19RWP49_J&A_Redacted_CR-180057.pdf

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), Code 024.

2. Description of the Action Being Approved

Award of a Firm-Fixed-Price (FFP), Indefinite-Delivery, Indefinite-Quantity

(IDIQ) supply contract with an ordering period of five years on a sole source basis for the manufacture of AN/SPG-62 Antenna Reflectors from General

Dynamics Mission Systems, Inc (GD-MS), 150 Johnston Road, Marion, VA 24354.

3. Description of Supplies/Services

The AN/SPG-62 Antenna Reflectors, P/N 6778045-50 are used in the MK-99 AEGIS

Fire Control System. The AN/SPG-62 antenna system uses a parabolic reflector which enables the Continuous Wave (CW) Radio Frequency (RF) signal from the

MK-99 radar transmitter to illuminate targets to be engaged, fired upon, and destroyed by the ship’s weapons. The AN/SPG-62 antenna system reflectors are essential devices for ship missions. The specific requirement is for manufacture, test, and delivery of the AN/SPG-62 antenna system reflectors.

The reflectors are to be used to maintain operational capability of existing

U.S. and FMS ships, and support installation requirements for new DDG ship class hulls.

This IDIQ is estimated to be a maximum of $16,405,230 over a five-year period and funded with appropriations from Operations and Maintenance, Navy (O&MN);

Shipbuilding and Conversion, Navy (SCN); Other Procurement, Navy (OPN);

Defense Weapons Procurement (DWP); and Foreign Military Sales (FMS). A funds estimate of the proposed contract utilization is listed in the following table.

IN REPLY REFER TO:

J&A Number: CR-180057

Code: WXP

P.R. Number: N0016419RWP49

DEPARTMENT OF THE NAVY

CRANE DIVISION

NAVAL SURFACE WARFARE CENTER

300 HIGHWAY 361

CRANE INDIANA 47522-5001

REDACTED

J&A Number:CR-180057

Estimated Value

AN/SPG-62 Reflector Manufacturing Contract Action Funding ($M)

Type Funds FY19 FY20 FY21 FY22 FY23 FY24 FY25

Total

($M)

Shipbuilding and

Conversion, Navy (SCN)

1.52 1.57 1.62 1.67 1.73 0.00 0.00 $8.11

Other Procurement, Navy (OPN)

0.26 0.27 0.28 0.29 0.30 0.00 0.00 $1.40

Operations and

Maintenance, Navy

(O&MN)

0.51 0.53 0.55 0.57 0.59 0.00 0.00 $2.75

Defense Weapons

Procurement (DWP)

0.26 0.27 0.28 0.29 0.30 0.00 0.00 $1.40

Foreign Military Sales

(FMS)

0.51 0.53 0.55 0.57 0.59 0.00 0.00 $2.75

Total 3.06 3.17 3.28 3.39 3.51 0.00 0.00 $16.41

Deliveries will be delineated in each individual delivery order. The

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

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1) and in accordance with (IAW) 6.302-1(a)(2), only one responsible source or only a limited number of responsible sources and no other type of supplies will satisfy the needs of the agency.

5. Rationale Justifying Use of Cited Statutory Authority

The antenna reflector was first installed on AEGIS ships in 1983, and was previously manufactured by Fleet Industries, Lunn Industries, Marion

Composites and currently by GD-MS. GD-MS acquired all of the former manufacturers of the reflector, and is now the Original Equipment Manufacturer

(OEM). The Government owns the data rights; however, as the OEM, GD-MS has proven manufacturing processes in place and experienced personnel to manufacture the reflector. GD-MS manufactured the reflectors for NSWC Crane on sole source contract N00164-10-D-GR39, and is currently manufacturing reflectors for the DDG AEGIS new ship construction for IWS 1.0 Program Office and NSWC Crane under sole source Contract N00164-16-C-GR60.

The reflector is an parabolic Radio Frequency (RF) reflector used to concentrate RF energy to specific locations as a highly concentrated RF energy field. The parabolic shape is a critical feature of this reflector and the contour must be held to a root means square (RMS) measurement of less than

; GD-MS is the only known business capable of achieving this tolerance.

