Redacted_Justification_and_Approval_No.20040.pdf

J&A Number: 20040 08 April 2020

240.3

JUSTIFICATION AND APPROVAL (J&A)

FOR SOLE SOURCE ACQUISITION

1. IDENTIFICATION OF AGENCY AND CONTRACTING ACTIVITY:

Requiring Activity: Naval Information Forces (NAVIFOR) 115 Lake View Parkway Suffolk, VA 23435

Contracting Activity: NAVSUP Fleet Logistics Center Norfolk Contracting Department, Code 200 1968 Gilbert Street, Suite 600 Norfolk, Virginia 23511-3392

Requisition Number: TBD

2. NATURE/DESCRIPTION OF CONTRACT ACTION:

This is a non-competitive action submitted for approval to award a sole source firm-fixed-price contract to Long Wave, Inc. for maintenance support on the Clarinet Merlin Receiving Sub-System (CMRS) as required by Commander, Naval Information Forces (NAVIFOR). This requirement will be awarded subject to FAR 13.5 – "Simplified Procedures for Certain Commercial Items."

3. DESCRIPTION OF REQUIRED SUPPLIES/SERVICES:

NAVIFOR requires maintenance of the entire CMRS including the receiving subsystems, designated antenna interface equipment, connectivity interface equipment (non-GFE), interface/display equipment, Broadcast Control Authority (BCA) operator training, testing and updates of applicable Information Assurance Vulnerability Managements (IAVMs) alerts, and Assured Compliance Assessment Solution (ACAS) scanning at each site. Maintenance is required on their six (6) receiving sites, two (2) BCA server sites, and associated hardware/software of the CMRS.

These services are currently being provided under contract number N00189-16-P-0026, which was awarded on a sole source basis to Long Wave, Inc., on 19 October 2015. This contract was for a 12-month base period with four (4) 12-month option periods, which has an expiration date of 19 October 2020. N00189-16-P-0026 also contains FAR 52.217-8, Option to Extend Services, thereby allowing a six-month extension up until 19 April 2021 if circumstances necessitate this option.

This requirement, as illustrated in the below table, is for a 12-month base year performance period with provisions for four (4), 12-month option periods. The solicitation and resultant contract will also contain FAR 52.217-8, Option to Extend Services, thereby allowing a six month extension if circumstances necessitate this option. The contract is estimated to commence 20 October 2020.

Additionally, the proposed contract action has an Independent Government Estimate (IGE) that is summarized in the table below:

DEPARTMENT OF THE NAVY

NAVSUP FLEET LOGISTICS CENTER NORFOLK

1968 GILBERT STREET SUITE 600

NORFOLK VA 23511-3392

IN REPLY REFER TO

Period of Performance IGE Base Year 20 October 2020 – 19 October 2021 $656,279.76

Option Year 1 20 October 2021 – 19 October 2022 $675,271.52 Option Year 2 20 October 2022 – 19 October 2023 $696,071.75 Option Year 3 20 October 2023 – 19 October 2024 $718,836.92 Option Year 4 20 October 2024 – 19 October 2025 $743,819.63 FAR 52.217-8 20 October 2025 – 19 April 2026 $371,909.82

TOTAL $3,862,189.40

The estimated total dollar value is $656,279.76 for the base year and $3,862,189.40 if all options, including the FAR 52.217-8 six-month extension, are exercised. The base year for this contract will be funded with FY 21 Operations & Maintenance, Navy (O&MN) funds.

4. IDENTIFICATION OF STATUTORY AUTHORITY:

The statutory authority for this sole source acquisition is 41 USC 1901, as implemented by Federal Acquisition Regulation 13.501(a).

5. RATIONAL JUSTIFYING USE OF CITED STATUTORY AUTHORITY:

NAVIFOR’s CMRS consisting of receiving sites, BCA server sites, and associated hardware / software must be serviced quarterly to ensure continued and uninterrupted operation of the system and its components. Long Wave is currently providing all services required for the maintenance and support of the entire CMRS under the current sole-source contract N00189-16-P-0026. They are Original Equipment Manufacturer (OEM) for CMRS that designed, developed and engineered the functionality of the CMRS and are still the sole manufacturer of the system. Additionally, Long Wave owns the data rights to the CMRS software utilized at the receiver sites, BCA’s, the Maintenance Equipment Facility (MEF) and the CMRS lab. Long Wave does not have any authorized resellers for their software or certified engineers/maintenance personnel at other companies that have the requisite knowledge of the operation, service, and interoperability of the system. Long Wave is the only source capable of providing maintenance to assure safe, dependable, and effective operation of the equipment.

