JA_N0016413RJN50_MH60_Redacted_(2)_Redacted_2_Redacted_2.pdf

J&A Number: 13-049

Code: CXP

N00164-13-R-JN50

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Surface Warfare Center

(NSWC), Crane Division.

2. Description of the Action Being Approved

Award of an Indefinite-Delivery Indefinite Quantity (IDIQ) type contract on a sole source basis for hardware and support services for the MH-60 Weapon Systems to Science Applications

International, Corp. (SAIC), 1710 SAIC Drive, McLean, VA 22102-

3703.

3. Description of Supplies/Services

The contract will provide support/sustainment for the MH-60

Weapon Systems, which is currently being supported under a competitively awarded SeaPort contract/task order, N00178-04-D-

4119 / FC30 to SAIC.

Support to the MH-60 Weapon Systems initiated at Naval Air

Warfare Center in Indianapolis, and following the BRAC, responsibility for system support transitioned to NSWC Crane.

During the transition, efforts were made to relocate the knowledgeable/key Government MH-60 Weapon Systems’ personnel and the Government Furnished Equipment (GFE) from Indianapolis, IN to NSWC Crane Division, unfortunately the personnel relocated to other Government agencies, which has been a critical

Intellectual Property (IP) loss to the MH-60 Weapon Systems.

NSWC’s JXNS Division is proposing the current sole source acquisition as a follow-on contract to FC30 while the transition of GFE and training of Government resources occur.

IN REPLY REFER TO:

DEPARTMENT OF THE NAVY

CRANE DIVISION

NAVAL SURFACE WARFARE CENTER

300 HIGHWAY 361

CRANE INDIANA 47522-5001

The anticipated contract will provide firm-fixed price line items for the following MH-60 Weapon Systems assemblies / sub-assemblies:

Interface Unit, Automatic Data Processing (IUADP) Technical Insertion Program (TIP) (P/N 3392AS2500)

Assembly, Sonobouy Coil Multiplexer (P/N 7450279-2)

MK54 Umbilical Harness (P/N 7450910-1)

Weapon Control Panel (P/N 3392AS1816)

Rocket Control Unit (P/N 3392AS2430)

Gun Control Unit (P/N 3392AS1840)

Booster Motor Assembly (P/N 3392AS1856)

AN/USM-714 Test Program Set (P/N 7450688-1)

In addition to procuring the MH-60 Weapon Systems assemblies / sub-assemblies, a cost-plus fixed-fee line item will be included in the contract for engineering and logistics sustainment support to provide the following:

Engineering Investigations

Technical Directives

Engineering Change Proposals

Configuration Changes

Configuration Management

Operations/Maintenance Manuals

Logistics Management Plans

Subject Matter Experts in Design/Development Efforts

It is anticipated that the contract will cover three years for the requirements of fiscal year FY14 through FY17, with delivery of the assemblies/sub-assemblies occurring through FY19.

As shown in Figure 1 below, deliveries will occur for approximately two years after the FY requirements are funded.

Based on the facts stated herein outlining the justification for the sole-source requirement, the follow-on contract cannot be conducted via SeaPort. Because the anticipated effort will consist of approximately 89% hardware and 11% service support, the Contracting Officer has determined that the effort is better suited to a supply-type contract.

4. Statutory Authority Permitting Other Than Full and Open

Competition

10 U.S.C. 2304(c)(1), only one responsible source.

5. Rationale Justifying Use of Cited Statutory Authority

One set of GFE, consisting of Sonobuoy Launcher System Emulator, Torpedo Presetter Test Set, Bomb Rack Emulator, and Saddle Test

Fixture, was designed and developed by SAIC under SeaPort task order FC30 for the sole purpose of supporting the MH-60 Weapon

Systems. The GFE is required for all phases of the build of assemblies and sub-assemblies, and is also required to test and maintain the MH-60 Weapon Systems. The GFE, which currently resides at SAIC’s facility located in Indianapolis, IN, is being utilized by SAIC to support ECPs, modifications, and resolve fleet issues under FC30. SAIC will provide support to the MH-60

Program via FC30 through FY13 with deliveries of the assemblies and subassemblies through FY15.

