18DJQ84__non_comp_redacted.pdf

DEPARTMENT OF THE NAVY

CRANE DIVISION

NAVAL SURFACE WARFARE CENTER

300 HIGHWAY 361

CRANE INDIANA 47522-5001

J&A Number: 15-030 Code: 0231 P.R. Number: 15RJQ84

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-CD), Contract Operations Division, Code 0231.

2. Description of the Action Being Approved

The award an anticipated five year, Indefinite-Delivery, Indefinite-Quantity contract on a sole source basis to FLIR Systems Inc. (FLIR) 25 Esquire Rd North Billerica, MA, 01862- 2501 (CAGE 3UVR3) for repair and spares of the High Performance Mobility FLIR (HPMF)AN/MAD-1 and variants.

3. Description of Supplies/Services

The items to be acquired under this J&A are system spares, provisioned item order spares, and repairs of the High Performance Mobility FLIR (HPMF) AN/MAD-1 and variants.

The HPMF is a stabilized infrared imager. The system provides Special Operation Forces maritime craft, ground units, and other vehicles the capability to detect, recognize, identify, and track targets particularly during periods of darkness or low visibility.

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

The estimated total value of this acquisition is $8,000,000.

Estimated Dollar Value, in Thousands FY15 ($) FY16 ($) FY17 ($) FY18 ($) FY19 ($) Totals

IN REPLY REFER TO:

J&A Number: 15-030

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 Government does not possess a suitable technical data package for full and open competition for the repair and manufacture of the HPMF. FLIR, the Original Equipment Manufacturer (OEM), developed the system at private expense as the system was originally procured as a modified commercial item. Only FLIR possesses the proprietary rights and in-depth engineering knowledge to repair the systems. On 03 December 2014, FLIR advised the Government that, “FLIR will not provide, license, or sell its proprietary data to the Government or to any entity as it would adversely impact there commercial competiveness and conflict with future business.”

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. The Government would have to reverse engineer the systems to develop a suitable technical data package for competition. Reverse engineering the system includes understanding the physical properties of the systems, their functionality of the operational software and how that interacts with the electronics of the system. These tasks would involve developing drawings associated with the physical properties of the system and underlying components, understanding the operation and interaction of the software controlling the system and the functionality of the electronics.

The reverse engineering estimate of $4.9 million dollars includes costs associated with developing a drawing package (material types and dimensions) of the systems required to modify some of the internal components. These drawings would be required to include information that is critical for integrating new components into the system and maintaining the system stabilization in a military environment (shock, vibration…).

Any changes to parts or software would have to be fully tested and qualified to ensure requirements are meet. (See, Independent Government Estimate of roll-up costs, based upon engineering estimates, attached.)

Based on current engineering estimates, the delay necessitated by reverse engineering the FLIR systems and developing suitable technical data package, soliciting competitive offers and awarding to an alternative source, development, production, systems integration and operation test verification would be a minimum of two years. This two year delay would seriously jeopardize the ability of program managers to maintain and field FLIR systems, and sustain their use by end users in theater.

The systems are currently fielded and repaired on a regular basis any lapse in repair capability would be unacceptable.

Award to any source other than FLIR 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.

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 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 normally 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 FLIR capable of performing the work required by these contractors.

The lack of any responses to a synopsis of the planned contract published on the FEDBIZOPS website on 20 March 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. If cost and pricing data is required for this requirement, Defense Contract Management Agency (DCMA) pricing assistance and/or Defense Contract Audit Agency (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. Similar quantities of this requirement have been purchased from this Offeror in the past and pricing information was received on those procurements.

This information should be sufficient to support the fair and reasonable cost determination of this procurement.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, NSWC-CD has no plans at this 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(c))

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning data, including Acquisition Plan No. N/A, except as noted herein, are complete and accurate to the best of my knowledge and belief.

COMBINED TECHNICAL AND REQUIREMENTS COGNIZANCE:

Program Manager

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

Office of Counsel

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.

Contracting Officer

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)(1).

NSWC-CD Competition Advocate

, Competition Advocate Date