15DJQ72_J A_Redacted.pdf

DEPARTMENT OF THE NAVY

CRANE DIVISION

NAVAL SURFACE WARFARE CENTER

300 HIGHWAY 361

CRANE INDIANA 47522-5001

JUSTIFICATION AND APPROVAL

IN REPLY REFER TO.

J&A Number: 14-072 Code:023 1 P.R. Number: 15RJQ72

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

The Naval Sea Systems Command, Naval Surface Warfare Center Crane Division (NSWC-CD) Contract Operations Division, Code 0231

2. Description of the Action Being Approved.

The award of an anticipated five year Indefinite Delivery Indefinite Quantity (IDIQ) contract on a sole source basis to DY 4, Inc. (aka Curtiss-Wright Defense Solutions), 20130 Lakeview Center Plaza, Suite 200, Ashburn. VA 20147, for the procurement ofVideo Processor Circuit Cards (Part Number 6637176-0002 and 6637176-0004).

3. Description of Supplies/Services.

The item being procured under this J&A are in direct support of the replacement and repair. of the Multi-Targeting System (MTS), which has been deployed on US Navy H60 Rotary Wing, EP-3E, Triton, as well as US Air Force, Army & SOCOM Manned & Unmanned Air Vehicles (UA Vs). The MTS Original Equipment Manufacturer (OEM), Raytheon Company, subcontracted the design and production of the Video Processor Circuit Cards to DY 4, Inc.

The Government has been purchasing the MTS EO/IR systems from Raytheon for over ten ( I 0) years and has deployed more than 1000 systems in multiple manned and unmanned platforms.

The majority of prior requirements for Video Processor Circuit Cards were covered by sole source contracts/orders placed with Raytheon Company, as the overall MTS system OEM . The requirement for Video Processor Circuit Cards components comprises approximately five (5) percent of the cost/ purchase price or repair of a MTS system.

The estimated total value of this acquisition is $3,880,000

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

Estimated Dollar Value, in Thousands

FY 14 ($) FY 15 ($) FY 16 ($) FY 17 ($) FY 18 ($) Total($)

IPROC $776.0 $776.0 $776.0 $776.0 $776.0 $3,880.0

J&A Number: 14-072

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.

The Video Processor Circuit Cards required by this anticipated contract are for the replacement and sustainment of MTS systems manufactured by Raytheon Company, the OEM, which are already in use in the field. DY 4, Inc. is a subcontractor for Raytheon Company. The Government does not own design specifications adequate to allow for competition, and on 22 September 2014, DY 4, Inc. advised that the company is "not willing to sell or license any .._, technical rights to this product." Based upon their unique system design, test and component interface knowledge and experience, these Raytheon Company subcontractors are the only contractors possessing the capability to provide the required supplies.

Manufacture of the Video Processor Circuit Cards components by any source other than the OEM is not practicable. DY 4, Inc. designed, developed and manufactured the Video Processor Circuit Cards to meet the Government's performance specification, and to interface with Raytheon ' s MTS system. Video Processor Circuit Cards together with other elements comprises a unique MTS configuration, have undergone flight and weapons safety qualifications specific to each host platform. Introduction of components manufactured by alternate sources would require extensive engineering, software development and integration and completion of a series of Functional, Environmental, Electromagnetic Compatibility, Reliability, and other testing to address risks inherent in integration of system elements having unproven performance characteristics.

The development and sustainment of another source would result in excessive duplication of costs to the Government, and these costs would not be recouped through competition.

Integration and test costs alone are estimated at a minimum of $1 ,452,500. (See, Independent Government Estimate of roll-up costs, based upon engineering estimates, attached.) The estimated value of this buy, compared to the estimated integration and test costs, makes it impracticable to pursue competition now or during the course of performance.

Award to any source other than DY 4, Inc. would result in substantial duplication of costs that are not expected to be recovered through competition, and unacceptable delays would occur in fulfilling the agency' s requirements.

Based on current engineering estimates, the delay necessitated by reverse engineering the Video Processor Circuit Cards and developing specifications, soliciting competitive offers and awarding to an alternate source, development, production, system integration and operational test verification would be a minimum of two (2) years. This two (2) year delay would seriously jeopardize the abi lity of program managers to maintain and field MTS systems, and sustain their use by end users in theater.

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

Given the nature of the end users and their missions, a formal market survey was not apropos.

However, informal market research was and is conducted on a continuous basis by the requiring technical activity. The informal market research includes contacting knowledgeable individuals in the Government and industry, reviewing previous procurements and in-house contracts, review of catalogs and other product literature, internet searches and attendance at Industry Trade shows. The requiring activity representatives maintain a close working relationship with the Electro-Optics industries throughout the world. This working relationship with industry provides a base of knowledge as extensive as would n01mally be obtained through a formal market survey, and facilitates continuous knowledge of the available technologies and manufacturing capabilities throughout the industry. Based upon the aforementioned background and working relationship with industry, it is the technical representatives' judgment that there is no known source other than DY 4, Inc. capable of performing the work required by these contractors.

The proposed contract was synopsized via posting on the Federal Business Opportunities (FedBizOpps) website on September 12,2014, in accordance with (lAW) FAR 5.2. No formal market research was conducted because it is not practicable, for the reasons discussed above, and in paragraph 5, for any company other than cited source to provide the required supplies.

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 the J&A will be fair and reasonable. The contracting office will use cost and price analysis to determine a fair and reasonable price. If cost and pricing data is required for this requirement, Defense Contract Audit Agency (DCAA) and Defense Contract Management Agency (DCMA) may be utilized to analyze, evaluate and assist in negotiation based upon detailed cost and pricing data which will be certified at conclusion of negotiations.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NSWC Crane Division (NSWC-CD) has no plans at thi s time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, NSWC-CD will assess whether competition for future requirements is feasible.

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 the MH-60R Multi-Mission Helicopter Upgrade Acquisition Plan number 299-2008-03-26-R 7 dated 07 March 2012, the MH-60S Fleet Combat Support Helicopter Acquisition Plan number 299-2008-08-26-R2 dated 7 March 2012, and Big Safari Single Acquisition Management Plan dated 1 June 2002, and the Common Sensor Payload Acquisition Strategy dated 8 May 2013, except as noted herein, are complete and accurate to the best of my knowledge and belief.

COMBINED TECHNICAL AND REQUIREMENTS COGNIZANCE: 1.'

Date

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

Phone No.

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.

Date

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as Competition Advocate for the Procuring Activity the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(l).

Crane Division Competition Advocate

Kell Siffin Name