JA_AVOX_Oxygen_USN_7152025_Redacted.pdf

1. IDENTIFICATION OF THE AGENCY AND CONTRACTING ACTIVITY

Contracting Activity: General Services Administration (GSA) Federal Acquisition Service (FAS) General Supplies and Services (GSS), Assisted Contracting Branch B 819 Taylor St., Fort Worth, TX 76102

Requiring Activity: United States Naval Air Systems Command (NAVAIR) –

PMA 290

22347 Cedar Point Rd Patuxent River, MD 20670

Description of Requirement: P-8A Aircraft Oxygen System

Manufacturer: AVOX Systems Inc.

GSA’s Acquisition PIID # 47QSWC24K0121 Period of Performance (POP): 23 months

Contract Value:

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED

This action is to request the approval of a sole source Purchase Order for the supply of Avox System Inc.’s Oxygen System to support the production of the P-8A Poseidon aircraft.

This Justification and Approval serves to support the procurement as a sole source award for deliverables manufactured by Avox System Inc. in accordance with FAR 13.106-1(b)(2), sole source acquisitions.

3. A DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS

(INCLUDING THE ESTIMATED VALUE)

General Services Administration

JUSTIFICATION AND APPROVAL FOR SOLE SOURCE

ACQUISITION (J&A) FAR 13.106-1(b)(2)

Description Part # Quantity Price Each Total Price Lower Mounting Bracket - Portable

Upper Mounting Bracket - Portable

Portable Oxygen Tank - Lav 8 Steel Oxygen Cylinders 24 Thermal Compensator 24 Portable Oxygen Assembly 40 Mask w/ Regulator 224 Stowage Box Mask 64 Total:

The total estimated value of this requirement is (for the oxygen system).

4. AN IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING OTHER THAN FULL

AND OPEN COMPETITION

This acquisition will be conducted under 10 U.S.C. 3204(a)(4) and the authority of FAR 13.106-1(b)(2), soliciting from a single source, and in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Products and Commercial Services, which allows the use of simplified acquisition procedures for the purchase of the aircraft seats components in amounts greater than the simplified acquisition threshold but not exceeding $7,500,000.00. Each Avox System Inc. oxygen system meets the definition of a commercial product in accordance with FAR 2.101 as these items are generally available for public use with a minor modification not customarily available in the commercial marketplace made to meet Federal Government requirements.

For sole source purchases exceeding the simplified acquisition threshold, the requirements at FAR 13.501(a) apply. The need for a sole source requirement is justified in writing utilizing the format at FAR 6.303-2 properly modified to reflect that the procedures at FAR 13.5 were used in accordance with 41 U.S.C. 1901. This justification will be approved at the levels specified in accordance with FAR 13.501(a)(2)(ii) and posted to SAM.gov within fourteen (14) days of contract award in accordance with FAR 13.501(a)(1)(iii).

5. A DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS OR THE

NATURE OF THE ACQUISITION REQUIRES USE OF THE AUTHORITY CITED

NAVAIR has a need for the procurement of aircraft oxygen systems on the P-8A Poseidon aircraft, modified from the

. The P-8A Poseidon is the latest maritime, patrol and reconnaissance aircraft designed to secure the Navy’s future in long-range maritime patrol capability. NAVAIR’s PMA 290 holds the responsibility of maintaining, repairing, and implementing new aircraft capabilities to the P-8A aircraft fleet for operational use. The P-8A aircraft oxygen system was developed for, integrated into, and tested on the P-8A during an extensive, competitively awarded P- 8A system development and demonstration phase. AVOX Systems Inc. is the sole designer, developer, and manufacturer of the aircraft oxygen system for use in the P-8A. Avox System, Inc.’s design is proprietary and not based on any generic specification design. Avox Systems Inc. is the only known source with the requisite knowledge of the design, technical data, instruction manuals, installation procedures, and maintenance data necessary to support/sustain the whole system, fabrication, performance, and operational characteristics of the oxygen system capable of meeting the P-8A requirements, and is therefore uniquely qualified to perform the efforts contemplated under this J&A. Any other supplier would need to have their parts certified, which requires multimillion dollar testing and analysis. Award to any other source would disrupt on-going P-8A production by delaying the delivery of qualified and properly integrated oxygen systems to the P-8A line. The timeline to compete and qualify a second source to fulfill the P-8A production weapon system requirements is estimated to be approximately four years.

The acquisition of the aircraft oxygen system is intended to enhance their P-8A Poseidon aircraft fleet to effectively maintain and repair their fleet for operational use. AVOX Systems Inc. will be delivering parts identified in Section 3 of this document.

