N00164_15-042_J A.pdf

J&A Number: 15-042 Code: 0231

PR No: N00164-15-R-JQ77

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Surface Warfare Center NSWC, Crane), Special Warfare and Expeditionary Systems Department (SWESD)

Contracting Division (023).

2. Description of the Action Being Approved

Award of a five (5) year firm-fixed-price, indefinite-delivery, indefinite-quantity, supply and repair contract on a sole source basis for components in the Multi-spectral Targeting Systems (MTS) electronics unit to Kontron America, Inc., (KAI), 14118 Stowe Drive, Poway CA 92064. Anticipated components include chassis, VME power supply, covers, panel assemblies, fan plenums, backplanes, and flexes.

3. Description of Supplies/Services

This procurement is for the purchase of cable assemblies, backplanes, power supplies and the repair of power supplies, test cables, cover assemblies related equipment and training to facilitate a shortened repair turnaround time of the Multi-spectral Targeting Systems (MTS) to operational use. This procurement also includes repairs, training, technical documentation and technical reachback support. Associated specialized test equipment that may be used to test and screen the condition of the items that may also be procured.

The supplies required by this contract are for the replacement and sustainment of the proprietary MTS systems manufactured by Original

Equipment Manufacturer (OEM), Raytheon Company. The MTS system is already in use in the field. Kontron America, Inc. is a subcontractor for Raytheon Company. The parts will be utilized in the repair support of the Raytheon family of Electro-Optic Infrared (EO/IR)

Systems also known as MTS. This family of EO/IR systems included the

AN/AAS-44A, B, C; AN/AAS-52A, B, AN/DAS-1, 2, AN/AAS-53A, AN/ZSQ-2 and future derivatives, hereafter referred to as EO/IR Systems. These systems provide Intelligence Surveillance and Reconnaissance (ISR), Detection, Identification and Targeting capability in day/night operations for both manned and unmanned platforms. These internal components are key elements of the MTS.

The estimated total value of this acquisition is $2,180,914.

IN REPLY REFER TO:

DEPARTMENT OF THE NAVY

CRANE DIVISION

NAVAL SURFACE WARFARE CENTER

300 HIGHWAY 361

CRANE INDIANA 47522-5001

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

Estimated Dollar Value

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 items/services being procured under this J&A are in direct support of the replacement and repair of the MTS, which has been deployed on

Navy H-60 Rotary Wing, Air Force Manned & Unmanned Air Vehicles (UAVs) and Army UAVs. The MTS OEM, Raytheon Company, subcontracted design and production of the cable assemblies, backplanes, power supplies, test cables, cover assemblies and related equipment.

The Government has been purchasing the EO/IR systems from Raytheon for over ten (10) years and has deployed more than five hundred systems in multiple manned and unmanned platforms. All prior requirements for

Kontron America components and repairs were covered by sole source contracts/orders placed with Raytheon Company, the MTS system OEM. The requirement for the Kontron America components comprises approximately five percent of the cost/price of purchase or repair of a MTS system.

In an effort to shorten repair turnaround time, the Government seeks to purchase supplies and services required for sustainment of the MTS directly from the OEM subcontractor. The Government further intends to develop Organic Depot testing and screening for some limited repairs.

Manufacturing of the Kontron America components by any source other than the OEM is not practicable. Kontron America’s designed, developed and manufactured the Kontron America components to meet the

Government’s performance specification, and to interface with

Raytheon’s MTS system.

The Government does not own design specifications adequate to allow for competition, and on 03 March 2015, Kontron America advised that, “Kontron America” does not intend to license or sell its proprietary data to the Government or to any entity. Based upon their unique system design, test and component interface knowledge and experience, this Raytheon Company subcontractor is the only contractor possessing the capability to provide the required supplies/services.

Award to any source other than Kontron America would result in substantial duplication of costs that are not expected to be recovered

FY15 FY16 FY17 FY18 FY19 Totals

PROC $514,452 $193,653 $210,000 $200,000 $250,000 $1,368,105

O&MN $159,218 $129,103 $179,933 $181,364 $163,191 $812,809

Total $673,670 $322,756 $389,933 $381,364 $413,191 $2,180,914 through competition, and unacceptable delays would occur in fulfilling the agency’s requirement.

Based on current engineering estimates, the delay necessitated by reverse engineering the Kontron America components 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 16 months. This

16 month delay would seriously jeopardize the ability of program managers to field MTS systems, and sustain their use by end users in theater.

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 $1.6 million. (See, Independent

Government Estimate of roll-up costs, based upon engineering estimates, attached.) Independent 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.

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

Given the nature of the end users and their missions, a formal market survey was not conducted. 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 an 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 normally be obtained through a formal market survey and facilities 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 representative’s judgment that there is no known source other than Kontron America capable of performing the work required by this contractor.

The lack of any responses to a REQUEST FOR INFORMATION (RFI) of the planned contract published on the FEDBIZOPS website on February 26, 2015 validates the determination that there is no other competent or responsible supplier of the desired supplies and services.

7. Determination of Fair and Reasonable Costs

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. DCMA pricing assistance and/or DCAA audit of contractor’s proposal will be requested along with offeror’s certificate of current cost and pricing 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 this type 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-R7 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, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

REQUIREMENTS COGNIZANCE:

Signature Date

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

Signature

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.

Signature

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 described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1).

Crane Division Competition Advocate

Kelly Siffin Date