J A_GFE_ROR_Follow-on_dated_03172015_-_Redacted_J A.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND

RADM WILUAM A. MOFFET BUILDING

47123 BUSE ROAD,BLDG 2272

PATUXENT RIVER,MARYLAND 20670-1547

J&A_16_24668

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 on a sole source basis the issuance of an

Indefinite Delivery/Indefinite Quantity (IDIQ) contract with an ordering period of three years covering

CY16-CY18 to Lockheed Martin Mission Systems and Training (LM MST) for the efforts necessary to repair MH-60R production line Government Furnished Equipment (GFE). Authority and approval of this

J&A will expire on June 30, 2018. The anticipated contract type is Firm Fixed Price (FFP).

3. Description of Supplies/Services:

The GFE is procured for integration into the MH-60R helicopters. Failure of or damage to these components as GFE on the Sikorsky and Lockheed production line, in test aircraft, on training assets or lab/test assets require repair in support of continued MH-60R aircraft production. LM MST will provide repair, inventory tracking, and reporting for all units while they are in the repair process for the MH-60

Common Cockpit (CC) and MH-60R Mission Equipment components prior to returning units to serviceable condition. In addition to securing component level testing to be completed by each component vendor, LM MST will provide MH-60 platform integration testing in accordance with current

MH-60 CC and MH-60R Mission Equipment sell-off procedures to ensure units are in the proper configuration and comply with MH-60 platform system requirements prior to being installed as GFE or shipped to various installation sites.

Estimated Dollar Value (In Thousands):

Not included.

4. Statute 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:

LM MST exclusively designs, develops, and manufactures many of items to be repaired including the

Control-Monitor Panel, Flight Management Computer, Mission Computer, Multifunction Display Unit, Second Source Display, Acoustic Processor, Technical Insertion Acoustic Processor, Electronic

Surveillance Measures, and Light Control Unit. Other GFE items not exclusively designed and developed by LM MST, but are part of the MH-60 common cockpit and mission avionics systems, still require LM

MST's technical expertise, data, and experience to successfully complete integration and qualification efforts. LM MST is the soledeveloper and integrator of the mission avionics system and common cockpit for the H-60, and was awarded the initial and subsequent production contracts, making LM MST the only source with the technical data, knowledge, tooling, test equipment, and experience necessary to perform this effort. As the sole-developer and integrator, any component repaired through any other source would require additional Government costs and efforts to first have the equipment repaired and then returned to

LM MST for additional integration/testing and qualification prior to being placed in Ready For Issue

(RFI) status, adding additional time and cost to the repair process. The Government does not possess the requisite technical data to conduct a competitive procurement of this requirement, and LM MST will not sell or release such proprietary data to the Government to compete this requirement. For these reasons, LM MST is the only contractor that can meet the Government's requirements.

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

For the reasons noted in Paragraphs 4 and 5, NAVAIR has not performed a formal market survey. As required by FAR 5.201, a synopsis of the GFE repairables effort was released in FedBizOpps on 09

October 2014, and no responses were received to date by the Contracting Officer. Any responses prior to award will be evaluated by the Government.

7. Determination of Fair and Reasonable Cost:

In accordance with FAR 15.402, the Contracting Officer shall ensure that all supplies and services ordered 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. Analysis 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 each proposal, as well as review the actuals for 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 LM MST 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. The Contracting Officer will use cost and price analysis as the basis for negotiating a fair and reasonable cost for the supplies/services covered by this J&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 J&A. If another source emerges, NAVAIR will assess whether competition for future requirements is feasible.