N00164_15022_FBO.pdf

J&A Number: 15-022 Code: GXPS

PR Number: N00164-15-R-GP12

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, Code 0221.

2. Description of the Action Being Approved

Award of a Firm-Fixed Price (FFP) contract on a sole source basis for the procurement of AN/SLQ-48 Altimeter Transducers to EDO Western Corporation, commonly referred to as EXELIS Radar, Reconnaissance, and Acoustic Systems, CAGE 24338, 2645 South 300 West, Salt Lake City, UT 84115.

3. Description of Supplies/Services

This contract will be for the procurement of ten (10) AN/SLQ- 48 Altimeter Transducers with the option to purchase an additional five (5) units from EXELIS. The Altimeter Transducers are a part of the AN/SLQ-48 Mine Neutralization Vehicle, which is used aboard the Class Mine Countermeasures (MCM) Ships.

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

The chart below provides estimated dollar values per fiscal year and appropriation. The total estimated maximum dollar value for this procurement action is $250,000.00.

Estimated Dollar Value

FY15 TOTAL

WCF

TOTAL $ 250,000.00

DEPARTMENT OF THE NAVY

CRANE DIVISION

NAVAL SURFACE WARFARE CENTER

300 HIGHWAY 361

CRANE INDIANA 47522-5001

IN REPLY REFER TO:

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C 2304(c)(1), only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

The AN/SLQ-48 Altimeter Transducer was first procured as a subsystem under the competitively awarded contract N00024-78- C-6257. 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.

EXELIS is the only certified supplier with the capabilities and know how to produce this transducer. EXELIS has been certified as the source of supply by NAVSEA per the Source Control Drawing, 53711-5266709. The transducer’s design does not allow for access or for easy verification of discreet components (black-box encapsulated design). The Government does not own design specifications adequate for a competitive action, and EXELIS will not agree to license or sell its proprietary data to the Government.

Utilization of another source would result in duplication of costs estimated at $576,200.00 and would result in a twenty-four (24) month delay in production. Certification of another source requires three different levels of testing:

unit testing, next level assembly testing, and operations testing at sea. The table below illustrates the costs and timeline requirements to certify a new source.

Description of Cost Cost Time Items that can be done simultaneously

a. Prototype Material Costs $ 20,000.00 5 months 10 months b. Fixtures/Molds/Dies $ 15,000.00

c. Reverse Engineering/Engineers & Technicians Labor $ 150,000.00 10 months

d. Inspection of the Transducer/Electrical, Acoustic & Hydro Testing

$ 11,200.00 2 months 2 months

e. First Article Testing $ 200,000.00 6 months 12 months f. Documentation/Travel for

Certification $ 180,000.00 6 months

NEW SOURCE CERTIFICATION TOTALS $ 576,200.00 24 months

Estimated costs for items a through d above are based on NSWC Crane Reverse Engineering estimates that would be required to develop a specification adequate for competition.

Costs associated with First Article Testing (FAT), item e above, are based on historical information for performing FAT on a similar transducer as the AN/SLQ-48 Altimeter Transducers. FAT is required for any new source that produces the items.

Item f in the table above estimates the additional costs to certify a new source for preparation and coordination of a test plan, 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.

These costs include the annual salary of one Lead Engineer for the twenty-four month period, travel for Government representatives to the new source’s facilities, and documentation and reviews associated with the certification process.

Additional funds are not available to accomplish certification of new sources. Competition would not offset the estimated $576,200.00 certification costs that would be incurred if the Government procured the supplies from a new source.

The twenty-four (24) month schedule to certify a new source before production can begin will greatly impact Fleet readiness and would jeopardize the Mine Countermeasures Ships (Avenger Class MCM) Fleet overhaul schedules. The Fleet stock needs to be replenished to maintain satisfactory safety levels. If the Class Mine Countermeasures (MCM)

Fleet cannot deploy per the mission requirements, the United States will be without one of its Mine Countermeasures ships in the Persian Gulf, one of the most dangerous areas in the world.

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

The NSWC Crane Platform and Launch Division has contacted several potential sources but has not received any interest in producing this item.

A synopsis has been issued as required by FAR 5.202, via posting on the Federal Business Opportunities (FEDBIZOPPS) website. The synopsis was posted on 02 FEB 2015. Any responses to the synopsis that may be received will be considered for a possible competitive effort. To date no inquiries have been received as a result of posting the synopsis.

7. Determination of Fair and Reasonable Costs.

The Contracting Officer has determined that the anticipated cost to the Government for the supplies covered by this J&A will be fair and reasonable. All available information will be utilized to support the fair and reasonable cost determination.

8. Actions to Remove Barriers to 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.