12-D-2000 J A pg 1-4.pdf

DEPARTMENT OF THE NAVY

NAVAL OCEANOGRAPHIC OFFICE

1002 BALCH BLVD.

STENNIS SPACE CENTER, MS 39522·5001

IN REPLY REFER TO:

J&A NH010.443

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

1. Agency/Contracting Activity:

Naval Oceanographic Office (NA YOCEANO) Contracts Division, Code N44 Stennis Space Center, MS 39522-5001

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

The action to be approved is for the issuance of a non-competitive indefinite delivery - indefinite quantity contract for support ofNaval Oceanographic Office (NAYOCEANO) owned Remote Environmental Monitoring Unit (REMUS) Autonomous Underwater Vehicles (AIN's) from Hydroid, Inc. for a three (3) year period (base and two (2) option years) at a total estimated amount of$9,800,000.00.

3. A description of the supplies or services required to meet the agency's needs (including the estimated total estimated value for the acquisition covered by this justification):

This requirement is for continued support of NAY OCEANO owned REMUS AUVs (100m, 600m, 2500m and 6000m), to include necessary labor and materials. Currently there are 8 vehicles owned by NA YOCEANO. The required support is for spare parts, software upgrades, testing of spare parts, technology refresh and upgrades, maintenance, AUY engineering and technical support, and training for the REMUS vehicles for a period of three (3) years (base plus two (2) option years) for a total estimated amount of $9,800.000.00 (based on historical prices, present and projected expenses incurred on the current contract N62306-08-D-9003, which covers spare parts and labor repair for our current REMUS AUV's and an allocation for the AUV's that have been purchased but not delivered to date.

4. An identification of the statutory authority permitting other than full and open competition (select one, A, B or C with rationale, as appropriate):

FAR 6.302-1 One Responsible Source (10 US.c. 2304(c)(1»).

5. A demonstration that the proposed contractor's unique qualifications or the nature of the acquisition requires use of the authority cited.

NAYOCEANO's original AIN was developed by Woods Hole Oceanographic Institution (WHOI) for the Naval Oceanographic Office under research and development funding via the Office of]"!aval Research (ONR). This vehicle was originally called Subsurface Autonomous Mapping System (SAMS) and was a 6000 meter rated AUY. Hydroid Inc has since purchased http:9,800.000.00 http:of$9,800,000.00

J&A NHOI0.443

the exclusive license and production rights for the REMUS AUV's from WHO!. The original SAMS AUV has had many design cycle changes and was replaced by Hydroid as the REMUS 6000. The original SAMS AUV developed via WHOI thru ONR funding is now obsolete in terms of sensors, hardware and the AUV infrastructure. Hydroid is the only source for spare component production and emergency or life-cycle repairs to our current REMUS AUV's. To attempt solicit bids from other sources would not be productive as no other source has the detailed information required to produce parts for or perform services on REMUS systems. All components must be compatible in form, fit and function to the REMUS systems as designed by WHOL Compatibility issues are the primary concern as the spare components must fit our existing A UV systems.

6. A description of efforts made to insure that offers are solicited from as many potential sources as is practicable.

A solicitation will be sent to only the sole source contractor, however, this sole source requirement will be synopsized through the Government Point of Entry (GPE), FEDBIZOPPS, in accordance with FAR 5.202.

7. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable:

It is determined that the anticipated cost to the Government will be fair and reasonable based on a cost/price analysis and comparison with current market prices and a Government estimate.

8. A description of the market survey conducted and the results or a statement of the reasons a market survey was not conducted.

Market research was conducted, which resulted in the following information: Remus AUV's were designed and developed by Woods Hole Oceanographic Institution (WHOI) and licensed to Hydroid for production. Hydroid is the leading manufacturer of advanced, innovative Autonomous Underwater Vehicles - AUV for deep sea survey and mapping worldwide. No other company is authorized or licensed to produce REMUS specific spare parts and components.

There are other firms that may produce other types of AUVs, however none would be able to provide the required support ofREMUS AUVs.

9. Any other facts supporting the use of other than full and open competition, such as:

(a) Explanation of why technical data packages, specifications, engineering descriptions, statements of work, or purchase descriptions suitable for full and open competition have not been developed or are not available.

(1) The Statement of Work (SOW) is based on Sole Source specifications and requirements for existing AUV systems. Because the REMUS AUV's are a commercial product produced exclusively by Hydroid, no other manufacturer is capable of providing

J&A NHOI 0.443

REMUS spare parts or perform the required services needed on the REMUS systems.

The only current documentation that is provided is user manuals and documentation to perform high-level testing and maintenance. Hydroid does not provide proprietary engineering schematics or programming software of their AUV's. Based upon the proprietary nature of much of the drawings and data that are needed for adequate system support and the fact that if the information were available for release, competitively acquiring the support described herein would not be feasible as no vendor would have the technical skills to produce parts or provide services.

(2) NAVOCEANO currently has a contract, N62306-08-D-9003 with Hydroid that was issued as a sole source award, under the authority of 10 USC 2304( c)(1) in accordance with FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirement, reference J&A #NHOI 0.409, for the same type of REMUS support requirements as being acquired under this action. No interest other than from Hydroid, the sole source contractor, was expressed at the time of the previous contract award.

(b) When 6.302-1 is cited for follow-on acquisitions as described in 6.302-1(a)(2)(ii), an estimate of the cost to the Government that would be duplicated and how the estimate was derived. See paragraph (a) above.

(c) When 6.302-2, unusual and compelling urgency, is cited, data, estimated cost, or other rationale as to the extent and nature of the harm to the Government. N/ A

10. A listing of the sources, if any, that expressed in writing an interest in the acquisition.

None, other than the sole source contractor, Hydroid Inc.

11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

In order to develop another source for the spare components, the Government would need to provide drawings and specifications for multiple vendors to develop and complete sea testing for operational verification of these fabricated components. The drawings and data that was acquired under above discussed development contract reflect the original systems designed by WHOI 10 years ago and do not include any engineering changes or upgrades implemented subsequently by WHOI so information would have to be updated before being able to use, but then even though the Government would have certain rights for the data/drawings for what was developed at Government expense, the units after being turned over to Hydroid, were not updated or contained development funded by the Government. It is not cost effective, nor feasible, for the Government to update the designs/drawings and test/validate, and substitute components. This would have an adverse impact on the ability of the Oceans Projects Department to meet mission needs.

J&A NHOI0.443

CONTRACTING OFFICER CERTIFICATION

I CERTIFY THAT THIS JUSTIFICATION IS ACCURATE AND COMPLETE TO THE BEST

OF MY KNOWLEDGE AND BELIEF.

I

SIGNATURE: ~--'----"''''''''''''IF----- -DATE: 3 (} C4......-~ 2..6 l(

NAME (PRINTED): PHONE:

LEGAL SUFFICIENCY REVIEW

I HAVE DETERMINED THAT THIS JUSTIFICTION IS LEGALLY SUFFICIENT.

q~I~)f(SIGN A TlJRIi.:: DATE:-_'1- / I

NAME (pRINTED): _____.._- lONE:______

APPROVAL (COMMANDING OFFICER) (>$1,000,000)

THIS JUSTIFICATION IS APPROVED IN ACCORDANCE WITH NAVOCEANOINST

4200.3, UNDER THE AUTHORITY OF FAR 6.304(a)(2).

SIGNATURE:_ -----r-'t""1:-':--_ DATE:--..c..::JO~!...;...;1~::...,/c.....;2G>~II~_

NAME (PRINTED): ~HONE:______