MissionCare_J A.pdf

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DEPARTMENT OF THE NAVY

IIAVALAR8Y'ITal~ .. 'fiDl.MA.IIJFFEI' BUI.DitG

4'l'f23 BU8EROAD,IIJJG2m

PATUXENI' RIVER, 11MYLA11J 2111J8.1147

nJSTIFICATION AND APPROVAL

II REPI. Y REFER TO:

J&A No. 13-23459

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity. Naval Air Systems COlDIIUUld Headquarters.

2. . Descrjption of the Action Being Approved. This Justification and Appro_yal (J&A) auth~ and approves the issuance of a sole source contract action to Rolls-Royce Corporation (RRC), Indianapolis, Indiana for MissionCareTM maintenance and related support for the entire inventory of AEll 07C engines (installs and spares) delivered to the Government for V -22 aircraft.

3. Descrip1ion of Sglies/Services. The proposed oon1ract will include MissionCareTM sustainment support of the V-22 AE1107C engine at various V-22 airclaftoperating, production, and test sites. MissionCareTM is a performance-based logistics (PBL) concept that includes a fixed hourly flight rate and the associated engine sustainment support, w1iich includes:.progr;am management, integrated logistics support, sustaining engineering, maintenance, repair, reliability improvements, configuration management, and site support. Site support will be provided at various production. test, and operating locations, as well as additional locations that support is:

required, based upon where the ·v -22 Osprey aircraft is fielded dming the performance of the cOntract. Support for contingei:I.cy operations outside the continental United States will not be covered under the contemplated MissionCareTM contract. The contract will begin on or about 01 December 2014 and will have a five year ordering period. · The.total estimated value of the MissionCareTM comract is allocated per the funding profile set forth below, wbi.ch is based upon the President's FY14 budget in support of the V-22 program of record.

J&A No. 13-23459

4. ·statutorY Authority Permitting Other Than Full and Qpen Competition. The statutory authority permitting other than Full and Open Competition is 10 U.S.C. § 2304( c )(1 ), as implemente<J, by the Federal Acquisition Regulation (FAR) 6.302-1, "Only one respoDSible source·and no other supplies or serviceS will satisfy agency requirements."

5. Rationale Justifying Use of Cited Statutoty Authority. Since RRC (formerly Allison Engines) was the original equipment manufacturer, the company was selected in 1993 to be the sole designer, developer, and producer oftb.e AE1107C engine. TheAE1107C engine is a commercial derivative of the V -22 Engineering & Manufacturing (EMD) T406-AD-400 engine, which provides-power for both the MV and CV variants of the V -22 aircraft. The AE11 07C engine belongs to RRC's AE family of engines, certified by the Federal Aviation Administration (FAA). The AE family of engines powers both military and commercial aircraft, including the Citation X, ERJ, Global Hawk, C-130J, C-27, and Saab 2000. RRC draws upon its unique design, manufacturing, and operational experience with the entire AE family of engines \Yhen offering AEll 07C engine sustainment support. By leveraging off of the millions of flight hours and lessons learned on other engines in the AE family, and their associated aircraft applications, RRC is able to utilize this information to incorporate improvements and enbancements to the AEll 07C engine, which subsequently benefit the engine and the end user. The technica,l data and insight required to support the AE11 07C engine is constantly changing due to the amount of usage associated with the entire.AE family of engines. As the sole designer, developer, and producer of the AE family of engines, RRC is .the only source that has umes1rlcted access to the totality of technical data needed to sustain the AE family of engines, and in particular, the AE1107C engine.· . .

