2.02a Attachment I - ASN Justification & Approval_Redacted.pdf
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- Attached to
- Microchip Technology Parts and Maintenance
- Solicitation number
- N0018927RL009
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Justification and Approval for Sole Source Contract (J&A No. 26-286)
This is a Justification and Approval document for the establishment of a sole source, Firm Fixed-Price, Indefinite-Delivery Indefinite-Quantity (IDIQ) contract between the U.S. Naval Observatory (USNO) and Microchip Technology, Inc. The contract is a follow-on to current IDIQ N0018924D0024, awarded to Microchip Technology, Inc. on September 20, 2024. The new IDIQ will commence on March 24, 2027, and continue through March 23, 2031, with an estimated dollar value across the five-year ordering period and FAR 52.217-8 option. The contracting activity is NAVSUP Fleet Logistics Center Norfolk in Norfolk, Virginia, on behalf of USNO in Washington, D.C. Microchip Technology, Inc. is classified as an other-than-small business.
USNO requires parts, repairs, upgrades, replacements, and updates to specialized timing equipment, specifically Hydrogen Masers, Cesium Atomic Clocks, and Auxiliary Output Generators (AOG). This equipment is critical to USNO's mission of producing and disseminating precise time, astrometry, and Earth Orientation Parameters to the Department of Defense and Intelligence Community for navigation support. The contract will be funded through Navy Operations & Maintenance (O&MN) appropriations on a delivery order basis. The sole source justification is based on Microchip Technology, Inc.'s proprietary technology, unique experience, and stringent uptime requirements for these highly specialized atomic frequency standards—the only domestically produced clock ensembles available. A Sources Sought Notice issued on August 26, 2026, yielded no competing vendors, and Microchip Technology, Inc. demonstrated high potential for successful performance with extensive knowledge of USNO's atomic frequency standards and capability to provide on-site maintenance at four locations: Washington, D.C.; Colorado Springs, California; Flagstaff, Arizona; and Kokee Park Geophysical Observatory, Kauai, Hawaii.
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DEPARTMENT OF THE NAVY
NAVSUP FLEET LOGISTICS CENTER NORFOLK
1968 GILBERT STREET SUITE 600
NORFOLK VA 23511-3392
J&A No. 26-286
JUSTIFICATION AND APPROVAL
FOR USE OF OTHER THAN FULL AND OPEN COMPETITION
1. Contracting Activity.
The requiring activity is the United States Naval Observatory (hereinafter, “USNO”), located in
Washington, DC; the contracting activity is NAVSUP Fleet Logistics Center (FLC) Norfolk, Contracting Dept., Fleet Directorate.
2. Description of the Action Being Approved.
This a sole source action to establish a Firm, Fixed-Price, Indefinite-Delivery, Indefinite-
Quantity (IDIQ) type contract with Microchip Technology, Inc., an other-than-small business.
This sole source action is for the provision of parts, repairs, upgrades, replacements, and updates to specialized timing equipment previously procured under multiple sole source contracts and now IDIQ N0018924D0024.
This action is a follow-on to current IDIQ N0018924D0024, awarded to Microchip Technology, Inc. on a firm, fixed-Price (hereinafter, “FFP”) sole source basis. N0018924D0024 was awarded on 20 September 2024 with a total ceiling of . Due to the efficient ordering structure of the current IDIQ and the increased demand for National Security through means of the DoD Master Clock, USNO requires a new IDIQ with an estimated ceiling of
Once the ceiling is met on N0018924D0024, it is crucial to have a new IDIQ in place as awarding sole source purchase orders to Microchip Technology, Inc. requires unnecessary additional Government funding and man hours.
3. Description of Supplies/Services.
USNO is responsible for the production and dissemination of Precise Time, Astrometry, and
Earth Orientation Parameters (EOP) to the Department of Defense (DoD) and to the Intelligence
Community (IC) for use in navigation under DoD Instruction (DoDI) 4650.06, Positioning, Navigation, and Timing Management (July 30, 2020). This mission includes maintaining the
Master Clock for the DoD; maintaining and disseminating Network Time Protocol (NTP);
maintaining and disseminating GPS timing products and services; Two-Way Satellite Time
Transfer; development and dissemination of Earth Orientation Data products to the DoD;
telescope operations and maintenance; Astrometric Observations analysis; and Celestial
Reference Frame management. The successful operations of all of these activities requires management and maintenance of multiple highly specialized pieces of astronomy and physics equipment, including frequency standards (e.g., atomic clocks) and related equipment. USNO’s atomic frequency ensemble relies on the lowest noise, most stable, and reliable commercially available frequency standards and connections, and maintaining all equipment in good order.
Source Selection Information – See FAR 2.101 and 3.104
• Capabilities statement shows ability to provide required
Hydrogen Masers, Cesium Atomic Clocks, and Auxiliary
Output Generators (AOG) as a whole, parts, and maintenance.
• Ability to provide on-site maintenance to all required
USNO locations, including:
o Washington, D.C.
o Colorado Springs, CA o Flagstaff, AZ o Kokee Park Geophysical Observatory (KPGO), Kauai, HI
• Maintenance and support programs ensure continued system performance and accuracy while enabling lower maintenance costs, product lifecycle extension to maximize return on investment (ROI) and optimization of the reliability and performance of equipment/system.
• Current Microchip Technology, Inc.’s personnel have proper clearances with experience that aligns with the requirements of USNO.
• Demonstrates ability to support frequent orders on IDIQ-type contract.
• Offers one-year warranty on Microchip Technology Inc.’s hardware with an option for extended warranty.
• Based on this assessment, the vendor is capable of fulfilling this procurement as required.
7. Determination of Fair and Reasonable Cost.
The Contracting Officer has determined that the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable.
8. Actions to Remove Barriers to Future Competition.
For the reasons set forth in Paragraph 5, NAVSUP FLC Norfolk has no plans at this time to compete future contacts for the types of supplies covered by this requirement. If another potential source emerges, FLCN will assess whether competition for future requirements is feasible.
In accordance with DFARS PGI 206.103-170(d), a sources sought notice was issued on 26
August 2026. See paragraph 6 for details regarding SSN.
To date, no other sources expressed an interest in the requirement.
Source Selection Information See FAR 2.101 and 3.104
J&A No. 26-286
CERTIFICATIONS AND APPROVAL
TECHNICAL/REQUIREMENTS CERTIFICATION
I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.
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