19DGP42__J&A_redacted.pdf

J&A Number CR-180031

Code 0221

P.R. Number N0016418QGP42

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Surface Warfare Center, Crane Division, Code

2. Description of the Action Being Approved

The action being approved is award of an Indefinite Delivery, Indefinite Quantity (IDIQ), Firm-Fixed-Price (FFP) contract on a sole source basis for the repair/modification/calibration and purchase of Fluke Calibration Standard Instrumentation. This action is in support of

Teradyne Project In-Station Calibration support for the Trident Strategic Weapons Systems program

3. Description of Supplies/Services

The instrumentation to be acquired under this action is new Fluke Calibration Equipment

Standards. The Services to be acquired under this action is the Fluke Gold

Calibration/Repair services for the new Fluke instruments procured under this action and for existing Fluke instruments already in GXP inventory. Instrumentation shall be purchased as needed per project requirement. Instrumentation services shall be purchased yearly as other warranty agreements expire. The specific items to be procured are listed in Attachment (1) to this document. The maximum quantities listed are estimated maximums, as the overall contract maximum will be $7,000,000 without maximum quantities on individual line items.

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

The ordering period of the IDIQ contract will be five years. The table below identifies estimated dollar values per fiscal year and appropriation.

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

CRANE DIVISION

300 HIGHWAY 361

CRANE INDIANA 47522-5001

IN REPLY REFER TO:

Estimated Dollar Value

FY18 FY19 FY20 FY21 FY22 Total

OPN

FMS $

Total $ $7,000,000

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 in accordance with FAR 6.302-1(a)(2)(ii)(A) and (B) and FAR

6.302-1(a)(2)(iii)(A) and (B).

5. Rationale Justifying Use of Cited Statutory Authority

As set forth below, Fluke Corporation is the only responsible source capable of providing the required instrumentation, calibration, service, and repair capability for project requirements.

The above referenced items were first procured from as part of the overall test station calibration program development and support approximately three years ago. Fluke supplied the instrumentation to per the test instrumentation requirements of the Teradyne S9100 Flight configuration test stations to be calibrated. performed a competitive market research of calibration equipment and found that only Fluke Corporation produced the equipment necessary to calibrate the Teradyne Flight Configuration test station. 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. FAR 6.302-1(a)(2)(iii) states that services may be deemed to be available only from the original source in the case of follow-on contract for the continued provision of highly specialized services 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 Fluke Corporation is likely to result in substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the agency’s requirements. The Trident Missile program utilizes the Fluke instrumentation as part of an onsite In Station Calibration (ISC) Cart system to calibrate all eight Flight configuration test stations. These test stations are used at the Defense Contractor Production facilities to conduct post production of missile integrated electronic circuit assemblies for the Trident D5 missile program. The Fluke instrumentation is the only source of calibration equipment that meets the standards needed to calibrate the necessary equipment in the Teradyne test stations. These test stations are located at the following locations listed in Table 1.

TABLE 1

TERADYNE SPECTRUM 9100 FLIGHT TEST STATION INVENTORY

TRIDENT # SERIAL # LOCATION

Developing a comprehensive set of requirements to utilize competitive procedures for the replacement of the ISC cart equipment is not possible or feasible within the schedule, cost, and technical constraints of the

. Those requirements would have to specify all the interfaces, electrical and mechanical, to the extent necessary that any competent calibration vendor would be capable of delivering the same products and services that would be provided by the Original

Equipment Manufacturer (OEM).

provided input to the cost duplication and schedule delay assessment.

, as the Teradyne project Engineering lead, has supported the Trident Programs for 10 years and has been leading teams of engineers and technicians on projects that support the life cycle of the Trident Strategic Weapons System. Selection of an alternate vendor is estimated to cost an additional with a 2 year deployment schedule slip.

The schedule delay to the government to develop a comprehensive set of requirements to ensure non-OEM competitors would be capable of delivering equivalent products and services is estimated to take to accomplish. Following contract award the selected vendor would be required to reverse engineer the existing ISC design, develop modifications to incorporate additional calibration compliance in accordance with ISO 17025. This effort is estimated to take 6 months. This design would then require test and qualification at the vendor with subsequent test and qualification at all the government contracted production facilities listed in Table 2. The time delay for test and qualification at the test location sites is estimated to be 6 months to complete based on historical project data. These estimates assume the products and services are equivalent to those that would have been provided by the OEM. If this is not the case, the delay would be longer. A 24 month schedule delay in the delivery of the overhauled ISC equipment would impact other United States (US) and

United Kingdom (UK) Navy contracts due to the non-availability of Government Furnished

Equipment. The ISC equipment is already in use and the Trident Missile program is now fully reliant on this equipment to keep the Teradyne test stations operational. If the ISC use is delayed 24 months, then the Missile program factories listed above would experience a work stoppage and electronic circuit card assembly build would be delayed 24 months. The

24 month delay would not allow the Government to meet the requirement to provide calibrated test stations to the production facilities to support new missile assembly production in FY18.

Procuring non-OEM vendor products would reasonably cost the government an estimated

. The following table provides an overview of costs to the government for selection of an alternate vendor. The estimated labor rate was calculated at FY-18 labor dollars for senior level engineers with Other Direct Costs (ODC) add on to the stabilized rate for design, software development, and fabrication of ISC carts. Project management labor rate was based on the same FY-18 stabilized labor rate with ODC add on with at least two project leads embedded into the hardware design and software development of a replacement test station. Evaluation material costs were based on the purchase of alternative calibrated test equipment to at least meet the minimum requirements of the current ISC test station design.

Task Months Labor

Hours

Labor Cost Material

Electrical redesign, generate new: ISC

Equipment layout, cable drawings, component layout/controls, recalculate breaker and fuse values, review new sections of the National

Electric Code

Update schematic, wiring diagram, and technical field trouble guides.

Mechanical redesign with structural analysis, test and evaluation.

Updating Design Detail Drawings

Developing hardware testing requirements

IT approvals

Reliability, Availability, Maintainability study

Safety Assessments

Technical Publications Field Documentation

Qualification Testing

Production Readiness Review

Logistics Support

Technician(s) training and certification (end user)

Project Management

Evaluation Material, one set

Qualification units (7 ISC carts)

ISC Cart Proofing and Accomplishment

Sub Totals

Total Cost $3,246,960

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

A market research/engineering investigation conducted by NSWC Platform Division for commercially available off the shelf replacement calibration instrumentation concluded that no off the shelf drop in replacement for the Fluke equipment could be procured. An alternate equipment study was performed to determine if alternate sources for the In Station

Calibration Cart system existed. NSWC Platform Division at Crane investigated the merits of several other calibration equipment companies. No other calibration equipment manufacturer could provide direct replacement instrumentation that could meet the same calibration limits as the Fluke corporation equipment manufacturer.

A Request for Information (RFI) was issued on March 13, 2018 on the Federal Business

Opportunities (FEDBIZOPPS) website. The Government received no responses to the RFI.

The synopsis for N0016418QGP42 will be posted to FEDBIZOPPS at the time the solicitation is issued in accordance with FAR 13.5 procedures.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies covered by this J&A will be fair and reasonable. It is anticipated that comparison of proposed prices to historical prices paid and comparison with competitive published price lists and published market prices will be utilized to determine price reasonableness.

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/services covered by this document. If another potential source emerges, NSWC Crane will assess whether competition for future requirements is feasible. At this time, the projected requirements for support of the Teradyne testers and resulting ISC Carts is 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 data, including acquisition planning data 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 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).

NSWC CRANE COMPETITION ADVOCATE

Signature Name (Print) Date