J&A_19-0292_-_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND HEADQUARTERS

48202 BRONSON ROAD BUILDING 2805 SUITE 2300

PA TUXENT RIVER MD 20670-154 7

IN REPLY REFER TO:

J&A 19-0292

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Systems Command (NA VAIR) Headquarters

2. Description of the Action Being Approved.

This Justification and Approval (J&A) authorizes and approves, on a sole source basis; the issuance of a Firm-Fixed-Price (FFP) contract modification to Sikorsky Aircraft Corporation, a Lockheed Martin company (hereafter "Sikorsky") for additional spares and support equipment (SE) for the VH-92A production aircraft under contract NOOOl 9-14-C-0050.

3. Description of Supplies/Services.

The proposed contract modification requires Sikorsky to procure additional spares and SE for Low Rate Initial Production (LRIP) I (6 aircraft) of the VH-92A production aircraft, to be delivered in accordance with the current delivery schedule of the contract. The additional spares and SE requirement is a direct result of aircraft design maturity via the Engineering, Manufacturing, and Development (EMD) effort. The additional spares and SE will ensure aircraft readiness, supportability, and continuity of operations in support of the world-wide Presidential Vertical Lift mission. The total J&A estimated value is

Estimated Dollar Value in Thousands

FY 19 Total

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.

Sikorsky was competitively awarded contract N00019-14-C-0050 on May 07, 2014 for the procurement of six (6) developmental (base) and seventeen (17) production VH-92A aircraft (in three option lots), associated logistics support, spares, and SE. At the time of contract award, FFP not-to-exceed (NTE) production options were established, including Contract Line Item Numbers (CUN) for spares and SE for each production lot.

The NTE option CLINs for spares and SE were based on estimated projections at the time of contract award. The part number and quantities of spares have changed since contract award due to design maturation and reliability data. Similarly, a number of support equipment items identified at the time of EMO contract award in May 2014 have changed in type and/or quantity. The additional spares and SE are in support of achieving Initial Operational Capability (IOC).

Sikorsky is the only source capable of delivering the spares and support equipment without unacceptable delays to the program. The VH-92A is a derivative of the commercial S-92A, and as such the Government does not have the necessary technical data rights to compete this effort for Sikorsky-built parts, nor is Sikorsky willing to sell the data rights. Also, due to the sensitive nature of the program, there are key security requirements to establish a secure closed-loop supply system, operate within a Level III security facility, and have personnel with Yankee White access.

If the Government were to contract with other vendors to procure the additional spare parts and SE, it would cause a delay of at least 24 months for vendors to obtain the required Level III security facility and Yankee White personnel clearances. Therefore, the efforts described herein cannot be performed by a source other than Sikorsky without an unacceptable delay to Initial Operational Capability (IOC).

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

A Sources Sought waiver was approved on 04 March 2019. In accordance with FAR 5.201 , a pre solicitation notice was posted to the FedBizOpps website on 05 March 2019. No responses have been received. Any responses from interested sources will be evaluated by the Contracting Officer prior to Contract Award.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402(a), the Contracting Officer must ensure that all supplies and support are procured at a fair and reasonable price. Analysis of the proposals will be performed by technical analysts and contract specialists, with the assistance of Defense Contract Management Agency (DCMA) analysts 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, the PMA, and other Government resources, to evaluate the proposal's material , labor, and subcontract positions. A detailed report developed as part of the Government evaluation will be utilized to establish a NA VAIR position. DCMA does not currently have a Forward Price Rate Agreement with Sikorsky; therefore, the Contracting Officer will work with DCMA and DCAA to establish a rate position, to include escalation, for negotiation of contract actions. 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/support covered by this J&A.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NA VAIR has no plans at this time to compete future contracts for spare parts and SE. If another potential source emerges, NA VAIR will assess whether competition for future requirements is feasible.

CERTIFICATIONS AND APPROVAL

TechnicaVRequirements Certification I certify that the facts and representations under my cognizance which are included in this Justification and its supporting planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Signature James Sperb ck VH-92A IPT Co-lead

Contracting Officer Certification

Date

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

Date