GE REDACTED JA 11_10472.pdf

DEPARTMENT OF THE NAVY

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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 (CJ&A) authorizes and approves the issuance of applicable fixed-price and/or cost-reimbursement orders on a sole source basis under Basic Ordering Agreement (BOA) N00019-10-G-0007 with The General Electric (GE) Company at 1 Neuman Way, Cincinnati, Ohio 45215, in support of the VH-3D and the VH-60N Presidential Helicopter platforms. The authority to act under this CJ&A will expire 31 August 2015.

3. Description of Supplies/Services.

The Naval Air Systems Command (NAVAl R) intends to negotiate and award Orders on a sole source basis with GE for: the procurement of spare parts, updates and technical services related to the T58-GE-400B and T700-GE-401 engines used in the VH-3D and VH 60N Presidential. Helicopters Program; procurement of retrofit kits and services in support of a Power Plant Change Technical Directive (PPC TO) and Engineering Change Proposal (ECP) to convert the T700-GE-401 into a T700-GE-401 C with Enhanced Digital Electronic Control Unit (EDECU); and provide services during the conversion of the engines, integration and test onto the VH-60N to include interfacing with the OEM and update applicable GE support documentation. The estimated total value of the BOA orders covered by this CJ&A is $28,700,000 and will be funded with APN-5, APN-6, andO&MN 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.

Since inception of the T58-GE-400B and T700-GE-401 engines, GE has been and continues to be the prime manufacturer of these engines and is the only source capable of performing this effort to meet presidential helicopter fleet needs. As the sole designer, developer and manufacturer of these engines, GE is the only known responsible source with the unique

CJandA_11_1 0472 qualifications to perform the following: (1) qualify and use experienced sub-vendors; (2) perform 100% quality inspections of engine repair parts to ensure critical presidential helicopter program reliability requirements are met; and (3) verify the engine parts meet all required production tolerances to ensure maximum safety for the presidential helicopter fleet. Additionally, the White House operating and security procedures mandate a "closed loop" supply/inventory control system for these engine parts. No Navy or 000 supply resources are utilized. GE currently has the infrastructure in place, including Level 3 security, to operate within this "closed loop" supply system. As such, GE performs the necessary quality inspections to insure parts are available to respond immediately to any Presidential Helicopter fleet needs, while at the same time, manages its supply base in a way that allows for necessary security measures in the form of anonymity. Furthermore, the Government does not possess adequate data and/or the rights necessary to compete these requirements. GE owns the proprietary data and drawings necessary to provide the parts and services required to meet the fleet's depot maintenance and operational flight requirements. GE is not willing to sell the necessary technical data or rights in the data that would be necessary to provide to a third party for purposes of competition.

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

The Contracting Officer will synopsize on FedBizOpps the Government's intent to issue orders under the BOA on an individual order basis. Any responses received will be reviewed by the Procuring Contracting Officer (PCO) for potential competitive opportunities.

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. Analysis of 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.

The Procuring Contracting Officer (PCO) 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 GE and DCMA at the time of proposal evaluation, the PCO 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 PCO 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 Five (5), Naval Air Systems Command (NAVAIR) 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, NAVAIR will assess whether competition for future requirements is feasible.