N64498_02212025400_JA_Redacted_Final.pdf

J&A Number: 0221-20-254-00 Code: 0221

CMTS Number: 20-ME-042

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Surface Warfare Center, Philadelphia Division (NSWCPD), Code 0221.

2. Description of the Action Being Approved

Award of a hybrid Firm-Fixed-Price (FFP)/Cost-Plus-Fixed Fee (CPFF) Indefinite-Delivery, Indefinite-Quantity (IDIQ), supply/services contract to American Superconductor Corporation

(AMSC).

3. Description of Supplies/Services

This procurement is for the delivery of a High Temperature Superconducting (HTS) Degaussing system, in accordance with the LPD class configuration, to the USS Richard M McCool Jr (LPD 29). This includes delivery of a ship set of material, analysis of configuration based engineering change proposals, and vendor representative support during installation. The HTS degaussing system components include the equipment listed below:

Material Total

Junction Box Assembly 25 Power Module Assembly 13 Cryocooler Assembly 22 Buffer Tank Assembly 22 U-Tubes 18 Cold Gas Lines - Various Lengths 48 Degaussing Control Unit 2 HTS Cable Connectors 48 Short Termination 48 Long Termination 48 Cryosotat 114,725 inches HTS Wire 1,410,720 inches

DEPARTMENT OF THE NAVY

NAVAL SHIP SYSTEMS ENGINEERING STATION

NAVAL SURFACE WARFARE CENTER

PHILADELPHIA DIVISION

5001 SOUTH BROAD STREET

IN REPLY REFER TO:

Upon completion of fabrication and test, the material shall be delivered to the LPD 29, at Ingalls Shipbuilding, Pascagoula Mississippi for installation. AMSC will provide technical representative assistance throughout the shipboard installation, test and operational training efforts.

The Production Lead Time (PLT) for the material is twenty-four (24) months with additional time required for factory testing. A notional timeframe for this entire effort will be three years, expected to commence in FY21 Quarter 1 and complete with shipboard installation that is expected to conclude in FY23 Quarter 4. The anticipated contract shall have an ordering period of thirty-six (36) months and a period of performance not to exceed forty-eight (48) months.

The Government's minimum needs have been verified by the certifying technical and requirements personnel to ensure that the requirement does not include supplies or services that should be solicited in a competitive environment. The certifying technical and requirements personnel are comprised of the subject matter experts in NSWCPD Division 32 familiar with the needs for LPD 29.

The total estimated dollar value of this procurement is $14,927,736, as indicated below, and will be funded entirely with Ship Construction Navy (SCN) funding.

Fund Type FY21 FY22 FY23 Total

Components/ Materials

SCN

$11,514,830 $1,783,090 - $13,297,920

Services SCN $260,009 $731,333 $436,536 $1,427,878

ODC SCN - $35,135 $166,803S

CN

$201,938

Total SCN $11,774,839 $2,549,559 $603,338 $14,927,736

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1), Only One Responsible Source and No Other Sources and Services Will Satisfy Agency Requirements, as implemented by Federal Acquisition Regulation (FAR) Subpart 6.302-1.

5. Rationale Justifying Use of Cited Statutory Authority

NSWCPD has been tasked to procure and install the LPD Class HTS degaussing system, in the LPD class configuration, for the LPD 29. The HTS system is comprised of superconductors in which electricity flows through cables and components at extremely low temperatures (under negative 350 degrees Fahrenheit.). The LPD class configuration consists of an integrated system, connected via HTS junction boxes and terminals, and controlled by a degaussing control unit. The entire HTS degaussing system is also integrated into the existing ship design as it relates to power, cooling, weight, control system input/output and arrangements.

This requirement is a follow-on to contract N64498-19-D-4009, which provided the HTS degaussing system for the LPD 28 and was awarded on a sole source basis to AMSC. The installation on LPD 28 established the configuration for installations on follow-on LPD class ships. AMSC is the only company with HTS equipment that meets US Navy’s requirements for environment and survivability and HTS cable lengths (up to 180 meters) required for shipboard degaussing systems. In order to achieve those lengths, AMSC has a proprietary design and manufacturing process for the HTS wire. AMSC is the only company that has a system qualified for US Navy shipboard use, which includes shock, vibration and electromagnetic interference requirements. AMSC is the only source that can configure the equipment in an integrated system to meet the LPD 29 requirements. The configuration requires specialized integration, testing and installation oversight services to meet the LPD29 requirements.

AMSC is the only source that manufactures the LPD Class HTS degaussing system design that has been incorporated into the current ship class design for weight, space, electrical and chilled water loads specific to the LPD class. No other company can provide the necessary equipment of the LPD Class design to support the currently scheduled shipboard installation date of FY2023Q4. Other manufacturers cannot be used because each other manufacturer has different proprietary designs, chemical formulations, and methods of fabricating HTS wire, weight, space, power and chilled water requirements, none of which can be incorporated into the LPD 29 and follow-on ship design to meet the schedule referenced above.

