J A_13_23691_REDACTED.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:

J&A_13_23691

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 Justification and Approval (J&A) authorizes and approves the issuance of a Firm Fixed Price (FFP) order against BOA N00019-11-G-0010 on a sole source basis with Simmonds Precision Products, Inc.

operating as Goodrich Sensors and Integrated Systems, 100 Panton Road, Vergennes, Vermont, 05491.

Goodrich will modify the current MH-60 R/S Integrated Mechanical Diagnostics System (IMDS) hardware and software to meet the retrofit requirements on the HH-60H helicopter. In addition, Goodrich will fabricate and deliver Integrated Mechanical Diagnostics Systems (IMDS) and provide support for the integration and operation, including sustaining engineering support, logistics support, retrofit support and parts on the HH-60H aircraft and software updates for the MH-60R/S aircraft. This J&A will be funded with

FY13 APN funds with an estimated total contract value of $7.6M. Authority to act under this J&A expires on

30 Sept 2015.

3. Description of Supplies/Services.

This action will provide for non-recurring engineering (NRE) for a one-time design, fabrication, integration, box level testing and delivery of the Integrated Mechanical Health Monitoring Unit (IVHMU), Data Transfer

Unit (DTU), common maintenance kits and Integrated Mechanical Diagnostic System (IMDS) for the HH-

60H. The IMDS consists of Onboard System (OBS) hardware and software. The OBS hardware shall consist of kits that contain the line replaceable units, sensors, harnesses, mounting brackets, and mounting hardware in accordance with the Government-approved IMDS design. The OBS software will be loaded into the IVHMU prior to shipment and shall consist of the latest Government approved software version. This system and the results it delivers directly support the PMA-299’s Condition Based

Maintenance Plus (CBM+) initiatives by providing enhanced diagnostics capability. The IMDS software may also need to be updated to ensure compatibility with the Advanced Data Transfer System being added to the aircraft.

See Appendix A for Estimated Dollar Value

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

The statutory authority permitting other than full and open competition is 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.

The IMDS was initially procured from Goodrich for the SH-60B in FY00 and was integrated into the MH-60

R/S fleet beginning in FY03 under a Commercial Operations and Support Savings Initiative (COSSI). The data to manufacture the components of the IMDS and develop the software were not procured under the

COSSI agreement, which allowed Goodrich to retain and maintain rights to the IMDS software and data.

The Government does not own the software source code or the data on the internal components of the

IVHMU that would be necessary for another source to produce a similar system or complete the required research, design, development and testing for the HH-60H. Goodrich is the sole developer and manufacture of the commercial IMDS on the Navy’s MH-60 R/S aircraft. In addition, Goodrich does not intend to sell the technical data rights. As such, Goodrich is the only manufacture that has the technical data, necessary algorithms that indicate exceedances for maintenance actions and detailed knowledge with the IMDS to provide the required effort.

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

As required by FAR 5.201, a synopsis of this requirement was posted on 25 November 2013. Any responses received will be evaluated by the Contracting Officer prior to award. Additionally, parties interested in subcontracting opportunities will be referred to Goodrich to maximize competition in subcontracted efforts. For the reasons noted in paragraphs 4 and 5 above, NAVAIR has not performed a formal market survey.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402(a), the Contracting Officer shall ensure that all supplies and support are procured at a fair and reasonable price. An analysis of the contractor’s proposal 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 the proposals; as well as review the actual from previous procurements, if applicable. The Contracting Officer will use Government expertise, including DCMA, DCAA, the PMA, and the 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 Goodrich 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 J&A.

8. Actions to Remove Barriers to Future Competition.

For reasons set forth in paragraph 5, NAVAIR has no plans at this time to compete future contracts for the types of supplies/support covered by this document. However, NAVAIR will conduct robust market research to assess the viability of future competitions. If other potential sources emerge, NAVAIR will assess capabilities and determine the feasibility for competition.

Appendix A

Estimated Dollar Value in Thousands

FY13 FY14 FY15 FY16 FY17 FY18 FY19 Total

APN-5 5600 0 0 0 0 0 0 5600K

APN-1 2000 0 0 0 0 0 0 2000K

Total 7600 0 0 0 0 0 0 $7600K