SBIR Phase III Topic N102-182 entitled "Compact, Lightweigt Autonomous Underwater Vehicle (AUV) with robust navigation and range for riverine reconnaissance

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 Hydronalix, Inc. (Hydronalix), Green Valley, AZ. Hydronalix, Ocean Server Technology, Inc., SeaLandAire Technologies, Inc. (SeaLandAire), and FarCo Technologies, Inc. (FarCo) were awarded SBIR Phase I contract number N00014-10-M-0458, N00014-11-M-0012, N00014-11-M-0013, and N00014-11-M-0020 on 18 October 2010 respectively, resulting from Solicitation SBIR 10.2, Topic N102-182 entitled "Autonomous Underwater Vehicle (AUV) for Sustained Riverine and Littoral Assessments". Hydronalix, SeaLandAire, and FarCo were subsequently awarded SBIR Phase II contract N68335-13-C-0281 on 19 September 2013, N00014-12-C-0102 on 21 October 2011, and N00014-12-C-0161 on 6 January 2012 respectively. Hydronalix was awarded SBIR Phase II.5 contract N68335-15-C-0138 on 09 July 2015 and contract N68335-17-C-0075 on 06 October 2016. Hydronalix was awarded SBIR Phase III BOA number N68335-14-G-0039 on 30 April 2014 under which two delivery orders have been awarded previously. Topic N102-182 sought the development of a compact, lightweight AUV capable of riverine Bathymetric Simultaneous Localization and Mapping (SLAM) and current surveys along river stream while navigating under vegetation canopy causing intermittent Global Positioning System and Radio Frequency availability. Phase I sought the Bathymetric SLAM, navigation, propulsion, control, and hull-form design, associated concepts and algorithms, and an integrated system design. Component level and system level modeling and analyses were to be conducted to justify the proposed design. The design analyses would focus on feasibility of new proposed concepts of component/software integration for higher overall system performance. Phase II sought a prototype to be produced and fully demonstrated. Test and analysis would document AUV performance with respect to the stated objectives as well as performance limitations in laboratory and operationally realistic environments. Phase III sought to develop an acquisition-ready AUV system description that met well defined navigation and safe operation guidelines. Full manufacturing documentation would allow rapid production to occur with the vendor team. 3. Description of Supplies/Services. This Phase III effort derives from the Phase I, II, and III efforts described in paragraph 2, and is to provide advanced concept Mobile Gateway Buoy (MGB) hardware integrated with control software and communication systems. The initial tasks under this contract will include providing NAVAIR with two complete MGB prototypes integrated with control software and acoustic communication system. The contractor shall provide engineering support by designing an improved hull platform with a hybrid electric/heavy-fuel propulsion system, integrated with MK 18 Gateway Buoy communications equipment, and controlled by Neptune control software. As new communication technologies become available, the contractor shall integrate those systems into a common modular payload bay located on the MGB. The deliverables of this project are MGB Hull Design, Propulsion System Development, Neptune Control Software Integration, System Fabrication, Assembly, and Verification. Other deliverables include; Reports and Documentation; Situational Awareness Sensor Integration (option); Vertical Acoustic Communication System Integration (option); Expendable Data Exfiltration Embedded Relay Radio Integration (option) and; High Frequency Ground Wave Radio Integration (option). This effort will be contract number N68335-18-F-0001. 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 Hydronalix 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: 24 months Option 1: 12 Months Option 2: 12 Months Option 3: 12 Months Option 4: 12 Months *The total Period of Performance, including Options, shall not exceed 60 months. Three (3) of the four (4) Options overlap the Base effort. 13. Total Estimated Dollar Value of the Acquisition Covered by this Justification, with Funding Specified by Year and Appropriation: Estimated Dollar Value in Thousands 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 Hydronalix is being considered for Phase III award due to the nature of the acquisition.