JA 18021920181002 REDACTED.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

IN REPLY REFER TO:

J&A _l8_0219

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Cent,er Aircraft Division (NAWCAD) Lakehurst, NJ

2. Description of the Action Being Approved.

This Justification and Approval (J&A) authorizes and approves the issuance of a sole source Firm Fixed- Price type contract to The Boeing Company for the establishment of an organic Intermediate and Depot Level maintenance repair capability using Factory Test Equipment (FTE) for the P-8A to establish repair capability for the Stores Management System (SMS). This contract will be in support of organic Intermediate and Depot level repair capabilities at the Fleet Readiness Centers (FRCs) repair facilities located in Jacksonville, Florida; Whidbey Island, Washington; and Aviation Intermediate Maintenance Department (AIMD) located in Misawa, Japan, and Sigonella, Italy as required by Title 10 USC 2464 "Core Logistics Capabilities".

3. Description of Supplies/Services.

This is the second and final phase of the P-8 SMS FTE Intermediate and Depot Level repair capability establishment. This is a follow-on to Phase 1, wherein Boeing completed a depot study to determine what capability deltas exist at Fleet Readiness Center Southeast (FRCSE) to have full repair capability for the Weapons Replaceable Assemblies (WRAs). Under the Phase 1 assessment, Boeing identified the FTE/Support Equipment (SE) required to provide the organic depot capability, and performed an Analysis of Alternatives for Intermediate and Depot Level capability establishment, focusing on identifying the most cost effective method to procure applicable FTE/ SE to meet the Government's need.

This Phase 2 acquisition will require Boeing to manufacture, test, and deliver FTE/SE, as well as provide installation and technical documentation for the FTE/SE to establish organic Intermediate and Depot Level repair capability for the P-8A SMS. Hardware includes the FTE/SE to test, check, and repair 8 SMS WRAs:

Aft Pneumatic Source, Sonobuoy Rotary Launcher, Sonobuoy Single Launcher, SUU-92 Pylons, BRU- 75/A, BRU-76/A, and Flight Deck Weapons Control Panel. In addition to the FTE/SE, the Government intends to procure SE Tech Manuals, training, installation, acceptance, testing, maintenance task analysis, SE Maintenance Plans, acceptance test plan, and technical data packages. The period of performance is anticipated to be thirty-six (36) months. The estimated total dollar figure for this effort is $30.8M. As outlined in Appendix A, this contract will be funded with P-8A Program [redacted] funds.

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

J&A_18 _0219

The statutory authority permitting other than full and open competition is Title 10 U.S.C. 2304(c)(1), as cited in the Federal Acquisition Regulation (FAR) 6.302-1; "Only one responsible source and no other supplies or services will satisfy agency requirements".

5. Rationale Justifying Use of Cited Statutory Authority.

The Boeing Company is the only integrator of the SMS components for use on the P-8A Poseidon aircraft and the only source capable of meeting the Government's requirements to establish an organic Intermediate and Depot Level maintenance repair capability. The Boeing Company, through its role as sole designer and integrator of the SMS into the P-8A aircraft platform, is the only known source that is capable of providing system expertise, knowledge, training documents, and equipment required to perform the organic maintenance repair capabilities of the overall SMS system required by the Government. This expertise in the P-8A SMS and familiarity with integration of the SMS capability is essential to the manufacture, test, delivery, installation and testing of SMS FTE equipment, as well as in providing the necessary engineering, technical, logistic, training data, and provisioning data required for establishment of the Government's organic Intermediate and Depot Level repair facilities. As the system designer and integrator, The Boeing Company possesses the unique engineering knowledge and system expertise including; firmware and software to incorporate any system engineering changes and integration support required for the development and manufacture of the P-8A SMS FTE/SE. Award to any other source (if another source were available) would result in an unacceptable delay in fulfilling the United States Navy's maintenance repair support requirement, and result in an unavoidable impact to fleet operations. The timeline to compete and qualify another source that meets the Navy's FTE/SE requirements is estimated to be five years for design and development, production, qualification testing and delivery which would cause unacceptable delays in fulfilling the agency's requirements of establishing the required organic repair capability.

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

A Sources Sought Notice/Request for Information was posted to the Federal Business Opportunities website in accordance with Defense Federal Acquisition Regulation Supplement (DFARS), Procedures, Guidance and Information (PGI) 206.302-1 on 23 January 2018, and a synopsis was posted on the Federal Business Opportunities website on 22 March 2018. Both notices were posted for fifteen (15) days each, and no inquiries were received.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402(a), the Contracting Officer shall ensure that all supplies and services provided under this contract are procured at a fair and reasonable price. An analysis of The Boeing Company's proposal will be performed by experienced technical analysts and Contract Specialists, with the assistance of Defense Contract Management Agency (DCMA) and Defense Contract Audit Agency (DCAA) auditors as needed. The Contracting Officer will analyze the various cost elements that are presented in the proposal. The Contracting Officer will use Government expertise, including DCMA, DCAA, PMA-290, and other Government resources, to evaluate the proposal material, labor and subcontracts. If a rate agreement is not in place between The Boeing Company and DCMA at the time of proposal evaluation, the Contracting Officer will work with DCMA and DCAA to establish a rate position, to include escalation, for negotiation of the contract action. A detailed report developed as part of the Government evaluation will be utilized to establish a NAVAIR position. As discussed in this paragraph, the Contracting Officer will use cost and price analysis as the basis for negotiating a fair and reasonable price for the supplies/services covered by this J&A.

8. Actions to Remove Barriers to Future Competition.

This procurement is the second and final phase of the P-8A SMS Intermediate and Depot level repair capability establishment. As such, the P-8A SMS Intermediate and Depot repair capabilities will be fully established upon completion of this effort. For this reason and the reasons set forth in paragraph 5, NAVAIR has no plans at this time to compete future contract.