N00164_15016_FBO.pdf

J&A Number: 15-016

Code: 0222

N00164-15-R-WM75

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 Mercury Systems Incorporated (hereafter referred to as Mercury), 201 Riverneck Road, Chelmsford, MA 01824-2820, on a sole source basis for the procurement of Installation Checkout spares used in the AN/SLQ- 32(V)6 System.

3. Description of Supplies/Services

The following Mercury spares are critical components of the AN/SLQ-32(V)6 System:

CAGE Part Number Drawing Number NOMENCLATURE 3X893 77A126676P1 03538-77A126676B ARC Bus Controller 3X893 77A126676P2 03538-77A126676B PDF Synthesizer 3X893 77A126676P3 03538-77A126676B PDF Tuner

3X893 77A126677P1 03538-77A126677A 8 Channel Digital Receiver 3X893 77A126680P1 03538-77A126680A 4 Channel Digital Receiver 3X893 77A126695P1 03538-77A126695B Clock Generator VME Card

They are approved components and required for 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.

It is anticipated that a five (5) year FFP IDIQ type contract will be awarded for the procurement of these components. Five of these components were previously procured from Mercury under sole source contracts N00164-13-P-0438 and N00164-14-P-0293.

The minimum contract value is $54,000 with a maximum value of $7,341,637 over the five (5) year period. 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 $7,341,637

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

Delivery of the components 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 AN/SLQ-32(V)6 Electronic Support (ES) subsystem was competitively awarded to Lockheed Martin Corporation, Liverpool, NY under contract N00024-09-C-5300. 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 ES subsystem as part of this development, and the Procurement Control Drawings (PCDs) delivered for these components listed the approved source of supply. The PCDs describe the dimensions, performance and interface requirements but are not production level drawings.

The Government does not own production level drawings or any rights to production level drawings.

The components listed in paragraph 3 have been verified to meet the specification requirements through extensive engineering tests, and Mercury is currently the only source approved to produce these spares. Any competitive procurement utilizing the preliminary PCDs would require significant non-recurring engineering and product validation of the alternate source(s).

An award to any source other than Mercury would result in an unacceptable delay of more than 38 months with additional costs in excess of $1,125,000. Funding has not been budgeted for and is not available for development of an alternate source at this time.

These spares are needed for NSWC Crane to support Fleet and shore system installations. A delay of 38 months in obtaining these spares will not meet Fleet and shore laboratory installation schedules that begin in July 2015 nor allow NSWC Crane to respond to Technical Assistance requests or enable response to Fleet failures for replacement of faulty parts. This will severely impact the operational capability of the AN/SLQ- 32(V)6 system and the ship’s ability to perform critical missions.

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

The proposed contract will be synopsized on the Federal Business Opportunities website on 5 December 2014. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than Mercury 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 Mercury, 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 for the types of supplies/services covered by this document. If another potential source emerges, NSWC Crane will assess whether competition for future requirements is feasible.