N66604-16-D-0845_REDACTED.pdf

DEPARTMENT OF THE NAVY

NAVAL UNDERSEA WARFAIU! CENTER DIVISION

117• Howell Strut NEWPORT RI OZU1-t70I

JUSTIFICATION AND APPROVAL

IN kOL\' lllPlk TO:

J&A Number: 14036.3 Control #: 160845 P.R. #: 1300346660

FOR USE OF OTHER THAN FULL AND OPEN Ca.JPBTITION

JUST:I!'ICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Undersea Warf are Center Division, Newport, RI, Contracts Department, Code 02.

2. Description of the Action Being Approved

This is a justification to award a Small Business Innovation Research (SBIR} Phase III Indefinite Delivery Indefinite Quantity contract to L3 Chesapeake Science Corporation (L3/CSC}, 1127B Benfield Boulevard, Millersville, MD, 21106- 2540. This work will be accomplished under Small Business Innovation Research (SBIR) Topic N95-209 entitled "Develop New Towed Array Technology."

3. Description of Supplies/Services

This Justification and Approval (J&A Number: 14036.3) supersedes the previous J&A for this requirement (J&A Number 14036.2). The previous J&A (14036.2) was approved on 6 September 2014 was to award a Sole Source IDIQ contract to L-3 Chesapeake Science Corporation (L-3/CSC ) as they were the only responsible source. After entering discussions L- 3/CSC stated that they currently hold SBIR data rights.

After further research by the contract negotiator, contracting officer, and Naval Undersea Warfare Center, Division, Newport RI Office of Counsel (OOL), and Naval Sea Systems Command (NAVSEA) Office of Counsel (OOL), it was identified that L-3/CSC was correct in that they still hold SBIR data rights for the subject requirement based on the current regulations and legal interpretation thereof. -Thus the current J&A (41036.3) is being processed to award an SBIR Phase III IDIQ contract to L-3/CSC.

J&A Number: 14036.3 The total anticipated value over the period of performance is .............. including services and material. The total lev~nticipated over the three year period of performance is hours which equates to a total value of in services. The Government estimates a total value of 111111 in material over the 63 components in support of TAIPT. The component value was created based on historical fleet usage data.

The services to be performed include TAIPT telemetry Configuration Management, Engineering Services, and the upgrade, maintenance, fabrication, or development of the components and special test equipment in support of the Towed Systems Programs which utilize TAIPT telemetry. Towed Systems include in-service towed arrays, towed array cables and associated signal path components and towed array test equipment for the full range of towed systems programs for all Naval Claimants.

Materials procured under this contract are in support of the NUWC, Sensors and SONAR Systems Department, Code 15, towed array tasking for work specifically associated with the TAIPT telemetry and test equipment used for Navy towed arrays. The primary user of these materials is Code 15's Naval Array Technical Support Center (NATSC). NATSC is responsible for the repair, upgrade, fabrication and refurbishment of many of the fleet in-service towed arrays.

The material and services to be procured under this requirement constitutes Small Business Innovation Research Program (SBIR) Phase III work. The proposed requirement is for technical support services and hardware associated with the upgrade, production and maintenance of Towed Array products. This therefore, constitutes SBIR Phase III work as it is work that derives from, extends, or logically concludes effort(s) performed under prior SBIR funding agreements.

L3/CSC was awarded SBIR Phase I, N00024-96-C-4224 on 17 September 1996. L3/CSC was subsequently awarded SBIR Phase II N00024-98-C-4055, on 10 March 1998. SBIR Phase I was for the conceptual development of a common telemetry system for use across surface and submarine towed and hull-mounted arrays including a set of telemetry building blocks tailored to the requirements of all foreseen towed arrays including common hydrophones where possible, tow cables, a common data communication and control architecture (ATM/SONET OC-3), common test sets (towed array test set (TATS)), and SONAR

111111111111111111111111111~ · SBIR Phase II was to develop miniaturized key elements of ATM/SONET TAIPT telemetry for application into both thinline and large diameter towed arrays. The result of the Phase II effort was the first generation prototype of the Towed Array Integrated Product Team (TAIPT) Telemetry system.

The first SBIR Phase III was to reduce costs for follow-on TB-29, TB-16, a Multi-Function Towed Arra MFTA which wor ar ware wi commercial manufacturing processes as opposed to hybrid microelectronics, pressure tolerant (potted) packaging, industry standard data communication links and protocols, field progranunable digital logic as opposed to custom integrated circuits, commercial off-the-shelf (COTS) high-end ~udio analog-to-digital converters, and integration of

. Tne government IBUS TB-29A contract arrays.

