T-39_JA_12_22150_Signed_14May12.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND

RADM WILLIAM A. MOFFET BUILDING

47123 BUSE ROAD, BLDG 2272

PATUXENT RIVER, MARYLAND 20670-1547

IN REPLY REFER TO:

J&A_12_22150

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 justification and approval authorizes and approves the sole-source award of a contract with fixed price and cost reimbursable line items for T-39G/N Aircraft Contractor Logistics Support (CLS) services in support of Student Naval Flight Officer (SNFO) training at the Naval Air Station Pensacola, FL (NASP). This contract will have a 12-month base period with two 6-month options.

3. Description of Supplies/Services.

The Chief of Naval Air Training (CNATRA) is responsible for producing SNFOs to meet the skill requirements of Fleet customers. This effort provides support for CNATRA requirements through total CLS services of Government-owned, T-39N and T-39G aircraft and associated equipment. Specific T-39 requirements include, but are not limited to: pilots for the aircraft; aircraft maintenance and logistics support of T-39N and T-39G aircraft, including the radar systems; repair and overhaul of airframe and aircraft subsystems including engines; maintenance/repair and logistics support of mission support equipment and peculiar support equipment and spares; configuration management and data collection including records' maintenance and data reporting associated with aircraft, systems and subsystems; obsolescence management support; and divestiture management support. The primary place of performance is NASP.

The estimated total value of this contract is $32.43M. See Appendix A for Estimated Dollar Value.

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

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

5. Rationale Justifying Use of Cited Statutory Authority.

L-3 Vertex will have served as the prime contractor for the T-39G/N Aircraft CLS effort for over 15 consecutive years at the conclusion of the current contract which ends in September 2012. During the last 6 years, L-3 Vertex developed 47 unique corrosion related non-standard repair (NSR) procedures. A NSR is a repair for which no procedure is set forth in Original Equipment Manufacturer (OEM) maintenance manuals. These NSR procedures were not delivered to the Government in sufficient detail for any other contractor to perform the repairs. Award to any firm other than L-3 would require the new contractor to duplicate development of the same NSR procedures, and subsequently acquire Federal Aviation Administration (FAA) approval prior to implementation. Based on history and experience, a non-complex

NSR procedure requires approximately 3 weeks for development and approval and a complex NSR procedure requires approximately 8 weeks. Over the last 2 years, 5 of the 11 NSR procedures utilized were of a complex nature.

Based on the current divestiture schedule, in FY13, the Navy will have seventeen T-39 aircraft available for NFO training and the Navy forecasts that a total of thirteen T-39 aircraft will need to be Full Mission Capable (FMC) at all times, in order to meet the NFO production rate (training schedule). Additionally, based on the divestiture schedule, in FY14, the number of aircraft available for NFO training will reduce to twelve and the Navy forecasts that a total of nine T-39 aircraft, will need to be Full Mission Capable (FMC) at all times, in order to meet the NFO production rate. Based on historical readiness data, only eighty percent of this pool of aircraft will be available for training at any given time, due to the performance of other maintenance actions. While a new NSR procedure is being developed and approved, all effected aircraft will be out of service for an additional period of time, a minimum of 3 to 8 weeks, and therefore unavailable for training purposes. Based on the T-39 divestiture schedule plan, historical readiness information, the schedule for Initial Operational Capability of the replacement for the T-39, and the data outlined above, losing the availability of one or more aircraft for an additional 3 to 8 weeks due to a new contractor having to develop and acquire approval to implement these same NSR procedures, will result in unacceptable delays in fulfilling the agency’s training requirements, because there is no aircraft availability margin, to accommodate or absorb the additional maintenance downtime. Only the incumbent has the detailed knowledge, familiarity and experience necessary to address issues surrounding any previously developed NSR procedures or any Navy unique aircraft obsolescence issues without impacting aircraft availability. Having another contractor duplicate the effort to develop these same NSR procedures will result in additional time that each aircraft may be down for maintenance and will cause an inability to fulfill the CNATRA NFO production schedule and provide trained NFOs to the fleet. Therefore, award of the T- 39G/N Aircraft CLS contract to any firm other than the incumbent would cause reduced aircraft mission capability rates resulting in unacceptable delays in meeting the CNATRA NFO production schedule.

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

In accordance with FAR Part 10, preliminary market research was performed. A presolicitation notice was issued on the Federal Business Opportunities (FedBizOpps) website on March 13, 2012. No responses were received. The Contracting Officer will evaluate any responses received prior to award. Additionally, any interested parties will be referred to L-3 Communications Vertex Aerospace LLC 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 are procured at a fair and reasonable price. The contractor will submit cost and pricing data in accordance with FAR 15.403. Experienced technical analysts and contract specialists, with the aid of necessary field pricing support, will review the contractor's proposed costs. The Defense Contract Management Agency (DCMA) and Defense Contract Audit Agency (DCAA) will be requested to provide input. In addition, a NAVAIR (AIR- 4.2) Independent Cost Estimate has been provided based upon historical cost data from past performance of the current contract and quarterly flight hour projections provided by CNATRA. Utilizing this data, the negotiation and establishment of a fair and reasonable price will be conducted in accordance with FAR 15.4.

8. Actions to Remove Barriers to Future Competition.

L-3 Communications Vertex Aerospace LLC is the only source that can provide the above supplies and services within the desired timeframe. No other supplies or services will satisfy the program’s requirement within the desired timeframe. There are no future CLS requirements as all T-39s will be fully divested upon the conclusion of this contract.

Appendix A

Estimated Dollar Value in Thousands

FY13 FY14 FY15 FY16 FY17 FY18 FY19 Total

O&MN $ 20286 $ 12145 $ 0 $ 0 $ 0 $ 0 $ 0 $ 32431

Total $ 20286 $ 12145 $ 0 $ 0 $ 0 $ 0 $ 0 $ 32431