J&A_17-049_FBO.pdf

NCH 53.6-2 (MAY 2016)

J&A Number: 17-049 Code: WXPL

P.R. Number:

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command (NAVSEA), Naval Surface Warfare Center (NSWC) Crane Division is the contracting activity.

2. Description of the Action Being Approved

Award of a five-year Indefinite Delivery Indefinite Quantity (IDIQ) contract on a sole source basis to Superior Electric Holding Group LLC of Plainville, CT for the overhaul, refurbishment, and manufacture of variable transformer assemblies which are subassemblies of the AN/SPS-49 Radar System. Contract will be in support of Navy Supply System Command (NAVSUP) Performance Based Logistics Organic (PBL-O) Program.

3. Description of Supplies/Services

The requirement is for the overhaul of Superior Electric variable transformer assemblies, known as Superior Part Numbers 203041-001; 222506-001; 202447-001; 202832-001; and 207021-001. Additionally, the requirement is for new manufacture of Part Numbers 202447-001; 202832-001; and 207021-001. The funding planned for this acquisition will be NAVSUP Working Capital Funds (WCF) and Foreign Military Sales (FMS).

Estimated Dollar Value FY18 FY19 FY20 FY21 FY22 Total

WCF $591,288 $893,883 $870,184 $848,057 $802,443 $4,005,855

FMS $ 57,700 $ 45,000 $ 32,000 $ 32,000 $ 68,834 $ 235,534

Total $648,988 $938,883 $902,184 $880,057 $871,277 $4,241,389

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

In November 2016, NSWC Crane posted solicitation N00164-16- R-GR79 to the Government Point of Entry (GPE) Federal Business Opportunities (FEDBIZOPS) in an attempt to procure the required supplies and services under a full and open competitive action. However, during the solicitation phase, the Original Equipment Manufacturer (OEM), Superior Electric, contacted NSWC Crane to inform the Navy that potential offerors were contacting Superior Electric for the purpose of developing proposal responses; however Superior did not provide the requested information to the potential offerors because Superior Electric does not sell these items to unauthorized distributors. As a result, no offers were received in response to the solicitation and the Government engaged in additional market research. This supplemental market research resulted in the determination that, because the Government does not own a Technical Data Package (TDP) for these subassemblies, and the supplies and services are not available in the commercial marketplace, the only responsible source for these supplies and services is the OEM.

At the time of delivery of the AN/SPS-49 Radar System to the US Navy (1979), Raytheon provided limited specification control drawings (SCD) for the variable transformer assembly within the radar production drawing package. The limited SCDs identify Superior Electric as a recommended source for the variable transformer assembly and do not contain any physical characteristics or form, fit, function details.

NSWC Crane (Design Agent for the radar) has historically been capable of repairing minor faults in the subassemblies;

however, as the subassemblies continue to age, the units require major overhaul and refurbishment to keep the equipment operational. Major overhaul and refurbishment of these subassemblies is complex and relies upon detailed TDP or SCD. The only known TDP is owned by Superior Electric and, as of 12 May 2016, Superior Electric was not willing to sell a TDP, SCD, or data rights to the Government.

Nevertheless, NSWC Crane issued the 2016 competitive solicitation based on an assumption that industry could reverse engineer the variable transformer assemblies without the TDP; the lack of response from industry to that solicitation indicate that such a capability does not exist.

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

The proposed contract was synopsized on the Federal Business Opportunities (FEDBIZOPS) website on 17 April 2017 and only Superior Electric expressed an interest in this requirement.

No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than Superior Electric to provide the required supplies and 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 J&A will be fair and reasonable. DCMA pricing assistance and/or DCAA audit of contractor’s proposal will be requested along with 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 the types of supplies and 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(c))

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. 89 PLN 15 9539, Section 25, except as noted herein, are complete and accurate to the best of my knowledge and belief.

COMBINED TECHNICAL/REQUIREMENTS COGNIZANCE:

. Date

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(b)(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, 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).

CHIEF OF THE CONTRACTING OFFICE (CCO), NSWC CRANE

Date

CERTIFICATIONS ON JUSTIFICATIONS AND APPROVALS (J&As) The following signatures for technical/requirements certifications in J&As are required under the stated circumstances.

Dollar Level Signature

Technical Cognizance

>$700K to $93M Program Manager (PM), Deputy Program Manager (DPM), Assistant Program Manager, or Equivalent

>$93M PM, DPM, Equivalent, Deputy Commander/Executive Director for Directorate or Flag

Officer/SES

Requirements Cognizance

>$700K to $93M PM, DPM or Equivalent

>$93M, or 2nd bridge Deputy Commander/Executive Director for to existing contract Directorate or Flag Officer/SES

Very Important Notes:

1. If a single individual within the approval authority listed above has cognizance over both technical and requirements information included in the J&A, use of only one signature line is appropriate and therefore should be communicated to the PCO or Contract Specialist prior to their drafting of the J&A [“Technical Cognizance:” and “Requirements Cognizance:” should be deleted and replaced with “Combined Technical and Requirements Cognizance:”.]

2. If anything within the J&A is not in strict accordance with the data and/or information cited in the AP, then the differences must be fully explained in the J&A and have the Deputy Commander/Executive Director for Directorate or Flag Officer/SES sign for Requirements Cognizance.

3. For all acquisitions that do not require written APs per DFARS 207.103(d)(i) or when the APs are written so generic as to not address specific acquisitions, the thresholds are $10M development and $25M for production or services to have the Deputy Commander/Executive Director for Directorate or Flag Officer/SES sign for Requirements Cognizance.

4. Bridge contracts are defined as sole source actions entered into with the incumbent contractor in order to maintain support when competitive procurement cannot be processed in time to meet the required award date. The following applies to all types of services contracts with the exception of contracts under the cognizance of the Naval Nuclear Propulsion Program.

a. J&As for all bridge contracts, regardless of value, will include PEO/Directorate Head/Field

Activity Commanding Officer/Technical Director signature under Requirements Cognizance.

Bridge J&As will also include a schedule for award of follow-on competition within Section 8 "Actions to Remove Barriers to Competition".

b. J&As for all bridge contracts greater than $10M and/or greater than 6 month period of performance, will be forwarded to SEA 00 for notification/review prior to approval by the cognizant SEA 02 SES or DASN (RD&A).

c. J&As for any subsequent bridge contracts (i.e., 2nd, 3rd bridge), regardless of value or period of performance, will be forwarded to SEA 00 for notification/review prior to approval by the cognizant SEA 02 SES or DASN (RD&A). This J&A must include rationale as to why the schedule in the initial bridge J&A was not achieved.

JUSTIFICATIONS AND APPROVAL (J&A) AUTHORITIES

Dollar Level Signature Authority

Up to $700K Contracting Officer >$700K to $13.5M Competition Advocate for the Procuring Activity >$13.5M to $93M Designee of the Head of the Procuring Activity (See note.)

Acquisitions over $93M Navy Senior Procurement Executive

Very Important Note:

J&As drafted at NAVSEA Headquarters that fall within the Competition Advocate for the Procuring Activity threshold authority shall be prepared for submittal to the Designee of the Head of the Contracting Activity and approved by a SEA 02 SES Division Director or SEA 02 IAW FAR 6.304(a)(2).