Small Business Innovation Research (SBIR) Phase III Topic N07-010 titled "Advanced Prognostic and Health Management and Model Based Prognostic Useful Life Remaining Capabilities for Aircraft Tactical Information and Communication Systems" and N132-096

SMALL BUSINESS INNOVATION RESEARCH (SBIR) PHASE IIIJUSTIFICATION & 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 Frontier Technology, Inc. (FTI), Beavercreek, OH. FTI, Global Strategic Solutions, LLC (GSS), and Ridgetop Group, Inc. were awarded SBIR Phase I contract numbers N68335-07-C-0349 on 3 May 2007, N68335-07-C-0350 on 7 May 2007, and N68335-07-C-0352 on 3 May 2007 respectively, resulting from Solicitation 07.1, Topic N07-010. Topic N07-010 was entitled, "Advanced Prognostic and Health Management and Model Based Prognostic Useful Life Remaining Capabilities for Aircraft Tactical Information and Communication Systems." FTI and GSS were subsequently awarded SBIR Phase II contract numbers N68335-08-C-0335 on 23 September 2008, and N68335-08-C-0336 on 29 September 2008 respectively. FTI was awarded SBIR Phase II.5 contract number N00024-14-C-4092 on 9 September 2014. Additionally, FTI was awarded SBIR Phase III BOA N68335-16-G-0014 on 23 May 2016 with two delivery orders, N68335-17-F-0073 and N68335-17-F-0151 subsequently awarded on 30 August 2017 and 25 September 2017 respectively. FTI, Sonalysts, Inc., and Quanterion Solutions were awarded SBIR Phase I contract numbers N68335-14-C-0102 on 23 December 2013, N68335-14-C-0091 on 19 December 2013, and N68335-14-C-0107 on 19 December respectively, resulting from Solicitation 13.2, Topic N132-096. Topic N132-096 was entitled, "Innovative Data Anomaly Detection and Transformation for Analysis Applications". FTI was subsequently awarded SBIR Phase II contract number N68335-15-C-0118 on 11 March 2015. Topic N07-010 sought the development, demonstration, and application of advanced prognostic models for communication, navigation, and identification systems and their subsystem components. Subsystems include aircraft global positioning systems, inertial navigation systems, including landing aids, identification friend or foe systems, radar altimeter, and voice and data communications systems. Topic N132-096 sought the development of a software toolset that can extract and transform data from different database systems, and convert it into data packages that create model specific input files and build metrics that support future modeling, simulation, and analysis tasks. Major shortfalls in Navy personnel maintenance training, onboard capability, and execution occurred due to reductions in military manning at intermediate level maintenance activities. The Navy Afloat Maintenance Training Strategy (NAMTS) program was established by the Chief of Naval Operations to improve shipboard organic maintenance self-assessment capabilities and material self-sufficiency. The Ship Organic Repair Capability Assist Team (SORCAT) program is designed to provide onboard support to determine effectiveness of the NAMTS training and to reintroduce repair capability / confidence to naval vessels. In order to support this program, SORCAT must provide the data link between afloat maintenance repair capability and maintenance requirements and the NAMTS training program to ensure effective and efficient training is being accomplished to support the overall objective of the Strike Force Intermediate Maintenance Activity program. The assessment data created by the SORCAT program and execution of the onboard training will provide the data required to evaluate and tailor the SBIR Condition Based Maintenance Plus (CBM+) software toolset, Training Health Monitoring System (THMS) that automates the extraction and conversion of large amounts of data for input into a suite of analysis applications, and data visualization. The current method for processing large amounts of training data is dependent upon a high level of human involvement to process the extracted data files and transform them into input datasets, probabilities, and / or probability distributions that can be directly applied with existing and future training models, simulations, or analysis applications. The effort to convert data from these sources into a usable format is completely manual. This Phase III effort will produce data generated by the SORCAT program and the resulting THMS, leveraging the CBM+ tool suite, and will be designed so that the data transformation process is not tied to any specific data source, and remains flexible. 3. Description of Supplies/Services. The objectives of the SORCAT Program and this effort are to leverage SBIR technologies within THMS to ensure Navy Vessels have the manpower and equipment critical to self-sufficiency of organic repairs required by Fleet Commanders. In addition, the SORCAT Program will validate the health of the NAMTS Program is sustained by frequent monitoring and control leveraging of the SBIR CBM+ software through THMS to compile and analyze training and repair capability data, to accurately project overall training system performance, identify training, manpower and logistical problem areas, and identify optimal solutions that offer the greatest impact to system availability. This Phase III effort derives from the Phase I, II, and III described in paragraph 2, and is for the required professional technical and support services to evaluate, tailor, and apply the existing SBIR CBM+ tool suite to support continued implementation, sustainment management, return on investment, and future development of the SORCAT Program. This effort will include but is not limited to: strategic planning; product evaluation and implementation; life-cycle management; analytical, administrative, operational, and facilitation support. This Phase III effort will be Delivery Order N68335-18-F-0149, under BOA N68335-16-G-0014 and the estimated value of this acquisition is $29,920,000.00. 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 and Phase II, 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 topics for this effort were included in the Department of Defense Program Competitive Solicitation issued under the SBIR Program. As described above, only FTI 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 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): Three (3), 12 month options 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 FTI is being considered for Phase III award due to the nature of the acquisition.