Delta Digital Video Encoders

1. Contracting Activity Naval Air Warfare Center Aircraft Division (NAWC-AD) Patuxent River, MD 2. Description of the Action Being Approved This Justification and Approval (J&A) authorizes on a sole source basis, a single award firm fixed price (FFP) contract with Delta Digital Systems, Inc., herein referred to as Delta Digital Video, for the procurement of components to support ongoing video encoding and decoding operations of complete Delta Digital Video High and Standard Definition Video Encoder/Ground Codec Systems. The contract supports the Naval Air Systems Command (NAVAIR) Air 5.2 Air Vehicle Modification and Instrumentation (AVMI) department, herein referred to as AVMI, which provides Aircraft Separation Video System (ASVS) Flight Test data acquisition on F/A-18 & MH-60's at Patuxent River, MD. 3. Description of Supplies/Services The requirement is for fixed quantities of High and Standard Definition Video Encoder/Ground Codec Systems where the Encoder is a 2 channel Airborne Encoder unit and the Codec is a ground-based (non-airborne) 2 channel Encoder/Decoder unit. The system must be capable of simultaneously encoding two channels of video with resolutions up to 1080p. The system shall provide Ethernet and synchronous serial transport interfaces along with multi-format metadata interfaces. The system shall be capable of both Serial or Telnet control and provide a web-GUI for setup. The system shall be capable of simultaneously decoding 2 channels, including audio. The systems are being procured to support Aircraft Separation Video System (ASVs) and are identical to the systems accessories already being used by the Aircraft Instrumentation Division in Testing and Evaluation (T&E) during Flight Testing on F/A-18, & MH-60 aircraft. Funding is provided by the I&M program for ASVS Upgrades. Hereinafter referred to as the "system", the actual part numbers, descriptions and quantities are identified in Table 1 below. Part # Description QTY 830-900101-04 6820R Video Encoder 7 902-200013-01 6820R Mating Connector Kit 7 830-900099-10 6850-10 Decoder 7 902-200011-01 6850-10 Decoder Connector Kit 7 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 The AVMI department currently possesses an inventory of Delta Digital Video High and Standard Definition Video Encoder/Ground Codec Systems, and only Delta Digital Video, Inc. maintains the proprietary rights and technical data for the Video Encoder/Ground Codec Systems. A video encoder from any other supplier would not be compatible with the current Delta Digital encoders currently used at AVMI. Replacing these encoders would cause disruption of programmatic schedules for numerous platforms thereby resulting in unacceptable delays that could cost thousands of dollars. In addition, procuring these units from Delta Digital Video will avoid integration issues with existing payloads that may entail major system redesign, qualification and testing. 6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable The AVMI department maintains in-depth knowledge of flight video/data recorder technology developments and the flight/video recorder industrial base. This includes insight into technologies that individual companies are focused on and their technical and production capabilities. AVMI representatives maintain this knowledge through routine review of industry journals, attendance at industry symposiums and conferences. They also periodically visit industry facilities for briefings on companies Internal Research and Development (IRD) efforts. In accordance with NAVAIR Communique 15-38, a requirement exists for the Government to issue a Sources Sought for requirements in an effort to promote competition. A Sources Sought inquiry was posted in FEDBIZOPS for this requirement under solicitation number N00421-16-R-0008 on 22 October 2015 with a response date of 06 November 2015. The Sources Sought inquiry solicited capability statements from industry that could provide the required Digital encoders. NAVAIR received five (5) responses to the referenced Sources Sought. Of the five (5) responses, four (4) were small businesses and one (1) was a large business. Upon receipt, AVMI conducted an evaluation of the capability statements submitted in response to the sources sought. The technical expert at AVMI concluded that Delta Digital Video was the only respondent capable of satisfying the requirement. Market research by AVMI disclosed no alternate available sources and resulted in a determination that due to the proprietary nature of the Delta Digital Video High and Standard Definition Video Encoder/Ground Codec Systems. However, market research also determined that Delta Digital Video permits their products to be re-sold by other venders with an authorized reseller agreement granted by Delta Information Systems. In an attempt to promote competition, a second Sources Sought was posted in FEDBIZOPS on 09 November 2015 with a response date of 23 November 2015. This Sources Sought inquiry solicited Authorized Resellers of Delta Digital Video encoders that were able to provide proof of an authorized reseller agreement with Delta Information Systems Inc. NAVAIR received (2) responses to the referenced Sources Sought and both were small businesses. One (1) small-business was a reseller of Delta Digital Video encoders, but was unable to provide proof of resell authorization. The other small-business respondent was deemed technically incapable by the AVMI department due to a lack of sufficient product specification information provided. As a result, the technical expert at AVMI concluded that Delta Digital Video was the only company capable of satisfying the requirement based on the responses to the Government's sources sought announcements. In accordance with NAVAIR policy, the proposed contract action was then synopsized on the FEDBIZOPS website on 10 December 2015 publicizing NAVAIR's intent to award a sole source contract to Delta Digital Video for the required encoders. The synopsis closed on 28 December 2015 and no other potential sources expressed an interest in this requirement. As a result, it was determined that the requirement would be awarded on a sole source basis to Delta Digital Video. 7. Determination of Fair and Reasonable Cost As this is a commercial product based on the definition in FAR 2.101 and the estimated value of the procurement falls under the applicable threshold in FAR 13.5 (Test Programs for Certain Commercial Items), the Government will proceed with the procurement using FAR 13.5 procedures. This will include the use of price analysis as the basis for ensuring the negotiated price for the products is fair and reasonable. 8. Actions to Remove Barriers to Future Competition For the reasons set forth in Paragraph 5, NAVAIR has no plans at this time to compete future contacts for the types of supplies/services covered by this document. If another potential source emerges through market research, NAVAIR will assess whether competition for future requirements is feasible.