N00164_14023_FBO.pdf

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 Crane Division (NSWC Crane), Contracts Operations Division.

2. Description of the Action Being Approved

Award of a Firm Fixed Price (FFP), Indefinite Delivery, and Indefinite Quantity (IDIQ) supply contract with an ordering period of five years on a sole source basis for SPS-48E Rotary Coupler evaluation, repair, upgrade, and new manufacture to Diamond Antenna and Microwave Corporation, 59 Porter Road, Littleton, MA 01460.

3. Description of Supplies/Services

This procurement is for the evaluation, repair, upgrade, and new manufacture of the SPS-48E Rotary Coupler, Diamond/Premiere brand part number (P/N) 2195. The rotary couplers are electro-mechanical devices that provide crucial interface between stationary and rotating sections of the SPS-48E Radar System Antenna. This interface allows signals to be transferred back and forth between the topside antenna and the below deck transmitter cabinets.

Award of a five year supply FFP IDIQ contract is intended. This IDIQ will be for a maximum of $3,471,215 over a five year period and funded with appropriations from Navy Operation and Maintenance (O&M, N), Navy Shipbuilding and Conversion (SCN), and

. An estimate of the propose contract utilization is listed in the following table.

FY14 FY15 FY16 FY17 FY18 Totals O&M, N

SCN

Total $3,471,215

IN REPLY REFER TO:

J&A Number: 14-023 Code: GXR P.R. Number: N00164-14-R-GR62

DEPARTMENT OF THE NAVY

CRANE DIVISION

NAVAL SURFACE WARFARE CENTER

300 HIGHWAY 361

CRANE INDIANA 47522-5001

Deliveries will be delineated in each individual delivery order. 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)(1)and in accordance with (IAW) 6.302-1(a)(2), only one responsible source or only a limited number of responsible sources and no other type of property will satisfy the needs of the agency without substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the agency’s requirements due to the testing/validation requirement.

5. Rationale Justifying Use of Cited Statutory Authority

Initially, there were two manufacturers of the AN/SPS-48E Rotary Couplers. Kevlin Corporation was certified as a qualified source for the manufacture of SPS-48E Rotary Couplers for the government in 1980 and has manufactured the rotary couplers for Government since that time.

The other vendor (Premiere) produced a different coupler but the item is functionally identical to the Kevlin coupler. Premiere went out of business in the late 1990s. At that time Kevlin purchased the proprietary design documentation and machinery from Premiere and continued to manufacture SPS-48E rotary couplers.

NSWC Crane began the SPS-48E Antenna Refurbishment Program in 1994. The rotary couplers are an integral component of the antenna and it was determined at that time it would be cost effective to the government to refurbish/repair the rotary couplers. Pt. Hueneme, Virginia Beach Detachment, as the In-Service Engineering Agency (ISEA) for above deck SPS-48E Radar Systems, requires the repair source for the SPS-48E rotary couplers to be certified. Since Kevlin Corporation was one of the original equipment manufacturers (OEMs), certification was waived for that company. However, Kevlin declined to repair Premiere manufactured Rotary Couplers.

At this time the ISEA decided to certify a source to repair the Premiere Rotary Couplers.

ISEA certification requires three units be repaired by a potential repair source with satisfactory completion of low and high power testing and performance/life testing on all three units. In addition, one of the units must be installed into an SPS-48E Radar Antenna and tested on an active platform (ship) with extensive monitoring by ISEA representative.

Diamond Antenna was the only company that successfully passed this certification requirement to repair the Premiere Brand Rotary Couplers and have been repairing those Rotary Couplers for over ten years.

The Government owns the rights to the overall performance specification for the Rotary Coupler.

However, Diamond Antenna owns the rights to the detailed documentation required for parts replacement, refurbishment, and all associated manufacture and repair processes for the Premiere Brand Rotary Couplers. Diamond Antenna is not willing to sell or license these rights to the Government.

It would not be cost effective to establish another source for the Premiere Brand Rotary Couplers.

It is estimated it would take a minimum of one year and $1,048,991 to certify another source of repair for the Premiere Rotary Couplers. This estimated cost does not include the cost for installation into an antenna and testing on an active platform, which could cost in excess of $268,380 and a minimum of one more year to complete.

The program does not have the required funding to establish another source. In addition, the program cannot encounter a two year delay. It would seriously jeopardize installation schedules and fleet readiness. These rotary couplers are an integral component of the SPS48E Radar Antenna. The SPS 48E Radar Antenna is a 3 dimensional Air Search Radar System that detects the height of the target above water and automatically detects and tracks small targets even when jammed.

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

The synopsis was posted on the Federal Business Opportunities (FEDBIZOPS) website (02/06/2014) in accordance with FAR 5.2. To date, 0 companies have expressed an interest in this procurement.

Market Research was conducted by the requiring technical activity (RTA) which revealed that there were no other sources interested in repairing the SPS48E Rotary Coupler.

This solicitation will be advertised in Federal Business Opportunities. Responses will be reviewed to determine if additional interested sources exist.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated costs to the Government for the supplies/services covered by the J&A will be fair and reasonable prior to award. The Contracting Officer will use price analysis to determine a fair and reasonable price and may request other than cost and pricing data if applicable. Assistance from the Defense Contract Management Agency (DCMA) may be requested to analyze, evaluate, and negotiate based upon pricing data.

Comparisons to prior contracts for same items may be used as necessary.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NSWC Crane Division has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If other potential sources emerge, NSWC Crane Division will assess whether competition for future requirements is feasible.