JEFO_19-0333_Redacted.pdf

D E P A R T M E N T O F T H E N A V Y

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N A V AL A I R S YS TE MS C O MMA N D H E A D Q U A R TE R S

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JEFO Number: 19-0333

JUSTIFICATION FOR AN

EXCEPTION TO FAIR OPPORTUNITY

1. Contracting Activity.

Naval Air Systems Command (NAVAIR) Headquarters

2. Nature and/or Description of Action Being Approved.

Pursuant to FAR 16.505(b)(2)(i)(C), this Justification for an Exception to Fair Opportunity (JEFO) authorizes and approves the award of an order modification as a logical follow-on to existing Order

N0001919F2485 under Indefinite Delivery Indefinite Quantity Contract (IDIQ) N0001918D0111 awarded to AAR Aircraft Services, INC Indianapolis IN on 18 October 2018 for Age Exploration

Planning Depot (AEPD) inspection of P-8A Poseidon aircraft bureau number (BuNo) 168435. The instant modification will procure: 1) one Non-Destructive Inspection (NDI) kit in support of fulfilling the AEPD inspection requirements; and 2) incorporation of Airframe Bulletin (AFB)-113.

3. Description of the Supplies or Services Required to Meet the Agency’s Needs (including the estimated value).

The Maritime Patrol and Reconnaissance Aircraft program office (PMA-290) requires one NDI kit to support fulfilling AEPD requirements and the performance of AFB-113 on P-8A BuNo 168435.

The estimated value of the supplies and services to meet requirements is approximately $103,000 as shown in the table below:

Task Labor

(Hours)

Contractor’s

Labor Rate

Material

(Cost w/ burden)

Total

Cost

NDI Kit 60.6 $70.92 $95,702 $100,000

AFB-113 35 $70.92 $518 $3,000

4. Identification of the Justification Rationale (see FAR 16.505(b)(2)) and, if applicable, a

Demonstration of the Proposed Contractor's Unique Qualifications to Provide the Required

Supply or Service.

Pursuant to FAR 16.505 (b)(2)(i)(C), the order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

As a result of competitive Solicitation N00019-15-R-2004, on 1 February 2018 AAR, INC was one of two awardees for P-8A Poseidon airframe maintenance and repair depot IDIQ contracts.

Additionally, AAR was selected as the primary awardee for Period 1. Concurrently with executing both IDIQ contracts’ Period 1 Option Items, the Government issued Period 1 orders to the awardees pursuant to the minimum and maximum quantities requirements indicated in contract clause H-1, including Order N0001919F2485 issued to AAR. The order procures depot-level maintenance and repair for P-8A aircraft BuNo 168435 including an AEPD inspection, incorporation of Technical

Directives (TDs), and over-and-above maintenance and repair.

On or about 22 May 2019, P-8A aircraft BuNo 168435 is scheduled to be inducted for depot maintenance into AAR’s maintenance repair and overhaul facility pursuant to Order

N0001919F2485. The requirements described in paragraph 3 above are a logical follow-on to the

Order’s existing requirements. The NDI Kit is necessary to fulfill the AEPD requirements. The aircraft will be in an opportune state for incorporation of AFB-113.

5. A Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable.

The contractor’s cost to procure the kit and incorporate AFB-113 consists of labor and material.

The effort as a whole falls under the cognizance of two CLINs: 1) Tooling and Support Equipment

(T&M) CLIN and 2) Technical Directives, Modifications and Retrofits (T&M) CLIN. Those

CLINs have a single labor hour rate and material mark-up rate. Both of those rates were established during the overarching competitive IDIQ contract source selection process. As to establishing a fair and reasonable price, the Contracting Officer will obtain a cost estimate from the contractor that includes bases for the estimated hours. The contractor’s estimate will be reviewed for reasonableness by a Government technical team prior to the contracting officer establishing the

T&M price for the effort. Ultimately the contractor will be paid for actual hours applied and material costs incurred toward meeting the requirements in accordance with the contract.

6. Any other Facts Supporting the Justification.

The additional tasking described in Section 3 for AFB-113 incorporation performed as a stand-alone unscheduled maintenance event (not concurrent with an AEPD) would create duplicative actions for either contractor to perform, costing the Government an estimated additional $10,000. The duplicative efforts entail (a) inducting the aircraft as a drop in unscheduled maintenance event, and

(b) performing final inspections and checks prior to returning the aircraft to the Government. The estimated hours for duplicative actions are approximately 150 hours. Additional impacts to the

Government include inducting the aircraft back into a contractor’s facility and surveilling the duplicative effort that is currently part of the AEPD tasking. Combining the AFB incorporation concurrently with the AEPD ensures Navy aircraft and aircrew safety and improves readiness, reduces cost, and helps meet schedule requirements.

7. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any

Barriers that Led to the Exception to Fair Opportunity before any Subsequent Acquisition for the Supplies or Services is Made.

The two IDIQ contracts include a base period and six option periods. Each option period is subject to competition between the two IDIQ contractors. For aircraft that require an NDI kit or AFB-113 incorporation, the Government will add it to the portion of IDIQ requirements that are subject to the option period competitions.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this

Justification and its supporting acquisition planning documents, except as noted herein are complete and accurate to the best of my knowledge and belief.

Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

_[E-Signed]_____ __Thomas J. Florip__ __7-0583_________ __27 May 2019___

Signature Name (Printed) Phone No. Date

APPROVED

Upon the basis of the above justification, I hereby approve the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of FAR 16.505 (b)(2)(i)(C).

Scott A. Segesdy, AIR-2.3.2.4

P-8A Sustainment Procuring Contracting Officer

Date