N00164_15019_FBO.pdf

NCH 53.6-2 (SEP 2011)

J&A Number: 15-019

Code: GXPM

PR Number: N00164-15-R-GP06

PR Number: N00164-15-R-GP07

PR Number: N00164-15-R-GP08

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Surface Center, Crane

Division, Code 0221.

2. Description of the Action Being Approved

Award of three Firm Fixed Price (FFP), Indefinite Delivery, Indefinite Quantity (IDIQ), supply contracts. All three contracts will be awarded on a sole source basis for the TR-

333 Hydrophone Program, Strategic Systems Program (SSP), SP24

Navigation Subsystem, to include Foreign Military Sales. The items are used in the manufacture of TR-333 Hydrophones at

NSWC Crane and for fleet stock. Authority to act under this class J&A expires with regard to the three IDIQ contracts five years after the effective date of award for the three

IDIQ contracts, subject to the quantity limitations herein.

3. Description of Supplies/Services

The contracts will procure the following:

-N00164-15-R-GP06: FFP, IDIQ for TR-333 Hydrophones Housings and Baffle Rings to JWS Machine Inc. 501 S. Airport St. Terre

Haute, IN 47803. For the five year ordering period the

Government estimates a minimum of 25 Hydrophone Housings and a maximum of 175; a minimum of 50 and a maximum of 370

Hydrophone Baffle Rings will be procured;

-N00164-15-R-GP07: FFP, IDIQ for TR-333 Hydrophone Syntactic

Disks to Ideal Instruments 863 Washington St. Canton, MA

02021. For the five year ordering period the Government estimates a minimum of 300 Hydrophone Syntactic Disks and a

DEPARTMENT OF THE NAVY

CRANE DIVISION

NAVAL SURFACE WARFARE CENTER

300 HIGHWAY 361

CRANE INDIANA 47522-5001

IN REPLY REFER TO:

maximum of 600.

-N00164-15-R-GP08: FFP, IDIQ for TR-333 Hydrophone Audio

Transformers to OECO, 4607 SE International Way, Milwaukee, OR 97222. For the five year ordering period the Government estimates a minimum of 200 Hydrophone Audio, Transformer and a maximum of 550.

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

The charts below provide estimated dollar values per fiscal year and appropriation. The total estimated maximum dollar value for these procurement actions is $1,215,226.

Estimated Dollar Value N00164-15-R-GP06

FY15 FY16 FY17 FY18 FY19 Total

OMN $ 56,281 $ 98,629 $ 48,687 $166,534 $ 41,452 $411,583

FMS $ 14,542 $ 27,818 $ 15,428 $ 52,210 $ 13,817 $123,815

Total $ 70,823 $126,447 $ 64,115 $218,744 $ 55,269 $535,398

Estimated Dollar Value N00164-15-R-GP07

OMN $114,462 $ 19,900 $ 38,431 $ 39,584 $ 21,745 $234,122

FMS $ 31,878 $ 4,975 $ 12,810 $ 13,195 $ 5,436 $ 68,294

Total $146,340 $ 24,875 $ 51,241 $ 52,779 $ 27,181 $302,416

Estimated Dollar Value N00164-15-R-GP08

OMN $107,620 $ 26,574 $ 27,371 $ 28,192 $113,248 $303,005

FMS $ 21,930 $ 6,644 $ 6,843 $ 7,048 $ 31,942 $ 74,407

Total $129,550 $ 33,218 $ 34,214 $ 35,240 $145,190 $377,412

4. Statutory Authority Permitting Other Than Full and Open

Competition

10 U.S.C. 2304(c)(1), only one responsible source for each of the items being procured and no other supplies will satisfy the agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

All of the above referenced items were first procured under competitive contract actions. In accordance with FAR 6.203-

1(a)(2)(ii), supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued production of highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in (A)Substantial duplication of cost to the Government that is not expected to be recovered through competition or (B) Unacceptable delays in fulfilling the agency’s requirements.

The three sources identified under item 3 above are the only certified sources to build the respective items identified.

All items are for the TR-333 Hydrophone used in the SP24

TRIDENT Navigation Subsystem Sonar. In order to certify any of the above units from a non-certified vendor, the estimated cost which would be incurred is $3,586,803 and procuring from a new vendor would result in a twenty-four (24) month delay to begin production. For any one of the three requirements, selection of a non-certified vendor would require three different levels of testing: unit testing, next level assembly (TR-333 Hydrophone) testing, and operations testing at sea. The cost to certify a new vendor for any of the components also requires procurement of the other components because parts utilized within testing are not allowed to be utilized in the fleet and would be kept only for other testing because of the impact to the units of the extensive testing that must be conducted.ESE-06653 includes the approved supplier list for the SP24 Navigation Equipment. In addition, the Statement of Work from SP24 tasking NSWC Crane indicates that utilizing vendors other than those already approved requires the vendors to pass all required testing.

