Redacted JA.docx

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

CJ&A_17_0421

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center Aircraft Division (NAWCAD) Lakehurst, NJ

1. Description of the Action Being Approved.

This Class Justification and Approval (J&A) authorizes and approves, on a Sole Source basis, the issuance of an Indefinite Delivery Indefinite Quantity (IDIQ) contract and subsequent orders with a five-year ordering period, with Werlatone Inc. (Werlatone), 17 Jon Barrett Road, Patterson, NY 12563.

1. Description of Supplies/Services.

NAWCAD 4.11.3 has a requirement for the integration of UHF/Very High Frequency (VHF) Digital Modular Radio (DMR) and High Frequency Dedicated Amplifier Group (HFDAG) Communication systems aboard DDG-120, -121, -122, CVN-73, and other ships in support of the following part numbers:

The Werlatone electronic communication equipment listed above are vital components of the HFDAG and UHF/VHF communication systems, which are Program of Record (POR) components found within multiple United States Navy (USN) vessels to include LPD, DDG, LHA, AA, T-AKE, and CVN,. All of the specific parts are required to maintain standardization across systems already in use fleet wide.

1. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 2304(c) (1), only one responsible source and no other supplies or services will satisfy agency requirements.

1. Rationale Justifying Use of Cited Statutory Authority.

The Werlatone equipment being procured under this effort is shipboard approved amplifier devices specifically designed for UHF/VHF, Satellite Communication SATCOM frequencies required by the USN for Ship to Air, Ship to Ship, and Ship to Ground communications. They meet all shipboard certification requirements i.e. Shock and Vibration (S&V) authorizations and environmental specifications and other military specifications (MIL-SPECs) as may be mandated by both U.S. Department of Defense (DOD) and Department of Homeland Security for vessels operating under their purview.

Due to the S&V and other environmental specification required by the USN, the Werlatone equipment being procured under this effort can be tested and directly integrated into the AN/SRC-66 system without performing any abnormal or additional specification testing. The equipment being procured has been S&V certified, this saves significant amounts of Government costs by not performing the S&V testing and the Non-Recurring Engineering (NRE) that comes with the S&V testing. Werlatone equipment meets all S&V design specifications.

Additionally, this Werlatone equipment is already in use as Program of Record (POR) components on multiple commissioned DDGs over the last several years. This procurement will support building additional DDG and CVN communications systems and can be used as replacements if the equipment has performance issues while in the fleet. The Werlatone equipment is Joint Interoperability Test Command (JITC) approved. Since they are currently deployed aboard several platform class ships (to include DDG, LPD, LHA, CVN, T-AKE and T-AGM), and throughout other shore-based systems, they are known to meet Ship Environmental Qualification Testing Standards (SEQTS), including but not limited to:

· Mil-Std-1399/300B, Electric Power, Alternating Current Interface Standard

· Mil-Std-464C, Electromagnetic Environmental Effects Requirements for Systems

· Information Assurance Standards for Shipboard RED/BLACK Installation

A change in hardware would require the Program Office to initiate a new contract to test the developed hardware and software with a new Power Amplifier configuration and redesign and develop a solution that incorporates unknown or non-JITC tested equipment, with an additional cost and an immediate and unacceptable delay in fielding completed communication systems. During the initial POR review, of the many components on the market, through numerous vendors, the equipment being procured under this effort from Werlatone was the only one deemed acceptable to all form, fit, and function requirements. Any customization or required changes on other vendor’s parts and components would result in unnecessary duplication of costs. These components are part of the overall system, changing one component incurs the same challenge as changing all of the components.

The project would need to pay to implement a curriculum to train personnel not only on legacy equipment but new equipment as well, which would be both time- and cost-prohibitive. This includes the costs associated with developing and certifying the new training. Werlatone equipment is essential because they provide interoperability with currently fielded units, do not require retraining of all USN and U.S. Coast Guard active and civilian personnel, to include the In Service Engineering Activity (ISEA), and meet the operational/technical requirements mandated by PMW-170.

Already in the Navy Supply (NAVSUP) System, the equipment from Werlatone is used for a quick replacement until the repair units are returned by the manufacturer. Other makes/models of the amplifier accessories would require comprehensive testing to assess compatibility, and extensive integration efforts to bring them to compliance, which would introduce extra cost and lengthy production delays. Specifically, a thorough evaluation of other vendor products would require costs associated with design baseline changes, software baseline changes, drawing changes and compatibility testing with other equipment already procured for the communication systems. These costs (and day for day negative impact to the production schedule) cannot be quantified without a comprehensive cost estimate. Additionally, any new vendor’s equipment would be required to undergo S&V and other environmental testing, which would be an additional cost and cause considerable delay in delivery to the fleet.

1. Description of Efforts Made to Solicit Offers from as Many Offers’ as Practicable.

SPAWAR and NAWCAD engineers conducted market research and have evaluated multiple hardware applications with similar amplifying capabilities, but none currently meet all requirements. New amplifier equipment or “one-off” design efforts would lead to enormous costs and delays in fielding the USN systems in the fleet. Werlatone equipment, already in wide use within the USN and U.S. Coast Guard, has been certified to operate as shipboard assets, without modification or re-engineering, in support of U.S. Navy and U.S. Coast Guard hardware and software requirements. Werlatone provides a well-established obsolescence support plan, and two components, Hybrid Combiner/Divider (Part No. H5722A) and 4-Way Combiner (Part No. D9410) have patents issued by the U.S. Patent Office. These two parts are the integral pieces that tie the remainder of the system together. The entire AN/SRC-66 family of communication systems is based on the interoperability of the parts that make up the system. Since Werlatone has the only equipment that meets all requirements and specifications, as well as patents on some of the equipment, there are no other competitors capable of reproducing the system.

The current system is already configured for the fleet, and additional market research has concluded Werlatone is the only acceptable provider of the specific equipment. No company other than Werlatone can provide the required equipment to meet the program schedule in a cost-efficient manner with minimum risk. Additionally, and most importantly, Werlatone equipment is already POR equipment on numerous existing ships. Minimizing parts confusion and streamlining the logistics line warrants purchasing only products that are already fielded and currently in use by the USN.

A request for information under N68335-17-R-0318 was posted on 21 June 2017 through 26 June 2017 and no responses were received.

A synopsis was posted in accordance with FAR 5.201 on 14 July 2017. The synopsis closed on 31 July 2017 with no inquiries or challenges.

1. Determination of Fair and Reasonable Cost.

The Contracting Officer shall make a determination that the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable. In accordance with FAR 15.402, the Contracting Officer shall ensure that all equipment procured under this contract are procured at a fair and reasonable price. The Contractor will submit a formal price proposal with certified cost or pricing data and sufficient information to support the accuracy and reliability of the estimate. The Werlatone proposal will be reviewed by experienced technical analysts, cost analysts, and contract specialists with the aid of necessary field pricing support. The Contracting Officer will utilize cost and price analysis as the basis for negotiating a fair and reasonable price.

1. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NAWCAD has no plans at this time to compete future contacts for the types of supplies/services covered by this document. If another potential source emerges, NAWCAD will assess whether competition for future requirements is feasible.

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