J and A 20-0191 (Redacted).doc

J&A number: 20-0191 J&A number: 20-0191

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 Action being Approved.

This justification and approval authorizes and approves, on a sole source basis a fixed price contract to Hydraulics International Inc. (HII), CAGE 56529, located in Chatsworth, CA 91311. The requirement is for Small Corrosion Control Carts (SCCC), Model A/M32M-40, Part Number 051497-100, and National Stock Number 4920-01-536-1924 in support of multiple platforms.

3. Description of the Supplies/Services

Multiple platforms have a requirement for the manufacture, assembly and delivery of the SCCC. The SCCC is an ashore and afloat, trailer mounted, self-contained mobile unit that has been tested and Government approved for use in the harshest environments. The requirement to support the V-22 Osprey Aircraft is a five-year Indefinite Delivery Indefinite Quantity contract with a total quantity of 103. The estimated total value of this contract is $4,429,000.00 and will be funded with APN-1 and FMS appropriations as set forth in the table below.

Estimated Dollar Value in Thousands

$215,000

$43,000

$43,000

$86,000

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 as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(ii).

5. Rational Justifying Use of Cited Authority

As the Original Equipment Manufacturer (OEM), Hydraulics International Inc. (HII) is the sole designer, developer and manufacturer of the SCCC. HII owns the technical data to all carts currently in the fleet, thereby maintaining the logistical footprint and configuration management of the system’s architecture. A drawing package was procured and delivered under the design, development and production Contract, N68335-05-D-0022, awarded to HII. The drawings were not sufficient to use for re-procurement purposes. HII is the only firm with the knowledge and expertise of the SCCC architecture and system components required to enhance performance in order to meet aircraft quality requirements. HII has conducted and successfully completed all the required testing under the original contract N68335-05-D-0022. HII possesses the data and has the knowledge of the integration and performance capabilities of the SCCC. No other manufacturer has the proprietary data, and the Government does not possess the rights nor necessary data to procure the SCCC competitively. HII does not have any authorized distributors; thus, the SCCC is only available from the OEM.

Award of alternate equipment would result in unacceptable cost and programmatic risks which would result in failure to fulfill Marine Corp production requirements. Any other method other than a sole source procurement would not meet the timeline needed to field the SCCC to the fleet. Due to the need to improve aircraft readiness and safety for the maintainers (that are currently using the existing SCCC) the Government requires integration of the SCCC in the fleet as soon as possible. HII is the only known source with the technical data and expertise to manufacture a product capable of meeting the requirements.

The Government would incur redundant engineering and logistics costs in the amount of approximately $1,343,728.90 to procure the SCCC from an alternate source. These costs may not be offset by the benefits gained through competition. This estimate is based on contract N68335-05-D-0022 as follows:

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

Market research was conducted and assessed. Hydraulics International Inc. has been verified as the only known source with the technical data for the SCCC. Various internet search engines were queried for potential sources for the SCCC Model A/M32M-40, Part Number 051497-100 and equipment type that meets the Governments requirement. The results revealed there was only one company that could possibly provide the cart. HII is the only company with a SCCC that meets Government requirements. Additionally, no other product is currently known to be capable of meeting the requirements.

An RFI was posted on the FEDBIZOPS on 03 October 2017 and closed with a response date of 17 October 2017. Two responses were received: Hydraulics International, Inc., located in Chatsworth, CA (the OEM) and Riveer Engineered Wash Water Systems, located in South Haven, MI. The V-22 technical community reviewed the information submitted by Riveer for its small corrosion control cart and determined that the cart does not meet the full specification and would need to be commercially modified to achieve the full specification to meet the requirement. However, procurement of Riveer’s cart would result in additional cost as well as schedule delays. Any alternative to HII’s cart would require testing to qualify the product and the development of another logistics support structure, the cost of which is detailed in task listed in Section 5.

Additionally, the acquisition was re-synopsized on the BetaSAM website on 03 February 2020 and closed with a response date of 17 February 2020. One response was received by Logis-Tech on 05 February 2020. The Technical evaluator confirmed the item proposed does not meet the requirement as the SCCC is used to wash parts of an aircraft while the item proposed is a dehumidifier for the aircraft. The technical response was provided to Logis-Tech on 12 March 2020. Logis-Tech acknowledged the email and requested no further clarification of the requirement.

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 will submit a formal price and cost proposal with sufficient information to support the accuracy and reliability of the estimate. Based upon historical cost data from performance of N68335-05-D-0022, the Contracting Officer and Defense Contract Management Agency have adequate information and background to determine a fair and reasonable price. Experienced contract specialists with additional aid of necessary field pricing support will be obtained in review of HII’s proposal. The Contracting Officer will utilize cost and price analysis (as applicable) 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, NAWC-AD Lakehurst has no plans at this time to compete future contacts for the types of supplies covered by this document. If another potential source emerges, NAWC-AD Lakehurst will assess whether competition for future requirements is feasible.

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:

David Carlson

732-323-1805 Signature / Date

Name (Printed) Phone Number Requirements Cognizance:

Deirdra Quigley 732-323-2005 Signature /Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

David Castro

732-323-7521

CONTRACTING OFFICER CERTIFICATION

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

Michelle Prinston 732-323-1192

APPROVED

Upon the basis of the above justification, I hereby approve the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C.2304(c)(1).

Thomas F. Hill, Chief of Contracting / Date

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION