N00253-16-P-0433_J A.pdf

J&A Number: 16019 Code: 30 P.R. Number: 1300562739

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea (NAVSEA) Systems Command, Naval Undersea Warfare Center Division, Keyport, WA (NUWC Division, Keyport), Detachment Pearl Harbor Intermediate Maintenance Activity (IMA), Acquisition Department, Code 02, intends to procure the following supplies under circumstances other than full and open competition based on the following.

2. Description of the Action Being Approved

Award of a firm fixed price contract on a sole source basis for Recirculating Loop Chillers for the Test Sets (ATE) to Filtrine Manufacturing Company.

3. Description of Supplies/Services

The procurement is for five (5) Recirculating Loop Chillers (P/N PCP-750S-98A-WP) for the

ATE to replace the existing Recirculating Loop Chillers.

Filtrine Manufacturing Company is the Original Equipment Manufacturer (OEM) and is the only known source that can provide the required Recirculating Loop Chillers, as the ATEs were designed to configure and mate with the Filtrine Recirculating Loop Chiller.

The total estimated value for this procurement is . The unit cost for each Chiller is

. The funding type for this procurement is Fiscal Year (FY) 2016 Operations & Maintenance, Navy (OM&N). The funding planned for this acquisition is currently available.

Delivery of all items will be eight (8) weeks after contract award.

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

4. Statutory Authority Permitting Other Than Full and Open Competition

The statutory authority is 10 U.S.C. 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, as implemented by Federal Acquisition Regulation (FAR) 6.302-1.

5. Rationale Justifying Use of Cited Statutory Authority

The ATEs were originally designed to configure and mate with the Filtrine Recirculating Loop Chiller (P/N PCP-750S-98A-WP). The Filtrine Recirculating Loop Chillers support the

Facility Floor Plan ) at the The Filtrine Recirculating Loop Chillers are located outdoors at the facility and are capable of operating in a humid and hot, outdoor environment. The Recirculating Loop Chillers are required to have a capability of cross connection to a maximum of three (3) ATE’s, in the event of casualty in other Recirculating Loop Chillers located at the

Due to age and obsolescence, the ATEs are no longer procurable. Additionally, the

ATEs support previous modifications of the . The ATE will be replaced with a new design, the , which is currently in the developmental phase. The will be designed to support the new modification of the , and will also be capable of supporting the older modifications. Until the are developed and functional, the ATEs must be supported, as they are the only ATE to test the current configuration . Due to form, fit, function, and compatibility requirements, the Filtrine Chiller is the only known chiller that can support the ATEs.

Currently, all Chillers located at the are being maintained by cannibalizing parts from units that are completely beyond repair. The inter-connectivity to multiple Chillers is being utilized to cool and regulate the temperature on the ATEs.

Optimally, there should be a Chiller to support each ATE to reduce the risk of testing failures and minimizing the strain to the ATE.

The only manufacturer of the Filtrine Recirculating Loop Chiller (P/N PCP-750S-98A-WP) is Filtrine Manufacturing Company, 15 Kit Street, Keene, NH 03431.

The Facility Floor Plan was designed in 1999-2000 and installed in the year 2000.

The Filtrine Chillers were tested to ensure they met the flow rate and maintained the consistent cooling temperature required to run thru the Test Set during the process of testing the , the existing piping runs throughout the building facility and mates to connectors on the Filtrine Chillers. The piping and connectors were approved by NAVFAC for building structure, testing of the pressure, and flow of the water.

NAVFAC installed the pipes and connectors in the building in 2000.

The In-Service Engineering Agent (ISEA) does not have complete specifications necessary for the manufacture of the Chillers. The ISEA would be required to reverse engineer and test other products to ensure that what is chosen would be compatible to form, fit, and function with the existing ATE. A previous attempt was made to competitively solicit the requirement for chillers under solicitation N00253-15-T-0573 using the level of specifications that the Government had and believed would support a full and open competitive requirement. Numerous questions and clarifications were received from the vendor community regarding the specifications provided in solicitation N00253-15-T-0573.

Because the Government did not have the level of specificity required to manufacture the required chiller, the questions and clarifications could not be successfully resolved to ensure technically acceptable quotes. As a result, the solicitation was canceled. Use of any chiller other than the Filtrine Chiller would both compromise the ATE for the and require that the existing piping /connectors throughout the building and facility be modified to mate to a new configuration chiller. All changes to existing piping and connectors would need to be approved by NAVFAC and scheduled for replacement with NAVFAC. Historically this type of a process takes a minimum of 18 months, which would have a high probability of causing delayed deliveries of the to the fleet which may ultimately impact fleet readiness.

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

Market research has been conducted and no additional sources have been identified for manufacturing the Recirculating Loop Chillers. A request for information was posted to FedBizOpps in accordance with the Under Secretary of Defense Memorandum; “Actions to Improve Department of Defense Competition” dated 21 August 2014. Two (2) responses were received from interested vendors. Each vendor provided a capabilities statement in manufacturing alternative chillers, which included years of experience and various types of manufactured chillers. Alternative Chillers will not be acceptable to the Technical Authority because the Government requires the current capability of cross connection inter-capability between three (3) Chillers to ensure that if one (1) Chiller is non-functional, the appropriate temperature can be maintained on all ATEs.

No other manufacturers’ product design will meet the current Facility Floor Plan at the , nor will it meet the environmental requirements of being located in the outdoor environment at Pearl Harbor. Since the were developed sixteen (16) years ago and are no longer procurable, it will not be possible to select alternate sources without extensive costs to the Government. In addition, the functionality of the could be impacted if its required temperature is not maintained.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the cost to the Government for the supplies covered by this Justification and Approval (J&A) will be found fair and reasonable.

8. Actions to Remove Barriers to Competition

Although, the new design ATE will be delivered within the next two (2) years and the design will allow for the continued use of the Filtrine Recirculating Loop Chiller (P/N PCP-750S-98A-WP), the floor plan designation for the ATEs will be modified to allow for other brands of Recirculating Loop Chillers to be utilized. Therefore, competition will exist for future Recirculating Loop Chillers, which eliminates the requirement for a sole source in the future. However, until the ATE is implemented, any future Chiller requirements for the ATE will need to be from the OEM Filtrine Manufacturing Company.