J A_DL13219_Redacted.V2.pdf

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

DAHLGREN DIVISION

6149 WELSH ROAD SUITE 203

DAHLGREN VIRGINIA 22448-5130

N REPLY REFER TO

J&A DL13219

CS3O-l2 N00l78-14-R-20l6

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 Department, CS.

2. Description of the Action Being Approved

This justification is for award of a Cost-Plus-Incentive-Fee (CPIF) contract on a sole source basis to The Boeing Company, 5301 Bolsa Avenue, Huntington Beach, California 92674 in support of the AN/USQ-82(V) program, which supports systems on New Construction and Modernization DDG 51 Class Destroyers, Amphibious class ships, carriers, Ballistic Missile Defense (BMD), AEGIS Ashore land sites, Foreign Military Sales (FMS), and land-based test sites.

3. Description of Supplies/Services

Design Agent and Technical Engineering Services consist of: systems engineering; systems and interface design; developmental & qualification testing; troubleshooting and issue resolution; Technical Data Package (TDP) maintenance; Configuration Management (CM); parts obsolescence management; Commercial Of f The Shelf (COTS) refresh; Maintenance Group (MG) engineering support; firmware design, coding & testing; Adaptation Data Sets development; and AN/USQ-82(V) technical assistance. Design Agent and Technical Engineering Services support the DDG 51 Modernization, DDG 51 New Construction, Foreign Military Sales (FMS), and AEGIS Ashore Programs. The Design Agent operates and maintains the AN/USQ-82(V) engineering laboratory. The Design Agent also supports the In-Service Engineering Agent (ISEA) with Installation and Checkout (INCO) and shipyard testing for AN/USQ-82(V) installations.

The period of performance will be a total of three (3) years, including a base period and two (2) options periods of twelve (12) months each. The estimated cost of the proposed contract action is $37,933,069. The types of funding to be utilized are shown in the following table. The

J&A DL13219

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

Type Funds FY15 - Base FY16 - Opt I FY17 - Opt XI Total

OPN $3,927,200 $4,045,016 $4,166,366 $12,138,582

FMS $1,104,525 $1,137,661 $1,171,791 $3,413,977

OMN $368,175 $379,220 $390,597 $1,137,992

SCN $6,627,150 $6,825,964 $7,030,743 $20,483,857

RDT&E $245,450 $252,813 $260,398 $758,661

Total Cost $12,272,500 $12,640,674 $13,019,895 $37,933,069

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

Boeing is the only source capable of providing design agent and technical engineering services for the AN/USQ-82(v) program. Boeing is the only source with the required highly specialized skills and knowledge of AN/USQ-82(V) design, development, and production. Previous contracts for this effort, including the current contract N00l78-09-C-2005, were not competed and were awarded sole source. Tasks requiring specialized knowledge and skills include: 1) approximately 25 circuit card designs developed originally by Boeing; 2) firmware and applications totaling 300,000 Source Lines of Code (SLOC) implementing unique redundancy and translation protocols; 3) extensive and complex Adaptation Data Sets requiring specialized system knowledge and tools; and 4) ongoing development, qualification and integration of system upgrades which are being transitioned from Boeing Independent Research and Development (IR&D) funding to Government funding. These areas of expertise were developed at Boeing over the past twenty-five years as the original Design Agent and manufacturer of the Data Multiplex System (DMS) , Fiber Optic Data Multiplex System (FODMS), and Gigabit Ethernet Data Multiplex System (GEDMS) . Aside from the highly specialized expertise, capabilities relevant to this requirement which are unique to Boeing include: 1) the AN/USQ-82(V) Technical Data Package repository located at Boeing, Huntington Beach (HB); 2) the development and test facility, also located at Boeing HB; and 3) extensive test equipment required for production that is shared by the Design Agent and Production Facility at Boeing.

The time required for transitioning the Design Agent role to a new contractor is estimated at 36 months. This is based on 24 months of training in the specialized knowledge and skills areas described above.

The 24 month estimate is based on recent transitions of personnel to tasks performed under the Design Agent contract. The tasks included maintenance of certain AN/USQ-82(V) firmware applications and adaptation data set development. In both cases, the time to develop proficiency was twelve to eighteen months, and the subject area was a subset of the complete specialized knowledge, on the order of twenty percent. Note that concurrent activities to transition capabilities, especially procurement and set up of the Teredyne 9100, at a cost of approximately $6.4M, and associated fixtures and software, are estimated to take up to eighteen months. The Teredyne 9100 is a circuit card test set. It is used to test and troubleshoot the twenty—two circuit cards which are part of the AN/USQ-82(V) system, a task central to Design Agent tasks. The Teredyne 9100 requires customized fixtures, one for each circuit card, and customized software. An additional twelve months is estimated for funding and contracting actions to get the training in place. The AN/USQ-82(V) system is currently part of and planned for continuing USN DOG 51 class new construction and modernization programs. The ship ilull Mechanical & Electrical (HM&E) and combat system designs cannot be implemented without this Mission critical system. The DOG New Construction and Modernization schedules combined reflect S ship installations per year, on average, over the six years beginning with Fiscal Year 2015. The current contract for Design Agent services, N00178-09-C-200S, will exhaust ceiling in January 2015. ship construction and modernization are dependent on the AN/USQ-92(V) system, that is, neither the HM&E nor the Combat System designs can be implemented without AN/tYSQ-82 (V) - Delivery and installation of the AN/USQ-82(V) system cannot be executed in absence of Design Agent services. Given the training and contracting timelines identified above, immediate transition to another contractor would result in a lapse in services of up to 30 months. Interruption of Design Agent services due to transition of expertise and capabilities described above would result in costly disruption of ship construction and modernization schedules.

In summary, these capabilities cannot be transitioned to another contractor without unacceptable delays in fulfilling the agency’s requirements.

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

NSWCDD intends to solicit The Boeing Company for the services required.

The proposed action was synopsized in Federal Business Opportunities (FEDBIZOPPS) on 19 March 2014 in accordance with FAR Part 5.2, and only Boeing expressed an interest in this requirement. No other market research was conducted because it is not practicable, for the reasons discussed in item S above, for any company other than Boeing to provide the required services.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government of the supplies/services covered by the J&A will be fair and reasonable. Defense Contract Management Agency (DCMA) pricing assistance and/or Defense Contract Audit Agency (DCAA) audit of contractor’s proposal will be requested along with the offeror’s certificate of current cost and pricing to support a fair and reasonable cost determination.

8. Action to Remove Barriers to Competition

The contract for which this Justification and Approval is being submitted will include delivery of the TDP to the Government for certification by the NAVSEA Interior Communications Technical Warrant Holder for determination of suitability for full and open competition for production.

This same material will be critical to any evaluation of Design Agent suitability for competition. The delivery time is specified as six months after Government direction, so will be no earlier than six months after contract award. Upon receipt of those materials, the Program will undertake a formal study to determine the feasibility, cost and schedule of transitioning the Design Agent services to a competitive contract.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION [FAR 6.303-2(b)]

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning data, including Acquisition Plan No. 14-004 Rev 0, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL/REQUIREMENTS COGNIZANCE:

LEGAL SUFFICIENCY REVIEW

CONTRACTING OFFICER CERTIFICATION [FAR 6.303-2(b) (12)]

I certify that this justification is accurate and complete to the best of my knowledge and belief.

APPROVAL BLOCK [FAR 6.304 for Approving Official]

Upon the basis of the above justification, I hereby approve, as Designee of the Head of the Procuring Activity, the solicitation of the proposed procurement described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c) (1).

Div ion Dire~or, Surface Systems Division (NAVSEA 025)

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