SBIR Phase III Topic N06-T007

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 contract to PC Krause and Associates, Inc. (PCKA), West Lafayette, Indiana. PCKA, Qualtech Systems, Inc., Global Technology Connection, Inc. (GTC), Sentient Science Corporation, and Global Strategic Solutions LLC (GSS) were awarded STTR Phase I contract numbers N00014-06-M-0281, N00014-06-M-0273, N00014-06-M-0275, N00014-06-M-0279, and N00014-06-M-0280 respectively on 1 August 2006, resulting from Solicitation 06, Topic N06-T007. Topic N06-T007 was entitled "Aircraft Electrical Power System Diagnostics and Health Management." PCKA, GTC, and GSS were subsequently awarded STTR Phase II contract numbers N68335-08-C-0108, N68335-08-C-0131, and N68335-08-C-0112 on 1 May 2008. PCKA was awarded STTR Phase II.5 contract number N68335-13-C-0178 on 3 May 2013. This effort was then converted to an SBIR, and SBIR Phase II.5 contract number N68335-17-C-0103 was awarded on 18 January 2017. Topic N06-T007 sought the development of diagnostic and prognostic technologies for aircraft electrical power systems and the integration of these technologies into overall vehicle health management systems, thereby providing improvements in aircraft maintenance, readiness, and safety. Typical failure modes for aircraft electrical power systems include bearing and winding failures in the generators; overcharging and heating of the batteries; and open and short circuits in the wiring system. The majority of these failures can be managed with the appropriate diagnostic and prognostic technologies and supporting systems. This capability, when integrated into the overall vehicle health management system, would provide aircraft with substantial improvements in maintenance, readiness, safety, and cost. The intent of this effort is to address health monitoring for power system components such as generators, converters, and batteries. Wiring system diagnostics have been addressed by previous efforts. Phase I sought to define a technical approach and develop an implementation plan for integrating power system diagnostics and prognostics into aircraft; and the validation of the approach analytically, or to provide test data or bench top hardware that validated the approach. Phase II sought to design, develop, and demonstrate a prototype health monitoring system for selected aircraft power system components; and to provide a demonstration that included a high-fidelity laboratory environment and/or aircraft ground demonstration. Phase III sought complete packaging and integration of the prototype health monitoring system for use in a Navy aircraft platform; complete safety of flight certification; and the performance of a flight demonstration. Phase III also sought the transition technology for NAVAIR Program Offices for final system integration, flight evaluations, and hardware. 3. Description of Supplies/Services. This Phase III effort derives from the Phase I, II, and III efforts described in paragraph 2, and is for the production and deployment of the Power Supply Tester (PST) to perform testing of F/A-18 Aircraft Generator Converter Unit (GCU) Power Supply (PS1) Modules. The acquisition and support of the PST are critical to the success of the Navy's F/A-18 missions. Successful completion of this work will result in increased reliability and maintainability of the F/A-18 aircraft. Phase III contract number N68335-12-G-0006-0003 was for the manufacture and delivery of three (3) F/A-18 Aircraft GCU PSTs, to be used for electromagnetic, environmental, and acceptance testing. The three (3) test units passed all the required testing and met their objectives by demonstrating their ability to test PS1 modules at a working environment. This effort was successfully completed and yielded a final design of the Power Supply Tester, which is now ready to be fielded and integrated as part of F/A-18 aircraft maintenance. The primary objective of this Phase III contract is to provide an advanced and proven PS1 module test hardware capability to the fleet. The task under this contract will include the production and delivery of twenty-seven (27) PSTs in accordance with the parameters identified in the specifications, the physical configuration audit plan, and the physical configuration audit. This contract shall also provide an option to procure one (1) additional PST for a Foreign Military Sales customer. The deliverables of this effort are the GCU PST production units, which will be manufactured based on the final, proven design from the Phase III contract number N68335-12-G-0006-0003; a physical configuration audit to verify all drawings of the PST and production units are in agreement; logistics source data updates for the NAVAIR technical manuals; and an Integrated Master Schedule. This effort will be contract number N68335-19-C-0088. 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)(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, 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 PCKA 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 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 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: 12 months Option(s): 18 months 13. Total Estimated Dollar Value of the Acquisition Covered by this Justification, with Funding Specified by Year and Appropriation: RESERVED 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 PCKA is being considered for Phase III award due to the nature of the acquisition.