Redacted_Mide_Bulkhead_Shaft_Seal_LPD_17_SBIR_Redacted.pdf

J&A Number: 0231-17-114-00

Code: 0231

P.R. Number: 17-KJ-033

SMALL BUSINESS INNOVATION RESEARCH (SBIR) PHASE III JUSTIFICATION &

APPROVAL FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Agency and Contracting Activity.

Department of the Navy, Naval Surface Warfare Center, Philadelphia Division (NSWCPD), Code 0231

2. Nature/Description of Action(s) Being Approved.

This is a justification to award a Small Business Innovation Research (SBIR) Phase III contract to Mide

Technology Corporation.

Mide Technology Corporation was awarded SBIR Phase I N65538-04-M-0157 on 28 May 2004, resulting from

Solicitation FY2004.1, Topic number N04-073. Mide Technology Corporation was subsequently awarded SBIR (or

STTR) Phase II N65540-05-C-0034 on 30 September 2005. A contract with Firm-Fixed-Price (FFP) provisions is planned.

3. Description of Supplies/Services.

Naval Surface Warfare Center Philadelphia Division (NSWCPD) Code 427 requires the contractor to provide material for a ship set of bulkhead shaft seal to be installed onboard .

Efforts by Mide Technology Corporation under earlier Small Business Innovative Research (SBIR) Phase I and

Phase II contracts, N66540-05-C-0034, yielded the design of a functional bulkhead shaft seal that didn’t rely on differential pressure as the activating medium. This project solved inherent issues with the Navy’s legacy bulkhead shaft seal that resulted in the inability to prevent the ingress of water between machinery spaces on the thus compromising expensive machinery assets and putting sailors in harm’s way.

The requested material is required to ensure scheduling deadlines are met during docking availabilities to support the warfighter’s mission.

The total estimated dollar value of this acquisition is $493,948.00.

4. Identification of Statutory Authority.

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 an 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. “

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

PHILADELPHIA DIVISION

5001 SOUTH BROAD STREET

PHILADELPHIA PA 19112-1403

IN REPLY REFER TO:

Furthermore, 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. Demonstration that Proposed Contractor’s Unique Qualifications or Nature of Acquisition Requires Use of

Authority Cited.

The nature of the proposal 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 II (project development to prototype) is the major research and development effort, funding the prototyping and demonstration of the most promising Phase I projects. Phase III (commercialization) is the ultimate goal of the SBIR/STTR Programs. Because the Phase III work derives from, extends, or completes efforts performed under Phase I and Phase II, use of the authority cited is required.

6. Description of Efforts Made to Ensure Offerors Were Solicited From as Many Potential Sources as Practicable/

Public Notification through Government Point of Entry (GPE).

As described above, only Mide Technology Corporation is being considered for Phase III award due to the nature of the acquisition. In accordance with FAR 5.202(a)(7), this proposed contract action does not require public notification to the GPE.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer will determine prior to award that the negotiated price of the contract executed under this justification is fair and reasonable pursuant to FAR Subpart 15.4. This determination will be documented in

Independent Government Cost Estimate (IGCE) which will be included in the contract file.

8. Description of Market Research or Statement of the Reason 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 Taken to Remove Barriers to Future Competition.

The Contracting Officer anticipates that competitors will enter the market once the product is commercialized. It is likely that future acquisitions will be competed using full and open competition and commercial item acquisition procedures. The Contracting Officer is not aware of any specific actions that would further remove barriers to competition.

12. Period of Performance.

The ordering Period of Performance is one (1) year and begins upon contract award.

Option(s): N/A

13. Total Estimated Dollar Value of the Acquisition Covered by this J&A, with Funding Specified by Year and

Appropriation.

The total estimated value of this acquisition is $493,948.00. Funding is anticipated to be allocated as follows:

Appropriation Type Year 1 Year 2 Year 3 TOTAL

OMN (FY17)

$463,735.00

(FY18)

$15,068.00

(FY19)

$15,145.00

$493,948.00

14. Actions Attempted to Make Immediate Acquisition Competitive and Cost/Benefit Analysis

No actions were attempted to make the immediate acquisition competitive; no cost/benefit analysis was performed.

As described above, only Mide Technology Corporation is being considered for Phase III award due to the nature of the acquisition.

TECHNICAL AND REQUIREMENTS CERTIFICATION REQUIRED BY FAR 6.303-2(c):

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

COMBINED TECHNICAL AND REQUIREMENT COGNIZANCE:

LEGAL SUFFICIENCY REVIEW:

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

CONTRACTING OFFICER'S CERTIFICATION REQUIRED BY FAR 6.303-2(b)(12):

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

COMPETITION ADVOCATE APPROVAL REQUIRED BY FAR 6.304(a)(2):

Upon the basis of the following justification, I hereby approve, as Procuring Activity Competition Advocate for

Department of the Navy, NSWC Philadelphia Division, the use of other than full and open competition for the proposed procurement described herein, pursuant to the authority of 10 U.S.C. 2304(c)(5).

NAME Kevin Hann

All questions regarding this justification are to be referred to Karen Johnson, Naval Surface Warfare Center

Philadelphia Division (NSWCPD), Code 0231, 215-897-7062, karen.johnson2@navy.mil.

mailto:karen.johnson2@navy.mil