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1. Identification of the agency and the contracting activity, and specific identification of the document as a “Sole Source Justification.”

This is a sole source justification. The Contracting activity is: Naval Sea Systems Command

Naval Surface Warfare Center Panama City Division (NSWC PCD) 110 Vernon Avenue

Panama City, FL 32407-7001 (Contracts Department Code 02)

2. Nature and/or description of the action being approved.

This action will award a firm fixed price purchase order to NexGen Composites LLC. – Commercial and Government Entity (CAGE) – 6SD02 2550 W 5TH North ST, BLDG 1

Summerville, SC 29483-9665 for required depot repairs and retrofit of composite panels used on the LCAC PTM Zero configuration.

3. A description of the supplies or services required to meet the agency’s needs (including the estimated value).

The requirement is Depot Repair and Retrofit Upgrades to PTM Zero components inclusive of drawing package 135-001-001 through 135-996-011.

This acquisition will be conducted using simplified acquisition procedures with a total estimated value greater than $25,000. The Government’s minimum needs have been verified by the certifying technical and requirements personnel. This memo does not authorize acquisition for other requirements. This acquisition will be conducted using simplified acquisition procedures with a total dollar value above micro-purchase levels, and exceeding the simplified acquisition threshold of $250,000.00, estimated at around $410,000. All equipment will be delivered no later than fifteen (15) weeks after award of the order. The purchase will be supported with Fiscal Year (FY) 2023 Operation and Maintenance, Navy (O&MN) funding.

4. Identification of the justification rationale and, if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

10 U.S.C. 2304(c) (1) - Only one responsible source and no other supplies or services will satisfy agency requirements, FAR 6.302-1: The PTM development effort was initiated under the Navy’s Small Business Innovative Research (SBIR) Program, and the effort continued under the Defense Acquisition Challenge (DAC) Program. A subsequent effort then took the partial prototype PTM delivered under the DAC effort, corrected the identified deficiencies, and

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augmented it into a complete, full-up, deployable PTM, and also developed a drawing package defining the PTM design. These SBIR efforts were done by NexGen Composites under contracts N65538-04-M-0124 (Phase I), N00164-05-C-6084 (Phase II), and NSWC PCD contracts N61331-10-C-0014 and N61331-13-C-0019 (Phase III). This contract is a follow-on Phase III SBIR contract for production of the PTMs for use on the LCAC and Ship to Shore Connector (SSC) craft (LCAC-100).

NexGen Composites is the only proven manufacturer the USN has deemed capable to manufacture this critical craft component. The cost the USN would incur to qualify a new source and the material purchases required to build up their assembly line could exceed $1M. There would potentially be additional costs estimated at $200K for logistics and configuration management product updates as well. In addition, the schedule slips associated with extended lead times from qualifying a new source are estimated to be 12-24 months, which would be detrimental to the current PTM fielding requirements.

5. A determination by the ordering activity contracting officer that the order represents the best value consistent with FAR 13.106-1(b).

The Contracting Officer has determined that the order represents the best value and results in the lowest overall cost alternative (considering price, reoccurring costs, special features, administrative costs, engineering and redesign costs, etc.) to meet the Government’s needs.

6. A description of the market research conducted and the results or a statement of the reason market research was not conducted.

No additional market research was conducted for the reasons stated in paragraph 4 above. This proposed contract action will be synopsized in the Government Point of Entry SAM.gov.

7. Any other facts supporting the justification.

None.

8. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made.

As stated in paragraph 4 above, NexGen Composites, LLC. CAGE – 6SD02 is the only source that can meet the requirement.