20-JNS-007 JA (redacted).pdf

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J&A Number: 0222-20-274-0

Code: 0222

P.R. Number: 20-JNS-007

BRAND NAME 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 Firm-Fixed-Price (FFP), Indefinite-Delivery Indefinite-Quantity (IDIQ) contract on a

Name Brand basis for Siemens/RuggedCom network switching equipment.

3. Description of the Supplies or Services

The planned acquisition will provide for Commercial Off-The-Shelf (COTS) industrial-grade networking hardware and components manufactured by Siemens/RuggedCom. The networking equipment is used for installation on operational hulls across multiple ship classes (DDG 51, CG

47, LSD 41/49, MCM 1, LHD 1/8, LPD 17, and CVN 68/78) as part of their Hull, Mechanical &

Electrical (HM&E) and Navigation network infrastructures.

Table 1. (Brand Name Parts) is separately attached.

The estimated value is $32,545,418. There are no option quantities or periods. This contract will be funded at the delivery order level. The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

The table below shows the estimated breakdown of funding, by appropriation type, per year for the duration of this contract.

Year 1 Year 2 Year 3 Year 4 Year 5 TOTAL

O&MN $534,378 $550,550 $567,203 $584,364 $602,023 $2,838,518

OPN $6,731,880 $7,693,597 $3,006,198 $6,385,682 $5,131,199 $28,948,556

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

PHILADELPHIA DIVISION

5001 SOUTH BROAD STREET

PHILADELPHIA PA 19112-1403

IN REPLY REFER TO:

SCN $142,822 $147,112 $151,534 $156,096 $160,780 $758,344

TOTAL $7,409,080 $8,391,259 $3,724,935 $7,126,142 $5,894,002 $32,545,418

The resultant contract will have a five-year ordering period from the date of award, and will serve as a follow-on to an existing contract (N64498-17-D-0002).

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), One responsible source or a limited number of responsible sources, as implemented by Federal

Acquisition Regulation FAR Subpart 6.302-1(c).

5. Rationale Justifying Use of Cited Statutory Authority

Lyme Computer Systems, one of several Siemens/RuggedCom authorized resellers, was awarded the previous FFP IDIQ contract: N64498-17-D-0002. Under this contract, Lyme supplied

Siemens/RuggedCom networking equipment that was and/or will soon be installed on various ship classes (DDG 51, CG 47, LSD 41/49, MCM 1, LHD 1/8, LPD 17) and associated Land

Based Test Sites (LBTSs) and training sites. The proposed acquisition will provide for the continuing supply of Siemens/RuggedCom networking equipment to be installed as part of mission critical networks on the same ship classes listed above and potentially other ship classes as well (such as CVN 68/78 and LCS). Additionally, the proposed acquisition will be used to continue to support Land-Based Test Sites (LBTS) associated with these ships/ship classes located in various buildings at the NSWCPD compound and supported by NSWCPD technical staff.

This requirement is for support of NSWCPD responsibilities as the In-Service Engineering

Agent (ISEA) / Software Support Agent (SSA) for ships/ship classes having

Siemens/RuggedCom products installed in their HM&E Networks. Shipboard HM&E networks provide a robust communication infrastructure enabling various mission-critical HM&E control systems (including Propulsion, Electric, Damage, Auxiliary and Steering Control Systems) to function. The Navy’s objective of COTS usage is to reduce Total Ownership Cost (TOC) while improving reliability, maintainability, efficiency and commonality across ship classes.

The brand name is peculiar to one manufacturer (Siemens/RuggedCom). Siemens/RuggedCom networking equipment was originally introduced into the US Navy operational fleet in 2006 as part of the CG 47 Class Integrated Ship Control (ISC) Network and then starting in 2008 as part of the Gigabit Ethernet Data Multiplex System (GEDMS) network for the DDG Modernization

Program. Based on the excellent performance of the Siemens/RuggedCom networking equipment on the CGs and DDGs, PMS 407 proceeded to approve the procurement and use of

Siemens/RuggedCom equipment on almost all future ship modernization programs including

MCM 1, LSD 41/49 and LPD 17. Additionally, PMS 312 has approved the testing of

Siemens/RuggedCom equipment for the CVN 68 class and PMS 317 is moving forward with using Siemens/RuggedCom networking equipment for LPD 30AF. It is essential that NSWCPD have a hardware contract in place to properly fulfill its ISEA/SSA obligations and provide adequate fleet support as funded by the various ship class sponsors.