The required testing is outlined within the Qualification

Test Plan/Procedure Rev C of 6/11/1992. All of these documents are available upon request. The table below illustrates the costs and timeline requirements to certify a new vendor.

Description of Cost

TOTAL COST TO

CERTIFY NEW

VENDOR

a. Material Costs – Baffle Ring $ 7,682.00

b. Material Costs – Housings $ 39,203.00

c. Material Costs – Syntactic Disk $ 8,000.00

d. Material Costs – Transformer, Audio $ 11,200.00

e. Inspection – Baffle Ring $ 9,840.00

f. Inspection – Housing $ 8,880.00

g. Inspection – Syntactic Disk $ 4,054.00

h. Inspection – Transformer, Audio $ 4,800.00

i. Certification hydrophones $ 446,144.00

j. First Article Testing Testing $ 48,000.00

k. Operation Testing $2,499,000.00

l. Documentation/Travel for Certification $ 500,000.00

NEW VENDOR CERTIFICATION TOTALS $3,586,803.00

Estimated costs for items a through d above are based on data from the production of current supplies for the same items.

Inspection costs for items e through h above are based on inspection procedures and historical information and were utilized in the estimate of costs associated with inspection.

Workmanship, dimensional, surface finish, material verification, and electrical testing are some of the inspection requirements for the above items.

Costs associated with the Certification procedure, item i above, are based on an engineering estimate for the

Performance Testing IAW SSP OD 62846 for TR-333 Hydrophones previously procured at NSWC Crane at $27,884 each, which includes parts, testing, and parts inspection and associated labor. The certification of a complete hydrophone includes all new vendor parts being tested together.

Costs associated with First Article Testing (FAT), item j above, are based on 20 years of experience of the technical activity in performing FAT Testing of Hydrophones. The FAT

Testing includes cost associated with testing all new vendor parts being tested together.

Costs associated with Operation Testing, item k above, are based on historical testing costs on research vessel CSS

Waters which included manning a research ship and supporting field engineers to evaluate a system while at sea. The typical manpower requirements are twenty-eight (28) field engineers and a crew size of twenty-five (25.) The operational testing to certify a new vendor is estimated to take three months. The estimated cost for testing is

$2,499,000 for the three month period. The Operation

Testing costs include all new vendor parts being tested together.

Item l above estimates the additional costs to certify a new vendor for preparation and coordination of a test plan approval, engineering investigation of any failures, material analysis, and generating formal test reports. These additional costs include submission of Engineering Change

Requests to make appropriate changes to controlled drawings, and travel expenses associated with technical briefings with the SP24 Program Office and the new supplier. These costs include the annual salary of one Lead Engineer for the twenty-four month period, travel for Government representatives to the new vendor’s facilities, and documentation and reviews associated with the certification process. The Documentation/Travel costs include all new vendor parts being tested together.

Additional funds are not available to accomplish certification of new sources. Competition on any of the procurements would not offset the estimated $3,586,803 certification costs that would be incurred if the Government procured any of the supplies from a new source.

The twenty-four (24) month schedule to certify a new vendor before production can begin will greatly impact Fleet readiness and would jeopardize the SSBN TRIDENT Submarine

Fleet overhaul schedules. The Fleet stock will need replenishing to maintain satisfactory safety levels. If the

SSBN TRIDENT Submarine Fleet cannot deploy per the mission requirements the United States will be without one of its nuclear deterrents.

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

Offerors as Practicable

The NSWC Crane Platform and Launch Division performed market research to include their own knowledge of the industry.

Although several vendors were identified who manufacture the same or similar supplies, no additional vendors were found who have completed the Government certification requirements for any of the items required.

A separate synopsis for each of the three procurements has been issued as required by FAR 5.202, via posting on the

Federal Business Opportunities (FEDBIZOPPS) website. The synopsis for N00164-15-R-GP06 was posted on 11/26/2014. The synopsis for N00164-15-R-GP07 was posted on 12/2/2014. The synopsis for N00164-15-R-GP08 was posted on 12/2/2014. No responses have been received to date but any responses to the synopsis that may be received will be considered for a possible competitive effort.

7. Determination of Fair and Reasonable Cost

The Contracting Officer has determined that the anticipated cost to the Government for the supplies/services covered by this class J&A will be fair and reasonable. As required, DCMA pricing assistance may be requested. All available information will be utilized to support the fair and reasonable cost determination.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NSWC Crane 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 will assess whether competition for future requirements is feasible.

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 data, including Acquisition Plan No. SSP-83-1V, 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 (NMCAG 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.

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as

Competition Advocate for the Contracting Activity, the solicitation of the proposed procurement(s) using other than full and open competition, pursuant to the authority of 10

U.S.C. 2304(c)(1).

Signature Name (Print) Date