N00164_16-044_FBO.pdf

DEPARTMENT OF THE NAVY

CRANE DIVISION

NAVAL SURFACE WARFARE CENTER

300 HIGHWAY 361

CRANE INDIANA 47522-5001

J&A Number: 16-044 Code: GXPQ

PR Number: N00164-16-R-GP27

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 Crane Division (NSWC-CD), Contracts Division, Code 0222.

2. Description of the Action Being Approved

Award of a Firm-Fixed Price (FFP) contract on a sole source basis for purchase of Model 227-F1, VXI Phase Angle Voltmeters, from North Atlantic Industries, 110 Wilbur Place, Bohemia, NY 11716 for the Teradyne Superset and Next Generation Tester (NGT) Spectrum 9100 Test Stations.

3. Description of Supplies/Services

The 227-F1, VXI Phase Angle Voltmeters is a component of the Teradyne Spectrum 9100 test station configuration. This particular device is utilized in the Spectrum 9100 test stations that support production (factory acceptance testing) and service testing for SSP’s SP23 Fire Control and SP24 Navigation technical branches. Due to the excessive estimated cost of configuration alterations, SSP has tasked the NSWC Crane project team to maintain these configurations through FY2025. North Atlantic Industries has issued end of life notices for this instrument. This procurement represents the last time buy of the minimum government requirements (quantities) to maintain the test station configurations through 2025.

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

A projection of the proposed contract utilization by funding type is as follows:

Estimated Dollar Value

FY16

IN REPLY REFER TO:

4. Statutory Authority Permitting Other Than Full and Open

Competition

10 U.S.C. 2304 (c) (1). Only one responsible source and no other will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

As set forth below, North Atlantic Industries is the only responsible source capable of providing the required supplies.

This device is unique in that it is configured to operate within a specialized (VXI) chassis within the test station. North Atlantic Industries reported the device did not have heavy sales volume over its production life and there is no proposed replacement. During May-June, 2016, the NSWC Project team also researched this item and found no readily available, comparable device in the market place.

In accordance with FAR 6.302-1 (a) (2) (ii), supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued production of highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in: A) Substantial duplication of cost to the Government that is not expected to be recovered through competition or: (B) Unacceptable delays in fulfilling the agency's requirements.

Award to a source other than North Atlantic Industries is likely to result in substantial duplication of cost to the Government that is not expected to be recovered through competition. SSP has already procured and verified (proofed) the current test code sets and ancillary equipment that utilize the 227-F1 from North Atlantic Industries. The Government does not possess a full technical data package for this instrument. Therefore, award of this procurement to another source would require a significant effort to reverse engineer the device and it can be expected that the new devices would have to go through a certain level of operational proofing prior to use which would include test code verification and source control document modifications. These activities represent duplicate cost to the government.

Previously, the Government has acquired the 227-F1, VXI Phase Angle Voltmeters from the original equipment manufacturer (OEM) North Atlantic Industries as follows:

N00164-13-P-0253 – Quantity: 01, Unit Price: $12,928.00, Extended Price: $12,982.00

N00164-12-P-0424 - Quantity: 01, Unit Price: $12,977.00, Extended Price: $12,977.00

N00164-10-P-0821 - Quantity: 01, Unit Price: $11,464.00, Extended Price: $11,464.00

There are three (3) fielded Teradyne Spectrum 9100 Superset testers and one (1) Next Generation Tester (NGT) that utilize the 227-F1. Based on the current failure rates, it is estimated that eighteen (18) 227-F1s are required for the continued sustainment of the test stations and required spares through FY2025. The proposed contract will procure eighteen (18) 227-F1 VXI Phase Angle Voltmeters. The estimated value of the supplies is .

If the 227-F1, VXI Phase Angle Voltmeter were to be replaced or substituted it would result in a change in configuration of the Test Stations. Any change in configuration would require the following three activities to be completed: 1) identify a replacement instrument 2) re-write test code 3) regression testing to validate the test code and 4) operational proofing of the impacted test stations.

The NGT test station has multiple obsolescence issues.

Replacement of the 227-F1 would drive SSP to address NGT obsolescence by re-hosting six test code sets. During calendar year 2012-2013, SSP’s prime contractor provided an estimate of to complete this effort.

The NSWC Crane Project team does not have access to the number of test code sets currently residing on the Superset test station that utilize the 227-F1. However, the project team estimates it would cost in excess of $388,828 to replace the 227-F1 within the current test station configuration. This estimate is based on the factors noted in the table below.

