19GJQ58_19FJ251_CJA_Redacted.pdf

(CLASS) JUSTIFICATION AND APPROVAL (CJ&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Surface Warfare Center

(NSWC Crane) Expeditionary Sensors Contracting Branch, Code

0231.

2. Description of the Action Being Approved

Award of firm-fixed-price job orders under Basic Ordering

Agreement (BOA) N00164-19-G-JQ58 for the MX Family of

Electro-Optic/Infrared (EO/IR)Sensor Systems (ex. MX-10D, MX-15D, MX-20D, MX-25D) including supplies and services on a sole source basis to the Canadian Commercial Corporation

(CCC), North Atlantic Treaty Organization (NATO) Commercial and Government Entity (CAGE) code 98247, 350 Rue Albert St, Suite 700, Ottawa K1A0S6 with 100% subcontracting to L-3

Wescam, 649 North Service Road West, Burlington, Ontario L7P

5B9 (CAGE Code 3AC24). The CCC serves as the prime contractor and is the gateway between the United States

Department of Defense and Canadian suppliers. Authority to act under this CJ&A expires 31 July 2024.

3. Description of Supplies/Services

The Government has procured the MX Family of Electro-

Optic/Infrared (EO/IR) Sensor Systems for

This procurement is for the purchase of supplies and services required in support of the MX EO/IR Sensor Systems that are currently in use on the

The supplies required by this contract are MX EO/IR Sensor

Systems, including Turrets, Digital Master Control Units, Hand Control Units, Ground Boresight Modules, component spares and repair parts, support equipment, accessory

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

CRANE DIVISION

300 HIGHWAY 361

CRANE INDIANA 47522-5001

CJ&A Number: CR-19117

Code:0231

P.R. Number: NA

CJ&A Number: CR-19117 equipment items, source technical data, failure data, and upgrades and product improvements.

The services required by this contract are program support, engineering and logistics support, repairs, integration support, training, field support representative (FSR) support including support of embedded system software/firmware, integrated product support, program management support, configuration management support, and diminishing manufacturing sources and material shortages support.

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

The estimated value of this action is $9.9M as tabulated below. The estimate is approximately 98% supplies and 2% services.

Estimated Dollar Value

FY19 FY20 FY21 FY22 FY23 FY24 Totals

APN

OMN

Total $9.9M

4. Statutory Authority Permitting Other Than Full and Open

Competition

10 U.S.C. 2304(c)(1) Only one responsible source.

5. Rationale Justifying Use of Cited Statutory Authority

The

This program is managed by NAVAIR’s Tactical

Airlift Program Office (PMA-207). The includes MX EO/IR Sensor Systems for ISR missions as well as targeting . The MX EO/IR Sensor

Systems have been procured as a commercial item with corresponding data rights per DFAR 252.227-7015. The Naval

Surface Warfare Center, Crane Electro Optic Technology

Division (EOTD) is tasked by the PMA-207 program office to procure spare parts, test equipment, and training to support the systems.

L-3 Wescam is the original equipment manufacturer (OEM) and the owner of the MX EO/IR Sensor Systems technical data package (TDP) and intellectual property (IP). The OEM has a family of products that fit into the MX product line, all of which were developed exclusively at private company expense.

The Government requested that the OEM provide cost information to acquire the rights to the MX Sensor System

TDP and IP. The company’s response was that the TDP and the

IP associated with MX Sensors is not for sale. Therefore, the Government does not have access to the necessary data or rights in the data required to enable another source to produce spare systems or components, test equipment, or have the requisite knowledge to provide training. Moreover, the spare components associated with MX EO/IR Sensor Systems are not currently centrally managed and do not have national stock numbers. As a result, suitable technical data, Government data rights, and manufacturing knowledge is not available to permit acquisition, qualification from other sources, nor use of a second source’s parts in the

MX EO/IR Sensor Systems. There are no alternative sources to L-3 Wescam MX EO/IR Sensor Systems spare components and there are no other components that are compatible with the systems. Therefore, contracting directly with CCC on behalf of L-3 Wescam provides the only solution available to support the current inventory of MX EO/IR Sensor Systems.

Award to any source other than CCC on behalf of L-3 Wescam would result in substantial duplication of costs that are not expected to be recovered through competition, and unacceptable delays would occur in fulfilling the agency’s requirement.

The development and sustainment of another source would result in excessive duplication of costs to the Government, and these costs would not be recouped through competition.

Based on current engineering estimates, the cost necessitated by reverse engineering the L-3 Wescam components and developing specifications, soliciting competitive offers and awarding to an alternate source, development, production, system integration and operational test verification would be a minimum of $3.9 million.

Integration and regression testing costs are estimated at a minimum of $1.3 million. The estimated value of the procurements under this job order, compared to the estimated development, integration, and test costs, makes it highly unlikely that these costs would be recouped through competition.

Duplication of Cost

Redundant Effort Cost

Reverse Engineering $2,250,000.00

Developing Specifications $625,000.00

Soliciting Competitive Offers $337,500.00

Development, production, system integration and Operational Test Verification $687,500.00

Integration and regression testing $1,300,000.00

Total Duplication of Costs $5,200,000.00

Based on current engineering estimates, the delay necessitated by reverse engineering the L-3 Wescam components and developing specifications, soliciting competitive offers and awarding to an alternate source, development, production, system integration and operational test verification would be a minimum of 2 years. This 2-year delay would seriously jeopardize the ability of the program to sustain their MX EO/IR Sensor Systems.

Task Performed Number of Years to be Performed

Reverse Engineering 1

Developing and Soliciting Competitive Offers 0.25

Development and Integration 0.5

Operation Test 0.25

Total 2 years

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

Offerors as Practicable

NSWC Crane EOTD is internationally recognized as the Center of Excellence for Night Vision/Electro-Optics within the

Department of the Navy. As such, EOTD representatives maintain a close working relationship with this industry throughout the world.

Market Research is done on a continuous basis by the requiring technical activity. They have conducted numerous informal market surveys, host industry sensor demonstrations, conduct analysis of alternatives, and research trade studies for multiple turreted Electro-Optic targeting systems for similar applications. The market research includes contacting knowledgeable individuals in the Government and industry, reviewing previous procurements and in-house contracts, review of catalogs and other product literature internet searches and attendance at Industry

Trade shows. The EOTD representatives maintain a close working relationship with the EO/IR industries throughout the world. This working relationship with industry helps facilities continuous knowledge of the available technologies and manufacturing capabilities throughout the industry.

The Government released a Request for Information (RFI) for the BOA on January 17, 2019. Safran Optics 1 and PV Labs

(Lockheed Martin) responded that they could meet the requirements. RTA Michael McWhirter submitted his evaluation on March 06, 2019 concluding that neither company provided enough information to prove their solution could mitigate the Government's sole source basis.

Additionally, each order issued under the BOA will be synopsized on the FBO website in accordance with Federal

Acquisition Regulation (FAR) Subpart 5.2. The Government released a RFI for this job order on February 06, 2019 requesting interested vendors provide inputs. No responses were received in response to the RFI for this job order. The lack of any responses to the RFI validates the determination that there is no other competent or responsible supplier of the desired supplies or 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 CJ&A will be fair and reasonable. Similar quantities of this requirement have been purchased from this offeror in the past and pricing information was received on those past procurements. This information should be sufficient to support the fair and reasonable cost determination of this procurement and. Additionally, prices will be endorsed by the

CCC in accordance with DFARS 225.870-3(a).

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 this type of supplies/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. _N/A_, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

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(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1).

COMPETITION ADVOCATE

Kelly Siffin, Chief Contracting Officer,(02) Date