N0025323Q0045_Signed Sole Source_Redacted.pdf

DEPARTMENT OF THE NAVY

N AV AL UN DERS E A W AR F AR E CE N TE R D IV IS I O N

6 10 D OW E L L S T RE E T

KE YP OR T , W AS H IN G TO N 9 8 3 45 - 7 61 0

J&A Number: 23035 Code: 513

P.R. Number: Unknown

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Undersea Warfare Center, Division Keyport (NUWC Keyport), Contracts Department, Code 024 in support of the Unmanned and Theater Undersea Warfare Systems Department, Code 513

2. Description of the Action Being Approved

Award of a commercial firm fixed price contract on a sole source basis for the calibration services on Hyperbaric Oxygen Analyzers, Geotech Model HYPB 2.0, in support of

3. Description of Supplies/Services

The components listed in Table 3-1 are required to be serviced and calibrated by the Deep Submergence Systems – Scope of Certification (DSS-SOC) qualified Vendor, QED Environmental Systems Limited, (formerly Geotechnical Instruments Ltd.) on an .

Table 3-1. Hyperbaric Oxygen Analyzer Servicing.

Contract Option Quantity Component Unit Cost

Total Cost

Base 34 Hyperbaric Oxygen

Analyzers

Option 1 58 Hyperbaric

Option 2 68 Hyperbaric

Total 160

QED Environmental Systems, Limited was previously Geotechnical Instruments (UK) Ltd. In 2016, Geotechnical Instruments was acquired by Graco Inc. (www.graco.com) through their QED Environmental Systems, Limited subsidiary.

In 2018, Geotechnical Instruments was rebranded as QED Environmental Systems, Limited to make a single, global autonomous business, with QED Environmental Systems, Limited becoming the company's corporate brand. However, product brand names, such as the Geotech Hyperbaric Oxygen Analyzer, were retained by QED Environmental Systems, Limited.

The estimated value of the Hyperbaric Oxygen Analyzer service contract, including the base year with two options is . Base year services will be funded with 0941 OPN multi-year direct cite funding that expires in FY24.

The contract must be awarded no later than , to meet the Hyperbaric Oxygen Analyzer

. The timeframe for calibration of a unit, including roundtrip shipments and service time at the vendor, is . If not awarded in a timely manner, the lack of Hyperbaric Oxygen Analyzers will directly impact divers' ability to perform

. Without calibrated Hyperbaric Oxygen Analyzers, no diving activities can be performed.

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

The Hyperbaric Oxygen Analyzer is not patented, however, QED Environmental Systems, Limited intellectual property exists within the firmware, software, and calibration algorithms of the Hyperbaric Oxygen Analyzer. All drawings that govern the sensors, filters, and circuit cards are protected by the company, QED Environmental Systems, Limited. Specific filters and sensors are replaced by the company at in order to obtain and maintain calibration throughout the lifecycle of the equipment.

The Hyperbaric Oxygen Analyzer is the only analyzer authorized for use in diver Lock-Out Chambers, Lock-Out Trunks, and Dry Deck Shelters. These units are used to test diver quality air prior to any diving operations.

Additionally, QED Environmental Systems, Limited is the sole DSS-SOC certified vendor who can service the Hyperbaric Oxygen Analyzers.

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

The Hyperbaric Oxygen Analyzer DSS-SOC process took approximately years and and included product development, safety and material testing, and environmental testing to prove it was an effective system that would ensure diver safety in operational environments. Version

2.0 required approximately additional years of development and testing. As it would be cost prohibitive, the is not currently pursuing alternative products or designs.

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

Because this procurement is being exercised in support of DSS-SOC Full Compliant equipment, and for reasons set forth in Paragraph 5 and 6, NUWC Division, Keyport has no plans at this time to compete future contracts for the types of services covered by this document.