N00164_17-001_FBO.pdf

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Sea Systems Command, Naval Surface Warfare Center (NSWC), Crane Division, Spectrum Warfare Contracting Division, Code 024

2. Description of the Action Being Approved.

Award of a five-year Firm Fixed Price (FFP) Indefinite Delivery, Indefinite Quantity (IDIQ) contract on an other than full and open competition basis to procure the Repair, Rebuild and Production of the Simplified Driver (SDR) Traveling Wave Tube (TWT) from Communications and Power Industries (CPI), Palo Alto, California 94304 (CAGE 99313) in support of the AN/SPY-1D(V) Radar System.

3. Description of Supplies/Services.

CPI shall provide evaluations, repaired, rebuilt, and new production SDR TWTs. SDR TWTs are microwave tubes installed in the AN/SPY-1D(V) Radar System on ships. The procurement is in support of United States Navy new ship construction, AEGIS Ashore, United States Navy ship sustainment, and Foreign Military Sales (FMS) cases.

Delivery requirements will be identified in each individual delivery order. The estimated value of all orders for supplies and services placed under this FFP IDIQ shall not exceed $20.47M.

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

The table on the following page identifies the projected funding for this IDIQ:

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

CRANE DIVISION

300 HIGHWAY 361

CRANE INDIANA 47522-5001

IN REPLY REFER TO:

J&A Number: 17-001 Code: WXP P.R. Number: N00164-17-WP21

J & A Number 17-001

Estimated Dollar Value (in Millions)

FY 18 FY 19 FY 20 FY 21 FY 22 Totals

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 sources will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

CPI Palo Alto is the only known source which has the capability to evaluate, produce, repair, and rebuild the SDR TWT for use in the AN/SPY-1D(V) radar system in the required timeframe.

This is a follow-on procurement action where award to any other source would result in unacceptable delays in fulfilling the agency’s requirements.

The original effort to select a source for qualification of this product was solicited competitively. CPI was awarded the resulting contract N00164-94-C-0073. Since that time, CPI has been in continuous production. The TWT design was developed by CPI to meet the Navy's requirements of Weapon Specification (WS) 21223, which specifies performance, and NAVSEA Drawing 6625287, which specifies interface requirements. Their design was based on an existing CPI design for a similar TWT. The TWT was designed by CPI at its own expense. In addition to the design rights, the manufacturing processes used by CPI are critical in producing and repairing the TWT and are also proprietary to CPI. NSWC Crane Contracting attempted to negotiate rights to technical data on previous contracts but CPI has declined to sell or transfer rights to the Government. Any new design would have to undergo environmental and performance qualification.

Qualification is a lengthy process, which is estimated to take 6 years and 10 months as follows:

Time Events 2 years Engineering Development of new design

16 months Delivery of 10 qualification units, 1 to 2 per month after an estimate 9 month production lead time

3 years Environmental qualification to demonstrate shelf life, shock qualification, and operating life

6 months Engineering review and final qualification report 6 years 10 months TOTAL

Final inspection and acceptance test equipment currently located at CPI and valued in excess of $10M is provided as Government Furnished Equipment (GFE). This equipment is correlated to nearly identical equipment located at NSWC Crane providing repeatable results regardless of test location. This provides the following advantages: (1) agreement of warranty returned items; (2) provides reliability data for tracking trends and drifts in performance; and (3) minimal false rejects. This equipment is required to remain at CPI to administer existing warranty provisions for the next 2 years after the current contract ordering period expires, even if no further contracts were awarded to CPI.

Unacceptable schedule delays will be incurred if award is made to a source other than CPI.

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

A Request for Information/Sources Sought notice was posted to the Government Point of Entry, Federal Business Opportunities (FEDBIZOPPS) on 7 October 2016. No potential sources expressed an interest in this requirement. Any response received will be evaluated to determine whether to conduct a competitive procurement.

A synopsis was issued through FEDBIZOPPS as required by FAR Subpart 5.2 on 16 November 2016. No potential sources expressed an interest in this requirement. Any responses received will be considered.

Market research was conducted in accordance with FAR Part 10. FAR 10.001(a)(2) appropriate to the circumstances. The requiring technical activity used the World Wide Web as a research tool to locate sources for microwave tubes meeting key requirements. Only CPI has a product that operates at the required frequency and has the required power output. No additional market research was conducted, because it is not practicable for the reasons discussed in paragraph 5 above, for any company other than CPI Palo Alto to provide the required supplies.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined that the anticipated cost to the Government for the supplies and services covered by the J&A will be fair and reasonable. It is anticipated 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 price determination.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NSWC Crane Division has no plans at this time to compete future contracts for these items. The U.S. Navy and FMS customers are moving towards replacement of all microwave TWTs, including the SDR, with solid state technology.

This technology change will lead to decreased demand for new production and rebuilding of existing SDR TWTs.

Replacement technology for the SDR tube will be part of the AN/SPY-6 radar, also known as the Advanced Missile Defense Radar (AMDR). This radar will use a solid state technology design to replace the simplified driver traveling wave tube.

. All ships after this will incorporate the new technology and no SDR tubes for new construction ships will be required.

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. 17-002, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

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

REQUIREMENTS COGNIZANCE:

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 Designee of the Head of 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).

DESIGNEE OF THE HEAD OF THE PROCURING ACTIVITY

Signature Name (Print) Date

DEPARTMENT OF THE NAVY