Redacted JA_N0017326P2444.pdf

Purchase Request No.: 53-0034-26 J&A No. 12.102-26-CM01

DEPARTMENT OF THE NAVY

NAVAL RESEARCH LABORATORY

4555 OVERLOOK AVE SW

WASHINGTON, DC 20375-5320

Purchase Request No.: 53-0034-26/1301351725 J&A No.: 12.102-26-CM01

Estimated Cost:

Justification for Other than Full and Open Competition Under Simplified Procedures for Certain Commercial Items in Accordance with Federal Acquisition Regulation (FAR) 12.102

On the basis of the following, I, as the Contracting Officer, hereby approve the use of a brand name contractual action pursuant to the authority of: 41 U.S.C. 1901 41 U.S.C. 1903

1. Contracting Activity

The U.S. Department of Navy, Naval Research Laboratory (NRL) Contracting Division, Code 1320, proposes the brand-name procurement of two (2) Crystal Group RS3700 rugged rack-mounted server computers. This action will be issued utilizing the streamlined procedures for commercial products (FAR Subpart 12.2).

2. Description of the Action Being Approved

This action requests approval for the use of other than full and open competition, on a brand-name basis, as implemented by FAR 12.102(b), for the procurement of two (2) Crystal Group RS3700 rugged server computers.

3. Description of Supplies/Services

The NRL Radar Division, Code 5300, requires two (2) rugged server computers that meet the detailed technical and environmental specifications listed below:

Technical Specifications Height shall be 3U or less Length shall be less than 22� Unit shall be air-cooled

QTY Component

1 RS3700 SERIES SERVER (3U X 17.46"W X 19"D), AIR COOLED, RUGGED

ALUMINUM CHASSIS

1 REDUNDANT 1200WAC POWER SUPPLY, 120/240VAC INPUT

1 MOTHERBOARD, SINGLE LGA6096, AMD EPYC� 9004/9005 PROCESSORS, ATX,

SUPERMICRO H14SSL-NT

1 PROCESSOR, LGA6096 SP5, 3.2/4.4 GHZ, 64 CORE, 6400 MHZ DDR5, 360W, AMD

EPYC 9555

8 64GB MEMORY DIMM, RDIMM, DDR5, 6400MHZ

8 SSD, NVME U.2, 12.8TB, TCG OPAL, FIPS 140-3

Electromagnetic Compatibility Requirements:

MIL-STD-461 EMI/EMC RE102, CE102; surface ship, below deck, and ground

RTCA/DO-160 Aircraft & Airborne Equipment Category M

The Government�s minimum needs have been verified by the certifying technical and requirement personnel. The estimated dollar value is , which will be funded with Capital Improvement Plan (CIP) funds.

4. Statutory Authority Permitting Other Than Full and Open Competition

The authority for permitting other than full and open competition is 41 U.S.C. 1901(e)(2), as implemented by FAR 12.102(b).

41 U.S.C. 1901 41 U.S.C. 1903

5. Rationale Justifying Use of Cited Authority

The Crystal Group RS3700 is the only server system that meets the Government's essential requirements for performance, ruggedization, and environmental survivability.

The Radar Division requires a server platform that can function reliably in harsh physical and electromagnetic environments while being adaptable for a wide variety of current and future projects.

The Crystal Group RS3700 is uniquely capable of meeting these needs due to its specific design and features. Market research confirmed that no other commercial server meets the required combination of form, fit, and function necessary to meet the Government�s needs.

Attempting to use an alternate system would introduce substantial costs and unacceptable delays. Any other brand would require extensive testing and certification to validate its performance and survivability in mission-critical environments. This duplication of effort is estimated to cost approximately $500,000.00, a cost that could not be recovered through full and open competition.

Procuring the specified brand-name item is therefore the most timely and cost-effective method to meet the Government's needs.

The Contract Specialist has determined through market research that the required products offered by Crystal Group are commercial in nature, valued greater than the SAT, but less than $9.0 million, and as such, this action permits the use of FAR 12.201-1.

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

To identify potential sources and maximize competition in accordance with FAR 10.001, the Government issued a Sources Sought Notice (SSN) with accompanying technical specifications on SAM.gov on 28 April 2026.

A technical review was completed of the responses. The review established that the testing for alternate solutions that would be required to determine the ruggedization and environmental survivability by NRL scientists and engineers is cost prohibitive. The equipment/specifications provided from other vendors often do not match day-to-day use as systems and vendors optimize their equipment for benign server room environments. This adds additional complexity when purchasing rugged server computers as Code 5300 looks for solutions that balance both performance and maximum compatibility.

Out of the six (6) capability statements received in response to the Government�s SSN, it was determined that only one (1) vendor, , was fully capable in satisfying the Government�s requirement. Subsequent market research identified is an approved authorized reseller the Original Equipment Manufacturer (OEM), Crystal Group. Further correspondence with the OEM confirmed that Crystal Group maintains a network of many authorized resellers/distributors that could supply this brand-name equipment. The OEM confirmed that they do not have a current General Services Administration (GSA) Federal Supply schedule (FSS)

On 02 June 2026, the Contract Specialist communicated via telephone with NASA SEWP�s Navy Liaison, who recommended utilizing the SEWP vehicle. The OEM, Crystal Group, utilizes numerous authorized resellers within SEWP, including many small businesses, capable of satisfying the agency�s technical needs To formally assess market capability, the Contract Specialist posted a Market Research Request (MRR) on the NASA SEWP site from 04 June 2026 through 10 June 2026, to identify the competition and determine the number of viable sources able to fulfill the Government�s needs.

The MRR yielded two (2) capability statements/quotes. While the technical POC verified that both respondents met the Government's technical specifications, the pricing received presented a significant cost premium. Specifically, the SEWP quotes exceeded the quote received directly from the OEM during market research by 20% and 29%, respectively.

Because procuring via SEWP restricts direct OEM participation and introduces an unacceptable price markup, it is recommended that this requirement be competed on the open market via SAM.gov. The required server computers are commercial products and will be acquired on a Firm-Fixed-Price (FFP) basis in accordance with FAR 12.104(a). To ensure technical compatibility, this requirement will be solicited on a brand-name basis targeting Crystal Group and its authorized resellers in accordance with FAR 12.102. In addition, since the OEM and many of the approved brand-name resellers are small businesses, this effort will be set aside for small businesses in accordance with FAR 19.104-1.

7. Determination of Fair and Reasonable Cost

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

8. Actions to Remove Barriers to Future Competition

Due to the unique technical requirements outlined in Paragraph 5, there are no immediate plans to compete future contracts for this specific type of ruggedized server computer. However, the Radar Division continuously monitors the marketplace for new technologies and alternative solutions.

Should a viable alternative emerge that meets the Government's needs, NRL will assess it for future competitive procurements. In accordance with FAR 12.102(b)(1)(ii), this brand name justification will be made publicly available with the solicitation.