This SBIR Phase III is for the production of TAIPT Telemetry components and associated engineering support services.

There are a total of 63 components being procured under this requirement on a Firm Fixed Price (FFP) basis. The engineering support services will be procured on a Cost Plus Fixed Fee (CPFF) basis.

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

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. ft

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. Demonstrations that Proposed Contractor's Unique Qualifications or Nature of Acquisition Requires Use of Authority Cited

The nature of the acquisition 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 conunercial 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 Offerers Were Solicited From as Many Potential Sources as Practicable/Public Notification through Government Point of Entry (GPE) .

As described above, only L3/CSC is being considered for this 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 Costs

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 Business

Clearance Memorandum which will be included in the contract file.

8 . Description of Market Research or Statement of the Reason Market Research was not Conducted.

FAR 10.00l(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.

As this work and any known future work involving TAIPT products and material will technically derive from the previous awarded SBIR contract, it is not possible at this time to compete this action or any future actions. The Contracting Officer is not aware of any specific actions that would further remove barriers to competition regarding requirements for TAIPT applicable arrays prior to their phasing out as discussed below.

There is a solicitation currently in evaluation for a new = • - - • ... ..• er N00024-15-R-6263 ) that

In addition, there is another solicitation for TB-37X expects to be solicited

The TB-37X array will likewise not use TAIPT components.

The requirements cognizance estimates the requirement for

! • •u•••-• • .- ••- -. • -adily

12. Period of Performance.

This is an Indefinite Delivery Indefinite Quantity (IDIQ) contract with a three year Period of Performance, no options are included.

13. Total Dollar Value of the Acquisition Covered by this J&A, with Funding Specified by Year and Appropriation.

The total value of this acquisition is down as follows:

Dollar Value for Services: ~ s

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Estimated Dollar

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Dollar Value for Materials:

OPN

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J&A Number: 14036.3

The dollar value specified above is different than what is stated in the Acquisition Plan (Plan #14063.0) as well as the initial Justification and Approvals. The estimate is based on a current L-3/CSC proposal. L-3/CSC is only willing to enter into a three year contract rather than the five year contract originally solicited by the Government. As a result the estimate above reflects the most current known information as it relates to the contemplated award of this requirement.

Although the order period was reduced from five years to three years the total value did not decrease significantly due to two factors:

a. As part of the SOW for the engineering effort the Government has a task for addressing obsolescence concerns.

The previous engineering contract ended in 2012 therefore L-3/CSC had a number of obsolescence issues to address.

This resulted in an increase to the total engineering value of based on the postnegotiation position.

b. L-3/CSC's proposed prices for the FFP components exceeded the Independent Government Cost Estimate (IGCE) by between 40 and BO percent in most cases. The contractor attributes this significant increase to the IGCE not accounting for obsolescence and replacing obsolete parts that make up the components with current versions. The Contracting Officer requested an audit from the Defense Contract Management Agency (DCMA) and received an audit that stated L-3/CSC had supporting information for their prices and accepted them as proposed. The only exception the government took to price during negotiations was profit and the current value is based on the anticipated negotiated settlement.

Based on the above, the current estimate is a realistic ceiling for the contract based on current pricing and government requirements.

14. Actions Attempted to Make Inunediate Acquisition Competitive and Cost/Benefit Analysis.

As described above, only L3/CSC is being considered for Phase III award due to the nature of the acquisition.

CER'l'IFICATIONS AND APPROVAL

CONTRACTING NEGO'l'IATOR IDENTIFICATION:

CONTRAC'l'ING 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.

'l'ECBNICAL/:REQUIREMENTS CER'l'IFICATION (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, including Acquisition Plan (No. 14063.0), except as noted herein, are complete and accurate to the best of my knowledge and belief.

'l'ECBNICAL COGNIZANCE:

REQ~S COGNIZANCE:

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

ADVOCATE FOR COMPETITION APPROVAL REQUIRED BY FAR 6.502

I concur in the justification for solicitation of the proposed procurement using other than full and open competition.

~ u. ~A ~(;_r/lti gnature and Date

Denise Abraham, Advocate for Competition 02 401-832-6973 Name (Print) and Title (Code) Phone No.

APPROVAL (FAR 6. 304)

Upon the basis of· the above justification, I hereby approve, as the Designee of the Head of the Contracting Activity, the solicitation of the proposed procurement using other than full and open competition, pursuant to the authority of 10 U.S.C.

(c) (5).