Interim_SES_J&A_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND

RADM WILLIAM A. HOFFET BUILDING

47123 BUSE ROAD, BLDG 2272

PATUXENT RIVER, MARYLAND 20670-1547

INREPLY REFER TO:

J&A 17-0514

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 a sole source contract to Northrop Grumman Systems Corporation (NGC) San Diego, CA for a base year and one option for the provision of highly specialized services for the Sustaining Engineering and Support (SES) of the MQ-4C Triton Unmanned Aircraft System (UAS) Program.

3. Description of Supplies/Services.

The contractor shall provide SES and Non-Recurring Engineering (NRE) in support of Engineering Change Proposals (ECPs), engineering analyses, investigations, and test support. These efforts include procurement of hardware and software updates required to sustain the MQ-4C Triton UAS. Logistics efforts include, but are not limited to, life cycle program planning, training support, logistics support services; Integrated Logistics Support (ILS) (spare and repair parts, support equipment, special tooling)-contractor Logistics Management System (LMS) functionality; and the development of associated technical data. The estimated dollar value of this contract is $178.9M.

Estimated Dollar Value in Millions

FY17 FY18 FY19 FY20 FY21 FY22 Total

APN

RDTSE

O&MN

Total

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 requirements.

.1

J&A 17-0514

5 - Rationale Justifying Use of Cited Statutory Authority.

The Navy will use the MQ-4C Triton UAS for maritime Intelligence, Surveillance, and Reconnaissance (ISR) missions in forward deployed locations. NGC's highly specialized services to perform interim logistics support of the MQ-4C Triton UAS are necessary to avoid unacceptable delays in fulfilling the Navy's requirements. Not considering the time to solicit a competitive contract, which is estimated at 12-18 months, the time for a new contractor to ramp up to provide the specialized maintenance, reach-back engineering and test service support for the MQ-4C Triton is estimated to be in excess of 12-24 months Additionally, NGC is the only source that has the technical data rights and documentation required to sustain the MQ-4C which includes the Repair Manuals, Maintenance Manuals and Design drawings The Government does not currently have the rights to the technical data needed to support the MQ-4C The Government has a separate planned contract {Intermediate and Depot-Level Support) to procure such data in order to provide organic support of the MQ-4C in the future. Award to any other source would result in unacceptable delays given that the specialized services, to include intermediate and depot-level support, is not yet established organically and dependent on Original Equipment Manufacturer (OEM) NGC support.

Award to any other source would result in unacceptable delays in fulfilling the requirement to operate the MQ-4C Triton UAS in theater to provide support to deployed forces during initial fielding.

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

In accordance with FAR 5.201, this requirement was synopsized in FEDBJZOPPS on 14 September 2017.

The Request for Information/Sources Sought Notice required by DFARS PGI 206.302-1 has been waived by AIR-2.4 Memo. To date, the Government has not received any responses. All responses received will be reviewed by the program office and the PCO. Any parties interested in subcontracting opportunities will be referred to NGC's Subcontracting Manager.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402, the Contracting Officer shall ensure that all supplies and services provided under this contract 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. NGC proposal will be reviewed by experienced technical analysts, cost analysts and contract specialists with the aid of necessary field pricing support. The Contracting Officer will utilize cost and price analysis as the basis for negotiating a fair and reasonable price.

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