J A_12-22665_Posted.docx

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:

J&A_12_22665 J&A_12_22665

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Systems Command (NAVAIR) Headquarters

1. Description of the Action Being Approved.

Pursuant to FAR 6.302-1, this Justification and Approval (J&A), authorizes and approves the issuance of a firm-fixed-price contract placed under on a sole source basis with Tadiran Spectralink LTD of Holon, Israel for the procurement of AN/URT-140 Personal Locator Beacon Transmitters on behalf of the U. S. Navy (USN) and the Foreign Military Sales (FMS) program.

1. Description of Supplies/Services.

This J&A will support the procurement of up to 285 AN/URT-140 radios to support F/A-18 production and F/A-18 FMS. In FY 2009, a sole source fixed price procurement was awarded to Tadiran Spectralink LTD on N00019-09-C-0046 for 934 units with the expectation that it would be the last buy to support the F-18 production requirements. Due to unforeseen complications associated with the JSF program, the F-18 production line has now been extended through FY14, and an additional 195 AN/URT-140 units are required to support USN production. Specifically, the quantities for USN F/A-18 production are 64, 58, 55, 18 in FY11, FY12, FY13, and FY14 respectively. FY11 and FY12 requirements will be procured immediately upon award and FY13 and FY14 requirements will be established under contract as option CLINs. In addition, a total of 90 AN/URT-140 units are anticipated to be needed for FMS customers (Kuwait and Malaysia) and will be made available as option CLINS. Beyond FY14, no future requirements for URT-140 radios are known to exist at this time.

See Appendix A for Estimated Dollar Value

1. 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.

1. Rationale Justifying Use of Cited Statutory Authority.

As the sole designer, developer, manufacturer, and supplier of the requirement listed in paragraph 3, only Tadiran Spectralink LTD possesses the peculiar engineering capability, resources, expertise, intricate knowledge, and data necessary to satisfy the Government’s minimum requirements. Tadiran Spectralink LTD has retained the technical data rights on all data packages, drawings, and software associated with the items outlined in paragraph 3. As a result, without the technical data rights held exclusively by Tadiran Spectralink LTD, no other manufacturer can produce the products and associated services in support of the items listed in paragraph 3.

Based on market research, it was determined that the Air Force AN/URT-44 radio may meet the current requirements of the AN/URT-140 radio. In order to verify and validate that all requirements were met, PMA202 and the 4.2 Cost Team determined that the minimum cost required to integrate, test, and field an existing personal locator beacon transmitter alternative to the Fleet, such as the AN/URT-44, was $704K. Accounting for the offset of a lower unit price cost for the AN/URT-44 based on the total anticipated quantity of the requirement, the minimum net additional cost is estimated to be $429K. This cost does not include the impact to the Fleet of having two different survival radios in circulation and the corresponding increase in in the logistics footprint for operations and support. Moreover, there would be significant additional expense for any required development, modification, drawings, tooling, and production/plant set-up for any personal locator beacon transmitter that does not have a readily available alternative. Consequently, any attempt to qualify another source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition.

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

The proposed contract was synopsized on the FEDBIZOPS website on June 27, 2012 and no other offerors expressed interest in the ability to build personal locator beacon transmitters. If any offerors express interest, the Government will fully review their capabilities. Market research was conducted on June 7, 2012. It was found to be not practicable to go to another offeror, for the reasons discussed in paragraph 5 above, for any company other than Tadiran Spectralink LTD to provide the required supplies.

1. 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. The 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.

1. Actions to Remove Barriers to Future Competition.

For the reasons set forth in paragraph 5, NAVAIR has no plan at this time to compete future contracts for the supplies/services covered by this document. If another potential source emerges, NAVAIR will assess whether competition for future requirements is feasible.

Appendix A

Estimated Dollar Value in Thousands

Total

Total

$ 1424 k image1.wmf