N00164_CR19019_FBO.pdf

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

CRANE DIVISION

300 HIGHWAY 361

CRANE INDIANA 47522-5001

IN REPLY REFER TO·

CJ&A Number: CR-19019 Code: NSWCCR 0231

PR: N0016419GJQ69

CLASS 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, Expeditionary Sensors Contracts Branch (0231).

2. Description of the Action Being Approved

Authority to enter into a Basic Ordering Agreement (BOA) N00164- 19-G-JQ69 through end of FY 22 with Ball Aerospace & Technologies Corporation of Boulder, Colorado for Stalker Long Range Electro Optic Sensor System (SLREOSS) Independent Mount (IM) Support Equipment Kits; Spare SLREOSS Sensor Suite Assembly; SLREOSS Spares; SLREOSS IM and Direct Mount (DM)test, teardown and evaluation (TT&E) and repairs/refurbishment of previously purchased IM and DM configurations; SLREOSS IM and DM Engineering services, and Installation Support Services, and technical data.

The contemplated BOA is a follow-on effort to the Original Equipment Manufacturers (OEM) hardware contract to sustain currently fielded systems and will not be utilized for platforms that do not currently employ the systems listed. The authority to act under this Class J&A will expire three (3) years after the BOA award which is anticipated to be 31 May 2022.

3. Description of Supplies/Services

This Class J&A shall provide authority to enter into a BOA with Ball Aerospace to provide Support Equipment Kits, one (1) Spare SLREOSS Sensor Suite Assembly; SLREOSS Provisional Item Ordering (PIO) Spares; SLREOSS IM and DM Engineering Services; Installation Support Services; and TT&E and Repairs/Refurbishment of previously purchased SLREOSS IM and DM configurations, to include TT&E and Repair of SLREOSS IM and DM and Sensor Suite Assembly components (Visible Sensor Assembly, Laser Range Finder, System Interface Electronics Assembly and Mid-Wave Infrared Sensor Assembly; and Technical Data).

J&A Number: CR-19019

The BOA will cover Engineering Services, Installation Support Services, TT&E and Repairs, and SLREOSS PIO Spares of the SLREOSS IM Kit’s major components including but not limited to the Gimbal Assembly, Control Module Assembly, Sensor Suite Assembly, Processor Module Assembly, Display Module Assembly, and all subassemblies. This combined procurement shall not restrict competition nor remove opportunities for small business participation as full and open competition is not viable for these requirements due to the sole source nature as described herein.

The estimated value of this class action is $13,161,471 and will utilize Other Procurement, Navy (OPN) and Operation and Maintenance, Navy (OMN) funding. The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

The following table depicts the estimated value for the BOA procurement for OPN and OMN as follows:

Estimated Dollar Value ($M) FY19 FY20 FY21 FY22 Totals

OPN $0 $2.51 $0.80 $0 $ 3.31

OMN $0.60 $3.97 $2.68 $2.60 $ 9.85

Total $0.60 $6.48 $3.48 $2.60 $13.16

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1), as implemented in FAR 6.302-1: Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

An award of the SLREOSS IM Support Equipment Kits; Spare SLREOSS Sensor Suite Assembly; SLREOSS Spares; SLREOSS IM and DM TT&E and repairs/refurbishment of previously purchased IM and DM configurations; SLREOSS IM and DM Engineering services, and Installation Support Services to any other source than Ball Aerospace would create substantial duplication of cost that is not expected to be recovered through competition and shall cause unacceptable delays in fulfilling the agency immediate requirements for procurement of PIO Spares and repair of the currently fielded SLREOSS.

Additionally, Fielding and Deployment Release (F&DR) or similar approvals are required for the systems and is a lengthy and costly process that would be required to field a new system. This process would have to be repeated before the services would approve F&DR of a new system.

Maintaining the same configurations for these systems via this procurement will provide the Government substantial cost savings and continuity with the respective services mission requirements.

These savings come from not having to establish new life cycle sustainment support structures, establishing new training programs, repeating Developmental and Operational Testing (DT/OT) and incurring fielding and deployment release costs.

Based on current engineering estimates, delays introduced through full and open competition for life-cycle services of the previously purchased systems would be a minimum of forty-three

(43) to fifty-seven (57) months. This delay would result from the time to finalize a competitive technical data package (TDP), non-recurring engineering development by a new vendor, production startup, system integration, operational test verification and complete qualification testing. These delays would result in the inability to meet critical ship deployment schedules.

