JA_Argon_redact_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL UNDERSEA WARFARE CENTER DIVISION

1176 Howell Street

NEWPORT Rl 02841·1701

IN IIEI'LY REFER TO:

J&A Number: 15007.0 Control #:150431

PR #:1300461065

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Undersea Warfare Center Div1sion, Code 02, Newport, RI.

2. Description of the Action Being Approved

Award a Sole Source Contract (Firm Fixed Price) for ten (10) 17 1nch ruggedized displays (P/N 17SCNRES/ARGBSG-2V-115-DT) to modernize existing displays in the fleet, funded by Code 15, with one Option for five (5) additional displays funded by Code 25. The contract shall be placed with Argon Corporation, Great Neck NY.

3. Description of Supplies/Services

Argon Corporation, who has no distributors, will provide ten

(10) 17 inch ruggedized displays to upgrade all legacy Cathode Ray Tube (CRT) sonar displays in the fleet. The displays will be upgraded with new flat panel technology, with increased display size within the same physical footprint, lower power consumption, and will be air-cooled instead of water-cooled. The option, if exercised, will be executed No Later Than (NLT) one (1) year from date of award of base contract. The Independent Government Estimate (IGE) is based on the same unit price paid on previous purchase order #N66604-14-P-2900, awarded on 8/5/14, 1ncluding one escalated option. The base amount is $ 137,210 (qty. 10 @ $13,721 ea.) and the opt1on amount 1s derived by escalating the unit price by 3%, which equates to $70,665 (qty. 5@ $14,133 ea.). Escalation was added to the unit price for the option year only, s1nce the vendor has not increased its unit pr1ce since 2011. The total estimated Firm F1xed Pr1ce

NCH 53.6-2 (MAR 2013)

NCH 53.6-2 (MAR 2013>

is $207,875 and the Government intends to fund this requirement as follows:

Est ted Dollar Value

FYlS OPN (funded by Code 15) $137,210 OPN (option funded by Code 25) $ 70,665

Total $207,875

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

4. Statutory Authority Permitting Other Than Full and Open

Competltion

10 U.S.C. 2304 (c) (1) Only one responsible source

5. Rationale Justifying Use of Cited Statutory Authority

The AN/ data;

a capabilities. Parts for the original CRT assemblies are no onger available and the Cathode Ray Tubes are no longer e.

In 2008, NUWC identified a requirement to provide ruggedized Liquid Crystal Displays (LCDs) to replace and upgrade legacy CRT sonar displays within militarized AN/BQQ-5Ev4 cabinets.

The Karcher Group, the only d1stributor for Argon, was awarded contract N66604-08-F-2390 (2 ea. @ $16,500 = $33,000) on 10 March 2008 for these displays. Argon custom-built displays per NUWCDINVPT performance specifications, which met form, fit, and function requirements within the ex1sting physical footprint of the militarized AN/BQQ-5Ev4 cabinets.

The Navy invested approx1mately three years of time and effort to perform the below performance verification test1ng, which cost approximately $570K in 2008 to:

o Shock and Environmental Qual fication Test (EQT) to qualify and certify the Argon displays (1 year);

o Develop a Temporary Engineering Change (TEC A047) to install on a fleet platform for long term evaluation of the Argon displays (6 months);

o Develop a permanent Engineering Change (ECI-BQQ10070) to permanently install the Argons displays on fleet platforms (6 months);

o Update Tech Manuals and Maintenance Requirement Cards {MRCs} {6 months); and o Perform necessary Integrated Logistic Support (ILS) changes and Allowance Parts List (APL) changes (6 months).

To replace and upgrade further failing legacy CRT sonar displays in the fleet, Argon Corporation was awarded Contract N66604-ll-P-2436 (5 ea. @ $13,721 + $150 shipping= $68,755) on 1 June 2011 and Contract N66604-14-P-2900 (5 ea.

@ $13,721 = $68,605) on 5 Aug 2014. Both orders were synopsized in Federal Business Opportunities (FBO) on a sole source basis and no challenges were received. The Argon displays were, and still are the only product that meets all the requirements without having to reperform the above mentioned design, testing and verification effort.

Award to a new vendor would require development of a first art cle unit, which must undergo performance verification testing, noted above, to ensure compliance to the performance spec f cation. Any new displays would be required to be shock qualified to MIL-S-901D (Shock Tests, High-Impact Shipboard Machinery, Equipment, and Systems, Requirements for) and approved by NAVSEA SEAOSP (Ship Integrity and Performance Eng neering) for installation onboard Navy submarines. Once NAVSEA certifies the design as acceptable for shipboard installation, the Government would then procure production displays. Re-certification of a new display from a different vendor would be approximately $600K escalated to current value.

NUWC is required to provide ten additional displays for installation in the fleet to upgrade the remaining legacy CRT sonar displays; the installations are based on fleet

Award to a new vendor for a different display would result in substantlal duplication of cost, unacceptable delays, and a negative impact to the fleet. The impact of award to a new vendor would be NAVSEA would mis to upgrade he sonar dlsplays.

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

Offerors as Practicable

The procurement will be synopsized in FBO to advertise the requlrement. Any challenges to the sole source acquisition designation from industry that have technical merit shall be brought to the attention of the Competition Advocate for investigation and determination for competitive feasibility.

7. Determination of Fair and Reasonable Costs

The Contracting Officer will determine that the anticipated cost to the Government for the supplies covered by the J&A will be fair and reasonable. After receipt of the proposal, appropriate cost or price analysis techniques, as prescribed in FAR 15.404-1 will be applied in order to determine a fair and reasonable price.

8. Actions to Remove Barriers to Competition

This is an end of life requirement and NOWC foresees no future procurements for this item therefore actions to remove barriers to competition are not applicable to this requirement.

TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 6.303-2(b))

I certify that the facts and representations under my cognizance, which are included 1n this justification and its support1ng acquisition plann1ng data, including Acqu1s1tion Plan No. _N/A_, except as noted herein, are complete and accurate to the best of my knowledge and belief.

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REQUIREMENTS COGNIZANCE:

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Name (Print) and Title ( ) P

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this just1fication is legally sufficient.

[)og•l>lly s.gnod by NEU.IGAN I({NN£TH E 1228492252

APPROVAL BLOCK (FAR 6.304 for Approving Official)

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

2304(c)(1).

Signature and Date

2 (MAR 2013)