The Naval Oceanographic Office has conducted a great amount of research on the salinity and temperature of the oceans. The data from this research has required the use of ten types of sensor systems deployed by a Navy research vessel. To streamline the operation and to reduce costs, the Navy desires only one sensor system to take measurements instead of ten sensors.

The technology is readily available in the commercial markets, however it will take some research and development to consolidate the capabilities of ten types of sensors into one sensor. Based on market research such as attending industry events, there appears to be at least five qualified companies that have shown strong interest in a potential contract to design and build the sensor. Also, there is no federal government agency including the Navy capable of designing and building the sensor. The Navy wants to be able to repair and modify this sensor without having to request data rights from the contractor for each future maintenance event. Navy leadership wants access to the data such as technical drawings. The Navy wants to incentivize that the contractor build a system which is easy to maintain. Hence, it wants to incentivize not only being able to meet the cost and schedule requirements, but also the technical requirements.

The estimate cost for the design and construction of this sensor is $15,000,000. This amount includes the government funding the entire design and construction. Because of this there will be no proprietary component within the system. For example, the computer's operating system will be developed by the contractor entirely with the $15,000,000.

Based on the above, what is the likely competition level? What contracting method and contract type would you select as a contracting officer? Explain if a J&A is required?

(Provide references)