CJ A_15-24848_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

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 .

IN REPLY REFER TO:

CJ&A_ I5_24848

This Class Justification and Approval (CJ&A) authorizes and approves the issuance of applicable fixed price and cost reimbursable contract actions on a sole source basis under Basic Ordering Agreement (BOA) N00019-15-G-0005 for Military spare parts with The General Electric (GE) Company at 1 Neuman Way, Cincinnati , Ohio 45215, in support of the VH-3D Presidential Helicopter platform's T58-GE-400B engines. The authority to act under this CJ&A will expire 31 August 2020.

3. Description of Supplies/Services.

The acquisitions covered by this CJ&A are for the support of the VH-3D Presidential Helicopter Program and will include the procurement of Military spare parts related to the T58-GE-400B engines. The estimated total value of the BOA orders covered by this CJ&A is $23,891 ,000 and will be funded with APN- 6 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, GE has been and continues to be the only manufacturer of this engine 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 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. 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 required to meet the fleet's depot maintenance and

CJ&A 15 24848

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 . Lastly, the White House operating and security procedures mandate a "closed loop" supply/inventory control system for these engine parts. No Navy or DoD supply resources are utilized. GE currently has the infrastructure in place to operate within this "closed loop" supply system. As such , GE performs the necessary quality inspections to ensure 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.

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

A synopsis was posted on FedBizOps on 1 October 2014 and no inquiries were received . In accordance with the Department of Defense (DoD) final rule amending the Defense Federal Acquisition Regulation (DFAR) to implement additional requirements when preparing Justification and Approvals, an additional sources sought was posted on FedBizOps on 30 July 2015 and no inquiries were received . Further, 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 Contracting Officer for potential competitive opportunities.

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. Analysis of the 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 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 .