JA_19_0324 (RUAG RTN) (REDACTED).doc

J&A_19_0324

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center Aircraft Division (NAWCAD 2.5.2) Lakehurst, NJ

2. Description of the Action Being Approved.

This J&A covers AIR-1.4, Navy International Program Office requirements in support of United States Indo-Pacific Command. This Justification and Approval (J&A) authorizes and approves, on a sole source basis, the issuance of a contract to RUAG Aerospace Services GMBH (RUAG Aerospace) of Wessling, Germany for Dornier 228 aircraft refurbishment, avionics modernization, and Maritime Domain Awareness (MDA) upgrade in support of the Royal Thai Navy (RTN).

3. Description of Supplies/Services.

The Republic of Thailand, with United States Government (USG) assistance, is developing a comprehensive Common Operating Picture (COP) that will utilize various information technology sources and equipment to provide the ability to perform Intelligence, Surveillance, and Reconnaissance (ISR) functions, conduct counter terrorism, narcotics, and insurgency operations in addition to patrolling, monitoring, and enforcement of laws with the Republic of Thailand’s Exclusive Economic Zone (EEZ). This data will be electronically collected, recorded, transmitted and further distributed via the COP to operations center by the RTN aircraft for rapid and coordinated analysis by Thailand and US forces.

To increase maritime security and MDA within the Thailand EEZ, the USG is utilizing National Defense Authorization Act Section 1263 funding under a building partnership capacity case to provide the RTN with MDA upgrades on up to seven (7) of the existing RTN Dornier 228 aircraft. The upgraded Dornier 228 aircraft will be used to perform the ISR functions supporting the mission objectives specified above and directly support the development of the COP.

The contractor shall perform all necessary actions to refurbish up to seven (7) RTN Dornier 228 aircraft, modernize the on-board avionics suite, and upgrade existing MDA equipment. The refurbishment will allow continuous operations of the aircraft for the duration of their anticipated useful life which will provide another 15-20 years of service. Existing avionics systems shall be modernized in accordance with existing Major Change Approval (MCA) number 10031465 for the Dornier 228 aircraft. MDA upgrades shall be in accordance with approved commercial designs and airworthiness approval for the Dornier 228 aircraft along with the approved MCA number 10044167 for the ISR upgrade.

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

10 U.S.C. 2304(c)(1), as implemented by 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.

RUAG Aerospace is the Original Equipment Manufacturer (OEM) of the Dornier 228 series aircraft utilized by the RTN. As the OEM, RUAG Aerospace maintains both European Air and Space Agency (EASA) and Federal Aviation Administration (FAA) airworthiness certificates or type certificates for the Dorner 228 series aircraft. RUAG Aerospace is certified EASA design organization (Part 21J) and FAA certified maintenance organization (Part 145 repair station).

The refurbishment, modernization, and ISR upgrade of the Dornier 228 aircraft requires specific Dornier 228 airworthiness certificates as indicated in the existing MCAs, which are owned by RUAG Aerospace. MCAs are issued from EASA which authorize the specific modification of an aircraft. As such, multiple Dornier 228 specific MCAs are required to perform the needed tasking under this effort. The EASA MCAs for the Dornier 228 aircraft are needed for the Dornier 228 aircraft to be modified. As the OEM, only RUAG Aerospace owns the necessary Dornier 228 MCAs and technical data rights needed to refurbish, modernize, and upgrade the Dornier 228 aircraft. Any other source would need RUAG Aerospace proprietary data rights for the Dornier 228 aircraft to obtain the multiple MCAs needed to modify the RTN Dornier 228 aircraft. The Government contacted RUAG Aerospace about purchasing the Dornier 228 technical data rights and was told RUAG Aerospace is not willing to sell the proprietary data rights for the Dornier 228 aircraft.

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

AIR-1.4 reviewed market capabilities via internet search and queried subject matter experts. Market research determined no other sources other than RUAG Aerospace can meet the requirements of this effort. A request for information was posted to FedBizOpps (FBO) website on 8 May 2018 to which multiple responses were received from industry. All the responses failed to provide how they could meet the requirement without partnering with RUAG Aerospace. The proposed contract action was synopsized on the FBO website on 15 February 2019 with a response date of 4 March 2019. No responses or inquiries were received as a result of the synopsis.

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 cost proposal with certified cost or pricing data and sufficient information to support the accuracy and reliability of the estimate. RUAG Aerospace’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 cost and price analysis as the basis for negotiating a fair and reasonable price.

8. Actions to Remove Barriers to Future Competition.

The Government will continue to evaluate the market place to determine if another source can meet the requirements or has the ability to acquire the proprietary data needed to support a competitive effort.

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

22347 CEDAR POINT ROAD, UNIT 6

PATUXENT RIVER, MARYLAND 20670-1161

J&A_19_0324

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