N64498_02221700200.pdf

J&A Number: 0222-17-002-00 Code: 02222 P.R. Number: 16-B-R-067

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 0222.

2. Description of Action Being Approved

Award of a Cost Plus Fixed Fee (CPFF) Indefinite Delivery, Indefinite Quantity (IDIQ) contract on a sole source basis to American Superconductor for engineering and technical services required for high temperature superconducting (HTS) systems.

3. Description of Supplies/Services

The proposed procurement is engineering and technical services required for high temperature superconducting (HTS) systems. This may include analytical and computational modelling and analysis in the areas of thermodynamics, heat transfer, magnetics, structural including shock, electrical modeling including power systems, and multi-physics systems. Design of systems, subsystems, components, and superconducting wire as well as development, fabrication, testing, evaluation, or repair may be required. Procurement of systems, subsystems, components, superconducting material, general material, test equipment and instrumentation may be required.

Support related to integration, installation, training, field testing, troubleshooting, maintenance and demonstration of Navy superconducting systems may be required in support of the HTS Magnet, HTS Degaussing, HTS Power, and other HTS development programs. Technical services included requirements generation, trade studies, literature surveys, cost model generation, and market surveys and assessment may be required related to existing or future potential applications of HTS Systems or components. It is expected that services will be ordered over a five year period with an estimated total dollar value of this procurement is $4,402,002.

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

PHILADELPHIA DIVISION

5001 SOUTH BROAD STREET

PHILADELPHIA PA 19112-1403

IN REPLY REFER TO:

1. INTERFACE DEVICE FOR A HIGH TEMPERATURE SUPERCONDUCTOR

DEGAUSSING SYSTEM JUNCTION BOX, United States Patent Number 8,731,629, Filed March 28, 2008

2. SUPERCONDUCTING CABLE ASSEMBLY AND METHOD OF ASSEMBLY United States Patent Number 8,478,374, Filed March 28, 2008

3. METHOD AND APPARATUS FOR COOLING A SUPERCONDUCTING CABLE

United States Patent Number 7,453,041, Filed June 16, 2005

4. COOLING SYSTEM FOR HTS MACHINES United States Patent Number 6,625,992, Issued September 30, 2003

5. COOLING SYSTEM FOR HTS MACHINES United States Patent 6,347,522 Issued February 19, 2002

6. DETACHABLE CRYOGENIC REFRIGERATION EXPANDER United States Patent 6,202,421 Issued March 20, 2001

These patents were developed prior to the SBIR contracts and the vendor retains all rights to the technology covered therein. These required components are extremely advanced over currently used technology. No other company can provide the necessary proprietary knowledge needed to perform the proposed tasking because only American Superconductor has the knowledge of and experience in HTS equipment and the patents as listed above.

Replicating the technology and systems would be both cost and schedule prohibitive. The investment in time and funding is not in the best interest of the Navy for the estimated reasons outlined in the chart below. Additionally, the components associated with the contracts and patents listed afore will be fielded in Navy systems as early as FY19; wherein, replication by another vendor would cause undue delay and harm to the Navy.

As outlined in the chart below, this procurement is estimated at $4 million; however, it would cost the government as estimated $45 million over eight (8) years in order to obtain via other sources.

Associated Task Estimated Funding Required Estimated Performance Time Specification Development $2,000,000 .75 years Engineering Design $5,000,000 2.25 years Systems Build $29,000,000 2.25 years Systems Integration $3,000,000 1 year System Testing $3,000,000 1 year Navy Qualification Test $3,000,000 1 year Total $45,000,000 8.25 years

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

A Request For Information (RFI) was posted on the Federal Business Opportunities (FedBizOps) website on 04 October 2016; wherein, no responses were received. The proposed contract was synopsized via posting on the FedBizOps website on 14 October 2016 in accordance with FAR

5.2. While to date no responses have been received to the synopsis notification, any responses obtained will be evaluated. Market research was conducted by Code 325 and proved unsuccessful in finding sources capable of providing engineering and technical services required for high temperature superconducting (HTS) systems. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than American Superconductor to provide the required services.

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 this Justification and Approval will be fair and reasonable.

In accordance with FAR 15.402, the Contracting Officer shall ensure that all supplies/services provided under this contract are procured at a fair and reasonable price. The contractor will submit a formal price proposal with certified cost or pricing data and sufficient information to support the accuracy and reliability of the estimate. Defense Contract Management Agency pricing assistance and/or Defense Contract Audit Agency audit of contractor’s proposal will be requested along with offeror’s certificate of current cost or pricing data at the conclusion of negotiations. The contractor’s proposal will be reviewed by experienced technical analysts, cost analysts and contract specialist with the aid of necessary field pricing support. The Contracting Officer will utilize cost and price analysis as the basis for negotiating a fair and reasonable price.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, Naval Surface Warfare Center Philadelphia Division has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, Naval Surface Warfare Center Philadelphia Division will assess whether competition for future requirements is feasible.

At this point the Naval Surface Warfare Center Philadelphia Division has no definitive forecast or requirements for a follow on contract. A continued monitoring of the commercial market place and latest technology will be conducted and evaluated to determine if better alternatives exist in the future.