16RJQ69_J A.pdf

CJ&A Number: 16-032

Code: 0231

PR No.: N00164-16-R-JQ69

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, Basic Order Agreement (BOA) for supply, services, and repair contract with a five (5) year ordering period on a sole source basis for MX-20 Sensor System, Engineering Support, Technical Assistance Field Service Representative (FSR), Repairs and

Organic Depot Services at NSWC Crane and Jacksonville to Canadian Commercial

Corporation (CCC), North Atlantic Treaty Organization (NATO) Commercial and

Government Entity (CAGE) Code 98247 (50 O’Conner Street, Suite 100, Ottawa, Ontario, K1A OS6, Canada), on behalf of L-3 Communication Wescam, CAGE 3AC24 (649 North

Service Road, Burlington, Ontario, L7P 5B9, Canada). Authority to act under this CJ&A expires September 2021.

3. Description of Supplies/Services

This procurement is for the purchase of supplies and services required for L-3

Communications Wescam

TM

Model MX-20 (AN/ASX-8) Multi-Mode Imaging System and

MX Sensor Systems (which includes the AN/ASX-8) and associated support for the US Navy

(USN) P-8A AN/ASX-8(MX-20HD), USN P-8A MX-20D, US Air Force (USAF) MX-20

HADD, and various MX systems on Army Aerostat, Enhanced medium Altitude

Reconnaissance System (EMARSS), and Guardrail RC-12X platforms.

The supplies required by this contract are L-3 Communications Wescam

TM

MX Sensor

Systems, including Turrets, Digital Master Control Units, Hand Control Units/Joysticks, Laser

Boresight Modules, component spares and repair parts; support equipment; MX accessory equipment items; source technical data; failure data and upgrades and product improvements.

The services required by this contract are program support, engineering and logistics support, phone, e-mail support, repairs, upgrades, integration support, training, and field support representative (FSR) support including support of embedded system software/firmware, and integrated product support; logistical support services; field service representatives; program management support services; safety, quality assurance;

configuration management; maintenance training.

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 the certifying technical and requirements personnel.

The estimated value of this action is $10.00 million as tabulated below. The estimate is approximately 36% supplies and 64% services.

Estamated Dollar Value, in Millions

FY16 FY17 FY18 FY19 FY20 Total

Navy APN ($M) 0 1.30 0 0.25 2.05 3.60

Navy OMN ($M) 0.12 0.27 0.27 0.27 0.27 1.20

Army OMA ($M) 0 1.30 1.30 1.30 1.30 5.20

Grand Total ($M) 0.12 2.87 1.57 1.82 3.62 10.00

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 US Navy P-8A Poseidon Maritime Patrol Aircraft includes the L-3 Communications

Wescam

TM

AN/ASX-8 Electro-Optic/Infrared (EO/IR) Multi-Mode Imaging system. This system was procured as a commercial item with limited data rights per DFAR 252.227-7015.

The Naval Surface Warfare Center, Crane Electro Optic Technology Division (EOTD) is assigned by the PMA-290 program office as the FST (Fleet Support Team) on the P-8A for

EO/IR Sensors and is tasked with providing life cycle support from the “Cradle to the Grave” for the EO/IR system. The US Army Guardrail RC-12X and PTDS Aerostat include the L-3

Communications Wescam

TM

MX EO/IR Systems. This system was procured as a commercial item with limited data rights per DFAR 252.227-7015. EOTD is tasked by the Product

Manager (PdM) EO/IR Payloads program office with providing logistical and maintenance support to these US Army EO/IR sensors.

In order to meet the tasking for these programs, the EOTD must maintain the exact configuration of hardware that is in use by the designating programs. This enables the EOTD to replicate operational issues, support Engineering Investigations (EI), and evaluate proposed upgrades and/or Engineering Change Proposals (ECP) to enhance the system performance or reliability. In order to procure the configured hardware and perform the support tasks designated to the EOTD, data beyond what the Government has rights to is required.

