N00174_130035_NECO.pdf

DEPARTMENT OF THE NAVY

INDIAN HEAD DIVISION

NAVAL SURFACE WARFARE CENTER

3767 STRAUSS AVENUE

SUITE 201

INDIAN HEAD, MD 20640-5150

J&A Number:13-0035 Code: C13J

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Contracting Activity is the Naval Sea Systems Command, Naval Surface warfare Center, Indian Head Division, Procurement Division, Code A2. This requirement is for the Naval Explosive Ordnance Disposal Technology Division (NAVEODTECHDIV), Indian Head, Maryland.

2. Description of the Action Being Approved

This is a request for authorization of a sole source contract for engineering, maintenance and support services for currently fielded MK 18 unmanned underwater vehicle family of systems (FOS) and other Remote Environmental Monitoring Units (REMUS) base variant uuvs. This award will be the result of a non-competitive solicitation. The total proposed value of this contract, if all options are exercised, is $41.25M. The prime contractor for this effort is Hydroid, Inc, located at 6 Benjamin Nye Circle, Pocasset, MA 02559.

3. Description of Supplies/Services

MK 18 FOS UUV systems provides Navy expeditionary forces with very shallow water (VSW) and shallow water (SW) mine countermeasures (VSW MCM) and underwater object localization tools. The uuv systems protect the members of all services and the public who could be subject to danger from undetected/unidentified underwater threat objects in coastal and confined waters both foreign and domestic. The MK 18 FOS uuvs are based on Hydroid's commercially available Remote Environmental Monitoring Units (REMUS) uuv. The MK 18 FOS is a specific but evolving configuration uuv, which is subject to the PMS 408 (EOD) Underwater EOD Configuration Management Plan. As such, all MK 18 FOS uuvs are REMUS variants, but not all REMUS variants are part of the MK 18 FOS. PMS 408(EOD)

J&A Number 13-0035 also utilizes a number of REMUS UUVs which are not part of the MK 18 FOS, and thus not subject to rigid configuration management, for development and test purposes. These other vehicles allow more flexibility for evaluation, without risk to the fielded MK 18 FOS assets and their logistic support.

This contract is necessary to 1) provide continued operation, maintenance, repair and training support for fielded MK 18 FOS UUV systems as well as the REMUS variants being used for development and test purposes, and 2) provide engineering services and technical expertise for the development, testing, and installation of pre-planned product improvements for the MK 18 FOS UUV systems. This will include labor and materials for repairs, upgrade development and upgrade implementation, as well as subcontracts for specialized expertise, shipping, travel, and test equipment and facilities. It will additionally include procurement and stock of spare parts.

Estimated Dollar Value FY13 FY14 FY15 FY16 FY17 Totals

RDT&E

O&MN

OPN,

OPA,

OPAF

Total $7.07M $6.03M $6.14M $9.95M $12.48M $41.25M

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), as implemented by Federal Acquisition Regulations (FAR) 6.302-1, uonly one responsible source and no other supplies or services will satisfy agency requirements."

5. Rationale Justifying Use of Cited Statutory Authority

REMUS UUV variants, associated auxiliary & support equipment, and spare parts have been procured under several previous competitive and non-competitive contracts to provide unmanned, un-tethered, expeditionary UUVs to the war fighter.

The REMUS line has been leveraged to provide a similar but larger REMUS 600 based UUV, the MK 18 Mod 2. This vehicle is not man portable, but offers many benefits in operational and support similarities, while extending range and allowing for larger, higher power drawing sensors.

PMS 408 (EOD) was tasked to support the immediate development, testing, evaluation and life cycle support activities associated with these systems.

Both of these MK 18 Systems are supported by existing auxiliary and support equipment, as well as provisioned spare and repair parts, and a user community trained in their operation and maintenance.

The MK 18 UUV systems will require engineering and technical services, including intermediate and depot level support.

Intermediate level (I-level) services will include providing training to Fleet Service Representatives and - for other personnel to provide repairs and maintenance beyond the organizational (fleet) capability at or near forward deployment areas. I-level support reduces shipping delay time and cost associated with depot repairs, without incurring the training, manpower and support costs associated with providing these services at the organizational level (0-level) . Depot level (D-level) service includes repair and maintenance services at the D-level facility, repair and spare parts, consumables and spare supplies, troubleshooting assistance, test and evaluation, shipping, and technical and engineering support to correct problems, as well as to development and implementation of system capability improvements to the fielded system. Without these supplies and support, the fielded systems cannot be maintained in a fully functional condition, and may be unavailable and unable to meet the mission requirements placed upon them.

Hydroid Inc. maintains all proprietary data rights and licenses to the REMUS UUV Systems and is therefore the only company capable of providing the required service to existing assets.

In addition to repairs required to keep the systems operational and effective, any additional capabilities required in the near term must be incorporated into the existing system. Procurement of an alternate system would require excessive cost and delay to execute a competitive procurement based on the system performance specifications, procure prototypes, test, validate, develop a training, maintenance and support system, and field a new UUV system with all necessary auxiliary and support equipment. The costs to test and validate performance and establish a logistics support chain for a second type of vehicle are estimated to be $12,746,000. This estimate was based upon a government estimate that utilized approximately ten years of historical information.

Hydroid Inc. is the only U.S. licensed manufacturer of the REMUS UUV variants and maintains the proprietary design and all data rights to the REMUS. Hydroid Inc. is thus the only company capable of providing support services for the UUVs that are currently in the fleet, as well as the only company that can develop and integrate additional system capabilities that may be required by the EOD community/US Navy to meet their mission requirements.

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

This requirement was synopsized in FedBizOpps on (24Jan2013).

No other offerors have expressed interest.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies covered by the J&A will be fair and reasonable by using cost and price analysis techniques described in FAR Part 15.4.

8. Actions to Remove Barriers to Competition

PMS 408 (EOD) is continuously monitoring the state of the commercially mature/available uuv market and believes that at some point in the future, there may be other systems available that could meet the requirements of the SW and VSW MCM missions, such that competition to deploy an alternative/replacement system will be possible. At this time no such system is available.