FY_15-16_OE-120_J A.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_14_24165

Amendment 1

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 sole source award of a firm fixed price

(FFP) contract to BAE Systems Information and Electronic Systems Integration, Nashua, NH for the FY 15-

16 requirements for the OE-120( )/UPX Antenna Group, associated equipment, logistics and engineering support, and technical data and a FY 15-17 procurement of a Cost Plus Incentive Fee (CPIF) Part 1

Engineering Change Proposal (ECP).

3. Description of Supplies/Services.

The OE-120( )/UPX Antenna Group provides electronically steered identification friend or foe antenna for new construction surface combatants. These antenna systems are being procured for the United States

Navy, and Foreign Military Sales (FMS The OE-120 Systems will be procured using a FFP contract type.

Engineering support will also be acquired to include a FY 15-17 Part 1 ECP to address obsolescence issues in the OE-120 System. The line item for this Part 1 ECP will utilize a CPIF contract type as the technical uncertainties associated with this effort are too substantial to permit use of a fixed price contract type.

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.

BAE Systems is the original designer, developer, and manufacturer of the OE-120/UPX Antenna System.

As such, BAE Systems is the only company with the unique knowledge, experience, special skills, facilities, manufacturing techniques, and technical data required to produce the OE-120( )/UPX Antenna Group.

The program has expended approximately $32M in non-recurring development and test costs for the OE-

120()/UPX. Based upon independent analysis performed by the NAVAIR 4.2 Cost Department, it was determined that the costs to compete and qualify a second source to fulfill the OE-120()/UPX requirements are estimated at approximately $67.1M. The quantities in the FY 15-16 contract addressed above are not sufficient to permit the $67.1M of duplicative costs to be recovered through competition.

CJ&A_14_24165

Amendment 1

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

A Decision Analysis Support (DAS) Study was performed by NAVAIR 4.10 to identify and quantitatively analyze and compare alternatives. The assessment was based on industry responses to a government

Request for Information (RFI) to obtain a producible antenna that was form-fit-function shipyard compatible. Four vendors responded to the RFI and the BAE Systems response was deemed the only viable solution because production of the OE-120( )/UPX Antenna Group requires unique, proprietary equipment owned by BAE Nashua. In accordance with FAR 5.201, this proposed requirement was posted on the Federal Business Opportunities website on 28 January 2014. Two firms, Alpha Products, Inc. of

Oxnard, CA and Marvin Heymann & Associates of Cincinnati, OH , expressed interest in the requirement by inserting their address onto the “Interested Vendors” tab on the Federal Business Opportunities website. The Contracting Officer issued letters to Alpha Products on 12 June 2014 and Marvin Heymann

& Associates on 16 September 2014 which advised them that the OE-120 procurement would be awarded on a sole source basis to BAE Nashua because BAE Nashua is the only firm who possesses the technical data, specialized tooling, and expertise necessary to produce the OE-120/UPX Antenna System. Alpha

Products contacted the Contracting Officer on 19 June 2014 to state that they were not challenging the

OE-120 synopsis but that they desired point of contact information for the NAVAIR Small Business Office.

The NAVAIR Contract Specialist provided the point of contact information to Alpha Products via an e-mail issued on 19 June 2014. Marvin Heymann & Associates advised the Contracting Officer on 16 September that they were not challenging the OE-120 synopsis. Any future responses to the synopsis will be evaluated by the Contracting Officer prior to award.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402(a), the Contracting Officer must ensure that all supplies and services acquired under this contract are procured at fair and reasonable prices. The Contracting Officer will determine fair and reasonable prices for the proposed hardware and Part 1 ECP utilizing historical cost information and information obtained from the contractor along with field pricing reports and audits. Based on this data, the Contracting Officer will have adequate knowledge, information, and background to determine fair and reasonable prices.

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 requirements covered by this document. If another potential source emerges, NAVAIR will assess whether competition for future requirements is feasible.