REDACTED Sole Source Justification.docx

J&A Number: N00167-24-SIMACQ-CD-63-0002

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

CARDEROCK DIVISION

9500 MACARTHUR BOULEVARD

WEST BETHESDA MD 20817-5700

IN REPLY REFER TO:

J&A Number:

Code:

P.R. Number:

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command (NAVSEA), Naval Surface Warfare Center, Carderock Division (NSWCCD), Contracting & Acquisitions Department (Code ).

2. Description of the Action Being Approved

This is a sole source action to be awarded without providing for full and open competition. NSWCCD intends to award a firm-fixed price contract to Direct Dimensions Inc. (DDI), 10310 S Dolfield Road, Owings Mills, MD 21117.

This justification document is in accordance with FAR 13.501(a).

3. Description of Supplies/Services

The NSWCCD, Code , Performance Evaluation Branch requires two configured STAVE scanners that will be used with the Shaft Taper Analysis Verification Evaluation (STAVE) system to increase efficiency and improve the results of inspecting shaft tapers. These scanners will be delivered to the Puget Sound Naval Shipyard (PSNSY), and the Norfolk Naval Shipyard (NNSY) through a contract to support the Shaft Taper Analysis Verification and Evaluation (STAVE) system that is deployed at these two US Navy shipyards on a sole source basis. The STAVE system is a one-of-a-kind integrated system that requires the developer’s expertise to provide adequate hardware, software, and engineering support. This system was developed by DDI and its partner, Propulsor Technology Inc. (PTI). NSWCCD intends to award this support contract to DDI as the prime contractor. DDI and PTI are the only companies that have comprehensive knowledge of the process of operating, troubleshooting, and maintaining the STAVE system. The intent is to award in FY24 with a period of performance through December 2024.

The below table provides estimated funding amounts for support of the two scanners and delivery by dollar value, fiscal year, and appropriation.

Table: Appropriation by FY

OM&N

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

The Product Service Codes (PSC) for this procurement will be 7K20 (IT And Telecom - Storage Products (Hardware And Perpetual License Software)) and is aligned with the DoD taxonomy associated with the acquisition of services, supplies and equipment.

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

10 U.S.C. §3204(a)(1), “The property or services needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency.” (FAR 13.106-1(b)(2))

5. Rationale Justifying Use of Cited Statutory Authority

The STAVE systems are custom specialty integrated systems developed by DDI and PTI for the US Navy. The STAVE system is a one-of-a-kind integrated system that requires the developer’s expertise as they have unique and proprietary knowledge of the STAVE system, including ownership of the software source code which was written by DDI and PTI. As developers of the software source code, DDI and PTI are the only contractors with the knowledge and capability of updating and maintaining this system software.

If another company were to be awarded the STAVE hardware contract, a significant portion of their effort would include familiarizing themselves with the STAVE system hardware, software, and detailed procedure to the point of being able to adequately support the contract tasks. Software source code management would likely need to be subcontracted to the original developers (DDI and PTI). This arrangement would overall result in significant duplicative cost to the Navy while causing delays in maintenance schedule of submarine shafts.

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

Paragraph 5 shows the reasoning behind the sole source justification for the scanners in this procurement. As developers of the software source code, DDI and PTI are the only contractors with the knowledge and capability of configuring these scanners. The scanners require a custom built software for them to function with the Navy’s requirements. Other suppliers main focus area is to supply the hardware, while DDI supplies both the hardware and the custom built software.

Pursuant to FAR 13.501(a)(1)(iii), the Government will make this justification available on the Government Point of entry (SAM.gov) The Government will ensure that the contract file will be documented as to any responses received from making the justification available.

This acquisition is determined to be sole source based on DDI or PTI’s singular ability to provide the required configured scanners.

7. Determination of Fair and Reasonable Costs

In accordance with FAR 13.106-3(a), the Procuring Contracting Officer (PCO) shall ensure that all supplies and services provided under this contract are procured at a fair and reasonable price. The contractor will submit a formal priced offer with certified cost or pricing data and sufficient information to support the accuracy and reliability of the estimate. Experienced technical analysts and contract specialists with the aid of necessary field pricing support will review the contractor’s quote. The PCO will use past procurements from the Navy and other Department of Defense (DoD) agencies that have acquired Atos Scanners. This information will form the basis for a fair and reasonable price.

8. Actions to Remove Barriers to Competition

As this is a follow-on for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(S-70)(i), the prior J&A was provided to the approval authority for review. Approval of this J&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(S-70)(ii).

CERTIFICATIONS AND APPROVAL

TECHNICAL AND REQUIREMENTS CERTIFICATION - (FAR 6.303-2(c))

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

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