SBIR Phase III Topic N06-036 Advanced Techniques for Digital Radio Frequency Memories

SMALL BUSINESS INNOVATION RESEARCH (SBIR) PHASE III JUSTIFICATION & APPROVAL FOR USE OF OTHER THAN FULL AND OPEN COMPETITION 1. Contracting Activity. Naval Air Warfare Center Aircraft Division (NAWC-AD) Lakehurst, NJ 2. Nature/Description of the Action Being Approved. This is a justification to award a Small Business Innovation Research (SBIR) Phase III Basic Ordering Agreement (BOA) order to Mercury Defense Systems (MDS), Cypress, CA. The Digital Radio Frequency Memories (DRFM) kernel capability employed in the current generation of threat simulation systems continues to provide an up-to-date set of capabilities in its essential performance parameters. The nature of threat radar systems has continued to increase in sophistication within recent years and now needs to be challenged by a more robust deceptive jamming capability. The new DRFM architecture concept should also be flexible and reprogrammable in its ability to generate the necessary target sets, and provide for the inclusion of pathways for growth enhancements. KOR Electronics (now MDS) was awarded contract number N68936-06-C-0035 on 3 March 2006, resulting from solicitation 06.1, Topic N06-036 entitled "Advanced Techniques for DRFM". KOR Electronics was subsequently awarded SBIR Phase II contract number N68936-07-C-0029 on 8 March 2007. KOR Electronics was then awarded SBIR Phase II.5 contract number N68936-09-C-0129 on 27 August 2009. KOR Electronics was awarded SBIR Phase III contract number N68335-11-C-0066 on 12 November 2010. KOR Electronics was awarded SBIR BOA N68335-12-G-0059 on 21 September 2012, with seven subsequent orders. MDS was awarded BOA N68335-17-G-0017 on 23 February 2017 with order N68335-17-F-0074 awarded on 26 June 2017. Topic N06-036 sought the development of new state-of-the-art techniques and target generation capabilities utilizing an innovative DRFM architecture containing flexibility, programmability and other enhancements. Phase I sought the demonstration of the feasibility of a DRFM based design capable of operating in deception jammers, that provide the ability to replicate the required set of modern false target generation techniques. Phase II sought the development and testing of a prototype incorporating the new DRFM design architecture; sought a description of the growth capability; and sought the development of a preliminary production design and cost estimate. Phase III sought the transition of DRFM architecture to a Navy target and/or radar system. This effort will be order N68335-18-F-0093 under BOA N68335-17-G-0017. Through acquisition, MDS acquired KOR Electronics on 30 December 2011, specifically acquiring all rights, title and interest in and to the assets, properties and rights of every kind and description, real, personal, mixed, tangible and intangible. 3. Description of Supplies/Services. The deliverables of this procurement are thirty-six (36) each Type II Advanced DRFM production units. This Phase III effort derives from the Phase I, II, and III efforts described in paragraph 2, and is for providing advanced DRFM hardware and software products, and design and development in direct support of the U.S. Air Force. 4. Statutory Authority Permitting Other Than Full and Open Competition. 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)(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, II, and III, 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). The topic for this effort was included in the Department of Defense Program Competitive Solicitation issued under the SBIR Program. As described above, only MDS is being considered for Phase III award due to the nature of the acquisition. In accordance with FAR 5.202(a) (7), this proposed contract action does not require public notification to the GPE. 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 a 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, Phase II, and Phase III. 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 and commercial item acquisition procedures. The Contracting Officer is not aware of any specific actions that would further remove barriers to competition. 12. Period of Performance. Base - 18 months (Based on 4 separate customers acquiring the DRFM see below) Option I - 13 months (Run in Parallel with Base Effort) Option II - 13 months (Run in Parallel with Base Effort) 13. Total Estimated Dollar Value of the Acquisition Covered by this Justification, with Funding Specified by Year and Appropriation: 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 MDS is being considered for Phase III award due to the nature of the acquisition.