CJ A_11-5364_(Redacted).pdf

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND

RADM WILLIAM A. MOFFET BUILDING

47123 BUSE ROAD, BLDG 2272

PATUXENT RIVER, MARYLAND 20870-1547

IN REPLY REFER TO:

CJ&A 11-5364

CLASS JUSTIFICATiON AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Systems Command (NAVAIR) Headquarters

2. Description of the Action Being Approved.

This Class Justification and Approval (CJ&A) authorizes and approves the issuance of orders under Basic Ordering Agreement (BOA) N00019-11-G-0001, hereinafter referred to as the Boeing Corporate BOA. The BOA will cover orders issued during fiscal years 2011 through 2015, and will be awarded on a sole source basis to The Boeing Company (Boeing) for the procurement of supplies and services in support of the T-45 Training System. Authority to act under this CJ&A commences upon signature and expires on 30 September 2015.

3. Description of Supplies/Services.

This effort will include the following: (a) development and manufacture of Engineering Change Proposals for retrofit kits and associated non-recurring engineering, integrated logistics support, procurement of technical data/publications; (b) engineering support for Engineering Investigations; (c) Service Life Extension Program studies and associated non-recurring engineering; (d) engineering studies involving aircraft improvements; (e) spares/repair parts procurement; and (f) flight test and aircraft maintenance support for test aircraft. The quantity and delivery requirements will be negotiated for each order. These requirements are covered under Acquisition Plan 273-2010-08-26-R1 ,a roved b Pro ram Executive Officer, Tactical Aircraft Pro rams on 5 A ril, 2011.

4. Statutory Authority Permitting Other Than Full and Open Competition.

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1), as implemented by the Federal Acquisition Regulation (FAR) 6.302-1 ,"Only one responsible source and no other supplies or services will satisfy agency requirements."

5. Rationale Justifying Use of Cited Statutory Authority.

Boeing is the Original Equipment Manufacturer (OEM) and is the sole designer, manufacturer, and supplier of the T45 aircraft and its systems. In addition, Boeing is the integrator of Government Furnished Equipment and only Boeing possesses the unique and specialized engineering capability, resources, subject matter expertise, tooling, facilities, and manufacturing techniques critical to satisfying the Government's minimum requirements. Since Boeing designs and incorporates the engineering changes, it would be ineffective from a cost, schedule and performance standpoint to have another source design and produce retrofit kits for engineering changes, due to the other source's lack of engineering knowledge and experience which is inherent to the OEM. Only Boeing possesses the proprietary data for the design, engineering and performance details of the aircraft necessary to satisfy the Government's minimum requirements within the required timeframe. Such data is required for the successful provision of the hardware and support described in paragraph 3 above.

Boeing indicated on 4 January 2008 that it does not intend to sell its proprietary data and declined to offer a price for this data. Even if Boeing were willing to sell these rights, the length of time to select another company, to set-up production, and acquire other necessary skills would unduly delay the fulfillment of these critical requirements to the Government. The T45 data and capabilities were developed by Boeing during more than twenty years of design, development and production, and given the T-45 program is out of production, there is simply no opportunity for alternate source development. Therefore, the Government has determined that Boeing is the only responsible source capable of providing these supplies and services within program cost and schedule constraints.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

Though a formal market survey was not performed for the basic BOA, a synopsis was posted on FedBizOpps on 13 September 2010. No responses were received. Each order will be independently synopsized on the FedBizOpps website, specifically stating the Government's intent and rationale to contract sole source with Boeing in accordance with FAR 5.201. The Contracting Officer will evaluate any responses received prior to the award of each order.

Additionally, any interested parties will be referred to the Boeing SUbcontracting Manager for possible subcontracting opportunities.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402(a), the contracting officer must ensure that all supplies and services ordered are procured at a fair and reasonable price. The contractor will submit cost and pricing data in accordance with FAR 15.402-4 for each order. Analysis of the proposals will be performed by technical analysts and contract specialists, with the assistance of Defense Contract Management Agency (DCMA) analysts and Defense Contract Audit Agency (DCAA) auditors. The Contracting Officer will analyze the various cost'slements that are presented in the proposals, as well as reviewing the actuals for previous procurements. The DCAA audit will be used to evaluate the material and subcontract positions. The contractor's use of escalation will be reviewed. The Navy Price Fighters and the PMA will evaluate the proposed labor hours and provide a detailed report which will be utilized to establish a Navy position for labor. The Contracting Officer will work with DCMA and DCAA to establish rate positions as reqUired. As discussed in the paragraph, the Contracting Officer will use cost and price analysis as the basis for negotiating a fair and reasonable cost.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NAVAlR has no plans at this time to com ete future contracts for the es of su lies and services covered b this document.