16RJQ96_16-004__J A.pdf

J&A Number: 16-004 Code: 0231

P.R. Number: N00164-16-R-JQ96

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 (NSWC Crane), Special Warfare and Expeditionary Systems Department SWESD) Contracting Division (023).

2. Description of the Action Being Approved

Award of an indefinite-delivery, indefinite-quantity contract with a five year ordering period for supplies and repairs on a sole source basis for Electro-Optics Sensor (EOS) Systems for both SEA STAR SAFIRE IIITM and BRITE Star II™ EOS Systems to FLIR Systems, Inc. (FSI), 27700 SW Parkway Avenue, Wilsonville, OR 97070-8213. Included in the contract will be Provision Item Ordering (PIO) Spares, Test, Tear Down and Evaluation (TT&E), Non-Warranty Over and Above Repairs, Field Repair/Technical Assists, Travel, Training, and Data for both EOS Systems.

3. Description of Supplies/Services

The SEA STAR SAFIRE III™ EOS System is a rugged and ship mountable system to provide surface ships with a day/night, high-resolution, infrared and visible band imaging capability, as well as rangefinding capability, to augment existing optical and radar sensors for the purpose of detecting and identifying asymmetric threats. The SEA STAR SAFIRE III™ systems support the National Security Cutter (NSC) program, the Patrol Coastal Electro Optical (PCEO) program, the Littoral Combat Ship (LCS) program, and other U. S. Navy and Coast Guard Vessels.

The BRITE Star II™ EOS System functions as the fire control system for the Patrol Coastal Griffin Missile System (PCGMS).

It uses infrared (IR) and Charged Coupler Device (CCD) cameras to detect, identify, and track targets. BRITE STAR II™ uses a Laser Range Finder to determine the distance and position of the target. The BRITE STAR II™ provides terminal guidance to the launched Griffin Missile seeker head with a Laser Designator.

IN REPLY REFER TO:

DEPARTMENT OF THE NAVY

CRANE DIVISION

NAVAL SURFACE WARFARE CENTER

300 HIGHWAY 361

CRANE INDIANA 47522-5001

The estimated total value of this acquisition is $13,355,244.

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

Estimated Dollar Value FY16 * FY17 FY18 FY19 FY20 FY21 Totals

OM&N $80,000 $3,735,867 $2,272,562 $2,911,296 $1,843,512 $2,512,007 $13,355,244

TOTAL $80,000 $3,735,867 $2,272,562 $2,911,296 $1,843,512 $2,512,007 $13,355,244

* FY 16 - July – Sep 2016

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 items being procured under this J&A are in direct support of the fleet’s SEA STAR SAFIRE III™ EOS Systems in overseas contingency operations. The BRITE Star II™ EOS Systems are in direct support of the PCGMS. Repairs and spares from the OEM are needed to effectively combat asymmetric threats for both systems.

FSI is the Original Equipment Manufacturer (OEM) of the SEA STAR SAFIRE III™ and BRITE STAR II™ EOS systems. The SEA STAR SAFIRE III™ EOS Systems being supported were originally acquired through competitive procurement under N00164-10-D-JQ88 and acquired under sole source procurement N00164-11-D-JQ64. This requirement is a follow-on to these contracts. The BRITE Star II™ EOS Systems being supported were originally acquired under N00164-12-C-JQ42 on a sole source basis (Unusual and Compelling Urgency) and through competitive brand name or equal procurement under N00164-12-D-JQ18. This requirement is also a follow-on to these contracts. The Government has been purchasing the SEA STAR SAFIRE III™ and BRITE Star II™ EOS Systems from FSI for over five (5) years.

Based on the OEM’s knowledge and expertise it has been determined that there is no other company that has the knowledge and technical capability to perform these requirements. The Government does not own the proprietary design specifications for drawings and other associated documents that would allow for competition. FSI advised NSWC Crane that it would not license or sell its proprietary data to the Government or to any other entity, on 4 December 2015. 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. 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. Total Duplication of Costs for both standing up the organic repair facility and competitive solicitation total $18,600,000.

Duplication of Cost

Redundant Effort Cost Per Platform

Number of Platforms Total

New Software Development $500,000 4 $2,000,000 New Ship Drawing Packages $500,000 4 $2,000,000 New Ship Integration Packages $500,000 4 $2,000,000 Safety and Cyber Certifications $300,000 4 $1,200,000 Update to Government Manuals $600,000 4 $2,400,000 Combat Certifications for LCS $1,000,000 1 $1,000,000 Operational Testing and Verification $500,000 4 $2,000,000 Stand Up Organic Repair Capability $6,000,000 N/A $6,000,000 Total Duplication Cost $18,600,000

Based on history, there would be a total delay of 3.25 years attributed to reverse engineering, specification development and soliciting competitive offers to award to an alternate source.

There would be a further program delay of 1.25 years after contract award for development, production and delivery of new systems. Additional delays of 2.25 years would be necessitated as a result of new software development, new ship drawings, new ship integration packages, safety and cyber certification, and combat certifications for LCS. There would be a delay of 3 years to stand up the organic repair capability. Total delay to procure competitively and stand up repair facility is estimated to be 9.75 years.

Description

Number of years to be performed

Pre-Solicitation / Solicitation Delays 3.25 Contractor Development/Production/Delivery 1.25 Delays to Stand up Organic Repair 3.00 Post Delivery Delays on behalf of Government 2.25 Total 9.75

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 appropriate. 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-hours 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 representative’s judgment that there is no known source other than FLIR Systems, Inc. that is capable of performing the work required.

In an effort to broaden competitive resources, a Request for Information (RFI) Sources Sought was posted on the Federal Business Opportunities (FedBizOpps) website on 09 October 2015, in accordance with (IAW) FAR 15.201, exchanges with industry before receipt of proposals. To date, no responses have been received.

The proposed contract was synopsized via posting on the Federal Business Opportunities (FedBizOps) website on 20 October 2015, IAW 5.2. To date, no responses have been received.

Based upon the facts that no responses were received in to the RFI and synopsis and the other facts included in this justification document, there are no known sources other than FSI capable of performing the requirements described in this document without substantial duplication of cost to the Government that is not expected to be recovered through competition and without unacceptable delays in fulfilling the agency’s requirements.

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. As certified cost or pricing data is not required for these commercial items, similar quantities of this requirement have been purchased from this offeror in the past and pricing information was received on those past procurements. This information should be sufficient to support the fair and reasonable cost determination on this procurement.

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-CD will assess whether competition for future requirements is feasible.

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. _N/A_, 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.

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(s) 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