N00164_13023_FBO.pdf

J&A N Number: 13-023

Code: GXS P.R. Number: N00164-13-R-GS12

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

Naval Surface Warfare Center, Crane Division NSWC Crane.

2. Description of the Action Being Approved

Award of a firm-fixed price indefinite delivery/indefinite quantity (IDIQ), supply type contract on a sole source basis for a large format, safe, scalable, lithium-ion battery system optimized for use in manned submersible applications in support of to General Atomics, 3550 General Atomics Ct, Sand Diego, CA 92121-1122.

3. Description of Supplies/Services

General Atomics developed and manufactures a unique and innovative concept for a safe, scalable, high energy, large format lithium-ion battery system optimized for manned undersea vehicles. The scalable design constitutes modularity for applicability to multiple vehicles and platforms. Proprietary safety features, intentional failure modes, and software controls have been incorporated into the system design to mitigate and prevent mechanical, electrical, and thermal propagation ensuing from a single cell failure.

The total estimated dollar value for the proposed acquisition shall not exceed $12.49 million. Ordering period is five years after contract award.

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

Estimated Dollar Value FY13 FY14 FY15 FY16 FY17 Totals

O&MN $12.49M

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2): when the supplies or services required by the agency are available from only one responsible source.

IN REPLY REFER TO:

DEPARTMENT OF THE NAVY

CRANE DIVISION

NAVAL SURFACE WARFARE CENTER

300 HIGHWAY 361

CRANE INDIANA 47522-5001

J&A Number: 13-023

5. Rationale Justifying Use of Cited Statutory Authority

Lithium-ion based battery systems meet the rigorous high-energy demands required for the United States Navy to power undersea vehicles, but present serious safety risks should a battery failure occur. Recent events demonstrated susceptibility to systemic propagation and have forced the Navy to reassess its critical battery certification procedures, equating to more stringent requirements and the need to seek inherently safer lithium-ion battery chemistries or battery safety design alternatives.

The NSWC Crane Special Warfare & Alternative Energy Branch was tasked by Office of Naval Research (ONR) Tech Solutions and USSOCOM to facilitate the development of a safe, high-energy density lithium-ion battery optimized for integration within manned undersea vehicles. Safety is the critical element for success in order to effectively demonstrate non-propagation between battery cells from a single, initiating failure.

Contract N00178-04-D-4119 FC28 TI16, awarded to Science Applications International Corporation (SAIC), was the contractual vehicle used for Phase I and Phase II. Two vendors, Saft America and General Atomics, were selected from several proposals to participate during Phase I, with a planned down-select preceding Phase II. Individual cells, battery modules, and large scale assemblies were subjected to abusive test conditions IAW and to characterize respective safety tolerances and severity of the destructive events. Post-mortem analysis including voltage monitoring, cell weight measurements, and a Destructive Physical Analysis (DPA) were implemented to verify the unintentional energy release of surrounding cells for non-propagation validation.

The Phase I down-select meeting took place in to communicate results to key stakeholders. awarded Phase II to General Atomics and is scheduled to be completed in . Phase II testing is currently underway; however, if Phase II is not successful then Phase III will be canceled. The Government has received unlimited data rights for Phase I and Phase II and all data/documentation delivered/created in support of this effort is the property of the US Government. However, even though the Government has received unlimited data rights for Phases I and II, this action is not available for competition due to the significant duplication of costs and schedule delays associated with having another vendor complete Phase I and II, which have already been completed by General Atomics.

If another vendor was awarded this effort, a duplication of effort would take place resulting in additional cost that could not be recouped through a competitive effort and unacceptable schedule delays. The development of a safe, scalable, high energy lithium-ion battery was conducted through Phase I and II with a cost of $3 million and spanning more than 24 months. This process would necessarily be repeated and the Government would incur these same costs and time delays would transpire if another vendor was awarded this effort.

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

This action was synopsized on 30 November 2012. To date, no response has been received from industry.

J&A Number: 13-023

Market research was conducted by the by several agencies during Phase I and Phase II.

Further market research was conducted for Phase III but provided no new information.

Currently there are no known sources that can meet the safety requirements other than General Atomics. No funding is available to test and approve another source. For the reasons discussed in paragraph 5 above, award to any company other than General Atomics would cause an unreasonable duplication in cost and time.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the safe, scalable lithium-ion battery system covered by the subject J&A will be fair and reasonable in accordance with FAR 15.404-1(b)(2)(ii), comparison of the proposed prices to historical prices paid, and FAR 15.404-1(c), cost analysis.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, NSWC Crane contracting activity has no plans at this time to compete future contracts for the lithium-ion battery system covered by this document. If another potential source emerges, NSWC Crane contracting activity will assess whether competition for future requirements is feasible.