N00178_210125_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

DAHLGREN DIVISION

6149 WELSH ROAD, SUITE 203

DAHLGREN, VIRGINIA 22448-5117

N REPLY REFER TO

J&A DN-21-0125

N00178-18-D-4000

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Surface Warfare Center, Dahlgren Division (NSWCDD), Contracts Division, 024.

2. Description of the Action Being Approved

An increase in the maximum quantities under firm fixed priced contract N00178-18-D-4000, which was awarded on a sole source basis to Teradyne, Inc. to purchase one (1) Teradyne Automated Test System (ATS) unit and additional system hardware and software and product-defined services to implement a fully-functional, complementary nine-unit ATS system to screen MK41 electronic circuit card assemblies (CCAs) in support of the Weapons Control and Integration Department (H), Missile Systems Integration and Weapons Effectiveness Division (H30) and Launcher Systems Branch (H31), of the Naval Surface Warfare Center, Dahlgren Division (NSWCDD).

3. Description of Supplies/Services

This requirement is for one additional ATS unit and additional system hardware and software and product-defined services to implement a fully functional, complementary nine-unit ATS system to screen MK41 electronic CCAs. The ceiling increase requirements are comprised of the following items:

One (1) Teradyne Spectrum S9100 ATS unit, with spare parts kit, module test instruments set, and a quantity of three (3) days on-site maintenance and troubleshooting training to complete installation.

Two (2) S9100 Calibration Kit for the Teradyne Spectrum S9100 ATS unit.

One (1) AI-760-20 or AI-762-20 high performance analog instrumentation subsystem for the Teradyne Spectrum S9100 ATS unit.

Software maintenance subscriptions entitling the Government to download software products, such as, upgrades, updates and patches.

Training for new personnel who shall support S9100 ATS units including Spectrum Programming with TestStudio & Di-Series and Studio Digital Programming.

Test Program Sets (TPS) Convertor Studio Software Licenses.

Interface Test Adaptors and test program software, also generically called TPS.

Application Assistance (to help the Government customize TPS software to test the evolving MK41 Vertical Launch System (VLS) CCAs).

Test Management Services to test TPSs designed by the Government and to support Nodal Analysis and Test Coverage Studies.

The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

The estimated cost of the proposed contract action is $4,905,725 to complete the five year period of performance. A breakdown of costs by appropriation and year are shown in the following table.

FY21 FY22 FY23 TOTAL

SCN $530,905 $2,076,672 $ 826,431 $3,434,008

OPN $227,530 $ 890,002 $ 354,185 $1,471,717

Total $758,435 $2,966,674 $1,180,616 $4,905,725

This action will increase the current contract ceiling of $8,472,733 to a maximum of $13,378,458.

4. Statutory Authority Permitting Other Than Full and Open Competition

This justification is based upon the authority of 10 U.S.C.

2304(c)(1), as implemented by FAR 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

The Teradyne S9100 is the only ATS that enables use of legacy TPS applications, which have been developed by the Government to read MK41 VLS CCAs without the need for costly redevelopment.

Seven Teradyne S9100 units have been purchased to date of an anticipated nine-unit test system, producing compatible test results. More than $20M has been expended to acquire these seven S9100 test systems for NSWCDD, 40 Test Programs, 63 Test Fixtures, software tools, a nominal cache of spare parts, and maintenance services.

The MK41 VLS program tests three types of CCAs: analog, digital, and a hybrid that includes both analog and digital circuitry. The Teradyne Spectrum 9100 provides a unique switching capability to test these hybrid CCAs. Subject Matter Experts (SMEs) from the Philadelphia Naval Shipyard, NSWC Crane, and NSWCDD, have determined that ATS industry manufacturers typically specialize in equipment for a focused market area.

Teradyne was identified as the only company with existing equipment to meet the specific MK41 requirements for CCA testing. Potential competitors have been reduced through industry's business decisions on specialization and corporate buy-outs. The purchase of a different platform for additional required ATS units would take an estimated 2 to 4 years to fully implement and result in an installed base of different platforms requiring two separate support infrastructures. The use of a different platform would significantly complicate, if not compromise, test results across the program. Additionally, the use of a different platform would result in increased program costs of between $4.175M and $16.18M, depending upon whether one ATS was replaced or if all existing ATS were replaced.

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

Market research and engineering studies were conducted in Fiscal Year (FY) 2013 to identify replacement options as the original Teradyne L-293 ATS units approached obsolescence. In FY21, NSWCDD H Department SMEs conducted additional market research through internet searches and discussions with various companies on vendors with ability to source ATS that meets technical requirements of current Teradyne S9100 ATS. No additional systems were identified that are compatible with the existing S9100 testers and TPSs. Use of any solution other than the

Teradyne S9100 will result in substantial task duplication resulting in additional cost to the Government and unacceptable schedule delays in fulfilling the Navy’s requirements. Any potential cost savings realized from purchasing a new ATS and associated components from another vendor are negated by the cost to integrate a new test platform. Running all TPSs on the same testing platform is required to permit the Navy to maximize operational flexibility and capacity for testing all CCA.

Additionally, a new platform would require additional investments and duplication of effort already made in training support, logistics, and TPSs, as well as substantial costs to migrate existing test programs.

The Teradyne S9100 was selected based upon the technical advantage of the use of a Teradyne replacement and the lack of other viable options. It was the only solution that enabled the use of legacy TPS applications without the need for costly redevelopment. In addition, a Sources Sought notification was posted in the Federal Business Opportunities website on 23 March 2017 with no additional responses received. A pre-solicitation synopsis was posted to Beta.SAM 24 March 2021 and was active for 15 days. No responses were received. No further market research was conducted at this time because it is not practicable for any company other than Teradyne to provide this effort, for the reasons discussed in paragraph 5 above.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the equipment covered by the J&A will be fair and reasonable.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, Naval Surface Warfare Center Dahlgren Division Contracts Department has no plans at this time to compete future contracts for the type of equipment covered by this document. If another potential source emerges, Dahlgren Contracts Division will assess whether competition for future requirements is feasible.