23RJQ05_23DJQ05_JA_REDACTED.pdf

DEPARTMENTOFTHENAVY

NAVAL SURFACE WARFARE CENTER

CRANE DIVISION

300HIGHWAY 361

CRANE INDIANA 47522-5001

INREPLY REFER TO

J&A Number: CR-22192 Code: 0231

PR No. N0016422RJQ05

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITON

1. Contracting Activity.

The Naval Sea Systems Command, Naval Surface Warfare Center, Crane Division (NSWC-CR), Expeditionary Sensors Contracting Branch, Code 0231.

2. Description of the Action Being Approved.

Award of a five-year Indefinite Delivery Indefinite Quantity (IDIQ) contract for evaluation and repair of Electro- Optic/Infrared (EO/IR) Sensors, spare parts, and engineering services on a sole source basis to FLIR Systems, Inc. (referred herein as FSI), 25 Esquire Rd, North Billerica, MA 01862. The Programs requiring support include the United States Coast Guard (USCG); Mine Counter Measures (MCM); Patrol Coastal Electro Optics (PCEO); Scoutmaster (SM); Navy Expeditionary Combat Command (NECC); Special Operations Command (SOCOM); US Strategic Systems Program (SSP) Programs; US Navy Ships; and other maritime platforms. Also included are requirements for SM Foreign Military Sales (FMS).

3. Description of Supplies/Services.

The contemplated procurement is for the award of a firm fixed price contract for Test, Teardown and Evaluation (TT&E), repairs, spare parts, and engineering services for various configurations of FSI EO/IR sensors. Included in this sustainment effort are USCG Patrol Boat Electro-Optics (PB-EOs) Maritime Forward Looking Infrared (MARFLIR) II 280HD and SeaFLIR 280HD (SF 280HD) EO/IR sensors and variants thereof, and Shipboard Infrared Visual Sensor System (SIRVSS). This contract action will provide for the TT&E and repair of failed assets, J&A Number: CR-22192 spare parts, and engineering services for EO/IR sensor systems to continue current fielding plans in support of the USCG Polar Security Cutters (PSC), USCG Medium Endurance Cutters (WMEC), and USCG Fast Response Cutters (FRC).

Also included in the sustainment effort are MCM, PCEO, SM, and SSP platforms PB-EOs MARFLIR II 280HD, and other variations of maritime platforms including the NECC CCFLIR and SeaFLIR 240 (formally known as Cutlass), and SOCOM CCFLIR and CCFLIR II.

Also supported for SSP are the SEAFLIR II and CCFLIR EO/IR systems. These systems provide maritime platforms with an all-weather, day/night, high resolution, stabilized thermal imaging capability to augment existing optical and radar sensors by imaging enemy forces on land, at-sea, and in the air, particularly during periods of darkness and poor visibility.

These systems enhance the detection, recognition, identification, and tracking of targets.

It is anticipated that MCM, PCEO, NECC and SSP will utilize Operations and Maintenance Navy (OMN), SM will utilize Research, Development, Test and Evaluation (RDT&E) and FMS funding, and USCG will utilize Other Government Appropriations (OGA) funding.

NECC will also utilize Other Procurement Navy (OPN) for repair refurbishments. The contract is anticipated to be awarded in February of FY23 and run through February of FY28, and the contract will cross fiscal years. The estimated value of the requirements is $34,394,346 as indicated in Table 1 below.

Table 1: Estimated Funding by Fiscal Year (FY) Funding Type FY23-FY24 FY24-FY25 FY25-FY26 FY26-FY27 FY27-FY28 Total

OPN $247,885 $252,842 $ 257,899 $263,057 $268,318 $1,290,001

OMN $3,964,226 $4,035,510 $4,108,220 $4,182,384 $4,258,032 $20,548,372

RTD&E $112,039 $112,780 $113,536 $114,307 $115,093 $567,755

FMS $7,940 $8,099 $8,261 $8,426 $8,595 $41,321

OGA $2,307,459 $2,347,608 $2,388,560 $2,430,332 $2,472,938 $11,946,897

Total $6,639,549 $6,756,839 $6,876,476 $6,998,506 $7,122,976 $34,394,346 certifying technical and requirements personnel.

4. Statutory Authority Permitting Other Than Full Open Competition.

10 U.S.C. 2304(c)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rational Justifying Use of Cited Statutory Authority.

The anticipated award is a follow-on to N0016418DJQ99, a sole source contract with FSI for spares, TT&E, repairs, and services. The Government does not own the technical data package suitable for a competition. Further, FSI owns the proprietary repair procedures and test plans associated with the TT&E and repairs.

All repairs performed under this contract will be to FLIR Specifications and to configuration controlled part numbers except for the PB-EOS MARFLIR II 280HD and CCFLIR2, which will be repaired to like-new condition per Government Performance Specification. The same Acceptance Test Procedures utilized on N0016418DJQ99 will be utilized by the Government for all repairs.

Further, FSI is the only responsible source that possesses all of the necessary expertise capable of satisfying the requirements for TT&E, repair, and engineering services for the equipment it manufactured. FSI is the only source capable of providing of the spare parts for the proprietary equipment it manufactured without causing unacceptable delays. The Government requires the timely delivery of repaired systems, spares, and engineering services for fully functioning EO/IR sensors that are already fully integrated and tested for the designated ships.

If the Government is unable to repair, buy spare parts, or have engineering services performed for the currently fielded systems, the Government would be forced to procure all new systems. Commonality of each system type across fielded ships is required.

To procure replacement systems, the Government would have to develop a technical data package suitable for competition. The cost associated with reverse engineering the existing systems is considered prohibitive. Reverse engineering the system includes understanding the physical properties of the systems, their functionality of the operational software, and how that interacts with the electronics of the system. These tasks would involve developing drawings associated with the physical properties of the system and underlying components, understanding the operation and interaction of the software controlling the system and the functionality of the electronics.

The reverse engineering estimate includes costs associated with developing a drawing package of the systems required to modify

SIRVSS REPLACEMENT TOTAL $7,820,845.19

Total Duplication of Cost for all Replacement Systems $28,389,228.13

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

Offerors as Practicable.

A Request for Information (RFI) for the requirement was issued on 21 March 2022 on SAM.gov. A response from FSI was received, acknowledging the posting and expressing its interest in the requirement. No other responses were received. The proposed contract was synopsized on the SAM.gov website on 8 June 2022.

To date, no potential sources have expressed an interest in this requirement.

7. Determination of Fair and Reasonable Costs.

The Contracting Officer has determined that the anticipated cost to the Government for the services and supplies covered herein will be fair and reasonable.

8. Actions to Remove Barriers to Competition.

As part of the Government's continual monitoring of the industry, the Government has invited and continues to invite companies to demonstrate and discuss their products so that barriers to competition can potentially be overcome. The Government will continue to assess companies and their product capability as information is made available during the ordering period of the contract.

The Government will periodically review capabilities and open architecture concepts to determine feasibility of competing sensor requirements through the life of the program. If a potential source emerges, NSWC-CR will promptly assess whether competition for future requirements is feasible and cost effective. However, there are no plans to compete systems in the near future. The systems that are at end-of-life will be replaced with systems that are already fielded to maintain a common spares pool and configuration.

As this is a follow-on for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(i), the prior J&A was provided to the approval authority for review. Approval of this J&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(ii).