LAPS_JA_Redated.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:

J&A 18-0156

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 sole-source award of the production contract for the Liquid Air Palletized System (LAPS) to Meggitt Defense Systems, Inc. (MDSI) in

Irvine, CA for the production of the LAPS. The period of performance covered by this J&A is from contract award through 30 September 2024.

3. Description of Supplies/Services.

The production contract is for the LAPS, a liquid cooling system (LCS) on the P-8A aircraft operated by the United States Navy. Required unit quantities and funding by fiscal year are provided in Table

1. The estimated total value of the contracts covered by this J&A is $32.8M as depicted in Table 1.

*Note: Due to future Navy budget uncertainty, quantities may be contracted in different years than illustrated above.

Table 1 Procurement Quantity and Funding by FY

4. Statutory Authority Permitting Other Than Full and Open Competition.

The statutory authority permitting other than full and open competition is Title 10 U.S.C. Section

2304(c) (1) as cited in the Federal Acquisition Regulation (FAR) 6.302-1(a)(ii); "Only One

Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements."

5. Rationale Justifying Use of Cited Statutory Authority.

The P-8A LAPS development effort was initiated on 11 October 2016 when Boeing was awarded a non-recurring engineering (NRE) contract to design and develop a LCS required to manage the thermal stability of the Special Mission Cabinet Equipment (SMCE), and to integrate and test the system on P-8A aircraft equipped with the Advanced Airborne Sensor (AAS). Based on a best value competition conducted by Boeing to design, develop and deliver initial LAPS production units, MDSI was awarded the effort. To date, MDSI has produced three P-8A LAPS, and that configuration has been integrated into the P-8A aircraft infrastructure. As the Original Equipment Manufacturer (OEM) of the P-8A LAPS, MDSI is the only source that is capable of providing components in the same form, FY17 FY18 FY19 FY20 Total

USN Procurement Cost (APN-1) $7.2M $8.0M $8.8M $8.9M $32.8M

Quantity 9 10 11 11 41

J&A 18-0156 fit, and function that are compatible with existing units as integrated into the P-8A. Use of any equipment that does not have the same form, fit and function would require a system redesign, including extensive hardware NRE and testing following the integration of all new components and interfaces currently installed onboard the P-8A aircraft. The impact of a redesign effort, expected to take a minimum of two years, would result in a delay to the Navy’s P-8A AAS transition, and an inability to field operationally critical P-8A AAS configured aircraft in theater until an alternative P-

8A LAPS configuration was qualified.

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

In accordance with FAR 5.201, a Sources Sought was published to the Federal Business Opportunities website on 29 November 2017. No formal responses were received from the sources sought notification posted on FedBizOpps for procurement of LAPS in support of the P-8A aircraft.

Additonaly, the proposed procurement was synopsized via the same website on 15 December 2017.

At this time, no response has been received by NAVAIR. Any responses received expressing interest at the prime level will be reviewed by the Contracting Officer, in coordination with the technical and requirements cognizance.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402(a), the Contracting Officer must ensure that all supplies and services are purchased at a fair and reasonable price. An analysis of the proposals will be performed by technical analysts and contract specialists, with the assistance of Defense Contract Management

Agency (DCMA) and Defense Contract Audit Agency (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 the previous procurement as available. The Contracting Officer will use Government expertise, including DCMA, DCAA, the PMA, and other Government resources, to evaluate the proposed 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 MDSI and DCMA 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. As discussed in this paragraph, the Contracting Officer will use cost and price analysis as the basis for negotiating a fair and reasonable price for the effort covered by this J&A.

8. Actions to Remove Barriers on Future Competition.

For reasons set forth in paragraph 5 coupled with the fact that NAVAIR currently has no future LAPS requirements beyond the period of performance of this J&A, there is no plan to pursue future contracts for the production of LAPS.