G7 Redacted JA (STRIDENT)_FINAL.pdf

ANNEX 1 - JUSTIFICATION AND APPROVAL

J&A Number: 123006

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

The Naval Sea Systems Command (NAVSEA), Naval Surface Warfare Center, Panama City Division (NSWC PCD).

2. Description of the Action Being Approved

Award of an Indefinite Delivery, Indefinite Quantity (IDIQ) type contract containing Firm Fixed Price (FFP) and cost-type elements on a sole source basis to Cardinal Point Captains, Inc. (CPC) (CAGE Code 5M4X7, SDVOSB) 5005 Texas St Ste. 104, San Diego, CA 92108, for Blueprint Subsea brand ArtemisPRO advanced diver navigation and sonar imaging systems (ArtemisPRO) in support of the U.S. Navy Standoff Target Reacquire Identify Detection Expeditionary Navigation Tool (STRIDENT) program.

3. Description of Supplies/Services

ArtemisPRO is a one-person deployable imagery and diver navigation system used to search, detect, locate, reacquire and identify mines, other underwater explosive threats, and other objects of interest during EOD and MDS operations to include, but not limited to, Mine Countermeasures (MCM), Underwater Search, and Expeditionary Salvage diving operations.

CPC represents the original end manufacturer of the ArtemisPRO, Blueprint Design Engineering Limited (OEM) in the United States, and it is the only authorized representative to resell these systems.

NSWC PCD has a requirement to procure up to 200 ArtemisPRO systems to include production units, spares, consumables, training, and technical manuals. The proposed ordering period will have a 12-month base period for 50 systems with five 12-month ordering periods for 30 systems per option period.

The total estimated value of this procurement, including options, is The estimated amount to be expended by fiscal year is provided as follows:

Given the complexity of the STRIDENT requirements and the level of system knowledge required, CPC is the only source capable of successfully fabricating production-level systems and providing technical manuals, support documentation, and OEM proprietary data rights for the ArtemisPro system. The Government expended approximately for the above-mentioned OTA down-select competition that is not expected to be recovered by further competition. Additionally, only the ArtemisPro system met the Government’s requirements to enter production. Furthermore, based on the test results leading to CPC’s ArtemisPRO selection, it would take at least 24 months for another source to develop, implement, and test the improved capabilities. And, this delay would be in addition to approximately three years the Government has already expended in the OTA prototype down-select competition. The current initial operational capability planning date for ArtemisPRO is 2QFY25, with the funding lines appropriately aligned to meet this goal. To achieve this milestone, the Government must initiate fielding of the ArtemisPRO to the fleet no later than 2QFY24.

. The MK 15 reached full operational capability in 2007, and was being maintained by its vendor. However, in 2010, the MK 15 vendor notified the Government that it would no longer support this legacy system. Since this time, the Government has fixed what can be fixed, and cannibalized parts from those systems that have been deemed Beyond Economic Repair (BER). The fleet inventory of the MK15

. Therefore, a delay of 24 months represents an unacceptable delay to the Government.

Consequently, CPC is the only responsible source for the following reasons: (1) CPC is the only authorized reseller in the United States for the OEM of the ArtemisPRO system, including access to the OEM’s proprietary data; (2) awarding to another company would result in substantial duplication of costs to the Government of approximately which is not expected to be recovered through competition; and (3) unacceptable delays of more than 24 months in fulfilling the Government’s requirements by another company.

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

A sources sought notice was published on the Government point of entry SAM.gov website from 21 March 2023 to 5 April 2023, pursuant to DFARS PGI 206.302-1, Only one responsible source and no other supplies or services will satisfy the agency requirements. Additionally, the contracting activity synopsized this proposed acquisition including the Government’s intent to sole source an award to CPC in sam.gov from 05 April 2023 to 20 APR 2023, per FAR 5.204.

CPC was the only entity responding to the announcements. No other companies expressed interest. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than CPC to provide the required ArtemisPRO advanced diver navigation and sonar imaging systems.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated prices 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, NSWC PCD Contracting 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, NSWC PCD Contracting Department will assess whether competition for future requirements is feasible.

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