AVOX Systems Inc. understands and is prepared to meet the critical role of providing these parts to maintain Mission Critical Rates for the Department of the Navy assets.

6. A DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS MANY

POTENTIAL SOURCES AS IS PRACTICABLE, INCLUDING WHETHER A NOTICE WAS OR WILL BE

PUBLICIZED AS REQUIRED BY SUBPART 5.2 AND, IF NOT, WHICH EXCEPTION UNDER 5.202

APPLIES DESCRIPTION OF EFFORTS TO ENSURE THAT OFFERS ARE SOLICITED FROM AS MANY

POTENTIAL SOURCES AS PRACTICABLE, INCLUDING IF A NOTICE WILL BE PUBLICIZED AS

REQUIRED BY SUBPART 5.2

The market research conducted by the Contracting Officer and information submitted by the customer for review indicates that only one (1) source is available. Additionally, the Contracting Officer posted a notice of proposed contract action on August 26, 2024, to SAM.gov, in which the Government intends to solicit and negotiate with only one (1) source; and no responses were received. The notice was open for nine (9) days. Also, an email was sent to AVOX Systems on November 7, 2024, to see if they had any authorized distributors for the P-8A Aircraft Oxygen System. On November 8, 2024, AVOX Systems responded reiterating that it does not use distributors for direct U.S. military sales, and they will quote directly.

7. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE

GOVERNMENT WILL BE FAIR AND REASONABLE

Because this requirement is being sole sourced, the Government will be utilizing at least two (2) price analysis techniques outlined in FAR 13.106-3(a)(2) by which to determine pricing submitted by AVOX Systems Inc. to be fair and reasonable. These techniques include, but are not limited to the following:

● Market research

● Comparison of the proposed price with prices found reasonable on previous purchases

● Comparison to an independent Government estimate

8. A DESCRIPTION OF THE MARKET RESEARCH CONDUCTED (SEE PART 10) AND THE RESULTS OR A

STATEMENT OF THE REASON MARKET RESEARCH WAS NOT CONDUCTED

In accordance with FAR Part 10, Market market research was conducted to evaluate the availability of the Avox oxygen system in meeting the Government’s need. Based on the NAVAIR’s input, a Notice of Intent (NOI) to negotiate on a sole-source basis was published to SAM.gov on August 26, 2024, for nine (9) days to solicit industry feedback regarding the oxygen system requirement. The NOI closed on September 4, 2024. Moreover, another NOI to Sole Source was posted to SAM.gov on November 21, 2024, to gauge industry interest and to reaffirm market research findings while addressing any potential new developments from industry participants. The Notice of Intent closed on December 2, 2024, with no responses received. The Contracting Officer also contacted Avox Systems Inc., through email on November 7, 2024, to inquire whether authorized distributors were available for the oxygen system. Avox Systems Inc. confirmed that no distributors will be utilized and that they will quote directly.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN COMPETITION

All facts supporting this justification have been provided above.

10. A LISTING OF THE SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN INTEREST IN THE

ACQUISITION

The P-8A aircraft oxygen system is the only sole proprietary product that has been rigorously tested and determined to meet the Government's needs. There were no responses to the NOI that was posted or inquiries submitted by industry concerning the Government’s intent to sole source this requirement to AVOX Systems Inc.

11. STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE BARRIERS TO

COMPETITION

Increasing concerns have emerged regarding potential barriers to competition when access to design, knowledge, and technical data is required. However, AVOX Systems, Inc. is currently the only source capable of meeting the Government’s needs. Prior to any subsequent procurement, the Government will once again review the market using various methods to assess whether any other qualified sources are available and are able to meet the Government's requirements.

TECHNICAL REQUIREMENTS CERTIFICATION

I certify that this support data under my cognizance, which forms a basis for this justification, are accurate and complete to the best of my knowledge.

Date

CONTRACTING OFFICER CERTIFICATION AND APPROVAL

The Contracting Officer has determined this procurement meets the circumstances described in FAR 13.106-1(b)(2), soliciting from a single source for purchases exceeding the simplified acquisition threshold and that the appropriate actions were taken under this acquisition to meet the conditions described in FAR Subpart 13.501, Special documentation requirements. The information contained in this justification is accurate and complete to the best of the Contracting Officer's knowledge and belief.

Date

2/5/2025

I, the approving authority, determine that the circumstances identified in this document are accurate; therefore, limiting sources under FAR 13.106-1(b)(2) is justified. The signature below also represents approval of this Justification and Approval for Sole Source Acquisition.