L-3 Communications Wescam is the original equipment manufacturer (OEM) and the owner of the MX Sensor Systems technical data package (TDP) and intellectual property (IP).

The OEM has a family of products that fit into the MX line, all of which were developed exclusively at private company expense. The Government requested that the OEM provide cost information to acquire the rights to the MX Sensor System TDP and IP. The company’s response on 24 February 2016 was that the TDP and the IP associated with MX Sensors is not for sale. This results in the Government not having access to the necessary data required to produce spare systems or components, provide necessary depot repair services, or provide integration support. Moreover, the spare components associated with MX Sensors are not currently centrally managed and do not have a national stock number. This results in suitable technical data, Government data rights, or manufacturing knowledge is not available to permit acquisition, qualification from other sources, or qualification testing of another component, nor use of a second source part in the intended application. There are no alternative sources to

L-3 Communications Wescam

TM

MX Sensor Systems spare components and there are no other components that are compatible with the systems. Furthermore, no other company has the expertise needed to repair and test the MX Sensor Systems or support a Government organic depot through work-share agreements. Therefore, contracting directly with CCC on behalf of L-3 Communications Wescam

TM

provides the only solution available to support the

US Navy and Army’s current inventory of MX Sensor Systems.

Award to any source other than CCC on behalf of L-3 Communications Wescam 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 requirement.

The replacement of the existing MX Sensor Systems with a competitor’s EO/IR system would result in the excessive duplication of costs to the Government, and these costs would not be recouped through competition. PMA-290 has 73 AN/ASX-8 EO/IR sensors in inventory and is in the process of procuring additional systems. PdM EO/IR Payloads has 300 MX Sensor

Systems in inventory. Based on prior procurement data, replacing both program offices’ current inventory of MX Sensor Systems would cost an estimated $450 Million.

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. Based on current engineering estimates, the cost necessitated by reverse engineering the L-3

Communications Wescam

TM

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 $3.9 million. Integration and regression testing costs are estimated at a minimum of $1.3 million. Independent estimated value of this buy, compared to the estimated development, integration, and test costs, makes it impracticable to pursue competition now or during the course of performance.

Duplication of Cost

Redundant Effort Cost

Reverse Engineering $2,225,000.00

Developing Specifications $625,000.00

Soliciting Competitive Offers $337,500.00

Development, production, system integration and Operational Test Verification

$687,500.00

Integration and regression testing $1,300,000.00

Total Duplication of Costs $5,200,000.00

Based on current engineering estimates, the delay necessitated by reverse engineering the L-3

Communications Wescam 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 2 years. This 2 year delay would seriously jeopardize the ability of program managers to field MX Sensor Systems, and sustain their use by end users in theater.

Task Performed Number of Years to be Performed

Reverse Engineering 1.00

Developing and Soliciting Competitive Offers 0.25

Development and Integration 0.50

Operation Test 0.25

Total 2 years

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 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 EO/IR industries throughout the world. This working relationship with industry helps facilities continuous knowledge of the available technologies and manufacturing capabilities throughout the industry. The Government released a Sources Sought Notice (SSN) on

February 15, 2013 requesting interested vendors provide inputs. The results of the SSN review indicated that Lockheed Martin Corporation and Systron Donner Inertial responded that they could not meet the requirement to provide spare MX Sensor Systems, repair components and depot repair services by partnering with L-3 Communication Wescam because LM does not own the data rights and Intellectual Property (IP) for the systems. 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 Canadian

Commercial Corporation on behalf of L-3 Communication Wescam

TM

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 15 March 2016 validates the determination that there is no other competent or responsible supplier of the desired supplies or 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 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 the 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 Crane 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 Acquisition Plan No. 290-

2007-10-15-R6, P-8A Poseidon Program, dated 09 September 2014 and 13-099 MX Sensor

Program, dated 13 June 2013, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

REQUIREMENTS COGNIZANCE:

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

ate

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 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