JA__DL13319_(Class_JA)_Redaction_to_post.pdf

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

DAHLGREN DIVISION

6149 WELSH ROAD, SUITE 203

DAHLGREN, VIRGINIA 22448-5117

IN REPLY REFER TO

CJ&A #DL13319

N00178-15-R-1013

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contractive Activity

The Naval Surface Warfare Center Dahlgren Division (NSWCDD), Contracts Department.

2. Description of the Action Being Approved

Award of a Basic Ordering Agreement (BOA) to Insitu on a sole source basis for the procurement of unmanned aerial system (UAS) components, hardware and software upgrades, payload design and integration, and engineering and testing support for ScanEagle and Integrator platforms. Authority to act under this Class J&A (CJ&A) expires 15 September 2020.

3. Description of Supplies/Services

The proposed BOA will provide for parts and upgrades for the existing ScanEagle fleet at NSWCDD, to maintain and upgrade said fleet in support of core range capabilities as well as program-specific needs, and secure engineering and flight support for ScanEagle and Integrator payload integration and testing. This agreement will also allow the procurement of payload design and integration, system modification, engineering support, test support, and field service representative services on-site and off-site for the ScanEagle as well as other longer range and larger payload variants of the ScanEagle, such as the Integrator.

The agreement will also provide for the procurement of training services to ensure that UAS operators at NSWCDD can safely and successfully operate and maintain the UAS fleet.

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

CJ&A #DL13319

value of the BOA is $17.8M and will utilize the following funds as indicated below:

TYPE FY15 FY16 FY17 FY18 FY19 Total

SCC* $350,000 $275,000 $100,000 $387,500 $512,500 $1,625,000

CIP** $0 $0 $2,500,000 $0 $0 $2,500,000

RDT&E $4,375,000 $4,162,500 $2,700,000 $1,250,000 $1,250,000 $13,737,500

Total $4,725,000 $4,437,500 $5,300,000 $1,637,500 $1,762,500 $17,862,500

* Service Cost Center funding ** Capital Improvement Plan funding

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1). Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

Insitu Inc. is the sole designer of the ScanEagle and Integrator UAS’s. These systems were privately developed by Insitu, and Insitu is the sole provider of the hardware and software components required to upgrade NSWCDD’s existing fleet of ScanEagles. Insitu is the only provider of ScanEagle pilot certification, which is required for NSWCDD personnel to safely operate the ScanEagle systems. Also, Insitu is uniquely positioned to support the Government in the requirements analysis and design of new payloads as well as technical support for integration and testing events for both ScanEagle and Integrator systems. Since Insitu owns the ScanEagle and Integrator designs, they are uniquely qualified to ensure that any payload modifications are made within original design constraints. These modifications must be made in a manner that allows payloads to interface properly with existing hardware and the modified ScanEagles to be safely operated. This work can only be performed by the original equipment manufacturer (OEM). Insitu holds 36 US patents, and 76 foreign patents derived from the US patent applications, with 11 US patent applications pending. All of the patents are for inventions that are part of the ScanEagle system, which are also reflected in the larger, congruent Integrator system.

Award of this contract to any vendor other than Insitu would result in the inability to maintain and use the currently owned ScanEagle Systems and would require the acquisition of a similar system to maintain the current UAS capability at NSWCDD.

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

The proposed acquisition was synopsized on the Federal Business Opportunities (FEDBIZOPS) website on 06 April 2015. To date, no responses have been received. Any responses received will be evaluated prior to award.

Initial market research was completed when the ScanEagle systems were initially procured at NSWCDD, as well as during the continued relationship with Insitu over the last nine years for engineering integration and testing support. No additional market research was conducted because it is not practible, for the reasons discussed in paragraph 5 above, for any company other than Insitu to provide the required supplies/services.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies/services covered by this CJ&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 will continue to have a sole-source requirement for support from Insitu for the lifecycle of its ScanEagle fleet. Should NSWCDD seek to expand the capabilities of its UASs and introduce other vehicles, additional market research will be conducted at that time to determine if competition is warranted through the introduction of other unmanned systems.

The circumstances surrounding the need to obtain the required supplies/services without providing full and open competition will be reviewed annually by the Procuring Contracting Officer (PCO).

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 15-001, except as noted herein, are complete and accurate to the best of my knowledge and belief.

COMBINED TECHNICAL AND REQUIREMENTS COGNIZANCE:

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification 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 Competition Advocate for 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).

Designee of the Head of the Contracting Activity

Signature Name (Print) Date

James G. Lofgren 16 June 2015