16D0046 Redacted JA.docx

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

IN REPLY REFER TO:

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Naval Air Warfare Center Aircraft Division (NAWCAD), Lakehurst, NJ

2. Description of Action Being Approved:

This Justification and Approval (J&A) authorizes and approves the issuance a three (3) year non-competitive Indefinite Delivery Indefinite Quantity (IDIQ) Contract with BAE Systems Information and Electronic Systems Integration (IESI), Greenlawn, NY, to provide hardware procurements in support of the Digital Interrogator Set AN/UPX-37, AN/UPX-41(C), AN/UPX-42(C) and AN/UPX-45(C) and its subassemblies. Delivery orders issued during the life of this IDIQ Contract will be on a Firm Fixed Price (FFP) basis.

3. Description of Supplies and Services:

Naval Air Warfare Center Aircraft Division (NAWCAD) requests an award of an IDIQ Contract to BAE Systems, under which FFP Delivery Orders will be issued in order to provide spares procurements in accordance with Appendix B and provide production equipment, including, but not limited to, Mark XIIA Mode 5, Mode 5 Communications Security (COMSEC), and Mode S, all in support of AN/UPX-37, AN/UPX-41(C), AN/UPX-42(C) and AN/UPX-45(C), for use on board ship and ashore. The complete list of parts is attached to this J&A.

These systems are the primary interrogator sets deployed on all surface Navy ships and at all naval shore stations for Air Traffic Control and Combat Identification functions.

4. Statute Authority Permitting Other Than Full and Open Competition:

Title 10 U.S.C. 2304(c)(1), only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rational Justifying Use of Cited Statutory Authority:

BAE Systems IESI is the sole designer, developer, and Original Equipment Manufacturer (OEM) of the Interrogator Set AN/UPX-37, AN/UPX-41(C), AN/UPX-42(C) and AN/UPX-45(C), including its subassemblies. BAE Systems IESI is the only known source possessing the required knowledge of the equipment to identify faults and provide spares support required for the system. BAE Systems IESI is also the manufacturer of several critical Shop Replaceable Assemblies (SRAs) applicable to the AN/UPX-37, AN/UPX-41(C), AN/UPX-42(C) and AN/UPX-45(C). Furthermore, the Government does not own the interface specification to seek other sources for replacement SRAs; therefore, original equipment parts and components must be used to fulfill the system specification and ensuring plug-in compatibility and prevent interchangeability issues. The Government does not own sufficient drawing packages and specifications to issue a competitive procurement of these services.

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

A market survey was conducted via the internet to locate a vendor that could provide the necessary supplies that will meet the needs of this requirement to no avail. BAE Systems IESI is the OEM and owner of the data rights to many of the Interrogator Set AN/UPX-37, AN/UPX-41(C), AN/UPX-42(C) and AN/UPX-45(C) components and has been identified as the only known source for these services. BAE Systems IESI was contacted to see if they would sell the proprietary data rights to the Government and they have declined.

7. Determination of Fair and Reasonable Costs:

In accordance with FAR 6.303-2(a) (7), the Procuring Contracting Officer (PCO) shall ensure that all supplies and services provided under this BOA are procured at a fair and reasonable price. The determination will be performed on individual orders. The Contractor will submit a formal proposal with appropriate cost or pricing data and sufficient information to support the accuracy and reliability of the estimate. The BAE Systems proposal will be reviewed by experienced technical analysts, cost analysts and contract specialists with the aid of necessary field pricing support. The Contracting Officer will utilize cost and price analysis as the basis for negotiating a fair and reasonable price.

8.

Actions to Remove Barriers to Future Competition:

Technical data packages, specifications, engineering descriptions, statements of work, or purchase descriptions were developed by the OEM. BAE has declined selling the proprietary data rights to the Government. Therefore, data suitable for full and open competition is not available. The hardware procurements of this ID/IQ Contract will be limited to only those items not supported by the Navy supply system. BAE Systems IESI is the sole manufacturer and is the sole source of the required engineering expertise. As long as BAE Systems IESI holds the required technical data packages and retains manufacturer level design engineering expertise, they will be the only source of future replacement parts.

For the reasons set forth above, NAVAIR is unable to compete future contracts for the types of supplies and services covered by this J&A. At this time, the Government does not possess the required technical data package (TDP) and/or specifications necessary for full and open competition. As the OEM, BAE is the only company that currently possesses the technical expertise, proprietary knowledge, and special tooling required to design modifications and upgrades, or to provide associated components for these complex systems; there are no other sources for spare parts. If another potential source emerges, or NAVAIR is capable of receiving the TDP required for the BAE Digital Interrogators, NAVAIR will assess whether competition for future requirements is feasible.

DOMESTIC

INSTALLATION AND CHECKOUT

SPARES LIST

Appendix B image1.wmf