19RGP53_19DGP53_J&A_redacted.pdf

NCH 53.6-2 (MAY 2016) Page 1 of 4

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

CRANE DIVISION

300 HIGHWAY 361

CRANE INDIANA 47522-5001

IIN REPLY REFER TO·

J&A Number: CR-180034 Code: 0221

P.R. Number: N0016418RGP53

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 Crane), Global Department Contracts Branch, Code 0221.

2. Description of the Action Being Approved

Award of a five year firm fixed price Indefinite Delivery, Indefinite Quantity supply contract on a sole source basis to Teledyne Instruments at 162 Corporate Drive, Portsmouth, NH 03801 (CAGE 17476) for connectors used in the TR- 333 Hydrophone Program required in support of Strategic Systems Program (SSP), SP24 TRIDENT Navigation Subsystem, and includes Foreign Military Sales.

3. Description of Supplies/Services

This procurement is for the purchase of the following connectors used in the manufacturing of US and UK TR-333 Hydrophones currently deployed in the TRIDENT Submarine fleet:

P/N DESCRIPTION

6029162-203 Hydrophone Connector 6933107-201 Hydrophone/Thermistor Connector 6933108-201 Thermistor Cable Connector 6933108-202 Hydrophone/Transducer Connector 6933109-201 Transducer Cable Connector

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

The estimated dollar value by fiscal year and appropriation of this action is $1,750,000 as tabulated below.

Estimated Dollar Value

APPN FY19 FY20 FY21 FY22 FY23 Total

Total $1,750,000

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.

5. Rationale Justifying Use of Cited Statutory Authority

The above referenced items were first procured under competitive contract actions while the program was managed by Lockheed Martin (the Sonar System Original Equipment Manufacturer) prior to the program being assigned to NSWC

J&A Number: CR-180034

NCH 53.6-2 (MAY 2016) Page 2 of 4

Crane in 1997. Lockheed Martin had certified Teledyne Instruments during this timeframe. NSWC Crane has also investigated building these items within the Center but the estimated costs exceeded the contractual prices of N00164- 10-P-0492, N00164-11-P-0766, N00164-12-P-0239, and (N00164-14-D-GP77) which were awarded on a sole source basis to Teledyne.

In accordance with FAR 6.203-1(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.

Teledyne is the only certified source to build the specific connectors. The items are for the TR-333 Hydrophone used in the SP24 TRIDENT Navigation Subsystem Sonar. In order to certify any of the above units from a non-certified vendor, the estimated cost which would be incurred is $3,567,436 and procuring from a new vendor would result in a twenty-four (24) month delay to begin production. Selection of a non-certified vendor would require three different levels of testing: unit testing, next level assembly (TR-333 Hydrophone) testing, and operations testing at sea. The table below illustrates the costs and timeline requirements to certify a new vendor.

DESCRIPTION OF COSTS

TOTAL COST TO

CERTIFY NEW

VENDOR

a. Material Costs – Connectors - Quantity 56

b. Material Costs - Hydrophone Cable – Quantity 16

c. Material Costs - Thermistor Cable – Quantity 2

d. Material Costs - Transducer Cable – Quantity 2

e. Inspection - Connectors

f. Material Costs - Hydrophones – Quantity 16

g. First Article Testing

h. Operation Testing

i. Documentation/Travel for Certification

NEW VENDOR CERTIFICATION TOTALS: $ 3,567,436.00

Estimated costs for items a. through d. above are based on data from the production of current supplies for the same items covered under contract N00164-14-D-GP77 with an additional 3% increase included per historical FY increase.

Quantities include 56 connectors, 16 hydrophone cables, 2 thermistor cables, 2 transducer cables.

Inspection costs (item e.) are based on inspection procedures and historical information. Workmanship, dimensional, O-ring groove verification, surface finish, material verification, and electrical testing are some of the inspection requirements for the above items.

Costs associated with the Certification procedure, item f above, are based on an engineering estimate for the Performance Testing IAW SSP OD 62846 utilizing a quantity 16 TR-333 Hydrophones manufactured by NSWC Crane in FY15 at each, which includes parts, testing, and parts inspection and associated labor. The requirements in OD 62846 require a quantity of 16 to complete the testing.

Costs associated with First Article Testing (FAT), item g. above, are based on 20 years of experience of the technical activity in performing FAT Testing of Hydrophones.

Costs associated with Operation Testing, item h. above, are based on historical testing costs on research vessel CSS Waters which included manning a research ship and supporting field engineers to evaluate a system while at sea. The typical manpower requirements are twenty-eight (28) field engineers and a crew size of twenty-five (25). The operational testing to certify a new vendor is estimated to take three months. The estimated cost for testing is for the three month period.

Item i above estimates the additional costs to certify a new vendor for preparation and coordination of a test plan

J&A Number: CR-180034

NCH 53.6-2 (MAY 2016) Page 3 of 4 approval, engineering investigation of any failures, material analysis, and generating formal test reports. These additional costs include submission of Engineering Change Requests to make appropriate changes to controlled drawings, and travel expenses associated with technical briefings with the SP24 Program Office and the new supplier.

These costs include the annual salary of one Lead Engineer for the twenty-four month period, travel for Government representatives to the new vendor’s facilities, and documentation and reviews associated with the certification process.

The Documentation/Travel costs include all new vendor parts being tested together.

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

The NSWC Crane Platform and Launch Division performed market research to include their own knowledge of the industry. Although several vendors were identified who manufacture the same or similar supplies, no additional vendors were found who have completed the Government certification requirements for any of the items required.

A Request for Information (RFI) was issued on 04 Apr 2018, on the Federal Business Opportunities (FEDBIZOPPS) website. To date the Government received no responses to the RFI. The synopsis for N0016418RGP53 was posted to FEDBIZOPPS on 04 Apr 2018. To date, no responses have been received.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated costs to the Government for the supplies covered by this J&A will be fair and reasonable. DCMA pricing assistance will be requested along with a certification of current cost and pricing to support the fair and reasonable determination of the pricing. Similar quantities of this requirement have been purchased from this offeror in the past (Fiscal Year 2014) and cost/pricing information was received on that procurement. Therefore, this information will also be utilized to support the fair and reasonable price determination of this procurement.

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 covered by this document. If other potential sources emerge, NSWC Crane will assess whether competition for future requirements is feasible.

M. Kelly Siffin