J A_16_0109_Redacted.doc

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16-0167

SBIR J&A 16-0167

SMALL BUSINESS INNOVATION RESEARCH (SBIR) PHASE III JUSTIFICATION & APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Agency and Contracting Activity Department of the Navy, Naval Air Warfare Center Aircraft Division (NAWC-AD) Lakehurst, NJ

2. Nature/Description of Action(s) Being Approved This is a justification to award a Small Business Innovation Research (SBIR) Phase III contract to North Star Scientific Corporation.

North Star Scientific Corporation, Nitronex Corporation, and Trex Enterprises Corporation were awarded SBIR Phase I contract numbers N68335-07-C-0080 on 02 November 2006, N68335-07-C-0079 on 08 November 2006, and N68335-07-C-0081 on 09 November 2006, respectively, resulting from Solicitation 06.2, Topic N06-125. North Star Scientific Corporation and Nitronex Corporation were subsequently awarded SBIR Phase II contract numbers N68335-08-C-0018 on 17 June 2008 and N68335-08-C-0001 on 19 May 2008, respectively.

Topic N06-125 sought the development of a lightweight and small volume L-band solid-state power amplifier for aircraft platforms. This Phase III effort is for the procurement of a replacement for the Joint Tactical Information Distribution System (JTIDS) High Power Amplifier (HPA). The current E-2D JTIDS HPA has replacement parts availability issues, component obsolescence issues, and requires updates to support upcoming crypto modernization and frequency remapping mandates. This effort addresses the requirements and preliminary design of a JTIDS HPA and includes a System Requirements Review, Preliminary Design Review and technology trade studies. The solution will be compatible with E-2D Link-16 systems (either Multifunctional Information Distribution System – Low Volume Terminal (MIDS-LVT) or MIDS-Joint Tactical Radio System (MIDS-JTRS)) and meets E-2D environmental, power, electro magnetic interference, cooling and emissions security (also known as TEMPEST) requirements. The solution will replace the current JTIDS HPA with a new one based on newer technologies that are supportable in the fleet.

3. Description of Services This Phase III effort derives from the Phase I and II efforts. This project utilizes the technologies developed in Phase I and II to develop E-2D JTIDS HPA system requirements and a preliminary design. It will host a System Requirements Review and Preliminary Design Review. This effort will perform design trade studies to reduce the engineering risks to the final design. It will also provide initial test plans and logistics planning publications. This effort will be under Basic Ordering Agreement N68335-15-G-0058 Delivery Order 0003.

4. Identification of Statutory Authority.

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.”

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. Demonstration 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 commercial 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 Offerors Were Solicited From as Many Potential Sources as Practicable/ Public Notification through Government Point of Entry (GPE).

The topic for this effort was included in the Department of Defense Program Competitive Solicitation issued under the SBIR Program. As described above, only North Star Scientific Corporation is being considered for 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 Cost.

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 a 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 10.001 (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.

The Contracting Officer anticipates that competitors will enter the market once the product is commercialized. It is likely that future acquisitions will be competed using full and open competition and commercial item acquisition procedures. The Contracting Officer is not aware of any specific actions that would further remove barriers to competition.

12. Period of Performance.

Base: 24 Months

Option(s): None

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

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

No actions were attempted to make the immediate acquisition competitive; no cost/benefit analysis was performed. As described above, only North Star Scientific Corporation is being considered for Phase III award due to the nature of the acquisition.

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