 Code: 0241

P.R.: N0016425RWP18

Estimated Dollar Value

FY25 – FY29

Total

Supply WCF $ 5,900,000.00

O&MN $ 300,000.00

FMS $ 400,000.00

Total $ 6,600,000.00

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 3204(a)(1), as implemented by FAR 6-302.1, only one responsible source or only 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

The Government has a requirement to repair failed SSHVSs and repair and/or upgrade (Engineering Change Proposal (ECP) 0049-065) 2kV BPS within the SSM of the AN/SPS-49 Radar System. The Government also has a requirement to manufacture the failed SSHVSs and 2kV BPS when repair efforts fail in order to maintain the capability of the AN/SPS-49 Radar System within the US Navy’s Fleet.

The Government previously issued three separate contracts with two different vendors, DTI Incorporated and Raytheon Electronic Systems, to develop SSHVSs and 2kV BPS that meet the Government's requirements. DTI was tasked to deliver a prototype solid state modulator under phase II SBIR contract N00014-99-C-0234 and two (2) pre-production kits under N00164-02-C- 6002. Raytheon was tasked to build an SSM kit (FC 5) under contract N00024-01-C-5254. Both companies failed to provide an acceptable product.

After those failures, NSWC Crane, Code WXP tasked Technology Service Corporation (TSC) to pursue this effort under engineering support contract, N00164-01-D-0039. TSC subcontracted to Polarity, Inc. to design/develop a switch and bias supply that would meet the Government's requirements. Polarity developed engineering developmental models (EDMs) that passed engineering design verification testing and acceptance testing, and was subsequently awarded a one-time, sole-source production contract for the SSHVSs and 2kV BPS, N00164-07-D-8916.

Polarity was awarded second and third sole-source contracts, N00164-13-R-GR23 & N00164-20- D-WP53, to continue repair and manufacturing SSHVS and BPS.

Requirements have arisen for the procurement of new production units, as well as the capability to repair and upgrade the SSM units that were not originally accounted for on contract N00164- 13-R-GR23. The original production units have been installed in 31 ships in the Fleet, as well as six (6) land-based sites. Due to the high operational tempo of the radar system running 24 hours a day/7 days a week at high temperatures, these switches and bias supplies are beginning to fail, and require repair and/or replacement by newly manufactured units. These units are made with multiple electronic components that will reach the end of their life cycle due to its continuous operation within the AN/SPS-49 Radar System.

Utilizing any source other than Polarity for repair or manufacture efforts would result in substantial duplication of cost. It is estimated that the development of another source would create a delay of 18-24 months, which would cost the Government, at a minimum, an additional $11,064,102. Failure to provide a SSHVS or 2kV BPS in the most expedient way will leave these ships without a functioning AN/SPS 49 Radar System which would jeopardize the defense of the ship. Due to funding constraints, developing an alternative source cannot be economically or technically supported.

Additionally, the investment the Navy has already made (over $5M on contracts N00164-01-D- 0039, N00164-07-D-8916, and N00164-13-R-GR23) towards development and production of the SSHVSs and 2kV BPS that are currently installed on 31 U.S. Navy Ships, would not be recouped through competition.

Utilizing any source other than Polarity would also result in unacceptable delays in the agency’s requirements. Based on the Fleet costs that would be incurred during the time involved to re-qualify and perform compatibility testing on a competitor’s product, it would not be in the best interest of the Government to duplicate this effort. Such a delay in schedule and cost would result in increased risks and seriously jeopardize the US Navy’s Fleet

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

The Government has attempted to repair SSHVS and BPS on a limited basis with the approval of the In-Service Engineering Agent (ISEA). These efforts were similar to reverse engineering efforts. The Government was unsuccessful in reverse engineering both the SSHVS and BPS, and without a detailed Technical Data Package (TDP), there is nothing for other vendors to base their proposals on. Furthermore, companies performing similar repairs were contacted during market research but stated that without a complete TDP, they would not be able to perform the required manufacturing and repairs.

The proposed contract sources sought was posted on the Government Point of Entry (GPE) SAM.gov website on 04 June 2024. One interested party, Telecommunication Support Services, Inc. (dba: TSS Solutions), expressed interest and provided a capability statement concerning this requirement. The capability statement was reviewed by the RTA, and determined that TSS Solutions is capable of doing this work and providing the SSHVS and BPS. Although TSS Solutions is capable of performing the requirement, due to the Government not owning the data rights and the time and cost detriment it would be to the Government, the Government’s position is to keep this requirement as sole source. Changing to a different vendor at this point in time would cause an unacceptable time delay due to having to start the acquisition process completely over and having new prototypes made, and adding time to get the new data rights qualified. This would also cause a cost detriment to the Government in duplicating the work and qualifying the data rights.

TSS Solutions was notified of the Government’s findings on 12 August 2024 and responded on 12 August 2024 concurring and accepting the Government’s basis for the sole source.

In accordance with DFARS 205.205-71 the proposed contract was synopsized on the Government Point of Entry (GPE) SAM.gov website on 12 August 2024. To date, no interested parties have expressed interest or provided feedback.

7. Determination of Fair and Reasonable Costs

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

8. Actions to Remove Barriers to Competition

For the reasons set forth in Section 5 and Section 6, NSWC Crane has no plans at this time to compete future contracts for the types of supplies covered by this contract. Market conditions are continuously being monitored, and if another potential source emerges, NSWC Crane will assess whether competition for a future requirement is feasible.

CERTIFICATIONS AND APPROVAL

TECHNICAL COGNIZANCE:

___________________________________ 812-854-8614_____________ Signature Steven Pope, WXPP Phone No. Date

REQUIREMENTS COGNIZANCE:

___________________________________ 812-854-3533_____________ Signature Philip A. Erler, WXP Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this justification is legally sufficient.

____________________________________812-854-1425__________ _ Signature Kathleen Robertson, 00L Phone No. 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.

__________________________________ 812-381-1953_____________ Signature Ashton Wagler, 0241 Phone No. Date

COMPETITION ADVOCATE APPROVAL

Upon the basis of the above justification, I hereby approve, as Competition Advocate for 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. 3204(a)(1).

Signature Lisa A. Good Date Chief of the Contracting Office