N6134019C0029_FY19_SBIR_P3_NITELAB_3-11-2019_SB_Redacted.pdf

J&A_19_0216

IN REPLY REFER TO:

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center Training Systems Division (NAWCTSD) - Orlando, FL

2. Description of the Action Being Approved.

Aechelon Technology, Inc. (Aechelon) was awarded a Small Business Innovative Research (SBIR) Phase I contract, N68335-04-C-0038, resulting from topic number N04-156, “New Modeling and Simulation Technology for Night Vision Goggle Mission Rehearsal”. The Phase I contract required Aechelon to develop a capability that provided a modeling and simulation technology to supplement Navy requirements for night vision goggle (NVG) instruction and provide mission rehearsal for ground and aviation operations. The output of the Phase I contract was the design, development, and demonstration of a proof-of-concept capability part task training package that could aid in the instruction of core NVG training objectives, to demonstrate NVG scene effects, and to provide a mission preview capability using real-world databases.

Aechelon was subsequently awarded a SBIR Phase II contract, N68335-10-C-0145, to mature the Phase I design and continue the development of NVG part task training package. The output of the Phase II and extension work was a part task training package that was based on high fidelity, physics-based NVG simulation for the MH-60S, MH-60R, MH-53E and CH-53E Weapons Systems Trainers. At the conclusion of Phase II, subsequent funding was awarded on a Phase III contract, , to mature the Phase II proof of concept demonstrator to a generalizable out the window trainer (without platform-specific cockpit visualizations) to provide part task training based on high fidelity, physics-based NVG simulation. Devices were fielded to meet U.S. Navy and Marine Corps training requirements for utilization of NVG equipment.

This justification and approval authorizes and approves awarding a Small Business Innovative Research (SBIR) Phase III contract to Aechelon. This Phase III contract will procure advanced part task training devices that extend and derive from the previous SBIR funded efforts, delivering part task trainers with simultaneous side-by-side viewing of simulated NVG and Forward Looking Infrared (FLIR) scenes through advanced Image Generators (IGs), as well as quarterly cybersecurity reports.

3. Description of Supplies/Services.

This Phase III contract requires Aechelon to deliver NITE LAB part task trainers derived from research and development completed under the Phase I and Phase II contracts. Work to be conducted by Aechelon under the Phase III contract includes the delivery and implementation of part task training packages that provide instructors with a capability to simultaneously view simulated NVG and FLIR scenes within a single system package through the use of IGs. Specifically, Aechelon will deliver a Windows 10 technical update for existing U.S. Navy & Marine Corps NITE Lab Part Task Training (PTT) systems with an upgraded 1080P HD projector at each of the 23 NITE Lab sites. This procurement will include instructor operator manuals, test procedures, software integrity statement, drawing data, configuration files, quarterly progress reports and necessary license information. In addition, this SOW outlines one-year of cybersecurity through delivery of quarterly reports.

The total estimated value of the effort is . The NITELAB Phase III contract will be funded with Fiscal Year (FY) 17, 18, and 19 APN funding. This funding will provide implementation and delivery of advanced part task trainers and image generators that support simultaneous side-by-side viewing of simulated NVG and FLIR scenes. Device cost (including shipping an onsite CONUS integration) is

Estimated Dollar Value

FY17 FY18 FY19 Total by Type

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 Small Business Innovation and Research (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.“

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. Rationale Justifying Use of Cited Statutory Authority.

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 Il (project development to prototype) is the major research and development effort, funding the prototyping and demonstration of the most promising Phase I projects. Because the Phase III work derives from, extends, or completes efforts performed under Phase I and Phase Il, use of the authority cited is required. Aechelon was awarded a Phase I SBIR contract N68335-04-C-0038, and subsequently a Phase II SBIR contract N68335-10-C-0145. Aechelon has continued to deliver capabilities that derive or extend from these efforts under Phase III contracts and purchase orders: N68335-10-C-0096, N61340-13-P-0089, N61340-14-C-0004, and N61340-14-P-0004.

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

The SBIR Topic N04-156 was selected through a competitive SBIR award. As described above, only Aechelon is being considered for Phase Ill award due to the nature of this effort. In accordance with FAR 5.202(a)(7), this proposed contract action does not require public notification to the Government Point of Entry (GPE).

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402(a), the Contracting Officer shall ensure that all supplies and services are procured at a fair and reasonable price. The contractor will submit a formal price proposal with certified cost and pricing data in accordance with FAR 15.403-4 and sufficient information to support the accuracy and reliability of the estimate. Aechelon’s proposal will be reviewed by experienced technical analysts and contract specialists. Price analysis will be conducted in accordance with FAR Part 15.404-1. The Contracting Officer will use cost and price analysis as the basis for negotiating fair and reasonable prices.

Lastly, historical contract cost data and other relevant information will be utilized in the establishment of a fair and reasonable price.

8. Description of Market Research or Statement of the Reasons 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.

9. Any Other Supporting Facts.

Not applicable.

10. Listing of Interested Sources.

Not applicable.

11. Actions to Remove Barriers to Future Competition.

NAWCTSD has no plans at this time to compete this contract for the type of software covered by this document. Pursuant to the SBIR/STTR statute, the Agency is not only allowed to enter into a Phase III agreement with Aechelon, as the small business that was awarded the original Phase II funding agreement, but it is also encouraged, to the greatest extent possible, to issue Aechelon such a follow on contract since they are the small business that originally developed the technology for the NITE LAB part task trainer. The SBIR/STTR reauthorization statute states Congress’ intent that Phase III award be made to the SBIR/STTR firms that created the technology so that these small businesses can commercialize it. Furthermore, there are no other commercially available alternatives of this product that will satisfy the timeline or basic parameters being developed in this Phase III action, which extends Phase I & II awards. It is possible that competitors will enter the market once the required product is commercialized. If another potential source emerges or a similar technology is identified during a market survey, NAWCTSD Orlando will assess