Final_SBIR_J&A_redacted_25JUL2017.docx

J&A Number: 0222-17-008.00

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

PHILADELPHIA DIVISION

5001 SOUTH BROAD STREET

PHILADELPHIA PA 19112-1403

IN REPLY REFER TO:

SMALL BUSINESS INNOVATION RESEARCH (SBIR) PHASE III JUSTIFICATION & APPROVAL FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Agency and Contracting Activity.

The Naval Sea Systems Command Naval Surface Warfare Center, Philadelphia Division Contracts Department, Code 02.

2. Nature/Description of Action(s) Being Approved.

This is a justification to award a Small Business Innovation Research (SBIR) Phase III contract to Technical Documentation, Inc. (TDI). TDI was awarded SBIR Phase I N00014-12-M-0056 on 03 October 2011, resulting from Solicitation Navy SBIR FY2011.2, Topic No: N112-159. TDI was subsequently awarded SBIR Phase II N00014-13-C-0118 on 20 February 2013.

3. Description of Supplies/Services.

The work for this Statement of Work derives from or extends from TDI Technologies, Inc. Phase II SBIR (N112-159) titled Auxiliary System Sensor Fusion. The work accomplished on this project focused on the fusion of sensor data across multiple subsystems, such as the Auxiliary Systems onboard a Navy vessel. TDI Technologies developed a Matlab/Simulink model in order to simulate the multi-integrated subsystems’ complex data sets. Then, they developed and applied algorithms to this fused data, which presents an enhanced capability to monitor and control onboard systems. TDI Technologies demonstrated that this technology can predict the likely impact of sensor failure from one system to another, with large gaps in sensor data, and predict possible future impacts or failures. This aids in fault detection and isolation, alarms management, provides the user with an increased overall Situational Awareness (SA), aids in determining corrective actions, and can be used to prescribe control actions at the higher levels of hierarchical ship control systems. Follow on planning includes a MATLAB demonstration to develop and test transfer learning methods by recognizing and identifying commonality of system dynamics between two systems and transferring knowledge gained from learning the system dynamics of one to another, the development of optimal control policies based on sensed state, embedding of algorithmic logic into hardware deviced, optimization of code for real time operation, development of production level code for integration into the Navy standard machinery control system, testing of the algorithmic approaches to state awareness, optimal control methodologies, and supervisory control methodologies in a relevant test environment in conjunction with NSWCPD, verification and validation of associated dynamic system models, documentation of software and firmware in accordance with NSWCPD standard systems processes software and hardware integration support of developed algorithms, and training of Navy personnel in the utilization of developed algorithms. This technology will be required to be designed and incorporated into current and next-generation control systems, and also to be adaptable between different dynamic systems on different vessels. It should be noted that the control algorithms that will be developed and integrated in this contract are complex, distributed optimization and state awareness algorithms. This implementation is a significant advance in control technology. The complexity of the software implementation is such that very small deviations from the mathematical description of the algorithm will result in the tractability of the solutions to vanish. This requires personnel with high levels of specialized mathematical and software training for the development. There are very few people in the country with the qualifications to create these codes. The highly specialized nature and complexity of the control and state awareness methodologies developed under this contract in addition to the rigor required to ensure that these methods will function in a shipboard machinery system are significant contributors to the level of effort required under this contract.

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

The estimated total value of this contract is $43,425,229.

4. Identification of Statutory Authority.

10 U.S.C. 2304(c)(5), as implemented by FAR 6.302-5: Authorized or Required by Statute.

15 U.S.C. 638(r)(1) states:

“In the case of a small business concern that is awarded a funding agreement for Phase II of an SBIR or STTR program, a Federal agency may enter into a Phase III agreement with that business concern for additional work to be performed during or after the Phase II period. “

Furthermore, 15 U.S.C. 638(r)(4) states:

“To the greatest extent practicable, Federal agencies and Federal prime contractors shall issue Phase III awards relating to technology, including sole source awards, to the SBIR and STTR award recipients that developed the technology.”

5. Demonstration that Proposed Contractor’s Unique Qualifications or Nature of Acquisition Requires Use of Authority Cited.

