22RJW71_23GJW71_JA_REDACTED.pdf

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER CRANE DIVISION

300 HIGHWAY 361

CRANE INDIANA 47522-5001

IN REPLY REFER TO:

J&A Number: CR-22208 Code: 0233 P.R. Number: N0016422RJW71

CLASS JUSTIFICATION AND APPROVAL (CJ&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

The Naval Sea Systems Command (NAVSEA) Naval Surface Warfare Center, Crane Division (NSWC-CR), Expeditionary Contracts (0233).

2. Description of the Action Being Approved.

Award of a Basic Ordering Agreement (BOA), and issuance of orders under the BOA, on a sole source basis to Argon ST, Inc. (Argon), 12701 Fair Lakes Circle, Suite 800, Fairfax, VA 22033, CAGE Code 09XP2 for the procurement of contractor support through all program phases of the Lighthouse Family of Sensors and Common Chassis Electronic Support Measures (ESM) Weapons Replaceable Assemblies (WRA), Shop Replaceable Assemblies (SRA) and sub-assemblies. This requirement is in support of the Lighthouse Family of Sensors and Common Chassis Electronic Support Measures mission sensors used on manned and unmanned platforms in support of the Maritime Patrol and Reconnaissance Aircraft PMA-290, Persistent Maritime Unmanned Aircraft Systems PMA-262, Submarine Sensor Systems Program (PMS-435) and Naval Undersea Warfare Center (NUWC). Authority to act under this class justification expires on 27 February 2028.

3. Description of Supplies/Services.

The Argon Weapon Replaceable Assemblies (WRAs) along with the Shop Replaceable Assemblies (SRAs) are supported by this CJ&A. The WRAs and SRAs include, but are not limited to, Radio Frequency Distribution (RFD) Antennas, Low Band Chassis, Common Chassis, Single Board Computer Assemblies and Cable Sets. Repair/Rework/and Maintenance, Engineering Support Services, Research and Development, Test and Evaluation, Redesign and Modification, Training, Data Collection and Logistics Support Services, is covered by this CJ&A.

The support will ensure the PMA-290, PMA-262, PMS-435, and NUWC Platforms are Fully Mission Capable in which they will be able to perform their current and assigned missions. These platforms are the primary maritime surveillance platforms operated by the United States (U.S.)

Navy. Its duties include anti-submarine and anti-surface warfare, command, control communications, computers and intelligence surveillance and reconnaissance, search and rescue, J&A Number: CR-22208 drug interdiction and exclusive economic zone protection. The PMA-290, PMA-262, PMS-435, and NUWC platforms are currently deployed in theater of operations in supporting the war-fighter.

The orders will be funded with appropriations from Operations & Maintenance-Navy (O&MN) and Research, Development, Test and Evaluation (RDT&E) funding. Exact amounts of each type of funding will be dependent on mission requirements and programmatic decisions.

The ordering period is five (5) years after the contract award. The Government’s minimum needs have been verified by the technical and requirements personnel. The value of this action is estimated to be $3.4M. The tables below provide the breakdown of the estimated funding available to support this action by appropriation and procurement type.

Table 1: Estimated Dollar Value:

Estimated Dollar Value:

O&MN

RDT&E

Total $3.4 M

Table 2: Estimated Dollar Value by Procurement Type:

Total Est. QTY Est. Amount

Repairs 32 Engineering Services

Total $3.4 M

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.

PMA-290, PMA-262, PMS-435, and NUWC have directed the installation of the low band SIGNIT mission sensor, for which Argon is the Original Equipment Manufacturer (OEM) for the Weapons Replaceable Assembly, for a cross platform SIGNIT system to meet theatre command requirements. This BOA will provide support for the low band system across different platforms.

In 2017, Argon received sole source BOA N0016417GJV10 to complete development of Multi Intelligence Sensor Department (MISD) systems, to include the low band and common chassis WRAs. Argon is one of the original joint designers, developers, and manufacturers of the MISD common chassis. Argon is the OEM, designer and developer of MISD low band suite components.

Argon is the only responsible source with the requisite knowledge, expertise, engineering facilities, testing facilities, training facilities, tooling, special-test equipment, technical data, computer software, and computer software documentation necessary to meet the contemplated requirements within the necessary time frames for the low band and the common chassis. Additionally, Argon is intimately familiar with the various airframe designs, interface restrictions, integration requirements, sustainment and training requirements, and airframe limitations.

