J&A N65236-16-R-0031 (Sanitized).pdf

DEPARTMENT OF THE NAVY

SPACE AND NAVAL WARFARE SYSTEMS CENTER ATLANTIC

P.O. BOX 190022

NORTH CHARLESTON, SC 2941S.9022

JUSTIFICATION AND APPROVAL

IN RE:PLY REFER To:

J&A No. Dl7-0023 Originator Code 55230

FOR USE OF OTHER THAN FULL AND OPE'! COMPETITION

1. Contracting Activity.

Department of the Navy, Space and Naval Warfare Systems Center (SPAW ARSYSCEN) Atlantic, Charleston, SC.

2. Description of the Action Being Approved.

The proposed action is for the award of a sole source, Commercial, Indefinite Delivery, Indefinite Quantity (IDIQ), Firm-Fixed-Price contract to Rohde & Schwarz (R&S) USA, Inc., Annapolis Junction, MD. The estimated contract value is $12.80 million over a seven year ordering period.

3. Description of Supplies/Services.

SPAW ARSYSCEN Atlantic requires the procurement of new R&S High Frequency (HF) transceiver systems and suppmt services for new and existing HF systems. R&S will be responsible for providing new HF transceiver systems for United States Coast Guard (USCG) National Security Cutters (NSC) as well as providing spare/replacement paits and engineering and technical support to include:

troubleshooting, repairing, training and maintaining fielded R&S equipment in support of both Foreign Military Sales (FMS) and Department of Navy (DoN) customers.

Specific purchased end items of this procurement shall consist of the acquisition of at least 19 R&S HF 2000 series systems/spares and 18 R&S HF 4000 series systems/spares over the next seven years. This equipment is a specified element of an approved overall equipment baseline for the High Frequency Transceiver System (HFTS) program. The HFTS is a commercially available off-the-shelf/non developmental item (COTS/ND!) product that integrates existing capabilities and advanced technologies into a scalable, multifimctional, long-range cmmnunications system. The R&S equipment transmits and receives HF radio spectrum electronic signals and converts them into audio and data signals. These signals can be used by multiple operational links and services onboard USCG NSC.

Specific R&S systems and parts are provided at Attachment 1 to this document.

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J&A No. DI 7-0023

The funding type by year is estimated below:

Esthnatcd Dollar Value

Funding

FY17 FY18 FY19 FY20 FY21 FY22 FY23 TOTAL

Type

OECG* $488,587 .92 $511.711.48 $521,531.22 $528,547.82 $538,764.27 $549.185.05 $559,814.24 $3,698,142.00

A CI CG*"' $535.079.84 $560,403.75 $571,157.89 $578,842.17 $590,030.77 $601,443.14 $613,083.76 $4,050,041.00

FMS*** $666,947.86 $698,512.74 $7ll,917.18 $721,495.21 $735,441.19 $749,666.10 $764,175.50 $5,048,156.00

TOTAL**** $1,690,615.62 $1,770,627.97 $1,804,606.28 $1,828,885.20 $1,864,236.23 $ J ,900,294.29 $1,937,073.50 $12,796,339.00

*Operating Expenses Coast Guard (OECG) **Acquisition, Construction, and Improvements Coast Guard (ACICG) ***Foreign Military Sales ****Rotmded Totals

4. Statutory Authority Permitting Other Than Fnll and Open Competition.

10 U.S.C. 2304(c)(l), One source or limited sources (FAR Subpmi 6.302-l(a)(2)).

5. Rationale Justifying Use of Cited Statutory Authority.

Pmsuant to FAR 6.302-1 ( a)(2)(ii) and FAR 6.302-1 (a)(2)(iii), the required supplies and services are available only from the original equipment manufacturer (OEM). R&S is the sole manufacturer and only distributer of the material described in pm·agraph 3.

a. The USCG has a contract with Northrop Grumman (NG) to build the NSC platforms. A total of nine (9) hulls are currently planned with the option of additional hulls if the appropriation allows.

A design decision was made in 2008 to integrate the R&S HF Narrow Band (NB) system with the L-3 proplietary Radio Frequency (RF) and baseband switching system. Presently, R&S HF systems have been integrated and installed onboard USCG NSC hulls 1 through 6, and the equipment being procured on this contract is an extension of the cmrent system design. For futme planning, R&S HF systems will be integrated and installed onboard USCG NSC hulls 7, 8, & 9, with plmmed installation onboard hulls 10, 11, & 12. Integrating another product into the communications matrix and developing the required updates to system documentation would require significant reengineering, development and test costs. In addition, peripheral equipment software would require costly updates and reprogramming. Training for and sustainment of two different systems would be cost prohibitive and would impact NSC operational availability.

The anticipated costs of using another HF system would result in cost impact of at least $4,850,000.00 and a two year delay, as identified by the chmts below. This data was extrapolated by using the time associated with the software and hardwm·e development taskings associated with new system introduction on NSC as well as the current billing rates of industry partners that would be required to engineer and implement these changes.

These costs would not be recuperated through competition due to the introduction of two separate logistics supply chains, separate training requirements for each system, validation of new equipment, and material support paths for two separate HF systems. This would also require two separate equipment manufactmers to provide technical and material suppmt for the different HF systems. Jn addition, the USCG loses the ability to transfer paiis and equipment between systems, effectively doubling the equipment spai·es requirements.

Percentage

28.90o/o

3 l .65o/o

39.45%

100.00o/o

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J&ANo. D17-0023

A 24 month delay is unacceptable due to the acquisition cycle and mission requirements of the NSC. The NS Cs are planned for national defense missions of the highest importance as they replace the aging 378' Hamilton Class Cutters. Any delay in mission critical system implementation creates not only unacceptable delays in the acquisition cycle but degrades mission readiness. These delays negatively impact the Coast Guard's ability to meet national defense requirements.