Additionally, specialized assembly stands, molds and test fixtures are used to ensure these parameters are met. This special tooling is currently being provided to GD-MS as government furnished equipment (GFE) on contract N00164-

16-C-GR60. The value of the GFE is $412,000, and it cannot be removed from

GD-MS until the ship construction contract requirements have been fulfilled in

September of 2020. It is estimated it would take the government a minimum of

9-12 months to procure the identical equipment, provided funding were available. This delay would significantly jeopardize the success and accomplishment of the fleet requirement to meet the ship installation schedule for current ship build requirements. Also, a delay would significantly impact the safety of the ships which would not be able to get a new reflector if the

Government were to only have multiple non-repairable assets available, which would then result in the ship being unable to get their Fire Control System back to a serviceable condition.

Significant facilities capabilities and equipment are required for the manufacture of this reflector. Facilities with controlled environments and equipment requirements that include Computer Numeric Control (CNC) routers capable of performing the milling of aluminum honeycomb stock while maintaining the parabolic contour to the specified parameters. Additional manufacturing capabilities such as the ability to autoclave in the diameter of feet is used to cure the epoxy resin at a temperature of 150 degrees

Fahrenheit, while maintaining a vacuum of inches of mercury. GD-MS is the only known facility capable of completing all requirements in one facility under climate control. Due to the sensitivity of environmental elements during the manufacturing processes and procedures of these reflectors dictates that a highly specialized climate controlled manufacturing facility is essential.

Not only are there significant risks associated with competing this procurement from the manufacturing capability stand point, but there would be a duplication of cost and effort to perform first article testing. Due to the shipboard environment, structural soundness of the reflector is a necessity.

The reflectors manufactured by GD-MS have successfully passed all tests.

Procurement from another source would require the Government to perform first article testing to ensure the units met shipboard requirements. Tests include salt spray, bond tensile strength, water emersion, Class A shock qualifications, RF and drawing conformance.

In Service Engineering Agent (ISEA) certification requires a minimum of three units be manufactured by an alternate source with satisfactory completion of all AEGIS integration testing and performance, and full environmental testing on all three units. In addition, one of the units must be installed into an

AEGIS ship and tested on an active platform for 500 hours with extensive monitoring by the ISEA or one of their representatives.

It is not currently cost effective to establish another source for the reflectors. It is estimated it would take a minimum of 4.17 years and

$4,622,300 to certify another source for manufacture of the reflectors. This estimate includes cost for installation into an existing platform and ISEA certification test costs on the active platform.

The program does not have the required funding to perform the first article testing detailed above. Also, the program cannot encounter a 4.17-year delay.

The delay would seriously jeopardize installation schedules and fleet readiness. These reflectors are an integral component of the AEGIS weapons platform and without the AN/SPG-62 antenna system reflectors, the fleet would be vulnerable to attacks from land, air, and sea.

PEO IWS 1 has inquired about the purchase of the proprietary information for manufacture/repair of the reflectors from General Dynamics in the past, but the costs were deemed to be unaffordable.

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

Practicable

A Sources Sought was posted on the Federal Business Opportunities (FedBizOps) website on 23 AUG 2018 in accordance with Defense Acquisition Regulations

Supplement (DFARS) PGI 206.302-1(d). No responses were received. The proposed effort was synopsized via posting to FedBizOps on 10 September 2018 as required by FAR 5.201. No responses were received in response to the published synopsis. Additionally, market capabilities were researched and investigated by the Requiring Technical Activity, and as a result, it was confirmed that no source other than General Dynamics Mission Systems is able to provide the required supplies. Any responses from interested sources received prior to contract award will be considered.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated costs to the Government for the supplies covered by the J&A will be fair and reasonable prior to award. The Contracting Officer will use cost and price analysis to determine a fair and reasonable price. Assistance from the Defense Contract Management

Agency (DCMA) may be requested to analyze, evaluate, and negotiate based upon detailed cost or pricing data which will be certified by GD-MS at the conclusion of negotiations. Comparisons to historical purchases for the same items and to the independent Government estimate may be used as necessary.

8. Actions to Remove Barriers to Future Competition.

A follow-on contract to N00164-16-C-GR60 was not anticipated during the market research phase nor at the time of award. Contract N00164-16-C-GR60 was expected to meet the remaining requirements for new ship construction.

However, since that time, five additional new ship construction projects and five additional FMS customers have been added to the schedule. For the reasons set forth in Paragraph 5, NSWC Crane Division 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 Division will assess whether competition for future requirements is feasible.

TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 6.303-2(b))

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting data, including, Program

Streamlined Acquisition Plan No. 18-007, 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 (NMCAG 5206.303(90))

I have determined this justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(a)(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 Senior

Executive of the STRL, the solicitation of the proposed procurement(s) using of other than full and open competition, pursuant to the authority of 10

U.S.C. 2304(c)(1).

Signature Name (Print) Date