JA_PRDS_Spares__Redacted.pdf

J&A Number: 0241-19-184-00 Code:

P.R. Number: 19-MLD-017

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 .

2. Description of Action Being Approved

The proposed contract action is a sole source, Firm-Fixed-Price (FFP), Indefinite-Delivery, Indefinite-Quantity (IDIQ) procurement for Power Recirculation Drive System (PRDS) proprietary spare parts, to be awarded to General Electric Power Conversion Naval Systems, Inc.

(GEPCNSI) of 100 East Kensinger Drive, Suite 500, Cranberry Township, PA 16066-3557

(CAGE: 4YXB0).

3. Description of Supplies/Services

This procurement is for the supply of proprietary spare parts for the Power Recirculation Drive System (PRDS) located at NSWCPD. The PRDS is utilized by NSWCPD engineering and test facilities to recirculate electrical power.

The total estimated dollar value of this requirement is $11,488,673. The following is a breakdown of the estimated funding amounts for this proposed contract action:

Appropriation FY 19 FY 20 FY 21 FY 22 FY 23 Total

SCN 9,227,990 $565,171 $565,171 $565,171 $565,171 $11,488,673

The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

4. Statutory Authority Permitting Other Than Full and Open Competition

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1), “the property or services needed by the agency are available from only one responsible source and no other type of property or services will satisfy the needs of the agency,” as supplemented by Paragraph 6.302-1 of the Federal Acquisition Regulation (FAR).

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

PHILADELPHIA DIVISION

5001 SOUTH BROAD STREET

PHILADELPHIA PA 19112-1403

IN REPLY REFER TO:

5. Rationale Justifying Use of Cited Statutory Authority

NSWCPD utilizes the PRDS as a key enabling testing capability to perform efficient full performance testing and risk reductions to shipboard systems. The unique capabilities of the PRDS integrate with existing NSWCPD facility services, provide energy recovery capability, and simultaneously provide electric power to and control of proprietary GEPCNSI electro-mechanical drive systems. The complex interdependence amongst the PRDS, drive systems, and systems under evaluation necessitates maximum possible operational availability of the PRDS to support timely engineering and test event execution. The PRDS operational availability requirements directly drive the significant spare part supply requirements addressed by this procurement.

The Energy Recirculation System (ERS) utilized at NSWCPD, of which PRDS is a primary subsystem, was competitively procured by Naval Facilities Engineering Command Mid Atlantic (NAVFACMIDLANT), which resulted in Contract N40085-14-C-5202 with General Electric Power Conversion Naval Systems, Inc. (GEPCNSI), awarded on 15 August 2014. Since award of that contract, the ERS and PRDS have been designed, manufactured, installed, passed Factory Acceptance Testing of individual components and real time simulator testing by the Government, and successfully utilized in support of several test events. Given the history of the ERS and PRDS and the magnitude of Government investment to date, there are no plans to procure another ERS or PRDS, which reinforces the criticality of supporting, maintaining, and repairing these systems. Given that GEPCNSI developed the critical power recirculation and energy recovery technologies employed in the ERS and PRDS independently and at its own expense, and still owns the technical data for the system and its spare parts, GEPCNSI is the only qualified supplier for the spare parts required by the Government. No other vendor possesses the technical data rights required to independently manufacture the required components, nor does the Government possess the data rights or specifications required to procure the required supplies on a competitive basis.

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

In accordance with FAR Part 10, a Request for Information (RFI) was posted on the Federal Business Opportunities (FedBizOps) website on 14 March 2019. The Government receive responses to this RFI.

In addition, the proposed acquisition was also synopsized in the Federal Business Opportunities (FedBizOps) website on 4 March 2019, in accordance with FAR 5.2. As discussed in paragraph 5, GEPCNSI is the only vendor who possesses the technical data rights required to manufacture the PRDS spare parts. This provides a significant cost savings over procuring the technical data rights package from GEPCNSI or developing performance based specification (PBS) that would support competition.

7. Determination of Fair and Reasonable Costs

In accordance with FAR 15.402, the Contracting Officer shall ensure that all supplies provided under this contract are procured at a fair and reasonable price. The Contractor will submit a formal price proposal with certified cost and 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 and pricing to support the fair and reasonable cost determination. 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

Due to the significant depth and breadth of GEPCNSI’s proprietary data rights for PRDS, and the unique application and function of PRDS as it relates to NSWCPD’s engineering and test activities, NSWCPD has no plans to develop a Level III build-to-print technical data package (TDP) or performance based specification (PBS) that will support competition for future acquisitions of the same or similar items.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION (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 data are complete and accurate to the best of my knowledge and belief.

TECHNICAL AND REQUIREMENTS COGNIZANCE:

Signature: Phone No. Date

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90)):

I have determined that this justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(b)(12)):

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

APPROVAL BLOCK (FAR 6.304 for Approving Official)

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

Head of the Procuring Activity

Signature KAREN GUTMAKER, Date