JA 190521 REDACTED.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

IN REPLY REFER TO:

J&A 19-0521

JUSTIFICATIONAND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

Naval Air Warfare Center Aircraft Division Lakehurst, NJ

2. Description of the Action Being Approved

This Justification & Approval (J&A) authorizes and approves the award of an Indefinite Delivery Indefinite Quantity type contract with provisions for the issuance of Cost-Plus- Fixed-Fee Task Orders (TO) to Lockheed Martin Corporation (Lockheed) of Marietta, GA.

3. Description of Supplies/Services

The Fatigue Life Management Program (FLMP) requires the acquisition of engineering services and Integrated Logistics Support (ILS) services in response to obsolescence issues and operational and/or technical problems arising from the P-3 type/model/series, in support of the United States Navy (USN), US Customs, various other government agencies and- Foreign Military Sales (FMS) customers. The efforts to be performed under this contract include design engineering investigations; reliability , maintainability and human factors· analyses; engineering change proposal feasibility studies; support for failure, incident and accident investigations; and ILS. This contract is for a base year and four (4) option years.

The total estimated value of this contract is $14.3M, inclusive of option years. The TOs issued under this contract will be funded with [redacted] appropriations.

4. Statutory Authority

The statutory authority permitting the use of other than full and open competition is Title 10 U.S.C., Section 2304(c)(l), as implemented by the Federal Acquisition Regulation (FAR) 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rational Justifying Use of Cited Statutory Authority

The ongoing FLMP contract, which is currently being performed by Lockheed, is a continuation of the Service Life Assessment Program (SLAP), which determined that USN and FMS P-3C aircrafts are fatigued to a greater extent than previously known. The ability to respond to additional FLMP, SLAP or fleet-demonstrated fatigue issues in a timely manner is essential to manage safety risk and maintain fleet readiness. Lockheed is the only source that presently has full access to data, including Full Scale Fatigue Test and SLAP results, stress and loads data, structural fatigue analyses and data derived from the current five-year FLMP contract. Lockheed is the only source that possesses the technical expertise and knowledge required to provide these specialized services in a timeframe which minimizes safety risk and impact to fleet readiness. Moreover, Lockheed holds all rights to the proprietary data. The US Government does not own, nor do they possess the ability to distribute rights to the proprietary data to enable a competitive procurement.

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

Although Lockheed is the only responsible source possessing full access to the proprietary data and the technical expertise and knowledge required to perform these engineering services, a market survey was conducted. In accordance with FAR 5.201(b), a sources sought

I -notice was also posted to the Federal Business Opportunities (FBO) website on 27 June 2019. Two (2) responses were received as a result of the FBO notice. Focused Engineering LLC and Avenger Aerospace Solutions LLC both submitted capabilities statements of their respective companies. After review of the documentation, the Government P-3 Integrated Project Team determined that neither company has the capability to perform the required services as the nature of the work under the P-3 FLMP requires the use of and access to Lockheed's proprietary data. Without access to this data, it would be impossible for any source other than Lockheed to fulfill the FLMP requirements. Both firms were notified in writing of the Government's determination and no further inquiry or contact was received from either company. Additionally, a pre-award synopsis was posted to FBO on 16 July 2019. At this time, no responses to the synopsis have been received.

7. Determination of Fair and Reasonable Cost

In accordance with FAR 15.402, the Contracting Officer is required to purchase all supplies and services from a responsible source at a fair and reasonable price. The Contractor will submit a formal price proposal with certified cost or pricing data and sufficient information to support the accuracy and reliability of the estimate. Lockheed'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 Competition

Although this effort was procured previously under N68335-l 5-D-0002, the immediate acquisition does not represent a planned follow-on requirement. The prior J&A (#14-24130), approved on 24 November 2014, indicated that there were no future contract actions planned for this requirement. However, the SLAP revealed that the aircrafts are fatigued to a greater extent than previously known, and continuation of the support effort is required. Since the previous contract award, the USN P-3 fleet has been required to remain in service longer than originally anticipated and the P-8 and MQ-4 aircrafts have not assumed certain mission roles in a timely fashion. As the P-3 service life has been extended, the airframes continue to age and fatigue, and there is a need to continue to track and provide potential pre-emptive repairs.

As access to Lockheed proprietary technical data will always be required for this acquisition, the Navy has no future plans to remove barriers to competition.