E21 - Redacted Sole Source Justification.pdf

MEMORANDUM

SUBJ: SOLE SOURCE JUSTIFICATION MEMORANDUM TO ACQUIRE SDV MK8

HYDROID TRANSPONDERS

1. Identification of the agency and the contracting activity, and specific identification of the document as a “Sole Source Justification.”

This is a sole source justification. Contracting activity is:

Naval Sea Systems Command Naval Surface Warfare Center Panama City Division (NSWC PCD) 110 Vernon Avenue Panama City, FL 32407-7001

2. Nature and/or description of the action being approved.

This action will award a firm fixed price order to the following:

HII Unmanned Systems, Inc.

1 Henry Drive Pocasset, MA 02559 Cage: 4Z5A9

3. A description of the supplies or services required to meet the agency’s needs (including the estimated value).

This requirement is to purchase the following: SDV MK8 Hydroid Transponders, as described below.

Line No.

Item Part Number Qty

1 ASSY; Transponder; CSS-LV;

Aluminum; ID2

161907-2 10 EA

2 Associated Freight Costs FREIGHT 1 EA

The Government’s minimum needs have been verified by the certifying technical and requirements personnel. This memo does not authorize acquisition for other requirements. This acquisition will be conducted using simplified acquisition procedures with a total dollar value above micro-purchase levels but not exceeding the simplified acquisition threshold of $350,000.00. The items will be submitted no later than 39 weeks after award of the order.

4. Justification Rationale

This acquisition is conducted under the authority of FAR 12.102, Restricting Competition. The determination has been made that only one source is reasonably available to meet the Government's minimum needs.

NSWC PCD currently has a need for Seal Delivery Vehicle (SDV) MK8 hydroid transponders, as referenced in Section 3 of this document. HII Unmanned Systems is the OEM and the only approved source of supply for the items listed in Section 3 per the approved engineering drawing.

The purchase of a different brand of transponder would necessitate approximately 6 months or more of work to ensure compatibility of the alternate transponder with the SDV system.

Additionally, further work would be required to approve it for use with the SDV system. The additional time and expense generated by these efforts would result in unacceptable risk to the project timeline and additional cost to the Government.

As such, the government does not expect significant savings through competition and it is more advantageous to the Government to award on a sole source basis to HII Unmanned Systems for the items listed in Section 3.

5. Best Value Determination in Accordance with FAR 12.102(a)

The Contracting Officer has determined that this order represents the best value to the Government. This determination is based on the unique and time-sensitive mission requirements of Code S11. Awarding this as a sole-source order is the most advantageous approach. The best value is achieved by ensuring mission readiness and avoiding the costs and operational impacts of extended equipment downtime.

6. A description of the market research conducted among schedule holders and the results, or a statement of the reason market research was not conducted.

The purchase amount is greater than $25,000 and will be synopsized on the Contract Opportunities website at sam.gov. No additional market research was conducted for the reasons discussed in paragraph 4 above, for any company other than HII Unmanned Systems, Inc. to provide the products.

7. Any other facts supporting the justification. None.

8. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made.

As stated in paragraph 4 above, HII Unmanned Systems, Inc. is the only source that can meet the requirement.