N00164_CR20011.1_SAM.pdf

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J&A No. CR-20011.1

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4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 3204(a)(1) Only one responsible source.

5. Rationale Justifying Use of Cited Statutory Authority

TDFLIR is the Original Equipment Manufacturer (OEM) of the SSS III, BS II, and TacFLIR 380-HD and SeaFLIR 380-HD EOS systems and associated hand control units, and spare parts.

The SSS III EOS Systems being supported were originally acquired through competitive procurement under N00164-10-D-JQ88 and acquired under sole source procurement N00164-16- D-JQ96. This requirement is a follow-on to these contracts with the 380-HD requirements added. The BS II EOS Systems being supported were originally acquired under N00164-12-C- JQ42 on a sole source basis (Unusual and Compelling Urgency) and through competitive brand name or equal procurement under N00164-12-D-JQ18. The Government has been purchasing the SSS III and BS II EOS Systems from TDFLIR for over 20 years.

Based on the OEM’s knowledge and expertise, it has been documented that there is no other company that has the knowledge and technical capability to perform these requirements. The Government does not own the proprietary design specifications for drawings and other associated documents that would allow for competition or TT&E and repairs, field repairs / tech assists or engineering services / upgrades for the systems. TDFLIR advised NSWC Crane that it would not license or sell its proprietary data to the Government or to any other entity. 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. Independent estimated value of this buy, compared to the estimated integration and test costs, makes it impracticable to pursue competition now or during the course of performance. Total Duplication of Costs for both standing up the organic repair facility and competitive solicitation total $24,400,000.

Duplication of Cost

Redundant Effort Cost Per Platform

Number of Platforms

Total

New Software Development to incorporate new systems $500K per each of 6 platforms (NSC, PCEO, LCS< BS II, TacFLIR 380-HD and SeaFLIR 380-HE EOS) $500,000 6 $3,000,000 New Ship Drawing Packages $500,000 6 $3,000,000 New Ship Integration Packages $500,000 6 $3,000,000 Safety and Cyber Certifications $300,000 6 $1,800,000 Updates to Government O, I, and D Leval Manuals

$600,000 6 $3,600,000

Combat Certifications for LCS $1,000,000 1 $1,000,000 Operational Testing and Verifications $500,000 6 $3,000,000 Costs to Stand Up Organic Repair Capablility $6,000,000 1 $6,000,000 Total Duplication of Costs $24,400,000

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J&A No. CR-20011.1

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Based on history, there would be a total delay of 3.25 years attributed to reverse engineering, and specification development. There would be a further program delay of 1.25 years after contract award for development, production, and delivery of new systems. Additional delays of 2.25 years would be necessitated as a result of new software development, new ship drawings, new ship integration packages, safety and cyber certification, and combat certifications for LCS.

There would be a delay of 3 years to stand up the organic repair capability. Total delay to procure competitively and stand up repair facility is 9.75 years. The program office will be unable to sustain these delays and meet mission requirements.

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

Informal market research was conducted on a continuous basis by the requiring technical activity. A synopsis for this contract ordering period extension modification has been published.

No responses have been received to date.

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 Justification and Approvals (J&A) will be fair and reasonable.

As certified cost or pricing data is not required for these commercial items, and is required for the non-commercial items, 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 on 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 follow-on 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.