M98_J Av5_redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

DAHLGREN DIVISION

6149 WELSH ROAD SUITE 203

DAHLGREN VIRGINIA 22448-5130

IN REPLY REFER TO

J&A Number: DL13405.1

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

The purpose of this Justification and Approval (J&A) revision is to update paragraph (3) to increase the value from $17,265,800 to

$19,272,890 as a result of completing an analysis of the proposed values in response to RFP N00178-16-R-1003. All other terms and conditions remain unchanged and are in full force and effect.

Paragraph (3) is revised to read as follows:

3. Description of Supplies/Services

The estimated quantity of the proposed acquisition is 13,000 filters for a period of performance of 24 months. The estimated value of $19,272,890 is based on the unit costs shown below:

Fund Type Year 1 FY16 OMN Year 2 FY17 OMN Total

Quantity 7,000 6,000 13,000

Unit Cost $1,482.53 $1,482.53

Total $10,377,710 $8,895,180 $19,272,890

APPROVAL BLOCK (FAR 6.304 for Approval Official)

Upon the basis of the above justification, I hereby approve, as the 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).

Division Director, Surface Systems Division (NAVSEA 025) xxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxx__James G. Lofgren________ ____

Signature Name (Print) and Title (Code) Phone No. Date

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

DAHLGREN DIVISION

6149 WELSH ROAD SUITE 203

DAHLGREN VIRGINIA 22448-5130

IN REPLY REFER TO

DL 13405

N00178-16-R-1003

4 NOVEMBER 2015

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.

2. Description of the Action Being Approved.

This justification proposes to limit the number of sources for the acquisition of M98 Gas Particulate Filter Sets to the only two qualified sources, Design West Technologies (DWT), 2701 Dow Ave., Tustin, CA 92780 and HDT Expeditionary Systems Inc. (HDT), 30500

Aurora Road, Suite 100, Solon, OH 44139. The basis for award is a multiple award indefinite-delivery-indefinite-quantity (ID/IQ) contract, where each delivery order will be competed by the two qualified sources.

3. Description of Supplies/Services.

The contractor shall provide M98 Gas Particulate Filter Sets. The

M98 Particulate Filter sets remove all known chemical, biological and radiological contaminants from the air stream and are an integrated part of collective protection over pressurization systems.

NSN: 4240-01-369-6533

GENERIC NAME DESCRIPTION: FILTER SET, GAS PARTICULATE

PSC: 4240

FSCM: 81361

PART NR: MIL-PRF-51527

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

The estimated quantity of the proposed acquisition is 13,000 filters for a period of performance of 24 months. The estimated value of $17,265,800 is based on the unit costs shown below:

Fund Type Year 1 FY16 OMN Year 2 FY17 OMN Total

Quantity 7,000 6,000 13,000

Unit Cost $1,310.00 $1,349.30

Total $9,170,000 $8,095,800 $17,265,800

4. Statutory Authority Permitting Other Than Full and Open

Competition.

10 U.S.C. 2304(c)(1). Only one responsible source or only a limited number of responsible sources and no other types of supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

Pursuant to 10 U.S.C 2304(c)(1), Full and Open competition is not feasible based on first article test requirements. First article test efforts have already been conducted under a US Army procurement effort. The purpose of first article testing is to substantiate the manufacturing capability and ensure the manufacturing line is in place to consistently manufacture an item to the DOD’s specifications. First article testing was recently completed for the M98 Gas Particulate Filter Set (NSN 4240-01-369-

6533) in support of US Army TACOM procurement in the first quarter of calendar year 2014. Presently, only two vendors have successfully passed first article testing for the M98 Gas particulate Filter Sets and received a First Article Test Report

(FATR) Approval Letter. The two vendors are DWT and HDT.

The contracted cost to perform first article testing for this TACOM procurement was $722,096.08, which consisted of $610,670.66 for DWT and $111,425.42 for HDT. The timeframe to perform the first article testing, analyze results, and resolve discrepancies was approximately 9 months; however, the timeline to perform first article testing for any vendor may vary based upon the discrepancies identified during the testing.

In order to perform first article testing, a company must have a production line set up for the M98 Gas Particulate Filter Set. If this production line does not already exist, it may take up to one year to set up the production line to produce the first filter sets for testing. The actual first article testing timeframe is approximately three months. This estimated timeframe is based upon the milestone plan utilized for the first article testing conducted in 2014 for the TACOM acquisition. The remainder of the timeframe associated with first article testing is the time required for analysis and review of findings, depending upon the results of the testing. Any discrepancies identified during testing must be resolved, which may require changes to the production line, reproduction of filter sets, and retesting of specific aspects of the filter sets where discrepancies were identified. The estimated timeframe for this analysis and review of findings is six months, but this timeline can vary greatly depending upon the severity of the discrepancies identified.

Based upon the fact that first article testing was recently completed on the M98 Gas Particulate Filter Set in early 2014 for these two vendors, DWT and HDT, it is estimated that the cost to the Government to complete first article testing for additional vendors for this acquisition is estimated between $100k and $600k per vendor. Because the proposed acquisition is a multiple award

ID/IQ, and each order will be competed among all contract holders, the first article costs exceed any cost savings to be obtained through the full and open competition of this requirement.

Additionally, the timeframe required to conduct new first article testing, estimated at approximately 21 months based on the timeline experienced by TACOM in 2014, would result in significant delays adversely impacting the installation of the filter sets on US Navy installations and ships as the first installations are currently scheduled to occur in the Spring of 2016.

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

Offerors as Practicable.

In accordance with FAR 5.201, a synopsis of proposed action and a request for information (RFI), were posted on the Federal Business

Opportunities (FEDBIZOPS) website as a limited source requirement on 1 September 2015. Parker-Hannifin Corporation, DWT and HDT, expressed an interest in this requirement, however only DWT and HDT have completed first article testing. Additionally, Parker-Hannifin

Corporation proposed to manufacture these items overseas, which presents certain challenges as the specifications to produce the

M98 filters are currently export controlled and no details were provided on how this would be accomplished. Based on a review of the information gathered from the RFI, no additional market research was conducted because it was determined that, for the reasons set forth in paragraph 5 above, it was not practical for any company other than DWT and HDT to provide the required supplies and services.

7. Determination of Fair and Reasonable Cost.

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

The basis of award is a multiple award indefinite delivery indefinite quantity (IDIQ) contract, where each delivery order will be competed by the two qualified sources.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, the Program Office plans to continue to conduct a limited competition between DWT and HDT for the M98 filters covered by this document due to the costs associated with qualifying another source and the expectation of not recovering that cost. The Navy plans to maintain competition between the two sources as long as is practicable, in accordance with the Office of the Under Secretary of Defense (Acquisition, Technology, and Logistics) Better Buying Power guidance that emphasizes promoting competition.

COMBINED TECHNICAL/REQUIREMENTS COGNIZANCE (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, except as noted herein, are complete and accurate to the best of my knowledge and belief.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx fdghdfgsdfgsdgfdgsdfgsdgdfsgfdgdfgsdgdfsgdfgdsfgsdgfdgfdgsdgdfgsdg dsfgsdfgsdfgsdfgfdxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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 Approval Official)

Upon the basis of the above justification, I hereby approve, as the

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).

Division Director, Surface Systems Division (NAVSEA 025):

xxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxx James G. Lofgren 12-4-15