Ball Aerospace is the only contractor that can deliver and support installation of the previously purchased Stalker systems to meet FY19 –FY22 ship deployment schedule requirements SLREOSS Support Equipment Kits, and spare SLREOSS Sensor Suite Assemblies, engineering services, installation support services, TT&Es and Repairs, and PIO Spares. A competitive contract course of action would be almost two (2) years later than the sole source course of action. In order for another company to perform the engineering services, installation support services, TT&E and Repairs, and provide PIO Spares of the SLREOSS Equipment, and spares the following delays would be incurred by the Government:

Task Duration Develop, Validate and Verify Technical Data Package

9-12 months

Non-Recurring Engineering Development 9-12 months Prototype development 7-9 months Production Start Up 9-12 months System integration, test, certification and complete qualification testing

9-12 months

Total Time 43-57 months

In addition to schedule delays detailed above, utilization of another source would result in excessive duplication of costs to the Government that would not be recouped through competition.

Ball Aerospace is the system integrator and to seek the engineering services, installation support services, TT&E and Repairs and PIO Spares from another company for the previously purchased SLREOSS systems would require the below estimated costs to be expended to develop another source.

Task Estimated Cost

Reverse Engineering Estimate $2,074,820

Sensor Mechanical Integration Costs $338,320

Sensor Electrical integration Costs $219,400 Environmental Qualification Testing on New System $310,400 Laser Safety Testing and Certification on New System $46,080

Lifecycle Support Products Costs $298,080

New system Spare Provisioning Updates Cost $115,920 Repair Contract Development and Maintenance $264,960 Procurement of new ISTALKER System to Reverse Engineer $3,001,832

Total Duplication of Costs $6,669,812

This estimate was developed to enumerate the costs that will be incurred if this procurement is sought as a competitive acquisition. Without the complete Product Level TDP, the Government would need to procure a new complete SLREOSS system to reverse engineer, and perform reverse engineering on the system to develop the necessary drawings to support sustainment of the fielded systems from any source other than the OEM. The above estimate represents a duplication of cost and time that can be avoided by procuring the spares and product/revision upgrades directly from the OEM, Ball Aerospace. The duplication of cost is based upon engineering estimates and funding is not available to develop another source. Additionally, the time delay of 43 – 57 months will not support the fleet.

Rapid fielding of the Stalker IM Support Equipment Kits, along with engineering, TT&E, repairs and installation services for previously purchased SLREOSS systems will supplement existing Stalker sensing equipment to meet ship deployment schedules, helping to meet the classified Joint Urgent Operational Need Statement (JUONS), N9/17S13997, dated 3 August 2017, and fulfilling the Fleet’s needs to help mitigate the known threat to our nation’s defense.

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

Offerors as Practicable

In accordance with FAR 5.201, the Contracting Officer synopsized the requirements described herein on 19 May 2017 via online posting on the Federal Business Opportunities website. A response from L-3 KEO was received on 15 June 2017. The Government evaluated and provided a detailed explanation of the basis for the sole source procurement. L-3 KEO responded to the Government’s explanation stating they understand and respect the Government’s position and look forward to a future competitive requirement.

The Electro Optic (EO) Technical Warrant Holder and NSWC Crane staff had performed an EO technology market analysis of an extensive EO/IR Technical Library of products in the marketplace, to support the existing executed J&A #54315 dated 31 January 2014 and updated that analysis to address the ONS requirement. They reported cost and availability information, in September 2016, from those systems (including Science and Technology DoD systems) to the Rapid Action Team (RAT). NSWC Crane’s market research concluded that SLREOSS is the only existing technically acceptable system that meets the performance, environmental and modularity requirements available that can be delivered/installed to meet FY19 deployment schedules. Market research revealed that other products in the marketplace would require mechanical, electrical, and electronic system modifications and testing to ensure equivalent Detection, Recognition, and Identification range performance and reliability and were therefore unable to meet the required installation schedules for FY19 through FY21.

7. Determination of Fair and Reasonable Costs

The Contracting Officer will determine the anticipated cost to the Government for the supplies/services covered by the J&A to be fair and reasonable prior to award. Assistance from the Defense Contract Audit Agency (DCAA) and the Defense Contract Management Agency (DCMA) will be utilized to analyze and evaluate detailed cost and price data, which will be certified by the Contractor at the conclusion of negotiations. The previous definitization modification to contract N00024-14-C-5412 (which yielded fair and reasonable pricing) will be used to support the evaluation as well.

8. Actions to Remove Barriers to Competition

If sufficient requirements are identified and funded, NSWC Crane expects to compete FY22 and beyond ship deployment schedule requirements for EO/IR situational awareness, upon approval of a future new program to replace SLREOSS, to meet the fielding requirement putting an EO Situational Awareness capability on every ship in the Fleet. The Government published an RFI on 07

March 2019 to determine if the partial TDP is sufficient to produce a fleet ready and compatible configuration of the SLREOSS system. To date, the Government has received three (3) responses to the RFI. No responses assert the ability to meet the current effort for the previously purchased SLREOSS systems. The RFI responses do contain assertions that a variation of the SLREOSS system may meet the FY22 and beyond requirements; therefore, a competitive action to meet the future need is being pursued.