N66498_023220220001.pdf

J&A Number: 0232-20-220-00.1 Code: 0232 P.R. Number: 20-KJD-001

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 (NSWCPD), Contracts Division Code 416.

2. Description of Action Being Approved

This is a sole source action to be awarded without providing for full and open competition. The proposed contract action is a Cost-Plus-Fixed-Fee (CPFF), Indefinite-Delivery Indefinite-Quantity (IDIQ) type contract to be awarded to Collins Aerospace Mission Systems, for the furnishing of services, including labor and material, and support to research, design, and resolve any problems associated with the Central Atmosphere Monitoring System (CAMS) including CAMS Mk I, CAMS Mk II, and CAMS IIA, hereafter referred to as “the system or system(s),” to ensure their safe and reliable operation. This contract is a follow-on contract to Hamilton Sundstrand Contract No. N65540-15-D-0012.

3. Description of Supplies/Services

The proposed acquisition will provide for the furnishing of engineering services, developmental services and site support services to troubleshoot, repair, sustain, upgrade and/or modernize fielded systems to ensure their safe and reliable operation. The system monitors the atmosphere inside of a submarine. The system is mission essential and vital to the deployment of the nation’s SEAWOLF, VIRGINIA, LOS ANGELES, OHIO, and COLUMBIA Class Submarines.

The total estimated dollar value of the proposed acquisition is $8,500,000. Funding amounts for this estimated cost are as such:

FY-20 FY-21 FY-22 FY-23 FY-24

O&MN 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

PHILADELPHIA DIVISION

5001 SOUTH BROAD STREET

PHILADELPHIA PA 19112-1403

IN REPLY REFER TO:

J&A Number: 0221-16-141-00

RDT&E 700,000 700,000 700,000 700,000 700,000

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304 (c) (1), Only One Responsible Source and No Other Supplier or Services Will satisfy Agency Requirements (FAR 6.302-1).

5. Rationale Justifying Use of Cited Statutory Authority

The equipment that is the subject matter of this procurement monitors the atmosphere inside of a submarine and is vital to the mission and the wellbeing of the personnel on board. Failure to properly troubleshoot, maintain, and upgrade the atmosphere monitoring equipment will negatively impact the mission of a LOS ANGELES, SEAWOLF, OHIO, VIRGINIA or COLUMBIA Class submarine and pose a serious safety hazard to shipboard personnel.

Collins Aerospace Mission Systems is the only source that possesses the necessary technical data and uniquely qualified personnel who are able to diagnose issues, design and develop improved components and provide review of technical documents and procedures. Historically, the Navy has failed to procure the technical data rights and software code for the system. Collins Aerospace Mission Systems maintains the technical data rights, which designates them the Original Equipment manufacturer (OEM). While the Government does understand the system, the Government does not possess the intricate technical knowledge or information to construct a contracting package for solicitation on a competitive basis to achieve the desired result.

Though the Navy does possess limited organic capability to maintain and repair the system configurations, issues arise that cannot be diagnosed or repaired due to the Government’s lack of specialized knowledge and expertise. The Government also does not possess the qualified personnel and specialized test equipment to provide emergent support for deployed submarines as well as the ability to successful design, develop, and test these items. As the OEM of the listed equipment, Collins Aerospace Mission Systems has specialized expertise in the intricacies of the equipment of interest. Other vendors do not possess the proprietary data that Collins Aerospace has to build, maintain, overhaul, and repair the system. Collins retains the necessary data to troubleshoot and calibrate the system when building new or overhauling and returning the modules to the fleet. The Government’s attempts to purchase these data rights have been declined. Without a complete data package on the certain modules, no other source could perform the maintenance, provide the support services required to support the Navy’s fielded systems, as well as possess the complete knowledge and expertise to provide the emergent support for deployed submarines and would potentially jeopardize military missions.

The lack of detailed knowledge of the equipment, access to technical data and the complexity of the system design of each of these systems cannot be supported by any other source. Pursuing a new source is not possible without complete technical data packages and would delay servicing and modernization of these mission critical submarine life support equipment. As a result, Collins

Aerospace Mission Systems, the original designer and manufacturer of the equipment above, is the only responsible source available that is capable of providing the required services to fulfill the Agency’s requirement for ship readiness and mission capability.

The following analysis was developed by the Subject Matter Expert in Code 416 in order to reveal the approximate cost and schedule impacts required to develop an alternate Central Atmosphere Monitoring System (CAMS) for the submarine fleet.

Estimate Development of Alternate CAMS

Define New Requirements with Technical Community

18 months

Execute Competitive Award 24 months Developmental Testing 24 months Deliver Alternate System 24 months Total Duration 90 Months

Estimate Duplicate Development, Integration and Sustainment Costs

Non Recurring Engineering $20 M Initial Build and Delivery $16 M ISEA Integration and Testing $1 M Cost for Software Updates $5 M Logistics Updates $3 M Spares Procurement Updates $7 M Total Cost $52 M

The results in the two tables above show that it would be an approximate $52M in duplicative costs to the Government in order to develop other sources of support under a competitive effort.

Additionally, it is evident that the Government would face great risk in waiting 90 months to develop alternate systems, and would require additional resources to test them fully to integrate them, all while the currently delivered systems would continue to be fielded and utilized in production to the Fleet.

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

A Request for Information/Source Sought was posted to FEDBIZOPS on 06 November 2019. Any responses received would be evaluated; however, to date no responses were obtained as a result of this RFI notification.

On 10 January 2020, the synopsis was published on beta.SAM.gov website. No responses were received. No additional market research was conducted because it is not practicable for any company other than Collins Aerospace Mission Systems to provide the required services as described within the reasons discussed in paragraph 5 above.

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. The contractor will submit a formal price/cost proposal with certified cost or pricing data and sufficient information to support the accuracy and reliability of the proposal. The contractor’s proposal will be reviewed by experienced technical analysts and contract specialists with the aid of necessary field pricing support. The Procuring Contracting Officer (PCO) will use cost and pricing analysis as the basis for negotiating a fair and reasonable price.

8. Actions to Remove Barriers to Competition

NSWCPD has assessed potential sources through market research analysis but for reasons set forth in Section 5, NSWCPD has no plans to compete contracts for the types of services covered by this justification. However, all requirements that arise under this IDIQ will be reviewed by the PCO to ensure that Collins Aerospace Mission Systems is still the only company that can satisfy agency requirements. NSWCPD will continue to monitor the marketplace and identify other potential sources of the services identified in this justification. Any sources discovered that can potentially satisfy this specific procurement will be taken into account for any future requirements.