NOTE: This estimate does NOT account for any SSP labor, SSP prime contractor labor, or any material costs incurred by the prime contractor to modify test fixtures or ancillary equipment.

Primary Tasking Title Task Cost Labor

Task Cost Material

Task Cost Total

Identify Potential Replacement Instruments

Develop Test Station Design

Develop Source Control Document Alteration

Develop Alteration Plan

Project Review with SPS, PMO, & Prime Contractor

Modification of First Test Station

Test Code Modification and Regression Activities (Prime Contractor Cost)

First Test Station Proofing

Establishment of Support Elements

Modification & Proofing of Second and Third Test Stations

Sub‐category totals

Grand Total $ 388,828

Additional details for the estimate above are listed in the following paragraphs:

To complete the task Identify Potential Replacement Instruments, the project team will complete the following sub-tasks:

Survey test equipment market.

Identify potential replacement instruments.

Complete specifications review between 227-F1 and potential replacement.

Procure an estimated three instruments for bench level testing. Replacement instruments estimated at each.

To complete the task Develop Test Station Design, the project team will complete the following sub-tasks:

Contract Teradyne (test station OEM) to provide altered test station design, self-test, and Technical Data Package.

To complete the task Develop Source Control Document Alteration, the project team will complete the following sub-tasks:

Project team members to provide redlined documents and conduct table top reviews.

To complete the task Develop Alteration Plan, the project team will complete the following sub-tasks:

Generate alteration plan and presentation material for user community review.

To complete the task Project Review with SPS, PMO, & Prime Contractor, the project team will complete the following sub-tasks:

Conduct review with user community at prime contractor facility.

To complete the task Modification of First Test Station, the project team will complete the following sub-tasks:

Contract Teradyne to complete modification of first test station.

Reflects installing upgraded self-test and one replacement instrument.

Provides one spare to user site.

To complete the task Test Code Modification and Regression Activities, the SSP prime contractor will complete the following sub-tasks:

Complete code modification activities.

Release of engineering change updating source control documents.

NSWC Crane project team supports op-proofing.

To complete the task First Test Station Proofing, the project team will complete the following sub-tasks:

Project team witnesses’ op-proofing.

Performs PCA on test station verifying change.

To complete the task Establishment of Support Elements, the project team will complete the following sub-tasks:

Coordinate with NSWC Corona to establish instrument calibration procedure.

Procure instruments for spares pool.

Establish instruments within the TMDE database.

To complete the task Modification and Proofing of Second and Third Test Stations, the project team will complete the following sub-tasks:

Contract Teradyne to perform alterations to second and third test station.

Project team witnesses’ op-proofing.

Performs PCA on test station verifying change.

Other notes pertaining to the estimate above:

NSWC Crane labor rated at .

Teradyne labor rated at . This per current NSWC

Crane – Teradyne IDIQ rates.

NSWC Corona calibration development costs estimated at and based on Corona provided estimate for a similarly complex instrument received May 2016.

Without the Testers, the Government cannot fulfill its missions in support of fielded U.S. Navy TRIDENT Program Teradyne Spectrum 9100 Test Stations, which support the governments’ D5 Ballistic Missile Program. The production downtime would impact everything from D5 Flight Test to SSP Strategic Asset Deployment.

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

Offerors as Practicable

Through market research conducted by the NSWC Crane Platform and Launch Systems Division, North Atlantic Industries of Bohemia, NY was identified as the only source that can meet the government requirement. North Atlantic Industries is the OEM for the instrument required to operate these Test Stations and all technical information required to allow competitive offers is North Atlantic Industries proprietary. Data rights have not been purchased by the government. Additionally, North Atlantic Industries does not utilize an established distribution market.

These devices are only available from North Atlantic Industries.

In accordance with DFARS Procedures, Guidance, and Information (PGI) 206.302-1, a Request for Information (RFI)/Sources Sought was issued on 07 June 2016 with a closing date of 17 June 2016.

It stated that the Government was accepting information from companies potentially capable of meeting the 227-F1, VXI Phase Angle Voltmeter specifications. There were no written responses received but one phone inquiry.

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. It is anticipated that price history, published pricing and commercial sales history will be utilized to make this determination.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, NSWC-CD 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-CD will assess whether competition for future requirements is feasible, but this lifetime buy should meet all requirements through 2025.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 6.303-2(c))

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning data, 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.

Signature, Office of Counsel Phone No. Date

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.

Signature Name (Print) and Title (Code) Phone No. Date

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as Contracting Officer 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).

Contracting Officer

Signature Name (Print) Date