16RJQ08_J A.pdf

J&A Number: CR-160003

Code: 0231

PR Number: N00164-16-R-Q08

CLASS JUSTIFICATION AND APPROVAL (CJ&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)

Expeditionary Sensors Contracting Branch, Code 0231.

2. Description of the Action Being Approved

Award of a firm-fixed price, indefinite-delivery, indefinite-quantity, supply and repair contract five (5) year ordering period on a sole source basis for Flash Pumped Laser Transmitter PN 4974135, Single

Color Diode Pumped Laser Designator PN 68800000-19, Dual Beam Emitter and Receive (DBEAR) PN 68902000-9, and the Tri-Beam Emitter and

Receiver (TBEAR) PN 68901300-19 as spares, repair of failed units received from field users of the Multispectral Targeting System (MTS), and Organic Depot training on specialized test equipment to facilitate shortened turnaround time for return of MTS systems to operational use to Northrop Grumman Guidance and Electronics Company Inc., 2787 S.

Orange Blossom Trail, Apopka, FL, 32703. Authority to act under this

CJ&A expires August 2021.

3. Description of Supplies/Repairs

This procurement is for the purchase of Flash Pumped Laser Transmitter

PN 4974135, Single Color Diode Pumped Laser Designator PN 68800000-19, Dual Beam Emitter and Receive (DBEAR) PN 68902000-9, and the Tri-Beam

Emitter and Receiver (TBEAR) PN 68901300-19 as spares, Provisioned

Item Order (PIO), repair and failure analysis of failed units received from field users of the MTS, and Organic Depot training on specialized test equipment to facilitate shortened turnaround time for return of

MTS systems to operational use.

The supplies and repairs required by this contract are for the procurement and sustainment of Laser Transmitters for the MTS system for which the Department of Defense has already fielded over 1,000 systems. The Original Equipment Manufacturer (OEM), for the Laser

Transmitter is Northrup Grumman.

The MTS has been deployed on Navy H-60 Helicopters, Air Force Predator

Systems, Air Force Reaper, US Army Gray Eagle, Air Force HC/MC-130J, and other special mission’s aircraft to facilitate and enable the delivery of laser guided munitions. The MTS implements a medium wave

IN REPLY REFER TO:

DEPARTMENT OF THE NAVY

CRANE DIVISION

NAVAL SURFACE WARFARE CENTER

300 HIGHWAY 361

CRANE INDIANA 47522-5001

staring focal plane array (FPA) Infrared (IR) Sensor, based on third generation sensor technology, with the addition of a daytime color TV camera. The Laser Transmitter is a key component of the MTS.

Northrop Grumman is the OEM of the Laser Transmitter.

The estimated total value of this action is $44,880,400. The estimated approximately 95% supplies and 5% services.

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

Estimated Dollar Value, in Millions

FY16 FY17 FY18 FY19 FY20 Totals

OPN

O&MN

Total $44.8804M

4. Statutory Authority Permitting Other Than Full and Open

Competition

10 U.S.C. 2304(c)(1)

5. Rationale Justifying Use of Cited Statutory Authority

The items being procured under this CJ&A are in direct support of the production and repair of the MTS, which has been deployed on Navy H-60

Helicopters, US Army Gray Eagle and Air Force Predator / Reaper

Systems. The MTS OEM, Raytheon Company, subcontracted design and production of the Laser Transmitter to Northrop Grumman under the

Source Control Drawing Part Number 96214-4974135 Rev A. The

Government recently completed the non-recurring engineering (NRE), design verification test, MTS integration, test, qualification, and low rate initial production (LRIP) of a diode pumped version of the

96214-4974135. The new diode pumped configuration provides a reliability improvement of ten times the original flash pumped design.

The Governments investment in the diode pumped variant is in excess of five million dollars and 36 months of schedule.

The Government has been purchasing the MTS family of systems for over

15 years and has deployed more than one thousand systems on multiple manned and unmanned aircraft. All prior requirements for laser transmitters, spares, and repair effort requirements were covered by sole source contracts/orders placed with Raytheon Company, the MTS

System OEM. The requirements for laser transmitters comprised approximately 15% of the cost/price of purchase or repair of a MTS system. Procuring the lasers through a Government “break out” buy will save the Government thirty percent per laser on contract pass through alone, with the added benefit of faster turnaround times and additional Government involvement with laser prime contractor. This acquisition strategy conforms to Better Buying Power 3.0 in that this contract will service the Department of Defense’s MTS Enterprise and provide the Government economies of scale, additional buying power, and reductions to annual Operations and Sustainment (O&S) costs.

Manufacture and/or repair of the Laser Transmitter by any source other than OEM is not practicable. Northrop Grumman designed, developed and manufactured the Laser Transmitter 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 17 September 2015, Northrop Grumman advised that, they would not agree to sell license or its proprietary data to the Government or to any entity. Based upon their unique system design, test and component interface knowledge and experience, Northrop Grumman is the only contractor possessing the capability to provide the required supplies or repairs.

Award to any source other than Northrop Grumman 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 prior history engineering estimates, the delay necessitated by reverse engineering the Laser Transmitter and developing specifications, soliciting competitive offers and awarding to an alternate source would be a minimum of three (3) years as shown below, with an additional two (2) years as shown below for development, production, system integration and operational test verification.

Task Performed

Number of Years to be performed

Task Performed

Number of Years to be performed

Reverse Engineering 1.25

Development and integration 1.5

Developing and Soliciting Competitive Offers 1.75

Operation Test .5

Total 3

Total 2

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 $23 million. (See, Independent

Government Estimated roll-up costs, based upon engineering estimates below.) 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.

Duplication of Cost

Redundant Effort

Cost Per

Platform

Number of

Platforms Total

Formal Software Release to incorporate new laser functionality. $ 2M per platform $2,000,000 5 $10,000,000

Flight Test $500,000 5 $2,500,000

Redundant Government depot infrastructure $2,000,000 N/A $2,000,000

Training of artisans $1,200,000 1 $1,200,000

Updates to Government O,I, and d level manuals $600,000 5 $3,000,000

Weapons Test $1,000,000 5 $5,000,000

Total Duplication of Costs $23,700,000

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

Market research is done on a continuous basis by the requiring technical activity. The 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. The working relationship with industry 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 representative’s judgment that there is no known source other than

Northrop Grumman capable of performing the work required by this requirement.

The lack of any responses to a REQUEST FOR INFORMATION (RFI) of the planned contract published on the FEDBIZOPS website on 06 November

2015 validates the determination that there is no other competent or responsible supplier of the desired supplies or repairs.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies/repairs covered by the CJ&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 certification of current costs 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 the types of supplies/repairs covered by this document. If another potential source emerges, NSWC Crane will assess whether competition for future requirements is feasible.

It should be noted that this procurement is an attempt to breakout a component of the larger MTS System and is in compliance with DFARS

207.171-3 as substantial savings can be achieved by avoiding the

Raytheon (OEM for the MTS) pass through charge.

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 data, including Acquisition Plan No. _AQP/16/JXQL/110 except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

Signature

REQUIREMENTS COGNIZANCE:

LEGAL SUFFICIENCY (NMCAR 5206.303(90))

I have determined this justification is legally sufficient.

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.

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as Designee of the Head of the Procuring Activity, the solicitation of the proposed procurement(s) using of other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1).

Signature Date