Redacted JA.pdf

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

DAHLGREN DIVISION

6149 WELSH ROAD SUITE 203

DAHLGREN VIRGINIA 22448-5130

IN REPLY REFER TO

J&A Document #: DN-22-0075 Code:

Date: 3/11/2022

JUSTIFICATION AND APPROVAL

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Surface Warfare Center, Dahlgren Division (NSWCDD), Contracts Department

2. Description of the Action Being Approved

Award of a firm fixed priced contract on a sole source basis for critical equipment to be used by the

Branch, manufactured by IPG Photonics Corporation.

3. Description of Supplies/Services

The NSWCDD/ requires one (1) Ytterbium , part number , one (1) feed , part number

, two (2) Collimator, part number , four (4) chillers, part number , to include installation of the .

Delivery is required 16 weeks after receipt of order, sooner, if available.

The Government's minimum needs have been verified by the certifying technical and requirements personnel.

The estimated cost of the proposed contract action is . Fiscal year 2022 Capital Improvements Program funds will be provided for this procurement.

4. Statutory Authority Permitting Other Than Full and Open Competition

41 U.S.C. 1901 as implemented in FAR Subpart 13.5.

J&A Number:

NCH 53.6-2

5. Rationale Justifying Use of Cited Statutory Authority

The requested will support

. This specific propagates at a specific wavelength and power to accomplish the mission. IPG is the only manufacturer capable of creating a that meets the necessary performance while maintaining a form factor that will fit within the system. The Navy is already pursuing the installation and testing of for deployment on surface combatants with output greater than what currently is achieved within the Navy’s labs. The purchase of the is required in order for the to provide accurate on the to which these deployed system will be encountering. IPG is the only vendor currently producing for the commercial sector with 100kW outputs. In addition, the NSWCDD labs use a number of to conduct studies, as such, these labs are equipped for supporting IPG , which means that the type of power that the IPGs use is already supported in the labs. Also, these labs already have control and safety interfaces installed that are uniquely designed to work with the

. Changing to another vendor, if one were available, would require at a minimum a redesign of the control and safety interfaces to match the vendors system, potentially taking up to a year to complete. If a different flavor of electrical power is required, the resulting upgrade to the facility could take several years to complete since the facilities power system is not slated for an upgrade for another two (2) years at the earliest. If another vendor were pursued, the estimated impact would be upwards of 10 million dollars for development and several years of wait time, which is not possible for the current program. IPG Photonics Corporation is the original equipment manufacturer of this proprietary system with no authorized resellers available, therefore, proprietary data limits competition. Based on the background information and subject matter knowledge developed, it is anticipated at a very minimum that it would take approximately three (3) years to analyze competing products to determine how to modify them to meet the Government specifications. The labor dedicated to this analysis effort is currently estimated to cost $3.35M per year which equates to 10.91 full time equivalents annually in total.

This three (3) year timeframe would represent a duplication of costs to the Government in excess of $10M.

J&A Number:

NCH 53.6-2

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable

Market research was conducted in the form of a Request for Information (RFI) on 22 July 2015 seeking capability information and specifying requirements, characteristics, environmental requirements, maturity and instructions to responders. IPG Photonics Corporation was the only respondent. The result of this RFI coupled with the Technical Lead’s extensive knowledge of the product, industry, and market confirmed that IPG is the sole manufacturer of the specific items which are acceptable for the power and support requirements of the . Continuing market research through internet searches and contacting the OEM has shown that there are no authorized resellers available.

The proposed contract was synopsized on the Beta.SAM website on 22 February 2022 as an intent to sole source to IPG Photonics Corporation and only IPG Photonics Corporation expressed interest in this requirement. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than IPG Photonics Corporation to provide the required equipment.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the equipment covered by the J&A will be fair and reasonable.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, Dahlgren Contract Department has no plans at this time to compete future contracts for the type of equipment covered by this document. If another potential source emerges, Dahlgren Contract Department will assess whether competition for future requirements is feasible.