19-DA-001_JA_29_May_2019_signed_Redacted.pdf

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, PA

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 May 28th, 2004, resulting from Solicitation FY2004.1, Topic number N04-073. Mide Technology Corporation was subsequently awarded SBIR Phase II N65540-05-C-0034 on September 30th, 2005.

3. Description of Supplies/Services.

This procurement will require the Contractor to provide non-recurring engineering support, material, and labor for installation. Non-recurring engineering support will be requested to support drawing and design changes. The Contractor will be required to provide seven (7x) bulkhead seals for LPD-25, LPD-26, and LPD-27. The Contractor will also be required to provide labor and material to support installation as well as installation verification in the form of leakage testing each seal.

Under the original SBIR contract, two Mide Bulkhead Shaft Seals (BHSS) were designed and qualified for use on LCS-1 Class and LCS-2 Class vessels. PMS 317 indicated the same issues that were inherent on the DDG-51 Class and LCS class ships are applicable to LPD-17 Class and needed an immediate solution to improve reliability and safety while also reducing maintenance costs. The Mide Bulkhead Shaft Seal was identified as the primary solution to the aforementioned issues and was then modified to fit the footprint of LPD-17 Class ships under contract N665400- 14-C-5004 and installed on LPD-20. Contract N64498-16-P-5041 was then created to extend the installation to LPD- 17 through LPD-24. This proposal will extend the Bulkhead Shaft Seal onto the additional LPD-17 Class Ships listed herein as well as LPD-25AF.

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. “

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 Post Negotiation Business Clearance 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.

Base: 3 years

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 . Funding is anticipated to be allocated as follows:

Year 1 (FY20):

Year 2 (FY21):

Year 3 (FY22):

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.