JA_23-0227_ HeDSTART Phase 2_Final_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

21983 BUNDY ROAD BLDG 441

PATUXENT RIVER, MARYLAND 20670-1127

J&A Number: 23-0227

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center -Aircraft Division (NAWC-AD), Patuxent River, MD

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 (FFP) contract to Jacobs Technology, Inc, 604 William Northern BLVD, Tullahoma, TN 37388 for the Helicopter Drive System (HeDS) Test Alignment and Readiness Transition (HeDSTART) Phase 2 follow-on Project for the Fabrication, Procurement, Installation, and Checkout system upgrades as designed in the Phase I Project. The HeDSTART project has two (2) Phases. Phase 1 was competitively awarded to Jacobs Technology, Inc. via Contract # N0042123C0008.

3. Description of Supplies/Services.

The HeDSTART Phase 2 contract will include the acquisition of components, material, fabrication of parts, and integration to upgrade the HeDS testing facility that includes stand-up commissioning support. The required component procurement includes dynamometers, valves, interfacing hardware, and torque measurement devices. Material will be procured to fabricate steel shaft segments and steel structural weldments. Integration into the facility will require modification to existing test system infrastructure, such as water piping, oil piping, and electrical services. The fabricated part installation will require crane rigging equipment and lift plans. The integration into the HeDS Facility commissioning support will include onsite participation during the initial operations of the system. This contract will be funded with FY24 NAVAIR Improvements and Modernization (I&M) funds. The value of the contact is estimated at as shown in the table below.

Estimated Dollar Value in Thousands

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

10 U.S.C. 3204(a)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

FY24 – FY25

I&M Total

J&A Number: 23-0227

5. Rationale Justifying Use of Cited Statutory Authority.

Through competitive procurement, Jacobs Technology, Inc. was selected as the designer for Phase 1 of the HeDSTART program. Pursuant to the general information outlined in Contract # N0042123C0008, the intent of this requirement (as specified in the contract statement of work), is to competitively award the Phase 1 design, and at the end of Phase 1, estimated completion by 30 September 2023, the Government will award this Phase 2 follow-on contract as a sole source to the Phase 1 competitive awardee. As further stated in the approved Source Selection Plan dated 9 March 2022, the technical risk reduction strategy was based on the designing contractor performing satisfactorily to produce a design document that met the requirements for the HeDSTART upgrade before the follow on fabrication and integration activity will be awarded as a sole source contract to the Phase 1 vendor. This strategy is advantageous to the Government as it allows streamlined implementation of the design without the additional costs and schedule for rework due to a new company design review and interpretation, or required engineering changes discovered during fabrication or installation. Jacobs Technology, Inc. is the only source with the requisite knowledge, experience and technical expertise to continue the production and integration of the system entities. Due to funding profile distribution and as a Technical risk reduction, the Phase 1 HeDSTART contract was awarded for the design only.

An award of the Phase 2 Fabrication and Installation contract to any other source would result in a substantial duplication of costs estimated at $400K and a duplication of time and effort (an additional six months); that are not expected to be recovered through competition. These estimates were derived from:

The level of effort Jacobs spent on requirement analysis and sub-contracting agreements as part of Phase 1

Estimated time for a new company to review the existing system and designed solutions

Estimated cost for a new company to establish a teaming agreement with Jacobs to define and understand analysis techniques, inputs, and constraints

Estimated issues that will be discovered during fabrication and installation and require engineering guidance to resolution

The Government owns the final design package which includes analysis results, drawings, and system specifications. The Government does not own the related data discovered throughout the design process or all of the information required to efficiently execute the fabrication and installation. This includes:

Analysis tools, constraints, and assumptions SOW requirements and documents for custom dynamometers systems, couplings, torque meters, weldments, and shafts Teaming arrangements for fabrication and installation

Jacobs has performed satisfactorily during the Phase 1 Design. Contracting the Phase 2 effort with Jacobs will reduce cost, schedule, and risk to the Government.

J&A Number: 23-0227

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

In accordance with FAR 5.201 and DFARS PGI 206.302-1, NAWCAD posted a Sources Sought (Request for Information)/Synopsis for the required effort on the SAM website from 25 May through 12 June 2023 and only Jacobs Technology, Inc. expressed an interest in this requirement. Subsequently, in accordance with FAR Subpart 5.201(b), the proposed Phase 2 contract was synopsized on the SAM website on 05 July 2023, with the Government’s intent to issue a sole-source contract to Jacobs Technology, Inc. for the Phase 2 procurement, fabrication, and installation of system upgrades based on the approved designed documents in the Phase 1 HeDSTART project. No additional market research was conducted, because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than Jacobs Technology, Inc. to provide the required supplies and services.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NAWCAD has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, NAWCAD will assess whether competition for future requirements is feasible.