Boeing CJA 24.0062_Redacted.pdf

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Attached to
C-40A Sustaining Engineering (SE) Follow-On Contract
Solicitation number
N0001925D0006
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About this file

This is a Justification and Approval (J&A) document from the Department of the Navy Naval Air Systems Command for other than full and open competition to award a sole-source contract to Boeing for C-40A aircraft Sustaining Engineering (SE) support. The contract covers project management, engineering services, aircraft publication revisions, On-Board Performance Tool support, database services, maintenance toolbox support, technical support for mishap investigations, service bulletins support, and configuration control of non-OEM modifications for USN and USMC C-40A aircraft.

The contract will run from December 2024 through November 2031 with a base year plus six one-year ordering periods. Boeing was selected as the sole source provider since they are the original manufacturer of the C-40A aircraft and hold proprietary technical data rights. A Sources Sought notice was posted on SAM.gov in March 2023, receiving one response from Universal Engineering Consulting Services (UECS) which was deemed not capable of meeting requirements. Additional notices posted in April and August 2023 received no responses. The J&A notes that using another contractor would result in substantial duplicative costs for recreating technical data, software tools, and maintenance manuals that could not be recouped through competition.

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Per FAR 6.302-1(a)(2)(iii)(A), if another company were to perform these services, the Government would incur substantial duplicative cost that could not be recouped through competition. First, another company would be required to generate or otherwise obtain a significant amount of technical data related to the 737/C-40A. Assuming another company already possessed some amount of 737/C-40A data, it would likely still need to re-generate some amount of additional data by reverse engineering and certifying the required technical data and models to FAA standards with the necessary FAA approvals to be accepted by the NAVAIR airworthiness authority. These approved technical data and models will be used to substantiate and approve sustaining engineering inquiries over the remaining life of the aircraft.

Currently, the Government obtains critical software from Boeing such as the On-Board Performance Tool (OPT), which includes aircraft performance models, weight and balance data and allows the crew to enter specific mission crew complement, cargo weights and locations, number of passengers and fuel load out to ensure the aircraft is within center of gravity limitations and generate all of the takeoff and landing data necessary to safely operate the aircraft. This software is specific to each aircraft and is updated after every aircraft weighing (or modification). Without Boeing updates to the OPT software, the Government or another contractor would have to recreate this data and models and re-generate an OPT tool estimated to cost more than based on similar efforts on organic programs.

Another significant area where sustaining engineering costs would impact the program is the use of another company for structural repairs beyond the structural repair manual. Boeing has the structural data, materials used in the manufacturing of the airframe, the material properties of the aluminum alloys and composite materials that substantiate the airworthiness of the airframe. Boeing also has the strength models, dynamic models and the aeroelastic models to ensure the structural repairs do not alter the baseline strength, dynamic properties and aeroelastic properties of the aircraft to ensure airworthiness is maintained. The Government or another contractor would have to recreate this data, analyze and establish the materials and material properties and regenerate the models to FAA standards. The cost to duplicate this data was not estimated but would cost millions of dollars based on similar efforts for other aircraft and engineering expertise. The aircraft that need the repair and airworthiness approval from these models would be in a down maintenance status and awaiting engineering impacting fleet readiness.

Additionally, the company would have to re-create the maintenance manuals and other technical publications to which the Government currently has access from Boeing. Assuming the company had the necessary supporting data, creation of the documents is estimated to cost at least $20 million based on similar efforts for other programs.

Therefore, award to any company other than Boeing would result in at least $ in duplicated costs, not including the cost of recreating the data for repairs beyond the structural repair manual. These duplicated costs together, could not be recouped through competition on a contract valued at .

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

The Sources Sought notice required by DFARS PGI 206.302-1 and FAR 5.201(b), was originally posted on the System for Award Management (SAM.gov) website on 15 March 2023 and closed 29 March 2023. Only one response was received from Universal Engineering Consulting Services (UECS), a Small business/Woman Owned/SBA Certified Small Disadvantaged business. After careful review and consideration, it was determined that the response submitted did not meet the requirements to complete the SE under this effort. The response was found not capable of meeting the requirements due to multiple factors including experience, knowledge and technical data required to perform. The Government contacted UECS via email on 17 April and conveyed the conclusion reached by the Government that “It does not appear UECS can meet the needs of the Government for the subject effort. The information provided aligns with a supply chain effort and the Government is seeking SE support for the C-40A fleet.” There was no further communication received from UECS.

The synopsis notice required by FAR 5.201 was posted on the SAM.gov website on 25 April 2023 and closed 10 May 2023 stating the Government’s intent to award a sole source contract to The Boeing Company. No responses were received.

A revised Sources Sought notice was posted on the SAM.gov website on 23 August 2023 and closed 7 September 2023. The purpose of the repost was to update the language in section 3 to remove the requirement to have access to OEM data. Information Requested; the industry partner would be required to demonstrate their company possesses, or has authorized access, or can provide a viable plan to obtain, generate or otherwise secure the necessary technical data to provide SE support service capabilities to meet the C-40A operational requirements. No responses were received.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NAVAIR has no plans at this time to compete future contracts for the services covered by this document. If another potential source emerges, NAVAIR will assess whether competition for future requirements is feasible.

As this is a follow-on for services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(S-70)(i), the prior J&A (18_0088) was provided to the approval authority for review. Approval of this J&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(S-70)(ii).

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