6. DESCRIPTION OF EFFORTS MADE TO SOLICIT OFFERS FROM AS MANY

OFFERORS AS PRACTICABLE:

As a result of the information provided in Paragraph five (5), this procurement action will be sole sourced to Long Wave, Inc. A synopsis of this requirement will be posted on Beta.SAM.gov, the Government Point of Entry (GPE) in accordance with FAR 5.201, and the solicitation will be posted on the Navy Electronic Commerce Online (NECO) website.

7. DETERMINATION OF FAIR AND REASONABLE PRICE:

The Procuring Contracting Officer will make a determination of fair and reasonableness of price based upon price analysis in accordance with FAR 13.106-3.

8. DESCRIPTION OF MARKET SURVEY:

A Sources Sought Notice (SSN) was posted to the Navy Electronic Commerce Online (NECO) website on 18 March 2020 with a response date of 01 April 2020. Only one (1) response was received, which was from the incumbent company, Long Wave, Inc.

9. ANY OTHER SUPPORTING FACTS:

A copy of the previous justification, J&A Number: 15594, is provided as Attachment 1 to this justification to assist the approval authority in determining whether the planned actions to remove any barriers to competition cited on the previous justification were completed. Additionally, Long Wave has confirmed on company letterhead that they are still the sole manufacturer of the system and that they own the data rights to the software for the system maintenance. A copy of this letter is provided as Attachment 2.

10. LISTING OF INTERESTED SOURCES:

To date, no other companies have expressed interest in competing for the instant requirement under the proposed contract. The only known interested and capable source that can satisfy this requirement is Long Wave, Inc., 1111 N. Lee Ave, Oklahoma City, OK 73104-2435.

11. ACTIONS TO REMOVE BARRIERS TO FUTURE COMPETITION:

All future requirements will be handled on a case-by-case basis and future solicitations will include clear and concise language for offerors to demonstrate their infrastructure capacity to deliver services or have effective sub-contracting arrangements outlined in their technical proposals. As stated above, the required services are to ensure continued and uninterrupted operation of the system and its components. It is imperative that the manufacturer who designed and installed the infrastructure that provides the required services continue to provide the required support services until such time that additional capable sources have been identified.

DFARS 213.501 required that a non-competitive follow-on acquisition of supplies and services previously awarded on a non-competitive basis need to include the additional documentation required by DFARS 206.303-2(b)(i) and follow the procedures at PGI 206.304(a)(S-70). These citations require that the justification package include a copy of the previous justification to assist the approval authority in determining whether the planned actions to remove any barriers to competition have been completed. However, the circumstances limiting sources have not changed, and therefore, the follow-on requirement remains a limited source action. Future requirements will be handled on a case-by-case basis. Future sole source requirements shall be subject to additional market research and will require the posting of a sources sought notice to identify additional potential sources in the hopes of fostering a competitive environment.

12. CONTRACTING POINT OF CONTACT:

The point of contact at the NAVSUP Fleet Logistics Center Norfolk Contracting Office is Contract Specialist Lilian Acosta who may be reached at (757) 443-1443 or electronically at lilian.y.acosta@navy.mil.

13. ATTACHMENTS:

Attachment 1- J&A #15594 Attachment 2- Long Wave, Inc. Sole Source Statement

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance, which are included in this Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Signature Name (Printed) Phone No. Date

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief. To the extent that the J&A value is between $150K and $700K, the Contracting Officer’s signature below also represents approval of the J&A.

Signature Name (Printed) Phone No. Date

CONTRACTING ACTIVITY COMPETITION ADVOCATE REVIEW

To the extent that the J&A value is between $700K and $13.5M, the Competition Advocate’s signature below also represents approval of the J&A.

Signature Name (Printed) Phone No. Date