The Navy has invested heavily in integrating Siemens/RuggedCom network equipment on their ships and in laboratories supporting each ship class. There are over two thousand

Siemens/RuggedCom networking products currently installed throughout the fleet as part of

HM&E and Navigation Networks. Siemens/RuggedCom provides networking equipment that meets military environmental qualifications as part of their commercially available product lines.

Furthermore, the proliferation of this equipment throughout the U.S. Navy fleet has led to increased product reliability and support and has streamlined the areas of fleet training and maintenance, resulting in significant savings in TOC. The Siemens/RuggedCom brand name equipment is necessary to ensure interoperability of networking products currently installed throughout the fleet as part of HM&E and Navigation Networks. The NAVSEA Network

Infrastructure Competency, which includes NSWCPD Division 52 and the respective Technical

Warrant Holder in NAVSEA 05H, regularly review networking equipment from other companies, but to date no one company has been able to produce similar COTS products that meet military environmental qualifications and U.S. Navy operational requirements. As with all

COTS equipment, the Government does not own the Intellectual Property associated with it.

Thus, in order to ensure 100 percent interoperability with existing relevant networks, procurement of the specified Siemens/RuggedCom brand name equipment is required.

Utilization of other components would result in a) the inability to provide necessary support to in-service vessels, b) invalidation of approved design and testing efforts for modernization programs presently in execution, and c) lack of adherence to NAVSEA established commonality initiatives; the combination of which would jeopardize NSWCPD’s ability to successfully deliver systems to the fleet on time and within budget.

For these reasons, it is imperative that the Siemens/RuggedCom brand name equipment specified in this acquisition is procured by NSWCPD.

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

This Justification will be posted along with the synopsis and solicitation on the Federal Business

Opportunities (FedBizOpps) website in accordance with FAR 6.305. Any responses received will be evaluated.

Market research was conducted through a survey and analysis of alternative equipment brands that are available in industry. The thorough analysis conducted reviewed the available brands to see if there were any possible alternatives. Additionally, several companies were surveyed to see if they would be able to provide a satisfactory solution. At this time, no other brand name equivalents exist to satisfy the need.

An RFI was posted to beta.sam.gov on 6 December 2019. The RFI requested that interested small businesses submit capability statements that 1) address their ability to provide products to meet the requirements of the parts list, which was provided as an attachment to the RFI, and 2) demonstrate their status as a Siemens/RuggedCom authorized reseller/dealer/partner. Responses were received from four interested companies – B&H International LLC, Lyme Computer

Systems, New Tech Solutions, Inc., and Premier Technical Services.

B&H International is a woman-owned small business. B&H International expressed interest in the requirement but did not provide a capability statement, nor did it address its ability to provide the required products or its status as an authorized reseller.

Lyme Computer Systems (LCS) is a HUBZone, small business. LCS provided a letter from

Siemens confirming its status as an authorized reseller of RuggedCom products. LCS also provided statement confirming their ability to meet the requirements of the parts list.

New Tech Solutions (NTS) is a small business. NTS provided a capabilities statement, which provided a general overview of the company as well as its project management approach. The capabilities statement included a list of OEM certifications held by the company; however, Siemens is not one of them. NTS did not address their ability to provide the required products or their status as an authorized reseller.

Premier Technical Services (PTS) is a HUBZone, small, disadvantaged veteran-owned small business. PTS provided a letter from Siemens confirming its status as an authorized reseller of

RuggedCom products. PTS also provided a capability statement confirming their ability to meet the requirements of the parts list.

There is reasonable expectation that quotes will be received from two responsible small businesses; therefore, it is the intent of the Government to procure the required supplies as a small business set-aside.

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 covered by this J&A are fair and reasonable, prior to award. Similar quantities of this requirement have been purchased from this manufacturer in the past and cost/pricing information was received on those past procurements. This information should be sufficient to support the fair and reasonable cost determination of this procurement. Technical analysts and contract specialists will perform analysis of the proposal, with assistance, as needed, from the

Defense Contract Management Agency and Defense Contract Audit Agency. The Contracting

Officer will utilize cost and pricing analysis as the basis for determining a fair and reasonable price.

8. Actions to Remove Barriers to Competition

NSWCPD will continue to monitor the marketplace and identify potential sources of the supplies identified in this Justification. Any sources discovered that can potentially satisfy this specific procurement will be taken into account for any future requirements.