It is not practical to award a contract to a source other than

SAIC to produce and sustain the MH-60 Weapons System while the incumbent contractor is completing previous FY requirements because the Government only owns one set of GFE, and assembly and delivery of prior year requirements will overlap with the assembly and delivery of current and future requirements i.e., components purchased for FY12 requirements will be assembled and tested in FY13/FY14. Figure 1 on page 3 depicts the approximate time period that deliveries will occur after requirements are funded. Furthermore, a technical data package for the GFE does not exist.

The estimated cost to develop a technical data package for the

GFE is $990,144 and the timeframe to do so is approximately 18 months. In addition, SAIC would have to be heavily relied upon to produce the additional set of GFE because the technical expertise and intellectual property for the GFE currently reside with the contractor.

Additionally, if a contractor other than SAIC were to be awarded the contract, they would have to develop the technical expertise and build the necessary equipment to test and assemble the MH-60

Weapon Systems. Based on the development of the current GFE, it is estimated it would take approximately 24 months to complete, at a cost of $834,000 (minimum).

In addition to the duplicative cost and delays, the following impacts will be realized if two contractors support the MH-60

Weapon Systems concurrently:

Negatively impact the Navy’s ability to provide adequate decisions concerning deviations/waivers

Delay the assembly/testing of aircraft assemblies thereby delaying actual aircraft deliveries

Negatively impact the Navy’s ability to modify present GFE to accommodate new capabilities currently being integrated to the airframe (digital rockets)

Result in significant delays to the current IUADP Technical Insertion Plan mitigating obsolescence – The new IUADP TIP configuration is scheduled to begin deliveries in mid FY14

Result in significant delays responding to CODRs of COR products and capabilities in support of UONs

Result in significant delays establishing assembly/QA acceptance procedures and support equipment for M197/LAU-

61/IUADP TIP

Result in significant delays providing modifications to unique support equipment (USM-714) used for troubleshooting

IUADP’s

Note: The IUADP is a COR piece of equipment and the Gun Control

Panel and Rocket Control Unit are in direct support of a UONs and are beginning initial production.

In summary, SAIC is the only source that can be used to sustain the MH-60 Weapon Systems without incurring substantial duplicative cost of approximately $1.8M, unacceptable delays of approximately 3.5 years, and extensive impacts. Additionally, the Government does not believe that the duplicative cost would be recouped through a competitive effort, and for which funding is unavailable.

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

Offerors as Practicable

The proposed procurement contract was synopsized on the

FedBizOpps website on 21 May 2013 stating the Navy’s intention to award a sole source contract. To date, inquiries have not been received.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies covered by the J&A will be determined fair and reasonable via cost analysis with support from DCMA and DCMA, as well as price analysis as applicable.

8. Actions to Remove Barriers to Competition

NSWC, Crane Division, has no plans at this time to compete future contracts for the type of supplies covered by this document. The exit strategy for this is as follows:

Government engineers and technicians will be assigned to fully engage SAIC on design, software, firmware and support of the hardware being procured.

Engineers will shadow SAIC personnel and review designs, code and drawings to gain the technical expertise necessary for the tasking.

The Government will begin a gradual draw down of SAIC support that will allow for competition if the future if needed.

Equipment and processes will be moved from the SAIC Indianapolis facility to Government facilities so local

Government engineers can take over tasking where appropriate.

At the end of the IDIQ contract it is expected the Government will be in a position to perform all of the workload by acquiring all Technical Data Packages and necessary intellectual property.

Any future contracts for hardware or engineering support, if needed, will be conducted utilizing competitive processes.

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 Acquisition Plan

No. CR 12-002_, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

Signature Name (Print) and Title (Code) Phone No. Date

REQUIREMENTS COGNIZANCE:

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

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.