N00174_FY25NOV059 (1).pdf

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 3204 (a)(1) and FAR 6.302-1, only one responsible source and no other supplies or services will satisfy the agency�s requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(ii)states that supplies may be deemed to be available from the original source for follow-on efforts for the development of highly specialized equipment, including major components thereof, when it is likely that the award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition or unacceptable delays in fulfilling the requirement.

Under Other Transaction Authority (OTA) DOTC-19-05-5046, MSI-Defense Systems US LLC (MSI-DS) was competitively selected to provide the GM. This requirement is a follow-on production for that GM. Follow on production was identified as a potential when the initiative was issued for competition. MSI-DS is the original designer, developer, and the only manufacturer of the MK88 MOD4 GM, which has already been integrated with the U.S.

Government owned fire control system. Installations from this award are planned for multiple U.S. Navy and U.S. Coast Guard platforms.

As part of the DOTC initiative, the Government incurred costs for the integration, performance testing, environmental testing, safety assessment, and development of Ship Installation Drawings. The efforts cost approximately . Selection of a source other than MSI-DS would require those same costs to be incurred for the system to be ready for installation aboard U.S. Navy and U.S. Coast Guard platforms. The duplicative costs are approximately 47% of the expected contract value and cannot be recovered through competition on this contract.

Award for the MK88 MOD4 to any sources other than MSI-DS would result in unacceptable delays in fulfilling agency�s requirements. Integration, performance testing, environmental testing, safety assessment and development of Ship Installation Drawings of the MK88 MOD4 under the DOTC initiative required over two years to accomplish. Any source other than MSI- DS would require that effort be repeated adding over two years to the availability of systems for installation shipboard. The delay would be too late to satisfy In Yard Need Dates for new construction ships and backfit on existing ships. Therefore, MSI-DS is the only qualified source with the requisite knowledge, technical experience, and production capability necessary to satisfy the requirements to manufacture the MK88 MOD4 GM to meet the agency�s requirements.

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

IAW DFARS PGI 206.302-1, on 24 October 2024, NSWC IHD published a sources sought notice through SAM.gov requesting responses from all responsible sources for the production of the

MK88 MOD 4. The notice closed on 15 November 2024 with no responses received. The proposed sole source contract action was synopsized on SAM.gov on 18 February 2025 with no responses received.

Program Executive Office, Integrated Warfare Systems, Surface Ship Weapons Program Office (PEO IWS 3.0) is the Navy�s Center of Excellence for shipboard gun technology developments and the shipboard gun industrial base. This includes insight into technologies that individual companies are focused on and their technical and production capabilities. IWS 3.0 representatives maintain this knowledge through routine review of the industry journals and attendance at industry symposia and conferences. They also periodically visit industry facilities for briefings on companies� independent research and development efforts. They have determined that no other company has the knowledge and technical capability required to provide the MK88 MOD4 GM.

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 J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NAVSEASYSCOM has no plans at this time to compete future contracts for the MK88 MOD4 GM supplies covered by this document.

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).