The nature of the acquisition requires the use of the authority cited. The SBIR/STTR Programs are structured in three phases. Phase I (project feasibility) determines the scientific, technical and commercial merit and feasibility of the ideas submitted. Phase II (project development to prototype) is the major research and development effort, funding the prototyping and demonstration of the most promising Phase I projects. Phase III (commercialization) is the ultimate goal of the SBIR/STTR Programs. Because the Phase III work derives from, extends, or completes efforts performed under Phase I and Phase II, use of the authority cited is required.

6. Description of Efforts Made to Ensure Offerors Were Solicited From as Many Potential Sources as Practicable/ Public Notification through Government Point of Entry (GPE).

On 9 May 2017 the Contract Specialist posted a Synopsis to the Federal Business Opportunities website (https://www.fbo.gov). The purpose of the posting was to notify all interested parties of the Government’s intent to issue a sole source award to Technical Documentation, Inc. in accordance with Phase III of the SBIR program. The Synopsis stated that while the Government intended to award to TDI, NSWCPD would accept the capability statements of interested companies capable of fulfilling the Government’s requirement.

On 18 May 2017, Tiarra Barton Founder & CEO of Aaceses Ihmire Industries (AII), provided a copy of the company’s capability statement. On 18 May 2017, Technical Representative Greg Anderson reviewed the document. After his review, Mr. Anderson stated that Aaceses Ihmire Industries did not demonstrate the experience to execute the Phase III SBIR tasking. Mr. Anderson commented that AII proposed to produce a report summarizing their findings and then begin the design phase of the project. Because this work was already completed during the Phase I and II efforts, AII’s proposed timetable would not satisfactorily meet the Phase III requirements. With this in consideration only TDI is being considered for Phase III award due to the nature of the acquisition. On 19 May 2017, the Contract Specialist notified Ms. Barton of Aaceses Ihmire Industries (AII) to confirm that the NSWCPD would continue the sole source procurement with TDI. To date AII has not responded to the 19 May 2017 email.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer will determine prior to award that the negotiated price of the contract executed under this justification is fair and reasonable pursuant to FAR Subpart 15.4. This determination will be documented in the Business Clearance Memorandum, which will be included in the contract file.

8. Description of Market Research or Statement of the Reason Market Research was not Conducted.

SBIR Phase III procurements are such that traditional market research to identify alternative sources is generally unnecessary. As described above, the Phase III work derives from, extends, or completes efforts performed under Phase I and Phase II.

9. Any Other Supporting Facts.

Not applicable.

10. Listing of Interested Sources.

Not applicable.

11. Actions Taken to Remove Barriers to Future Competition.

The Contracting Officer anticipates that competitors will enter the market once the product is commercialized. It is likely that future acquisitions will be competed using full and open competition. The Contracting Officer is not aware of any specific actions that would further remove barriers to competition.

12. Period of Performance.

Ordering Period: This contract includes five, one year ordering periods.

13. Total Estimated Dollar Value of the Acquisition Covered by this J&A, with Funding Specified by Year and Appropriation.

The total estimated value of this acquisition is $43,425,229. RDT&E funding is anticipated to be allocated as follows:

Estimated Dollar Value

14. Actions Attempted to Make Immediate Acquisition Competitive and Cost/Benefit Analysis

No actions were attempted to make the immediate acquisition competitive; no cost/benefit analysis was performed. As described above, only Technical Documentation, Inc. is being considered for Phase III award due to the nature of the acquisition.

TECHNICAL AND REQUIREMENTS CERTIFICATION REQUIRED BY FAR 6.303-2(c):

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:

Division Head

REQUIREMENTS COGNIZANCE:

Department Head

LEGAL SUFFICIENCY REVIEW:

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

CONTRACTING OFFICER'S CERTIFICATION REQUIRED BY FAR 6.303-2(b)(12):

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

Contracting Officer

COMPETITION ADVOCATE APPROVAL REQUIRED BY FAR 6.304(a)(2):

Upon the basis of the following justification, I hereby approve, as Designee of the Head of the Procuring Activity, the use of other than full and open competition for the proposed procurement described herein, pursuant to the authority of 10 U.S.C. 2304(c)(5).

All questions regarding this justification are to be referred to Contract Specialist Aaron Koumaras, NSWCPD, with Code 0222, 215-897-7750, aaron.koumaras@navy.mil.

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