The Government neither possesses nor has adequate rights in sufficient technical data, computer software, and computer software documentation to provide to an alternate source to enable competition. Furthermore, Argon is unwilling to sell to the Government the necessary data rights of the Level III technical data package for the SRA sensor cards utilized in the Common Chassis and low band system to enable competition. The Government possesses only the rights to the level II technical data packages and software documentation for the purpose of maintaining configuration control to manage future engineering changes. The level II technical data package and software documentation are not sufficient to support a full and open competition of the Common Chassis systems down to the component level.

If another system were procured, the cost to re-tool, reverse engineer, generate acceptance test procedures, perform first article testing, acquire flight certification, underway time for sub-surface platforms, and perform stress analysis would exceed $14,478,321. This estimate is based on seven platforms and their estimated costs for the efforts listed below.

Table 3: Duplication of Cost

Description Cost

Re-tool of Line (x7 Platforms) Reverse Engineer and Test Procedures (x7 Platforms)

First Article of Test (x7 Platforms)

Tempest Certification (x7 Platforms)

Electrical Load Analysis (x7 Platforms)

Stress Analysis (x7 Platforms)

Publications/Reoccurring Costs (x7 Platforms)

Flight hours (P-3 rate used) x3 platforms, 72 hours each

Underway time for sub-surface platforms 3 days underway (120,940 per day)

Ramp Fees per platform x3

Total: $14,478,321

NAVAIR estimates, based on the time it took Argon to do that work under the original contract, it would take at least five (5) years for an alternate source to design, develop, build, test, and qualify another source’s different variants of the low band suite components. This would result in unacceptable delays and failure to meet Chief of Naval Operations (CNO) direction to retire legacy Intelligence, Surveillance, Reconnaissance and Targeting (ISR&T) airframes in the 2025 timeframe in accordance with Public Law 111-383 FY 2011 National Defense Authorization Act.

Award to any other source would result in unacceptable delays in fulfilling the Government’s requirement to meet Maritime Intelligence, Surveillance, Reconnaissance and Targeting (MISR&T) hardware and software requirements and system support to multiple platforms. Argon original development time for the Mission Support Systems equated to approximately three years. The Government estimates it would require 48 to 60 months to perform reverse engineering and up to 6 months for certification of this equipment to have it ready for install.

The low band requirement is available only from Argon for the production of the highly specialized equipment without resulting in unacceptable delays in fulfilling the agency’s requirements. Argon is the only source able to meet this schedule.

Table 4: Schedule Delay Redundant Effort/Task Timeframe Duration Reverse Engineering, Material Sourcing, and Integration for various systems

48-60 Months

Flight and Qualification Test Certification 3-6 Months Total Time 51-66 Months

Based on the above stated information, the substantial duplicative costs and time associated with an award to a source other than Argon is not expected to be recovered through competition and would result in unacceptable delays in fulfilling PMA-290, PMA-262, PMS-435, and NUWC requirements.

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

A request for information (RFI)/sources sought was posted to the Government Point of Entry, SAM.gov website on 6 April 2022. The RFI/sources sought closed on 28 April 2022 with no responses received. The proposed contract was synopsized on the SAM.gov website on 18 August 2022. To date, no other potential sources have expressed an interest in this requirement. The lack of any responses to the RFI or synopsis validates the determination that there is no other competent or responsible supplier of the desired supplies or services. Market research was conducted by the technical activity which included an informal market survey that confirmed Argon is the OEM which retains the right to certify, re-assemble, integrate, and test the final product prior to release to the government. Each Job Order issued under the BOA will be synopsized on the SAM.gov website in accordance with Federal Acquisition Regulation (FAR) Subpart 5.2. Any responses received will be considered.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this CJ&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NSWC-CR has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, NSWC-CR will assess whether competition for future requirements is feasible. 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)(S-70)(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)(S-70)(ii).

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

J&A Number: CR-22208

I ce1tify that the facts and representations under my cognizance which are included in this Justification and its suppo1ting acquisition planning documents, except as noted herein are complete and accurate to the best of my knowledge and belief.

Adam Nonte, Branch Manager, JXWP

Requirements Cognizance:

John Kleihege, Division Manager, JXW

LEGAL SUFFICIENCY REVIEW

I have detennined this Justification is legally sufficient.

Michael Stultz, Associate Counsel, 00L

CONTRACTING OFFICER CERTIFICATION

Date

Date

Date

I ce1tify that this Justification is accurate and complete to the best of my knowledge and belief.

Heather Howard, Contracting Officer, 0233

COMPETITION ADVOCATE (CA) APPROVAL

Date

Upon the basis of the above justification, I hereby approve, as Competition Advocate (CA), 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)(l).

MCGARVEY RICHARD L II- Digitally signed by MCGARVEY.RICHARD.LIi

Date: 2022.09.29 05:50:07 -04'00'

Chief of the Contracting Office (Acting), Crane Division

Date