JnA FINAL ILLLV Plug JA GP_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

IN REPLY REFER TO:

J&A 20 0045

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center Aircraft Division (NAWC-AD) Lakehurst, NJ

2. Description of the Action Being Approved.

This Sole Source Justification and Approval authorizes and approves, on a Sole Source basis, a Firm Fixed Price contract for the procurement and delivery of Improved Low Loss Launch Valve (ILLLV) Plugs, P/N: 626725-6 and 626727-6. There is a Right Hand (RH) and Left Hand (LH) plug, determined solely by the direction of the threads. Two ILLLVs are required per aircraft launcher, with four launchers per aircraft carrier. The ILLLV Plugs are Critical Safety Items (CSIs) manufactured to exacting manufacturing inspections and specifications. To fill the immediate maintenance requirements, The Government intends to order 32 total ILLLV plugs, 16 of each part number to allow the overhaul of the next four (4) carriers. It is the Navy’s intent to pursue a sole source contract based on the approved vendor’s list in the Technical Data Requirements (TDR) document. The sole source award will be to the approved company listed on the TDR packages #19-19007 and #19-19008, PRE-MACH Inc., Cage 5S946, 4365 Run Way Road, York, PA 17406. The TDR also lists NAVAIR Lakehurst as a source of supply (as do all TDR’s for CSI) however NAVAIR Lakehurst lacks the capacity to fill the ILLLV Plug requirement.

3. Description of Supplies/Services.

The Naval Air Warfare Center Aircraft Division (NAWCAD) of the Naval Air Systems Command has a requirement from the Fielded Launcher IPT to manufacture a quantity of thirty-two (32) ILLLV Plugs, P/Ns: 626725-6 and 626727-6, in support of the Aircraft Launch and Recovery (ALRE) Launch Valve overhaul program. The plugs will be manufactured in accordance with a Government drawing package P/Ns: 626725-6 and 626727-6, and TDR 19- 19007 and 19-19008 (Right Hand and Left Hand, respectively). The ILLLV Plug is integral to the overhaul of ILLLVs, which are used by the United States Navy to launch aircraft. The estimated total value of this contract is $2,400,000 and will be funded

Estimated Dollar Value in Thousands

J&A 20 0045

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.

The ILLLV Plug has been designated as a CSI item, and is part of the Fielded Launcher System.

Given its CSI designation, any departure from the strict manufacturing and inspection requirements could result in loss in life, serious personnel injury, loss of a combat system, and/or the loss of the aircraft. Furthermore, 100 percent replacement of the existing ILLLV plug installations is currently being executed, and this acquisition is the first part of that effort.

t takes approximately 2 years from point of order to complete manufacture the ILLLV Plug. Multiple copies of the plug may be manufactured concurrently.

Qualifying a new provider requires a preaward survey, and successful manufacture of a first article for testing, and only upon approval could they start production of ILLLV Plugs. The acquisition strategy is to procure from the only approved source identified in the TDR for the initial plugs necessary for the overhauls of the launch valves. PREMACH is the only known contractor with the knowledge and capability to immediately manufacture this CSI item. A Hazard Risk Assessment (HRA) was developed and is being routed throughout the appropriate Navy channels. The solution to this problem is to return to manufacturing plugs from previously used materials and manufacturing methods. PREMACH Inc. had qualified and manufactured the ILLLV plugs using the material and processes that produced the previously manufactured plugs. It is the Navy’s intent to re-incorporate previously used material and manufacturing processes into the ILLLV Plugs as quickly as possible into the ILLLV currently deployed via an accelerated overhaul process (over the next several years).

Historically, the manufacturing process for each plug requires at approximately two (2) years.

While the Statement of Work allows for qualification of additional vendors via a pre award survey and First Article Test, the additional time required to incorporate these tasks would deviate from an acceptable replacement interval. Essentially, the authorization of a second vendor would drive the inclusion of the Pre-award process that would include the submittal of a Source Approval Request (SAR) and a subsequent First Article Test (FAT). Current plans include acquisition responsibility transferring to Naval Supply Systems Command (NAVSUP) for this system that they are responsible for maintaining.

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

A Request for Information (RFI) to Industry was posted on 17 July 2019 and open for 30 days.

This RFI provided all relevant technical information and sought interested parties for future procurement. One company requested the drawings, which were promptly provided. Two other companies indicated interest through the website but did not request drawings or supply any of the information requested. In the event that any of these enterprises wish to be considered for future procurement actions, the information as to becoming an approved source was provided.

7. Determination of Fair and Reasonable Cost.

The negotiation and establishment of a fair and reasonable price will be conducted in accordance with FAR 15.4. As stated in FAR 15.402, the Contracting Officer shall purchase all supplies and services at a fair and reasonable price. Based upon historical price data from previous contracts, the Contracting Officer should have adequate information and background to determine a fair and reasonable price. Appropriate Cost and Pricing data will be requested from the Contractor.

Defense Contract Management Agency and other Government agencies will be consulted as necessary.

8. Actions to Remove Barriers to Future Competition.

The ILLLV is a mature item that will continue service until the retirement of the current ships they are installed on.

Although the ILLLV’s are overhauled here at Lakehurst Manufacturing the actual configuration control, qualification of supply sources, and design responsibilities are the responsibility of Naval Supply Systems Command (NAVSUP), accomplished in accordance with Source approval information brochure for Spares, NAVSUP-WSS-N23-073 (8 July 2016). NAVSUP pays the Lakehurst for ILLLV overhaul. Furthermore, NAVSUP previously sent funding to Lakehurst to pay for the procurement of long lead items (including the plugs) that would then be used in overhauls. During recent meetings held with NAVSUP, they decided to procure the long lead items. This current ILLLV Plug procurement will be the last conducted here at LKE.

Continual strategic market research will continue as well by the engineers in PMA 251, Aircraft Launch and Recovery Equipment systems. If a feasible and cost efficient alternative is found, consideration of such an alternative will be considered and investigated for possible integration into the existing ships.

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.

Requirements Cognizance:

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

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

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 10 U.S.C. 2304(c)(1), only one responsible source and no other supplies or services will satisfy agency requirements.