Reolacement items/services: Cost Engineering and Software Development $1,800,000.00 New Eauioment and Training $800,000.00 Revalidations and Certifications $750,000.00 Logistical Undates $600,000.00 Snares $900,000.00 Total $4,850,000.00

Process: Time Market Research lsamnle testinuldown select) 6 months Onboarding/ Testing 3 months Software Development 3 months Software Testing 3 months Field Testing 5 months Final Conffauration and Fielding 4 months Total 24 months (2 years)

Existing systems have already been installed on NSC hulls 1-6 and will require depot spares and support. R&S is the only supplier of these spares. There are no resellers of the R&S HF NB equipment and spares whom are capable of providing engineering and technical support services without voiding any remaining warranty on these end items. As discussed above, the Coast Guard's requirements for engineered configuration for two R&S HF systems on all future NSCs (NS Cs 7-10) do not allow any variations in the integration of a supplemental system. Therefore, it is in the best interest of the Govermnent to maintain a contract with the OEM in order to have all systems fully supported, for all customers.

b. In addition to the new R&S HF purchases for USCG, SPAW ARSYSCEN Atlantic has a FMS requirement to supp01t currently-fielded R&S systems, procure equipment to replace non repairable items, and procure equipment to be used as spares. R&S will also be required to provide support for on-site technical assistance. The additional technical assistance would be required to suppott fielded R&S HF and Very High Frequency/Ultra High Frequency (VHF/UHF) equipment procured, delivered, and installed under contracts N65236-08-C-3102 and N65236-l l-D-3235 for Pakistan and Taiwan respectively.

For FMS, R&S is the only source that can properly troubleshoot, repair and test previously fielded equipment. R&S is the OEM that possesses the corporate functionality and proprietary knowledge of this equipment. They hold the required test equipment to ensure the repaired equipment meets original technical specifications and operates exactly as previously installed and tested. In the event that an item sustains a critical failure and cannot be repaired, R&S is the only source that can provide exact replacement patts to match the previously fielded configuration.

J&ANo. 017-0023

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

Market research, in accordance with FAR Patt 10, was conducted by issuing a pre-solicitation synopsis on the SPAW AR e-Commerce website and the Federal Business Oppmtunities (FBO) website that advised industry of the impending acquisition and solicited inquiries from interested parties. Tills synopsis was issued on 14 September 2016 with a response date of29 September 2016.

submitted an agency protest on 20 September 2016 stating their objection to the inclusion of the TaeMobile, Offshore Patrol Cutter (OPC) and Ships Construction New (SCN) requirements.

stated that the inclusion of these requirements was an attempt to avoid competition. After review by both the Contracting Officer and legal counsel, was advised on 26 September 2016 that their protest did not meet the criteria of a protest as a solicitation had not been released by the Government. However, was provided the oppottunity to respond to the pre-solicitation synopsis, as it stated, "Any response to tills notice is due in writing with sufficient information to establish capability to fulfill the requirements within 15 days of the date of tills publication." As such, the Government invited to submit a capability statement in response to the pre-solicitation notice. In response to the Govermnent's request, submitted their capability statement on 29 September 2016. The Government reviewed submission to detennine ifthe products offered by would meet the Government's mission needs. As a result of this review, the Government determined that the TacMobile, OPC and SCN portions of the requirements would be removed from this effort, as the specifications for these items did not mandate R&S transceiver radio systems. Therefore, this effort would move forwat·d only with the FMS and USCG NSC requirements on a sole source basis. The sole source strategy is applicable to these at·eas as both have a specification which specifies the use of R&S transceiver systems. was advised of this decision via letter on 21 Februa1y 2017 and was informed that a revised pre-solicitation synopsis would be re-issued on the SPAW AR e-commerce website and the FBO website.

On 22 Februaty 2017, the Govermnent re-issued the pre-solicitation synopsis for tills effort without SCN, OPC, or TacMobile requirements. The response date was 09 Mat"C!12017. To date, no responses have been received. No additional mmket reseat·ch was conducted because it is not practicable, as indicated in paragraph 5 above, for any company other than R&S to provide the required supplies and services for this action.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer will determine that the price negotiated for the supplies/services covered by this J&A are fair and reasonable. This determination will be based on price information from the prior contracts listed above as well as other illstorical prices (commercial and DoD contracts).

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, SPAWARSYSCEN Atlantic has no plans at this time to compete future contracts for the types of supplies and services covered by this document. If another potential source emerges, SPAW ARSYSCEN Atlantic will assess whether competition for future requirements is feasible.

J&A No. 017-0023

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

1 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.

843-218- 05/25/2017

Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

_ 843-218- _~6/~1~12=0~1~7-

Signature Name (Printed) Phone No. Date

CONTRACTING OFFICER CERTIFICATION

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

BROWN.CHRIST ~.;'..\~".:.\.'~.,._.,0-,.,.,,,,",

OPHER.MYERS.1.-,.....,,_.,.,.

277023772 '.'.','.,:'.'.;'.;:~;~~;~'.~:::,, ·· hristooher M. Rrl)wn 843-218-43D6 Signature Natne t_Pi·Inteu; Phone NO. o~fJ/2017

PROCURING ACTIVITY COMPETITION ADVOCATE APPROVAL

Upon the basis of the above justification, I hereby approve, as Procuring Activity Competition Advocate, Space and Naval Watfai·e Systems Center Atlantic, 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 )(I).

HARNJG.STEVE Di;iitallys!gn•dby

HMNIG.STEVEN.G. 1221)833513

N.G.1228833513 Date:2017.06090940.23-04W

Steven G. Harnig See digital signature Date