Redacted_CJA_11_19688.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND

RADM WILLIAM A. MOFFET BUILDING

47123 BUSE ROAD, BLDG 2272

PATUXENT RIVER, MARYLAND 20670-1547

IN REPLY REFER TO:

CJ&A_11_19688

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Systems Command (NAVAIR) Headquarters

2. Description of the Action Being Approved.

This Class Justification and Approval authorizes and approves the issuance of contract actions on a sole source basis with Sikorsky Aircraft Corporation (SAC), Stratford, CT, for the efforts associated with the conversion/modification of a H-3 aircraft to a flyable trainer aircraft in support of the Presidential Helicopter program. The authority to act under this CJ&A will expire 15 September 2016.

3. Description of Supplies/Services.

The efforts to be performed include Non-Recurring Engineering, testing, evaluation, support equipment, logistics, publication updates, configuration management and program management, and the actual conversion of the H-3 aircraft to a flyable trainer aircraft. The total estimated period of performance of this effort is 36 months. The estimated total value of the effort is $25,300,000 and will be funded with APN-5 funds.

See Appendix A for Estimated Dollar Value

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.

Sikorsky Aircraft Corporation (SAC), Stratford, CT, is the sole manufacturer of the VH-3D aircraft and is the only source that possesses the necessary technical data, knowledge, experience, and expertise required to perform this effort. The training aircraft must meet unique considerations of the Presidential mission environment; therefore, only SAC as the sole manufacturer of the VH-3D, has the ability to convert the aircraft to satisfy the agency's requirements. Furthermore, the Government does not possess adequate technical data and/or the rights necessary to compete this requirement. The VH-3D aircraft were procured under NAVAIR contract N00019-72-C-0121 and were delivered to the Government from July 1975 through

November 1975. The Government did not procure the necessary manufacturing technical data packages that would be required to compete this effort.

CJ&A_11_19688

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

As stated in paragraph 5, SAC is the sole manufacturer of the VH-3D aircraft and is the only source that can meet the agency’s requirements. The proposed effort was posted on the FEDBIZOPS website on 27

Jun 2011. Two responses were received; one with an interest in subcontracting opportunities, the other with an interest as the Prime contractor. The Government provided the interested subcontracting party with SAC contact information. A phone conference was held with the second vendor at which time it was communicated that the Government did not possess the necessary data in order to allow for competition.

Subsequently, based on a better understanding of the Navy's requirement, the vendor indicated in writing that it was no longer interested in pursuing a prime contract. This vendor was also provided with the SAC point of contact for potential subcontracting opportunities. No other market research was conducted because it was not practicable for the reasons stated in paragraph (5) above.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402(a), the Contracting Officer must ensure that all supplies and support are procured at a fair and reasonable price. An analysis of the contractor’s proposals will be performed by technical analysts and contract specialists, with the assistance of DCMA analysts and DCAA auditors as needed. The Contracting Officer will analyze the various cost elements that are presented in proposals, as well as review the actuals from previous procurements, if applicable. The Contracting Officer will use

Government expertise, including DCMA, DCAA, the PMA, and other Government resources, to evaluate the proposal's material, labor, and subcontract positions. A detailed report developed as part of the

Government evaluation will be utilized to establish a NAVAIR position. If a rate agreement is not in place between SAC and DCMA at the time of proposal evaluation, the Contracting Officer will work with DCMA and DCAA to establish a rate position, to include escalation, for negotiation of the contract action. As discussed in this paragraph, the Contracting Officer will use cost and price analysis as the basis for negotiating a fair and reasonable price for the supplies/support covered by this CJ&A.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NAVAIR has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If other potential sources emerge, NAVAIR will assess capabilities and determine the feasibility for competition.