Redacted_JA.doc

SBIR J&A_16_ 0409

SBIR J&A_16_ 0409

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 Basic Ordering Agreement order to Progeny Systems Corporation (Progeny).

Progeny, Chesapeake Technology International Corporation (CTI), and Charles River Analytic Inc. were awarded SBIR Phase I contracts N68335-12-C-0167, N68335-12-C-0166, and N68335-12-C-0168 on 02 April 2012 respectively, resulting from solicitation 12.1, Topic N121-045. Topic N121-045 was entitled, “Maritime Airborne SOA Integration.” There were no Phase II contracts awarded to Progeny under this topic number. CTI was subsequently awarded SBIR Phase II contract N68335-13-C-0258 on 06 June 2013. Progeny was subsequently awarded SBIR Phase III contract N68335-13-G-0001-0001 that was fully funded with a contract end date of 15 September 2015; N68335-13-G-0001-0002 that is fully funded with a contract end date of 30 April 2016; and N68335-13-G-0001-0003 that is fully funded with a contract end date of 30 April 2017.

Topic N121-045 sought the development of an open-architecture integration system using Service Oriented Architecture (SOA) design principles and practices to integrate legacy airborne mission computing systems and sensors. Current maritime airborne platforms are unable to exhibit rapidly changing net-centric requirements and traits due to limitations of traditional siloed software and systems development. These limitations are exuded through closed, proprietary systems and subsystems that require extensive engineering and re-engineering in order to gain access to systems and sensor data. These limitations usually incur large cost and schedule penalties and will not allow for the rapid agile technology development and integration that is required to stay in lock step with warfighter needs. SOA design principles and practices dictate an architectural as well as design pattern that encourages openness through standardization. SOA enables reuse and rapid integration of information, taking what you have and structuring it to allow you not only to continue to use it, but to use it securely and make it adaptable for future change that will be simple, straightforward, safe, and fast. SOA is flexible, adaptable, and agile. It promotes standards and industry best practices and results in reduced redundancies, increased system efficiency, and improved collection and processing of data and distribution of information. Cost efficiencies, mainly as a result of savings in life-cycle information technology maintenance and reduced development costs, are also realized.

3. Description of Supplies/Services.

This Phase III effort derives from the Phase I effort described in paragraph 2 and is for the procurement for continued design, development, integration and test of the Application Based Architecture (ABA) component of the P8 Increment 3 Combat System. The ABA will be the foundation for the Increment 3 Combat System and enable the low cost integration of third party provided capabilities. This Phase III requirement is to use SOA design principles and practices to develop an open-architecture system that will integrate legacy airborne mission-computing systems and sensors so as to provide near-real time dissemination of collected maritime airborne mission data. This effort will be N68335-13-G-0001, Delivery Order 0004.

The activities under this task shall encompass applications development, application or capability integration, laboratory setup and configuration, test environment setup and configuration, legacy mission system software development, environment setup and configuration, ABA development, environment setup and configuration, and other software support tasks necessary to complete this effort. The foundation laid here will ultimately result in a common integration architecture and strategy for maritime airborne assets that can quickly establish and exude net-centric traits and allow for the rapid insertion and integration of emerging technologies at a far lower cost.

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)(4) 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 the Phase I, 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 Progeny 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 the Phase I.

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. 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 Progeny is being considered for Phase III award due to the nature of the acquisition.

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