Sanitized_JA.doc

SBIR_14_24348

SBIR_14_24348

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

1. Agency and Contracting Activity.

Department of the Navy, Naval Air Systems Command (NAVAIR) Headquarters

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

This Phase III Small Business Innovation Research (SBIR) effort is a follow on to Phase I and Phase II SBIR contracts for PHYSICAL OPTICS CORPORATION (P.O.C.) under Topic N102-129. Topic N102-129 sought the development of an innovative solid-state memory storage unit that allows for rapid insertion of advancing commercial memory densities while maintaining shell backwards compatibility for existing sensor systems, and providing advanced embedded capabilities for interface personalization and in-situ sensor system testing.

Previous and ongoing Phase III efforts include Delivery Order 0002 under BOA #N68335-12-G-0045 and the in-process requirement for continued development required to upgrade the Data Transfer System, being utilized on the MH-60 and V-22 aircraft, to an Advanced Data Transfer System (ADTS), digital and analog video and audio recording interfaces, more Ethernet ports, an RS422 interface, multiple 1553 interfaces, and a method to allow the maintainers to download unclassified maintenance data post flight. As the ADTS aircraft Data Transfer Unit (DTU) will now have data encryption, there is an off-board Ground Data Transfer Unit (G-DTU) that needs to be developed to be able to encrypt and decrypt aircraft data between the platform mission planning laptops and the aircraft. The ADTS is a hardware and software solution that includes removable memory, secure data management and storage, high speed data transfer of Mission and Map data, recording (including mission sensor, audio, and video), and system maintenance diagnostics.

3. Description of Supplies/Services.

This SBIR Phase III requirement is for procurement of Non-Recurring Engineering for platform integration support for UH-1Y & AH-1Z and procurement of Low-Rate Initial Production (LRIP) ADTS units necessary for UH-1Y & AH-1Z integration, to include units for System Integration Lab (SIL) integration and test and aircraft flight test. The requirement is for thirteen (13) DTUs, seven (7) G-DTUs, and ancillary equipment. This effort will be a Delivery Order under BOA #N68335-12-G-0045.

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).

FAR 5.202(a)(7) - The Contracting Officer need not submit the notice required by 5.201 when the Contracting Officer determines that the proposed contract action results from acceptance of a proposal under the Small Business Innovation Development Act of 1982 (Pub. L 97-219).

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.

FAR 10.001(a)(2) indicates that market research appropriate to the circumstances must be 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 SBIR Program Policy Directive states that SBIR Phase III awards may be made without further competition. Given the preference for award of Phase III procurements to the SBIR company that developed the technology, the fact that the Navy has already invested approximately $4,000,000 in this technology and the fact that POC has successfully executed its Phase I and II contracts to date, it was decided that no research to locate companies other than POC would be performed for this Phase III effort.

12. Period of Performance.

Estimated at 48 months from date of award of the BOA order.

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

See Appendix A for 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 POC is being considered for Phase III award due to the nature of the acquisition.

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