Red_JAforGQM163A_ILS_Eng.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_16-0003 J&A_16-0003

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.

This Justification and Approval (J&A) for Other Than Full and Open Competition authorizes and approves the award on a sole-source basis of a contract that will include both Firm Fixed Price (FFP) and Cost Plus Fixed Fee (CPFF) Contract Line Item Numbers (CLIN) for the procurement of Integrated Logistics Support (ILS) and Sustaining Engineering in support of the GQM-163A Coyote Supersonic Sea-Skimming Target (SSST). This contract will include a base year with four one year options. Authority to act under this J&A expires five years from contract award.

1. Description of Supplies/Services.

This J&A covers the procurement of Integrated Logistics and Sustaining Engineering in support of the GQM-163A. Services to be procured will include an Integrated Logistics Support (ILS) and Sustaining Engineering program in support of all Full Rate Production (FRP) contracts. Logistics support will include supplies, services and associated data, including but not limited to: maintenance planning, support and test equipment, supply support, parts provisioning and planning, technical data, facilities, manpower and personnel, training and training devices, computer resources support, design interface, packaging, handling, storage, and transportation. Sustaining Engineering will include supplies, services and associated data, including but not limited to: review of government documentation, consultation on mission trajectory conditions and features, software documentation updates, operation support, detailed post flight reports and program management reviews. The total estimated J&A value is $15.0 million as set forth in the table below. The funding outlined is consistent with OSD 17 program budgeted levels.

Estimated Dollar Value in Thousands

OM&N

Total

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.

Contract N00019-00-C-0255 was competitively awarded to Orbital Sciences Corporation on 29 June 2000 to deliver a SSST (GQM-163A Coyote) system that meets the requirements of Performance Specification AS9208. Orbital Sciences is the sole designer, developer, and manufacturer of the GQM-163A Coyote Aerial target. Orbital Sciences Corporation is the only known source with the requisite knowledge, experience, and noncommercial technical data and software rights to meet the Government's requirements on a timely basis. Orbital is unwilling to sell sufficient license rights to the Government to support competition. During the Engineering and Manufacturing Development (EMD) phase, the Government received a technical data package that was a combination of Government Purpose Rights, limited and restricted rights (documentation which Orbital Sciences Corporation funded at private expense). PMA-208 has estimated it would cost $52 million to qualify another source. This estimate is based on the original procurement cost for qualifying the target. Award to any other source would result in unacceptable duplication of cost to the Government that is not expected to be recovered through competition and delay in awarding the contract, which would result in failure to fulfill the Navy's requirement.

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

The Program Management Office, PMA-208 Aerial Target and Decoy Systems, under PEO (U&W), diligently surveys the industry market and has identified no other source currently capable of satisfying the Government’s requirement. The synopsis will be released as required by FAR 5.201(b) to Federal Business Opportunities stating the US Navy’s intention to award a sole source contract. No additional market research was conducted for this procurement, as it is not practicable, for the reasons discussed above in paragraph (5), for any source other than Orbital Sciences Corporation to provide the required supplies and services. Any inquiries because of this notice will be given full consideration prior to award.

A class waiver of DFARS PGI 206.302-1 Request for Information/Sources Sought Requirement was approved on 04 September 2015.

1. Determination of Fair and Reasonable Cost.

In accordance with FAR Subpart 15.404-1, the Procuring Contracting Officer (PCO) will determine that the procured supplies and services authorized under this J&A at a fair and reasonable price. The negotiated actions will be conducted in accordance with FAR Subpart 15.4 by the PCO, with support, as needed, from Defense Contract Management Agency (DCMA) and Defense Contract Audit Agency (DCAA) personnel to ensure that fair and reasonable prices are established. In order to support the PCO’s determination, the contractor will be required to substantiate its proposed cost or price by providing varying types of cost or pricing information as defined under FAR Subpart 15.4. The contractor and its subcontractors, as appropriate, will be required to certify its cost or pricing data in accordance with FAR 15.403-4. The Contracting Officer's determination of a fair and reasonable price will be based upon information received from historical data, field audits, independent technical evaluations, and thorough cost and price analysis.

1. Actions to Remove Barriers to Future Competition.

For the reason set forth in paragraph (5) and (6), NAVAIR has no plans to compete future contracts for the types of supplies and services covered by this document. The relatively small quantity of targets purchased each year does not justify the additional nonrecurring costs associated with developing a second source. NAVAIR is working with Orbital Sciences Corporation to maximize competition through subcontracting opportunities in accordance with FAR Part 15.

Because this effort is a follow-on for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(i), the prior J&A was provided to the approval authority for review. Approval of this J&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(ii).

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance, which are included in this Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

APPROVED

Upon the basis of the above justification, I hereby approve the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1).

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