I.16.1. Justification and Approval_Redacted1.pdf

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In accordance with 41 U.S.C. 1901, as implemented in Federal Acquisition Regulation (FAR) 13.501(a)(1)(ii): Only one responsible source and no other type of supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

NUWCDIVNPT is the Navy’s principal development activity for submarine electromagnetic and communications systems.

NUWCDIVNPT’s Undersea Warfare (USW) Electromagnetic Systems Department (Code 34) is the Designated Overhaul Point (DOP) and In-Service Engineering Agent (ISEA) for all variants of the OE-538 system. NUWCDIVNPT Code 34 is designated as the DOP and ISEA by the Participating Acquisition Resource Manager (PARM), Naval Information Warfare Systems Command (NAVWAR) PMW770, Submarine Communications and Integration, as documented in the “NAVWAR DOP Depot Source of Repair Certification/Assignment”, dated 01 October 2020. NUWCDIVNPT Code 34 is the sole repair facility designated to perform depot level repairs on OE-538 MFMs. In order to meet Fleet demands, NUWCDIVNPT Code 34 requires the delivery and repair of AEs.

The OE-538B is the latest variant of the OE-538 family of systems, and was developed under contract N00039-15-C-0225 to Lockheed Martin Sippican. During development, Lockheed Martin Sippican selected Mayflower’s AE to be incorporated into the OE-538B system. The AE and its components are proprietary to Mayflower. Therefore, Mayflower is the only source that can manufacture and deliver the required AEs and that possesses the knowledge and expertise required to repair and upgrade failed units.

In order to develop and certify a second source of supply for the AE, the PARM (PMW 770) would have to certify a prospective AE to ensure all of the functional, performance, and environmental requirements of the OE-538B MFM are satisfied. The table below identifies the tasks, schedule, and estimated cost that would be required:

Task Cost Schedule Development Effort 1 Development/modification of an AE to meet OE-538B MFM performance and infrastructure requirements.

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No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than Mayflower to provide the required services.

7. Determination of Fair and Reasonable Costs

The Contracting Officer will use a series of techniques to determine a fair and reasonable price for the supplies and services covered by this J&A. Examples include: review of substantiating information, regression analysis, as well as, historical price analysis. DCMA pricing assistance and/or DCAA audit of contractor's proposal will be requested, if needed, to support the fair and reasonable cost and price determination. Similar quantities of this requirement have been purchased from Mayflower in the past and cost and pricing information was received on those past procurements.

8. Actions to Remove Barriers to Competition

If future acquisition of the GPS AJ AE Modules are required, the information contained in Section 5 will be revisited and validated to confirm the sole source requirement still exists. The Government will consider soliciting this requirement on a full and open basis should Mayflower no longer possess the proprietary data rights or a second source of supply is certified. Currently, the Government’s requirement for the GPS AJ AE Modules cannot be filled by another manufacturer’s product. As such, it is anticipated that NUWCDIVNPT Code 34 will continue to contract with Mayflower on a sole source basis to support the Fleet until these units reach end of life.