N00178-17-C-0015_-MCAD_Maintenance_-_Redacted_J&A.pdf

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

DAHLGREN DIVISION

6149 WELSH ROAD SUITE 203

DAHLGREN VIRGINIA 22448-5130

IN REPLY REFER TO

DL: 13714

N00178-17-C-0015

7 February 2017

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.

2. Description of the Action Being Approved

Award of a firm fixed priced contract on a sole source basis for maintenance and support services for the sustainment of critical equipment in support of Pentagon Force Protection Agency (PFPA) to Micro Engineering Software & Hardware (MESH), Incorporated.

3. Description of Supplies/Services

Micro Engineering Software & Hardware, Inc. will be providing the maintenance and support services for the Mobile Chemical Agent

Detector (MCAD) sensor array. The NSWCDD Electromagnetic and

Sensors Systems Department, Chemical, Biological, and

Radiological (CBR) Defense Division, CBR Protection and

Integration Branch requires maintenance and support services for the sustainment of the MCAD sensor array in support of PFPA. The

MCAD sensor array is a critical life safety system on the

Pentagon reservation. Therefore, it is critical that MCAD maintenance support services be procured annually to ensure the operational capabilities of the array systems. This service procurement is required to satisfy PFPA Support Program specific mission requirements related to National Security in direct support of currently fielded equipment and meets the minimum needs of the government.

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

The estimated cost of the proposed contract action is

$1,466,368.00 for a base period of 12-Months, with three (3) option periods of 12-Months each to follow. Annual Defense

Working Capital Funds will be provided as follows:

Type FY17 FY18 FY19 FY20 Total

WCF $350,502 $361,017 $371,847 $383,002 $1,466,368

4. Statutory Authority Permitting Other Than Full and Open

Competition

10 U.S.C.2304(C)(1), One Source or limited sources.

5. Rationale Justifying Use of Cited Statutory Authority

MESH, Inc. is the original equipment manufacturer (OEM) and the owner of the MCAD system technology. This proprietary product is a unique design that requires comprehensive knowledge of the technology to maintain. A copyright and proprietary data limits competition. As the OEM, MESH, Inc, has the unique expertise and access to proprietary data needed to service and maintain the

MCAD systems. No other vendor has the knowledge or permission to service these systems.

Open competition or redesign will present tremendous risk to the capability of the MCAD sensor array, with a likely potential to degrade operational availability for extended periods of time.

If one MCAD system is rendered unrepairable, the replacement cost of one system will be approximately $300,000, with replacement of the full array costing upwards of $1,200,000.00. Inability to procure maintenance service from MESH, Inc. could produce an unacceptable vulnerability in the Pentagon’s CBR Sensor System, which is a critical life safety system of the Pentagon reservation, Pentagon building, and its occupants.

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

Offerors as Practicable

Market research has shown that MESH, Inc. is still the only source with the unique expertise available to perform maintenance on their proprietary MCAD equipment. Market research has also shown that this specific service is not available under the

General Services Administration, Federal Supply Schedules, or the

National Aeronautics and Space Administration Solutions for

Enterprise-Wide Procurement contract vehicles. Additional research on the OEM website and through email contact with the

OEM representative has shown that there are no distributors available worldwide with only MESH, Inc. providing service and sales within the United States. The representative has verified that this product is not available from distribution/resellers.

It is sold direct from the company.

A Sources Sought notice for the acquisition was posted on the

Federal Business Opportunities (FEDBIZOPS) website on 9 January 2017 requesting capability statements from interested vendors to confirm that the OEM was the sole source provider for the requested maintenance and support required. No responses were received during this timeframe.

The proposed contract was then synopsized on the FEDBIZOPPS website on 20 January 2017 and only MESH, Inc. expressed interest in this requirement. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than MESH, Inc. to provide the required equipment.

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 the J&A will be fair and reasonable.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, NSWCDD Contracts

Department has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, NSWCDD Contracts Department will assess whether competition for future requirements is feasible.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 6.303-2(c))

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning data are complete and accurate to the best of my knowledge and belief.

Melody Ryan, B22, Phone No., Date

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

Brian K. Kau, Legal Counsel, 00L, Phone No., Date

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.

Angela Bowling, Contracting Officer, 026, Phone No., Date

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(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C.

2304(c)(1).

Chief of the Contracting Office

8 March 2017

Thomas Duval, 02, Date