Redacted JA.pdf

JUSTIFICATION for an EXCEPTION to FAIR OPPORTUNITY for the placement of an order >SAT under a Multiple Award Contract (MAC)

Upon the basis of the following justification, I, Christina Neto, as Contracting Officer of SP AW ARSYSCEN, Pacific, hereby approve the Justification for an Exception to Fair Opportunity Pursuant to FAR l 6.505(b )(2).

JUSTIFICATION

1. Agency and Contracting Activity. Department of the Navy, SP A WARSYSCEN, Pacific.

2. Nature/Description of Action. This a fair opportunity exception to place an order with Leidos, Inc. under multiple award contract number N66001- I 6-D-0440. The task/delivery order number will be determined at award.

3. Description of Supplies/Services. SSC Pacific is performing work under a Joint Capability Technology Demonstration (JCTD) project named Under C-WOLF with the primary objective being to demonstrate optical conununications from an underwater to an airborne system via the air-water inte1face. SSC Pacific has developed a preliminary design of the airborne system which includes a Quad Detector Optical Receiver (hereafter "Quad Receiver") as a key component.

This is a completion, non-severable task order for the development, delivery, and integration of two (2) Quad Receivers for integration into the airborne system. The subject effort is estimated at $636,730.38.

4. Identification of the Exception to Fair Opportunity. (FAR 16.505 (b)(2))

Identification/Justification for Exception:

D a. The agency need for services is of such urgency that providing fair opportunity would result in unacceptable delays.

r>s:] b. Only one such awardee is capable of providing such services required at the level of quality required because the services ordered arc unique or highly specialized.

In FYl 7, SSC Pacific leveraged an existing contract with the Army to execute a task order1 with Leidos Inc. (hereafter "Leidos") given its recent work experience with the Office of Naval Research (ONR) in developing optical receivers for high data rate applications. The referenced task order required the design, development, and delivery of a Single Detector Optical Receiver (hereafter "Single Receiver") for installation within an underwater system Following receipt, SSC Pacific conducted extensive integration and testing activities with the Single Receiver which included: (1) optimizing the electrical interfaces within its system; and (2) modifying firmware installed within a government-developed Field Programmable Gate Array Optical Modem to interface with the Single Receiver. Accordingly, the Single Receiver has become a

1 W9113M-10-D-0003 I Task Order 1702

Version April 2018 critical component of the overall underwater system.

The subject requirement is for the complementary, airborne system which requires a similar receiver, but with the added functionality of four (quad) detectors versus one (single). The resultant Quad Receiver's design will allow aircraft to perform tracking of the aforementioned Single Receiver within the underwater system. Beyond the addition of additional detectors, the Quad Receiver will be hardened to survive in an aircraft's operational environment. All other requirements for the Quad Receiver are identical and remain unchanged from the Single Receiver developed and delivered by Leidos.

Optical receivers that meet the sh·ict specification requirements of the Single and Quad Receivers do not exist on the open market; therefore, it is only possible to meet the requirements of the system through development of a custom receiver. While there are other companies capable of building optical receivers, the Government would incur cost associated with the redevelopment of teclmology already delivered under the aforementioned task order, while assuming significant risk associated with developing a receiver that does not match the required perfo1mance specifications.

Establishing a contract with Leidos will allow the Government to leverage the proprietary design of the Single Receiver which has already been integrated into the underwater system. This will result in cost savings of approximately $219,840, which comprises:

I. Electrical engineering to re-characterize the base receiver (80 hours at $220/hour)

2. Electrical engineer to redesign the base receiver ( 400 hours at $220/hour)

3. Fabrication of the base receiver $62,000

4. Testing of the base receiver 120 hours at $130/hour

5. Management: 20%

In addition to the cost savings, it is estimated that redevelopment of the system will prevent Under C-WOLF from meeting critical milestone dates. Specifically, For reasons noted above, Leidos is uniquely situated as the only Prime contractor on the Cyber MAC contract who is capable of providing a Quad Receiver that meets capability, schedule, and costs.

D c. The order must be issued on a sole-source basis in the interest of economy and efficiency

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(b)(7)(e) as a logical follow-on to an order already issued under the MAC, provided that all the awardees were given fair opportunity to be considered for the original order.

D d. It is necessary to place an order to satisfy a minimum guarantee.

De. For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source.

5. Dete1mination of Fair and Reasonable Cost. Based on the historic cost infmmation cunently available, the contracting officer has adequate information to ensure that the cost to the government for this acquisition will be fair and reasonable.

6. Any Other Facts Supporting the Justification. None Submitted.

7. Actions Taken to Remove or Overcome Baniers that Led to the Exception to Fair Opportunity. This system is being developed to demonstrate a technical capability under a rapid acquisition program. Accordingly, the Quad Receiver will act in the capacity of a prototype that can be used to prove that the technology meets valid war-fighter needs. If the JCTD is successful, it is anticipated that the technology will transition to a Program of Record at which point the test results and overall system architecture obtained through integration of the prototype will be used to perfonn a full and open competition to develop and produce the systems.

TECHNICAL AND REQUIREMENTS CERTIFICATION (FAR 16.SOS(b)(2)) I certify that the facts and representations under my cognizance, which are included in this justification and which fonn a basis for this justification are complete and accurate.

Technical Cognizance/or COR:

Signature:

COR 56204 (619) 553-6173 Date

APPROVAL:

CONTRACTING OFFICER CERTIFICATION (FAR 16.SOS(b)(2)) (>SAT to :'S$700K) I certify that this justification is accurate and complete to the best of my knowledge and belief.

Signature:

Christina Neto 22560 (619) 553-5829 Date

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(b)(6)

(b)(6)