Justification__Approval_-_SBIR_-_Data_Analytics_Support_Services_-_FBO.pdf

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D STATES OF AM

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DEPARTMENT OF THE NAVY

MID-ATLANTIC REGIONAL MAINTENANCE CENTER

9727 AVIONICS LOOP

NORFOLK VA 23511-2124

SMALL BUSINESS INNOVATION RESEARCH (SBIR) PHASE III JUSTIFICATION & APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Agency and Contracting Activity:

The Naval Sea Systems Command, Mid-Atlantic Regional Maintenance Center (MARMC).

2. Nature/Description of the Action Being Approved

This is a justification to award a Small Business Innovation Research (SBIR) (or Small Business

Technology Transfer (STTR) Phase III contract to ITA International, LLC.

ITA International, LLC is a small for-profit business concern that is directly owned and controlled by individuals who are U.S citizens. Because of their common ownership by the same individuals, ITA International is affiliated with ITA Blacksburg, LLC and ITA Yorktown, LLC. Although they are affiliated, each of these entities qualify as small because their aggregated number of employees is fewer than 500. In May 2017, pursuant to an Asset Purchase Agreement, ITA Blacksburg acquired several assets from 21st Century Systems, Inc. The acquired assets included several SBIRs

(the 21st Century SBIR Topics”). On 4 June 2017, ITA International, LLC purchased the

Intellectual Property (IP), data rights and technology from 21st Century Systems (21CSI) to SBIR technologies, EXLOG21-Based Logistic Common Operational Picture (LOGCOP). In November

2017, ITA Yorktown acquired 89 of the 21st Century SBIR Phase I and Phase II Topics from ITA

Blacksburg. Immediately thereafter, ITA International acquired 13 of the 21st Century SBIR Phase

I and Phase II Topics from ITA Yorktown. EXLOG/LOGCOP SBIR Phase I contract number, N00014-02-M-0026 was awarded respectively on 28 Nov 2001 resulting from Solicitation 01.1, Topic N01-137. Topic N01-037 was entitled “Expeditionary Logistics”. EXLOG/LOGCOP was subsequently awarded SBIR Phase II contract number N00014-02-C-0523 on 3 Dec 2002.

Topic N01-137 sought to use logistics modeling and simulation to establish a qualitative and quantitative disciplined approach to weighing technology focus areas against the larger Naval expeditionary logistics mission. Rapidly define the greatest return on investment for needed capability or requirement in the overall acquisition investment strategy. Setting requirements and acquisition priorities within the Naval logistics community is a challenge. The systems engineering aspect of Naval operational logistics, and the benefit of a logistics simulation in this area, has proven a complex and challenging problem. The wide variety of variables that must be considered complicates the problem set-up and problem-solving environments.

3. Description of Supplies/Services

This contract will provide the required Data Analytics Services to evaluate, tailor, and apply the existing Small Business Innovation Research (SBIR) (NOI 137) EXLOG21-Based Logistic

Common Operational Picture (LOGCOP) tool suite to support continued implementation, sustainment management, and future development of MARMC Data Analytics Support Services.

This Phase III SBIR contract will extend the work from the Phase II contract to collect data from various departments within the command and to establish a functional data analytics module for

MARMC. This module will assist in planning and decision making for MARMC leadership on various topics from Critical Path to Manpower Planning in support of On Time Delivery.

Necessary data and information will be collected and analyzed to provide feedback and recommendations on improving the overall MARMC Data Analytics program. This effort integrates desired capabilities from LOGCOP with MARMC’s desired capabilities for a Data

Analytics Module (DAM) using the latest technologies to produce a LOGCOP-DAM tool capable of supporting data analytic needs. There is a tremendous need to develop a knowledge management tool that will provide MARMC the ability to strategically analyze data. The main goal of this tool is to accomplish the nine (9) key Specific, Measurable, Attainable, Relevant and

Timely (SMART) goals to support MARMC’s #1 initiative, On-Time Delivery of Ships.

LOGCOP-DAM provides the medium to accomplish this by developing and implementing a sense and response information sharing architecture, whereby presenting near real-time data to MARMC and its many stakeholders.

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(5), as implemented by FAR 6.302-5: Authorized or Required by Statute.

15 U.S.C. 638(r)(1) states:

“In the case of a small business concern that is awarded a funding agreement for Phase II of a

SBIR or STTR program, a Federal agency may enter into a Phase III agreement with that business concern for additional work to be performed during or after the Phase II period.”

Furthermore, 15 U.S.C. 638(r)(4) states:

“To the greatest extent practicable, Federal agencies and Federal prime contractors shall issue

Phase III awards relating to technology, including sole source awards, to the SBIR and STTR award recipients that developed the technology.”

5. Demonstration that Proposed Contractor’s Unique Qualifications or Nature of Acquisition

Requires Use of Authority Cited.

The nature of the acquisition requires the use of the authority cited. The SBIR/STTR Programs are structured in three phases. Phase I (project feasibility) determines the scientific, technical and commercial merit and feasibility of the ideas submitted. Phase II (project development to prototype) is the major research and development effort, funding the prototyping and demonstration of the most promising Phase I projects. Phase III (commercialization) is the ultimate goal of the SBIR/STTR Programs. Because the Phase III work derives from, extends, or completes efforts performed under Phase I and Phase II, use of the authority cited is required.

6. Description of Efforts Made to Ensure Offerors Were Solicited from as Many Potential Sources as

Practicable/Public Notification through Government Point of Entry (GPE).

The topic for this effort was included in the Department of Defense Program Competitive

Solicitation issued under the SBIR Program. As described above, only ITA International is being considered for Phase III award due to the nature of the acquisition. In accordance with FAR

5.202(a)(7), this proposed contract action does not require public notification to the GPE.

7. Determination of Fair and Reasonable Cost

The Contracting Officer will determine prior to award that the negotiated price of the contract executed under this justification is fair and reasonable pursuant to FAR Subpart 13.106. This determination will be documented in the Business Clearance Memorandum, which will be included in the contract file.

8. Description of Market Research or Statement of the Reason Market Research was not Conducted.

FAR 10.001(a)(2) indicates that market research appropriate to the circumstances must be conducted. SBIR Phase III procurements are such that traditional market research to identify alternative sources is generally unnecessary. As described above, the Phase III work derives from, extends, or completes efforts performed under Phase I and Phase II. However, market research was conducted and will be documented in the Market Research Memorandum, which will be included in the contract file.

9. Any Other Supporting Facts.

Not applicable.

10. Listing of Interested Sources.

Not applicable.

11. Actions Taken to Remove Barriers to Future Competition.

The Contracting Officer is not aware of any specific actions that would further remove barriers to competition. SBIR Phase III sole source awards are an authorized exception to competition.

12. Period of Performance.

Base: One year

Option(s): Not Applicable.

13. Total Estimated Dollar Value of the Acquisition Covered by this J&A, with Funding Specified by

Year and Appropriation.

The total Independent Government Estimate of this acquisition is . O&M FY19 funding is anticipated to be allocated.

14. Actions Attempted to Make Immediate Acquisition Competitive and Cost/Benefit Analysis

15 U.S.C. 638(r)(4) states:

“To the greatest extent practicable, Federal agencies and Federal prime contractors shall issue

Phase III awards relating to technology, including sole source awards, to the SBIR and STTR award recipients that developed the technology.”

Furthermore, SBIR Phase III sole source awards are an authorized exception to competition.