Staco Hardware Procurement Final JA Redacted.pdf

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J&A No.: 0222-23-040-00 Code: 0222 P.R. No.: PD-52-0003

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Surface Warfare Center, Philadelphia Division (NSWCPD), Code 0222

2. Description of Action Being Approved

Award of a Firm-Fixed-Price (FFP) Indefinite Delivery Indefinite Quantity (IDIQ) contract for Original Equipment Manufacturer (OEM) Propulsion Systems Interface and Steering Control hardware components to Staco Systems of Irvine, CA 92618 (Staco).

3. Description of the Supplies or Services

This procurement is for ruggedized military grade hardware manufactured by Staco. The equipment is the Bridge Manual Pump Controller (BMPC), Engine Order Telegraph (EOT), Propeller Order Telegraph (POT), and Steering Control Disconnect Unit (SCDU) for CVN 68/78 Class, FFG 62, and LHD Class, hereinafter referred to Propulsion Systems Interface and Steering Control System hardware components. Below is a listing of the equipment and estimated quantities.

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

PHILADELPHIA DIVISION

5001 SOUTH BROAD STREET

PHILADELPHIA PA 19112-1403

IN REPLY REFER TO:

J&A No. 0222-23-040-00

Thus, the BMPC, EOT, POT, and SCDU) are only available through Staco for the duration of the 60 month ordering period, as award to any other source would result in substantial costs to the Government associated with designing the ruggedized military grade hardware. This cost is not expected to be recovered through competition. In addition, unacceptable duplication of costs and delays as described above would result in a failure to fulfill the agency’s requirements.

Staco Systems, as the OEM, is the sole developer, designer, and fabricator of the equipment to be procured by this contract, and as such, is the only contractor with the background, technical knowledge and expertise, design familiarity, and access to proprietary information that can meet the Navy’s requirements.

Based on the above, Staco is the only known responsible source capable of providing the required supplies, i.e. the required propulsion systems interface and steering control hardware components specifically needed for existing Navy shipboard systems.

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

Market research was conducted through a survey and analysis of alternative equipment brands that are available in industry. The thorough analysis conducted reviewed the available brands to see if there were any possible alternatives. Additionally, several companies were surveyed to see if they would be able to provide a satisfactory solution. At this time no other brand name equivalents exist to satisfy the need.

In accordance with the Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance, and Information (PGI) 206.302-1, a Request for Information (RFI) was posted to SAM.gov on 7 November 2022. Additionally, a synopsis of this procurement was published on the SAM.gov on 30 January 2023. No contractors have responded to either posting as of the drafting of this J&A on 13 April 2023.

7. Determination of Fair and Reasonable Costs

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

8. Actions to Remove Barriers to Competition

The previous J&A 0232-15-050-00 stated that NSWCPD planned to develop a Level III Build- To-Print Technical Data Package (TDP) or Performance Based Specification (PBS) that would support competition for future acquisitions of the same or similar items. NSWCPD planned for this to be available in 3rd quarter Fiscal Year 2020.

NSWCPD intended to develop the TDPs for the Staco products. Due to a combination of staffing related factors, the TDPs were not completed. The factors include lack of senior-level engineer bandwidth at the time, lack of expertise in available junior staff, and the eventual loss of the staff that put together the first Staco contract to other programs/positions.

J&A No. 0222-23-040-00

NSWCPD does not seek to pursue open competition on these Staco products going forward. Due to the overall complexity, cost and schedule impacts (described in Section 5) and the additional cost of developing a TDP for Staco products that are already installed on several SCS-Gov hulls, the impact of removing barriers to competition outweighs the benefits of proceeding with a sole source award. The Navy has already paid for the design work that Staco provided and developing a TDP would incur additional cost for the same end result. Commonality is a major principle of the overall SCS-Gov product in which the Staco products are utilized, additional vendors and/or varying designs negatively impact that benefit. The estimated cost of developing a TDP is with recurring yearly maintenance costs and would still potentially adversely impact SCS-Gov commonality due to vendor and/or design changes.

In accordance with DFARS PGI 206.304(a)(S-70)(ii), if the actions on the previous J&A were not complete, the justification for the follow-on acquisition shall be approved by the approval authority one-level above the approval authority for the previous justification.