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This Justification and Approval (J&A) document is for a sole-source, five-year Firm Fixed Price (FFP) contract with Northrop Grumman for the procurement of specific parts for the AN/SPQ-9B Radar Antenna system. The total estimated contract value is $14.7M for FY24-29. The required supplies include Phase Shifter Driver Boards, Array Logic Boards, Transmit Receive Limiter, and TR limiter, which are critical components for the Navy's missile detection and protection capabilities. Northrop Grumman is the original equipment manufacturer and holds the intellectual property rights, making them the only viable source for these specific parts.

The Navy determined that establishing an alternative manufacturing source would be cost-prohibitive, requiring approximately $399,000 and 23-30 months to certify a new source. Market research and sources sought synopses were conducted, but no viable alternative manufacturers were identified. The contract is being awarded under 10 U.S.C. 2304(c)(1) authority, which allows for a sole-source procurement when only one responsible source can satisfy agency requirements. The parts are considered "single point of failure" components, meaning their unavailability would leave Navy ships vulnerable to missile attacks without an operational anti-missile search radar.

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J&A Number:CR-22240

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

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

Northrup Grumman is the original equipment manufacturer and only known source for manufacture of P/Ns 247819, 247815, or 6867277-1for the AN/SPQ-9B.

Blank Ordering Agreement (BOA) # N0002415G5354 was sole sourced to Northrop Grummen for the AN/SPQ-9B systems and procurement of the technical data package. Northrop Grumman has confirmed that they retain the intellectual property (IP)/data rights of P/Ns 247819, 247815, or 6867277-1. The Government then utilized the technical data package to compete Contract # N0002418C5395. It was awarded to DRS Laurel and BOA # N0002419G5502 was then sole sourced to DRS Laurel. Currently Naval Sea Systems Command (NAVSEA) 02551 has competitive synopsis Solicitation # N00024R5528 posted to SAM.gov for AN/SPQ-9B systems. The NAVSEA 02551 Contracting Officer for Solicitation # N0002424R5528 confirmed with the program office that Northrop Grummen retains the IP/data rights for P/Ns 247819, 247815, or 6867277-1. Currently the program office has enough of these parts to provide them as Government Furnished Material (GFM) for synopsized Solicitation # N0002424R5528.

NSWC Crane does not does hold the source code for P/N 247815. NSWC Crane engineers do not have the expertise to design and develop the firmware. Writing the firmware requires an in depth understanding of the SPQ-9B system and the system software. Northrop Grummen is unable to offer the IP rights for P/N 6867277-1 due to the technology being used across multiple large defense programs. Furthermore, the construction of this unit takes place in a specialized and licensed chamber. Awardee of Contract # N0002418C5395, DRS Laurel, confirmed that they cannot manufacture P/Ns 247819, 247815, or 6867277-1 and these parts are currently provided as GFM through Northrup Grumman.

It would not be cost effective to establish another source to manufacture P/Ns 247819, 247815, or 6867277-1. It is estimated it would 23 months and $98k for P/N 247819, 23 months and $171k for P/N 247815, and 30 months and $130k for P/N 6867277-1 ($399k total) to certify another source to manufacture these items. A new source would have to reengineer and validate, through testing, any new design.

The program does not have the required funding to establish another manufacturing source. In addition, the program cannot encounter a two year delay. It would seriously jeopardize installation schedules and fleet readiness. The array logic boards, phase shifter driver boards, and TR limiter, are integral components of the AN/SPQ-9B Radar Antenna. Without the Radar Antenna the multiple ship platforms would be vulnerable to missile attack because there is no operational anti-missile search radar. These parts are "single point of failure". Therefore, if one of these parts fail, the radar fails to detect any enemy incoming missiles. There are no equivalent backup systems aboard U.S. Navy ships that are equipped with AN/SPQ-9B radars that provide protection/detection.

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

A sources sought synopsis was posted to the Government-wide Point of Entry (GPE) on 28 September 2022, in accordance with Defense Acquisition Regulations Supplement PGI 206.302-1(d). One response was received from DataCon providing information that they had proposed to be a subcontractor to

Northrop Grummen for some of the items on the AN/SPQ-9B in 2009. Datacon believes they could manufacture the required items with updated IP and data, however the Navy does not retain or have the authority release the required IP and data in order to allow for competition on this requirement.

A synopsis was posted to the GPE on 28 November 2022. To-date, no responses have been received, and any will be considered.

Market Research was conducted by the requiring technical activity and contracting officer which verified that Northrop Grumman has all IP/data rights and Northrop Grummen provides these parts to the current contract holder. The contracting officer reviewed the circumstances surrounding the need to obtain the required supplies/services without providing full and open competition and confirmed the basis of this J&A. The government is unable to procure IP/data rights as Northrupp Grumman will not release them.

This solicitation will be advertised at SAM.gov. Responses will be reviewed to determine if additional sources exist.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated costs to the Government for the supplies/services covered by the J&A will be fair and reasonable prior to award. It is anticipated that DCMA pricing assistance and/or DCAA audit services o fthe contractor’s proposal will be requested, along with the offeror’s certificate of current cost and pricing data to support the fair and reasonable price determination.

Both price analysis and cost analysis of the proposal, along with a technical evaluation, will be conducted.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NSWC Crane Division has no plans at this time to compete future contracts for the types of supplies covered by this document. If other potential sources emerge, NSWC Crane Division will assess whether competition for future requirements is feasible.

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/REQUIREMENTS CERTIFICATION (FAR 6.303-2(b))

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning data, including Acquisition Plan No. 89 PLN 15 9539 Rev A, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

Signature Name (Print) and Title (Code) Phone No. Date

REQUIREMENTS COGNIZANCE:

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(a)(12))

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

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as Competition Advocate for the Procuring Activity, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1).

COMPETITION ADVOCATE

Signature Name (Print) Date

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