15RWM74_15014_FBO.pdf

NCH 53.6-2 (SEP 2011)

J&A Number: 15-014 Code: 0222

N00164-15-R-WM74

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 Crane Division (NSWC Crane), Global/Spectrum/MSS Contracting Division (022).

2. Description of the Action Being Approved

Award of a Firm Fixed Price (FFP) Indefinite Delivery, Indefinite Quantity (IDIQ) contract to DRS Signal Solutions Incorporated (hereafter referred to as DRS), 700 Quince Orchard Road, Gaithersburg, MD 20878-1706, on a sole source basis for the procurement of DRS’s Microwave Versa Module Eurobus (VME) Tuner, drawing 03538-77C735735B, Vendor Identification Number SI-9158/AC-4, Part Number 77C735735P1, used in the AN/SLQ-32(V)6 System.

3. Description of Supplies/Services

DRS’s Microwave VME Tuner, drawing 03538-77C735735B, Vendor Identification Number SI-9158/AC-4, Part Number 77C735735P1, is a critical component of the SEWIP Block 1B3 system. SEWIP Block 1B3 is a subsystem of the AN/SLQ-32(V)6. SEWIP 1B3 is produced by General Dynamics Advanced Information Systems. The Microwave VME Tuner is an approved component of the 1B3 system and is required for spares during installation of the AN/SLQ-32(V)6 system on United States Navy (USN) and United States Coast Guard ships

AN/SLQ-32(V)6 is an electronic warfare system that supports a variety of missions that are essential to the USN.

It was designed as part of the US Navy's Surface Electronic Warfare Improvement Program which is an upgrade to the AN/SLQ-32 electronic warfare anti-ship missile defense system.

DEPARTMENT OF THE NAVY

CRANE DIVISION

NAVAL SURFACE WARFARE CENTER

300 HIGHWAY 361

CRANE INDIANA 47522-5001

IN REPLY REFER TO:

It is anticipated that a five (5) year FFP IDIQ type contract will be awarded for the procurement of this component. Previous orders for this component, N00164-14-F-0066, N00173-14-F-0051, and N00173-14-F-0194, were placed under General Services Administration Schedule GS-35F-0054J.

The minimum quantity to be procured is one (1) Microwave VME Tuner, with a maximum of twenty-seven (27) Microwave VME Tuners over the five (5) year period. The maximum estimated value of this procurement is $1,989,542. Other Procurement Navy (OPN) funding will be used for this effort. The estimated dollar value for fiscal years FY15 through FY19 is identified below:

Appropriation FY15 FY16 FY17 FY18 FY19 Total

OPN $1,989,542

The ordering period will be five (5) years from contract award.

Delivery of the component shall be within 180 days of each order. The government’s minimum needs have been verified by the certifying technical and requirements personnel.

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-32(V)6 is an integration of highly complex subsystems, assemblies, sub-assemblies, and components from several vendors. The development of the Surface Electronic Warfare Improvement Program (SEWIP) Block 1B3 was awarded on a sole source basis to General Dynamics Advanced Information Systems, Fairfax, VA under contract N00024-09-C-5396. However, supportability was not addressed under this contract and no provision was made to procure spare parts. A Technical Data Package (TDP) with full data rights was procured for the entire SEWIP Block 1B3 subsystem as part of this development, and the Procurement Control Drawing (PCD) delivered for the Microwave VME Tuner listed the approved source of supply. The PCD describes the dimensions, performance and interface requirements but is not a production level drawing. The Government does not own a production level drawing or any rights to a production level drawing for the required tuner. During Market Research

DRS stated that they were unwilling to sell the data rights to the Government or to any other vendor.

Each preliminary performance specification for the assemblies, sub-assemblies, and components lists those sources whose components have been verified to meet the specification requirements through extensive engineering tests. DRS is currently the only source approved to produce the Microwave VME Tuner for the SEWIP 1B3 system. Any competitive procurement utilizing the PCD would require significant non-recurring engineering and product validation of the alternate source(s).

An award to any source other than DRS would result in an unacceptable delay of more than 21 months with additional costs in excess of $659,000. Funding has not been budgeted for and is not available for development of an alternate source at this time.

These tuners are needed for NSWC Crane to support Fleet and shore system installations. A delay of more than 21 months in obtaining these tuners will not meet Fleet and shore laboratory installation schedules that begin in July 2015. The delay would also prohibit NSWC Crane’s ability to respond to Technical Assistance requests or enable response to Fleet failures for replacement of faulty tuners. This will severely impact the operational capability of the AN/SLQ-32(V)6 system and the USN’s ability to perform critical missions.

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

A synopsis was posted on the Federal Business Opportunities website for the proposed contract on 14 November 2014. No additional market research was conducted because it is not believed practicable, for the reasons discussed in paragraph 5 above, for any company other than DRS to provide the required supplies.

7. Determination of Fair and Reasonable Costs

The Contracting Officer will determine that the anticipated cost to the Government for the supplies/services covered by the J&A fair and reasonable. The Crane contracting office will use cost and price analysis to determine a fair and reasonable price.

Assistance from the Defense Contract Audit Agency (DCAA) and the Defense Contract Management Agency (DCMA) will be used to analyze, evaluate and negotiate based upon detailed cost and pricing data, and certified by DRS, as required. Additionally, the Contracting Officer will use price analysis and historical data to aid in determining a fair and reasonable price.

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 which include spare check-out parts for the SEWIP 1B3 system. If another potential source emerges, NSWC Crane will assess whether competition for future requirements is feasible.