MQ-4C SES III_JA_Redacted.pdf

J&A # 20-0184

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

Statute: 10 U.S.C. 2304(c)(1), 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. Rationale Justifying Use of Cited Statutory Authority.

In accordance with FAR 6.302-1(a)(2)(iii)(B), NGSC is the only source for this follow-on contract that can continue to provide the highly specialized interim logistics support of the MQ-4C Triton UAS without unacceptable delays in fulfilling the agency’s requirements.

On 22 April 2008, NAVAIR awarded NGSC the MQ-4C Triton UAS System Development and Demonstration and System Demonstration Test Article contract under full and open competition. Since then NAVAIR has awarded NGSC a series of contracts for the low rate initial production of the MQ-4C, long lead items for additional low rate initial productions, as well as contracts for sustainment and engineering support services. Pursuant to these contracts, NGSC is the sole designer, hardware and software developer, manufacturer, primary tester, systems integrator, and provider of sustainment engineering support services for the MQ-4C. NGSC has the experienced staff, necessary plants, equipment, suppliers, and technical understanding for the provision of the highly specialized interim logistics support of the of the MQ-4C UAS.

NGSC is currently the only source that has the technical data and documentation required to sustain the MQ-4C, which includes the Repair Manuals, Maintenance Manuals and Design drawings. Award to any other source would result in unacceptable delays because the highly specialized maintenance, inclusive of intermediate- and depot-level maintenance support, is not yet established organically and is fully dependent upon NGSC support. Prior to establishing intermediate- and depot-level maintenance support organically, the Navy estimates, based on previous SES contracts, it would take approximately 42 months to stand up a new contractor; this includes 12-18 months for soliciting a competitive award and an additional 18-24 months for the new contractor to develop a Technical Data Package and for NGSC to transition and train the new contractor to provide this specialized support so as to ensure no break in service to the Fleet . A delay of this length is unacceptable because the Combatant commanders require from NGSC the continued performance of highly specialized interim logistics support (to include at the intermediate- and depot-levels) of the MQ-4C Triton UAS with no break in service to ensure that the MQ- 4C is available to provide support to the deployed forces.

As such, NGSC is the only source to provide the highly specialized support without unacceptable delays in fulfilling the Navy’s requirement to operate the MQ-4C Triton UAS

J&A # 20-0184

A request for a waiver of DFARs PGI 206.302-1 Request for Information/Sources Sought requirement was approved (Ser AIR-242-19-174). In accordance with FAR 5.201, a pre-award synopsis for this requirement was synopsized on the Beta.SAM website on 12 Mar 2020. To date, the Government has not received any responses. In the event a contractor other than NGSC expresses interest in a procurement, the Contracting Officer will review the contractor’s qualifications and address accordingly. For reasons set forth in paragraph 5, no additional market research will be conducted because it is not practicable for any company other than NGSC to provide the subject requirement.

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 price proposal with certified cost or pricing data and sufficient information to support the accuracy and reliability of the estimate. NGSC 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.

For the reasons set forth in paragraph 5, NAVAIR has determined not to compete this immediate action. At this time, NGSC is the only contractor with the requisite knowledge, experience, and technical data that can meet the Government’s requirements. Award of this work to any company other than NGSC would require development of a technical data package and qualification of a second source. The Triton MQ-4C program office has initiated an overall assessment of the Government’s Technical Data Rights as part of its comprehensive, long-term competition strategy. The assessment is ongoing and will be finalized once the MQ-4C Triton physical configuration audit is complete, which is expected in fourth Quarter CY22. Results of the assessment, to include candidates selected for competition at the support element level (i.e.:

maintenance, test support, repair of repairables, etc.) will be incorporated into the Technical Data Rights strategy as part of the Full Rate Production decision. During the period of performance of this contract, NAVAIR intends to establish organic maintenance and engineering technical services capabilities and will consider pursuing future competition for any segments of support when the technical data is mature and available for competition. Approval of this J&A signifies the approval authority has made the determination required by PGI 206.304(a)(ii)