NSWC-PHD-JA-18-008_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

PORT HUENEME DIVISION

4363 MISSILE WAY

PORT HUENEME, CA 93043-4307

J&A Number: NSWC-PHD-J&A-18-008 Code: 0221 P.R. Number: 1300663570-0001

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

Naval Sea Systems Command, Naval Surface Warfare Center (NSWC), Port Hueneme Division (PHD), Contracts Department, Code 0221.

2. Description of the Action Being Approved

Award of an order under SPRMM1-16-G-1100 to L3 Power Paragon, Inc. (L3 PPI) of Anaheim, California on a sole source basis to supply Combat System Support Equipment Ordnance Alteration (ORDALT) Kits in support of fiscal year 2018-2021 Aegis Cruiser and Destroyer Modernization program requirements.

3. Description of Supplies/Services

Procurement of 444 MK84 Rectifier Module Improvement kits (Part Number 970-49965-Kit), a contract option for 175 MK84 Rectifier Module Improvement kits (Part Number 970-49965-Kit), and contract options for up to 23 Ship Change Document 17850s.

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1). The property or services needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency.

5. Rationale Justifying Use of Cited Statutory Authority

L3 PPI is the Design Agent and producer of the MK 84 Frequency Converter and Air Cooled Solid State Frequency Converter (ACSSFC) Insulated Gate Bipolar Transistor Inverter Module, 28 VDC Power Supply, and MK 84 Frequency Converter Rectifier Module. Fabrication of required parts or equipment requires the use of proprietary drawings. L3 PPI has specialized unique tooling, jigs, J&A Number: NSWC-PHD-J&A-18-008 fixtures, test stands, and special test equipment required to design, produce, integrate, test, and perform equipment changes and applicable upgrades to produce the required ORDALT kits.

These challenges create a duplication of cost that is not expected to be recovered through competition and unacceptable schedule delay in fulfilling requirements for highly specialized, mission-critical equipment and subassemblies necessary to keep the U.S. Navy surface combatants in a full mission capable status.

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

The proposed contract was synopsized on the Federal Business Opportunities website on 8 May 2018 and no other potential sources expressed an interest in this requirement. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than L3 PPI to provide the required supplies and services.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined anticipated costs to the Government for the supplies/services covered by the J&A will be fair and reasonable. Significant (or similar) quantities of this requirement have been purchased from this offeror in the past and cost/pricing information was received on those past procurements. This information should be sufficient to support the fair and reasonable cost determination of this procurement.

8. Actions to Remove Barriers to Competition

For the reasons set forth in paragraph 5, NSWC PHD has no plans at this time to compete future contracts for the types of supplies covered by this document. If another potential source emerges, NSWC PHD will assess whether competition for future requirements is feasible.