JA_No_0222-18-173-00_AWE_Final_Redacted.pdf

J&A Number: 0222-18-173-00

Code: 0222

P.R. Number: 18-DAR-014

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

The proposed contract action is a sole source, combination of a Firm-Fixed-Price (FFP) and

Cost- Plus Fixed-Fee, (CPFF) Indefinite-Delivery, Indefinite-Quantity (IDIQ) procurement for an Advanced Weapons Elevator (AWE) Land-Based Unit (LBU) for the Land-Based

Engineering Test Site (LBETS), installation services, and technical support, to be awarded to

Federal Equipment Company (FEC), of Cincinnati, OH 45233.

3. Description of Supplies/Services

The services being purchased under the proposed contract action will be provided by FEC, in

Cincinnati, OH, the original manufacturer of elevators being installed on the CVN class ships.

FEC will be required to provide engineering services, an AWE LBU for the LBETS, LBU installation services, incidental hardware items, software items, associated technical information, logistics data, and technical support in support of the AWE systems for the CVN class ships.

FEC will also provide hardware, software, logistics support for all corresponding components, including control system and support software, and specialized support and test equipment in association with the LBU. The hardware items include any repair or replacement parts or parts procured for training. The software is required to support the LBU specifically, as the current

Ship deliverable software will not work on the LBU because it is a Hybrid of a Lower and Upper

Stage AWE. Under the resultant contract, FEC will provide installation services to integrate the

AWE Land-Based Unit into the NSWCPD AWE LBETS, and provide technical support to troubleshoot and repair AWE LBU malfunctions as well as provide support for upgrades to reflect shipboard configurations.

The proposed action will utilize a five (5) year IDIQ contract. One (1) AWE Land-Based Unit, including installation and technical support, will be procured during year one (1) of the contract.

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

PHILADELPHIA DIVISION

5001 SOUTH BROAD STREET

PHILADELPHIA PA 19112-1403

IN REPLY REFER TO:

Technical support services including software and incidental hardware will be provided over a five (5) year period.

Table 1.

Item Year 1

Qty

Year 2

Qty

Year 3

Qty

Year 4

Qty

Year 5

Qty

TOTAL

Max QTY Engineering Services (Hours) 4,488 6,798 6,798 6,798 6,688 31,570 Advanced Weapons Elevator (AWE)

Land Based Unit (LBU) 1 0 0 0 0 1

The total estimated dollar value of this requirement is $13,326,857. Table 2 is a breakdown of the estimated funding amounts for this proposed contract action:

Table 2. Estimated Dollar Value

Estimated Dollar Value

Funding

Type

FY18 FY19 FY20 FY21 FY22 Total

OPN $6,943,540 $1,561,152 $0 $0 $0 $8,504,692

O&MN $0 $0 $1,597,721 $1,615,667 $1,608,777 $4,822,165

Totals $6,943,540 $1,561,152 $1,597,721 $1,615,667 $1,608,777 $13,326,857

The Government’s minimum needs have been verified by the certifying technical and requirements personnel. The minimum guarantee for this IDIQ contract will be $100,000.00.

MOPAS Acquisition Strategy Plan #0222-18-173-00.1 covers this acquisition.

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

A critical new technology was required to improve ship survivability as well as better the CVN class key performance parameter of increased Sortie Generation Rate (SGR). A key parameter of

SGR

was the approved technology, the

Advanced Weapons Elevators. The contractor building the new CVN class ships, competed the work and selected a manufacturer for the AWE.

subcontracted to design and build the CVN AWE system for CVN class ships. FEC is now designated as the OEM of the AWE system.

In order for the US Navy to identify and troubleshoot specific equipment failures, provide and assist in the development of ship force training, provide distance support, and test ship changes without impacting ship systems currently installed shipboard, identical units in all aspects including machining, hardware, and software details, to both an upper and lower stage AWE shipboard configurations must be acquired. This is typically done by building a test site in which identical units are installed. The hybrid LBU is required to be configurable as an upper or lower stage elevator to maximum the capability of the LBETS. Currently, FEC has the ability to design and fabricate a Land-Based Engineering Test Site which would reflect all configurations that are currently in the US Navy. It is our intention to purchase the LBU in addition to other supplies and services associated with the LBU and the AWE systems already installed in the fleet.

Regarding installation support, FEC is the only company with the exception of the shipbuilder

, who is able to install the AWE system. has relied heavily on FEC during installation to align, groom, and troubleshoot the process. There have been a multitude of complications with the installations of the AWE system, causing major setbacks and delays. FEC has been integral to troubleshooting these issues and providing resolutions. The lessons learned from the initial unit and eleven shipboard system installations and operation have resulted in improved installation procedures. The AWE system has extremely tight tolerances and requires specialized equipment and knowledge to reduce the risk of incurring costly installation and integration errors. FEC is the only vendor that has and continues to acquire the specialized experience and knowledge needed to provide the greatest potential for a successful installation and integration.

Finally, limited technical data exists for the AWE shipboard configurations as well as the lead unit. FEC is the only entity capable of compiling, completing, and delivering all of the technical data to the Navy supporting these unique configurations as they are the only entity with access to their proprietary data.

Since NSWCPD does not have sufficient drawings or technical data from which to produce an

AWE test unit, it cannot compete this requirement. Consequently, it would be impossible for another vendor to attempt to recreate the AWE system without a complete drawing and technical package. There have been previous attempts to require FEC to provide the complete drawing and technical package for the hybrid LBU, and those requests have resulted in absolute refusal from

FEC.

FEC and have delivered several variations of the Advanced Weapons Elevator. Currently, FEC is kitting material and delivering for future ships. Using “economies of scale,” the OEM is able to bundle delivery of the Advanced Weapons Elevator Land Based Engineering Test Site with future ships procurements which would yield a % cost reduction and facilitate delivery to support the Navy’s ability to fulfill the role of Software Support Agent (SSA), In-Service

Engineering Agent (ISEA), and Configuration Manager (CM).

A fully functioning elevator is estimated to cost $ . We are going to procure an elevator that does not include some of the components (e.g. doors and hatches) which are not needed for the test site. It will also be a hybrid of an upper and lower elevator rather than a complete elevator.

The estimate for this hybrid is $ .

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

A Request for Information (RFI) was posted to FEDBIZOPS on 3 November 2017.

Additionally, a synopsis of this procurement was published on the Federal Business

Opportunities (FEDBIZOPS) web page on 21 November 2017. No contractors have responded to date to either posting. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any other contractor than FEC to provide the required supplies and services.

FEC is sole contractor that supplies AWE systems as Contractor Furnished Equipment

(CFE) to them and ultimately to the Navy. NSWCPD has evaluated the possibility of using other vendors to meet the requirement for testing, troubleshooting and providing training for the AWE system, but due to system complexity and proprietary design data, excessive cost and need for a replica system to meet the requirements of the Land Based Test Site preclude efforts to solicit additional offerors.

7. Determination of Fair and Reasonable Costs

The Contracting Officer will make a determination as to whether the costs to the Government for the supplies/services covered by this J&A are fair and reasonable, prior to award. 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. The contractor’s proposal will be reviewed by experienced technical analysts and contract specialists with the aid of necessary field pricing support. The PCO will use cost and pricing 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, NSWCPD will assess whether competition for future requirements is feasible if potential sources emerge in the future. NSWCPD is acquiring the

AWE LBU and engineering services as a means to transfer technical knowledge from the OEM to the Navy over the length of the contract.