A new source would only be able to meet this requirement if it were able to develop similar technology and production capability, and the Navy would have to incur additional non-recurring engineering cost for shipboard integration that would exceed, at a minimum, a total cost of $20M This estimate is derived by the subject matter experts in NSWCPD Division 32 based on their fifteen (15) years of experience and knowledge of previous procurements and efforts with HTS technology. The experience includes a combination of tasking from Program Executive Office (PEO Ships), Office of Naval Research (ONR), and NAVSEA and consists of everything from the initial feasibility study, to the proof of concept lab demonstrations, initial at-sea demonstrations aboard USS HIGGINS, monitoring and support of an LCS shipboard demonstration, to ongoing LPD Class integration and sustainment.

The $20M cost estimate includes:

(1) The design, engineering, prototyping of all the HTS cable at the required length and associated components estimated at approximately $12M;

(2) Costs of qualification testing estimated at approximately $3M; and

(3) The non-recurring engineering cost to fund the shipbuilder to integrate a different system into the existing ship class design and production, which is estimated to be at least $5M. This will not meet the required budget that is included in the LPD Class SCN shipbuilding budget lines.

Based on the above, utilizing competitive procedures is currently not feasible and would be a substantial cost to the Government in fulfilling the Navy’s requirements.

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

Market research and surveys are conducted on an annual basis via technology and program reviews, internet searches, and various US Navy programs and initiatives to advance the maturity and capability of high energy systems and high temperature superconducting technology.

Companies surveyed have included American Superconductor Corporation, Alion Science and Technology, Bath Iron Works, Cable Consultants Corp., Creare LLC., Cryomagnetics, Inc., Cryomech Inc., Corporation Service Company, Ultra EMS Development Corp., General Dynamics Information Technology, L3 Technologies, Maritime Applied Physics Corp., Northrop Grumman, PHPK Technologies, Praxair, Inc., and Tai Yang Engineering. NSWCPD subject matter experts of Division 32 also attend technical conferences with industry to keep informed of what is available in industry and discuss superconductivity technology with companies in attendance. The most recent conferences have been the International Workshop on Cooling System for High Temperature Superconductor Applications (2019), Cryogenic Engineering Conference and Cryogenic Materials Conference (2019), and Applied Superconductivity Conference (2018). The results of the research and surveys have determined that only AMSC can produce the required HTS cables at the required length that meet degaussing system performance requirements for the current LPD Class design. AMSC meets the US Navy’s shipboard environmental and survivability requirements and have been integrated into the current LPD Class design. The requirements will be met without a significant investment of time and money into redundant development, which would also disrupt the LPD 29 from being mission capable and achieving on time transfer to the Fleet.

On 09 April 2020, a Request for Information/Source Sought was posted via Beta SAM (https://beta.sam.gov/). No responses were received by the closing date (23 April 2020) or as of the submittal of this J&A in September 2020.

On 20 August 2020, a synopsis further describing the Government’s intent to conduct this procurement on a sole source basis was issued via Beta SAM (https://beta.sam.gov/). IAW FAR 5.2, this synopsis was posted for 15 days. No responses were received by the closing date, 04 September 2020.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies/services covered by the J&A will be fair and reasonable. The contractor will submit a formal price/cost proposal with certified cost and pricing data and sufficient information to support the accuracy and reliability of the estimate. The contractor’s proposal will be reviewed by experienced technical analysts and the contract specialists. Additionally, quantities of this requirement have been purchased from this Offeror in the past and cost/pricing information was received on those past procurements.

8. Actions to Remove Barriers to Competition

NSWCPD will continue to monitor the marketplace and identify potential sources of the supplies identified in this Justification. NSWCPD will periodically post Request for Information (RFIs) on Beta SAM to find sources that can supply the (HTS) Wire assemblies to satisfy the Navy’s requirements. Any sources discovered that could potentially satisfy this specific procurement will be taken into account for any future requirements.

TECHNICAL AND REQUIREMENTS CERTIFICATION - (FAR 6.303-2(b))

I certify that the facts and representations under my cognizance, that are included in this justification and its supporting data, except as noted herein, are complete and accurate to the best of my knowledge and belief.

COMBINED TECHNICAL AND REQUIREMENTS COGNIZANCE:

____See Digital Signature Page___________________________________________________ Signature Joseph Amadoro Phone No. 215-897-7274 Date Department Head (Code 20)

LEGAL SUFFICIENCY REVIEW (NMCAR 5206.303(90))

I have determined that this justification is legally sufficient.

See Digital Signature Page Signature Jonathan Pavlovcak Phone No. 215- 897-1030 Date Assistant Counsel (Code 00L)

CONTRACTING OFFICER CERTIFICATION - FAR 6.303-2(a) (12)

I certify that this justification is accurate and complete to the best of my knowledge and belief.

See Digital Signature Page Signature Michael Sommeling Phone No. 215- 897-1226 Date Contracting Officer (Code 0221)

APPROVAL BLOCK (FAR 6.304 for Approving Official):

Upon the basis of the above justification, I hereby approve, as Competition Advocate for the Procuring Activity, the solicitation of the proposed procurement(s) using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304 (C) (1).