N00178_DL13218_FBO_Approved_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

DAHLGREN DIVISION

6149 WELSH ROAD, SUITE 203

DAHLGREN, VIRGINIA 22448-5117

IN REPLY REFER TO

J&A Number: DL13218 Code: CS40-7

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, CS40 is the contracting activity.

2. Description of the Action Being Approved

This justification establishes the basis for award of one (1) five-year indefinite delivery/indefinite quantity (ID/IQ) contract to Ball Aerospace and Technologies Corporation, 1600 Commerce Street, Boulder, CO 08301. Office of Naval Research (ONR) competitively acquired uniquely designed Science and Technology (S&T) hardware and software developed by Ball Aerospace under their Phased Array Antenna (PAA) family of products. This contract will enable NSWCDD to establish delivery orders using cost-plus-fixed-fee and firm-fixed-price contract line items to further support ONR by maintaining and enhancing previously acquired ONR Ball Aerospace products.

3. Description of Supplies/Services

The proposed procurement will support the Office of Naval Research (ONR) High Throughput Networking Infrastructure (HTNI) and Affordable Common Radar Architecture (ACRA) programs through the acquisition of Ball Aerospace PAA products and services; to include repair, maintenance, and science and technology insertion upgrades.

The period of performance for this effort will be 06 November 2014 to 05 November 2019.

The Government’s minimum needs have been verified by the certifying technical and requirements personnel. The following projected costs are expected based on the equipment to be supported:

Estimated Dollar Value FY 15 FY 16 FY 17 FY 18 FY 19 Totals

RDT&E $4.7M $4.8M $4.8M $4.8M $4.9M $24.0M

Total $4.7M $4.8M $4.8M $4.8M $4.9M $24.0M

4. Statutory Authority Permitting Other Than Full and Open Competition

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

Full and open competition is not possible for this contract, as the hardware, software, performance enhancements, and maintenance to be procured to meet the Government’s minimum requirements must be compatible with the Ball Aerospace PAA family of products. Ball Aerospace manufactures the Ball Aerospace PAA family of products and is the only known source capable of satisfying the requirements identified herein due to:

(1) the prohibitive cost of qualifying a second source, and (2) the proprietary nature of several aspects of the Ball Aerospace PAA design.

ONR has spent $29.9M in research contracts (see below) developing the Ball Aerospace PAA product line.

HTNI Dollars ACRA Dollars Contracts: Contracts:

N0001408C0175 $3,460,693 N0001409C0089 $8,987,646 N0001410C0444 $4,853,910 N0001410C0444 $1,638,951 N0001410D0175 $8,512,845 N0001413C0062 $1,522,270 N0001413C0146 $972,554

Of the $29.9M spent at Ball Aerospace, $20.1M was Non-Recurring Engineering (NRE). The cost of establishing a second source would be $20.1M based upon the NRE contractual investments to date. The NRE estimate of $20.1M is based upon the total amount of the above listed contracts minus the cost of equipment, which is $9.8M. Previously expended NRE costs would not be recovered via competition. Based on the periods of performance of the contracts listed above, NSWCDD estimates a second source would require approximately four years to obtain the level of proficiency needed to satisfy the Government’s requirements. The milestone schedule is based on the following considerations: it would take a year for contracts to process the contract, 18 months of NRE for a new contractor to develop comparable technology, and another 18 months to build and test each set of arrays. A four year schedule slip would prohibit satisfaction of program requirements.

In addition, some specific items in the Ball Aerospace PAA design are proprietary. For example, technical data furnished with the Planar Element (and integrated active electronics) was developed under Ball Aerospace Internal Research and Development effort #41554 for use in the HTNI radiating element, and is furnished with restriction. Building a new antenna subsystem, not using Ball’s antenna element, would be incompatible with the current model and would degrade system performance. This would render the existing system unstable, unreliable, and probably unusable. Spares built with a new design would also be incompatible with the existing system. Furthermore, the time and dollars necessary for development and delivery of second source equipment/support does not fit within the available funding and schedule of this S&T project, and thus second source qualification would result in a failure to support the ONR. The issuance of an ID/IQ contract will provide a mechanism to timely procure Ball Aerospace products, enhancements, and maintenance;

enabling performance of time-sensitive testing critical to NSWCDD/ONR mission needs.

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

Pursuant to FAR 5.201, a notice was synopsized on the Federal Business Opportunities (FEDBIZOPPS) website on 27 March 2014. No other potential sources expressed an interest in this requirement. ONR has competitively funded development of low cost Phased Array antenna technologies resulting in the creation of a unique set Ball Aerospace PAA family of products. Market research was based upon previous contracts awarded competitively by ONR. Ball Aerospace, as manufacturer, is the only known source capable of performing this requirement. Based upon the knowledge gained during these competitive processes, NSWCDD engineers have determined no vendors exist that can provide the necessary support and material for this program within the required time and budget.

7. Determination of Fair and Reasonable Costs

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

8. Actions to Remove Barriers to Competition

NSWCDD has no plans at this time for future contracts of this type, as the ACRA and HTNI programs are scheduled to be completed at the end of Fiscal Year 2019. If a future requirement should arise, a reappraisal will take place to determine whether competition is feasible. The transition of the risk reduction prototype technologies to an acquisition program of record (if completed) will be done through a competitive contracting process to be executed by a follow on acquisition program.

J&A No. DL13218

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. NSWCDD 14-001, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECI3I~aQAL COGNIZANCE:

I ha etermined th’ ~ustification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2 (a) (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 Office, 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.

- (c)(l).

•EE OF THE HEAD OF THE PROCURIN ACTIVITY

~ R~1, ~ Name (Print) Date /

5206.303(90))