Heater Probes JA Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

IN REPLY REFER TO:

J&A_20_0465

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center Aircraft Division (NAWC-AD) Lakehurst, NJ.

2. Description of the Action Being Approved.

This Justification and Approval (J&A) authorizes and approves the procurement of 108 Legacy

Heater Probes, Part Number (P/N) BH19803-80 that are part of the H239B-15 Temperature

System Tester Unit. This procurement will be a sole source Firm Fixed-Price contract to Howell

Instruments, Inc. (CAGE: 98869) 8945 South Freeway, Fort Worth, TX 76140-4911. These items are in support of the AV-8B Program.

3. Description of Supplies/Services.

Howell Instruments, Inc. shall manufacture 108 BH19803-80 Heater Probes to be installed as components of the H239B-15 Temperature System Tester for use in testing the F402 Engine

Exhaust Gas Temperature Probes. The Heater Probes, P/N BH19803-80, are specifically designed for use in testing the F402-RR-408B Engine Exhaust Gas Temperature. This effort shall include all necessary labor, equipment, material and services need to complete these tasks.

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.

Howell Instruments, Inc. owns the proprietary data rights to the source data, drawings and specifications of the legacy BH19803-80 Heater Probe and the H239B-15 Temperature System

Tester. The United States Government does not have the rights to the technical data and Howell

Instruments, Inc. is not willing to provide any other company access to the drawings or design criteria.

Award to another source would result in the duplication of costs from the need to re-engineer and re-qualify the equipment. The re-qualification time would cause an 18-month delay due to the procurement administrative lead-time and non-recurring efforts. The Fleet needs the Legacy

Heater Probes by December 2020. The current Temperature System Tester is obsolete and 60% of the testers are unusable. Without the probes for the new Temperature System Tester, the Fleet will have to down aircraft. The additional design and testing (non-recurring) is estimated at approximately $1.58M, with a recurring cost of $34,260 per unit. The total recurring costs to re-outfit the Fleet is $753,720 as 22 units are required. The cost to requalify and the associated delays with regards to schedule are unacceptable.

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

Market Research and internet searches were conducted to determine if any other vendor could satisfy the U.S. Navy’s requirements. The Federal Procurement Data System, Dynamic Small

Business Search, and Google internet search engines were queried for potential sources without success. U.S. Navy subject matter experts (SMEs) were queried in an attempt to identify alternative sources. The SMEs confirmed that without the proprietary data, no other firm would be capable of successfully satisfying this requirement. This confirmed the that the OEM is the only known source capable of design, development and manufacturing processes of the Legacy

Heater Probes.

The Sources Sought Notice required by the Defense Federal Acquisition Regulation Supplement

206.302-1(d) was published on the betaSAM website on 03 June 2020 and closed on 10 June

2020 and one (1) response was received. Unity Defense Systems responded on 03 June 2020 and stated that they have supplied an extensive array of Telecommunication, IT, Data, Network, electrical Equipment to nearly every Department within the Department of Defense. On 11 June

2020, the Contract Specialist provided Unity Defense Systems a response that read, “The

Government has determined that Unity Defense Systems cannot meet the requirements for the subject solicitation. The Government does not own the technical data nor is the Original

Equipment Manufacturer willing to release any of the source data, drawings, or specifications.”

In accordance with FAR 5.201(b)(1), this requirement was synopsized on the betaSAM website on 01 July 2020 and closed on 16 July 2020. No inquiries were received.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402, the Contracting Officer shall ensure that all supplies and services provided under this contract are procured at a fair and reasonable price. The

Contractor’s 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 price analysis as the basis for negotiating a fair and reasonable price.

8. Actions to Remove Barriers to Future Competition.

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

Appendix A

Estimated Dollar Value in Thousands

FY 20 FY 21 FY 22 FY 23 Total

APN 500 $500

Total $500 $500

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance, which are included in this

Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

Mr. Mark Fall Date

(732) 323-1411

Requirements Cognizance:

Mr. Shaun Brown Date

(732) 323-2132

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Ms. Hillary Spadaccini Date

(732) 323-7524

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

Ms. Colleen Reilly Date

(732) 323-7953