Because the AE11 07C engine has been designated as a commercial item in accordance with the definitions in FAR 2.101, the clause at OF ARS 252.227-7015, "Teclmical Data- Commercial Items", is applicable. This clause prohibits the release, display, disclosure, and use of AE1107C technical data outside the Oovemment without the contractor's written permission. In addition, in 2009 the Government c~ucted a.tb.of'?ugh review of the engine technical data package and entered into a V -22. Engine "Teehhlcal Data License (1DL) with RRC that governs rights in regards to AE1107C technical data and stipulates the terms under which the Government could obtain a complete technical data pacbge from RRC. The IDL, however, does not provide the Government sufficient rights to conduct a competition for the efforts contemplated under this J&A, npr ·bas RRC offered to sell additional rights to the Government. For these reasons, the Government bas determined~ RRC is the cmly contractor that ·can meet the Government's ritquirements fot integrated sustainment support of the V -22 AE11 07C engine •

6. • .Deseription of Efforts Made to Solicit Offers from as Many Offerors as Practicable. For the reasons noted in paragr_a.phs 4 and S above, and since RRC is the designer, developer, and sole producer of the AEll 07C ~e, and is the only sOl:JICC possessing the complete technical data ~e required to support 1h<? AE1107C engine, a formal market survey was not performed by NAVAIR. Inaccordanc~withi'AR ~.201(b), a synopsis ofthis effort was published on the · FedBizOpps website on 02 November 2012, announcing the Government's intent to issue a contract to RRC for the contemplated efforts. To date, no responses have been received by the

· Con1racting Officer. Any responses received, prior to the award of this procurement, will be evalwited by the Con1ractipg Officer. · ·

1~~o. 13-234S9

7. Detqmination of Fair and Reasonabl& Cost. The negotiation and award of this contract will be conducted in accordance with FAR Part 12 "Acquisition of Commercial Items." As stated in FAR 12.209, the Contracting O:tl:i.cer must establish price reasonableness in accordance with FAR 15.4. In accordance with FAR 1S.402(a) & (aX2), the Contracting Officer is ~uired to purChase all supplies and services from responsible sources at fair and ·reasonable prices and will require the Con1ractor to submit data, other than certified oost or pricing data, in order to perform an analysis of the proposal to ensure that the price is fully justified as fair and reasonable to the Govemment. This analysis will be performed by governm~t Technical Analysts, Cost Analysts, and Contract Specialists. In addition, the Defense Contract Management Agency (DCMA) will be utilized to assist With purchase order verification and rate recommendations. The Contracting Officer will use price analysis.as the basis for negotiating a fair and reasonable price in accordance with FAR 1S.404-l(b)(2).

· 8. Actions Taken to Remove Barriers to Competition. For the reasons set forth in paragraph S above, NA V AIR. bas no plans at this time to compete future contracts for the types of supplies and services covered under this J&A. If another potential source emerges. NA V AIR will assess whether a competition for future requirements.is feasible.

CJ&A_l3_23459

CERTIFICATIONS AND APtROVAL ..

~CAI.J.REQtJIREMENTS CERTD'ICATioN' . .

·· I ·cC:rtny that the facts and ~ons uBder my copiza'nccrwhi~·areoiDcllJded in this Class .Justification and its supportiDg acquisition planning documents, except as noted he:rebJ, are complete aud 1ICC'urate to 1he best ef!JlY knowledge aud ~lief. 0

~ . 301-7Sl..Sifil 716[~~ ~Ore 'ello COL USMC , Phone 0 Date 0

Program. Maoag~, PMA-:·275

LEGAL SUfFICIENCY REVIEW

I have~ 1biSo~ustificatiOJi is legally Sutllcient.

~ r!at1-.U... l ,_ .• . . .~1-~@4 ~3 F. . Phone Date

Bemor Associate Couilsel V-22 Osprey 0

NA V AIR Office of Counsel (AIR.-11.1) 0

CONTRACr:ING OFI'l~ CERTD'ICATION

I certify tbat1his Class Justification is accurate and complete to the best of my knoWledge and belief. .

~~~L .....-=:.: Chris . 7::> .

Comracting. Officer AIR-2.3 .• 3.1

301-757-9999 /C, ~"'\)Ni- .;lou

. Phone Date ·

SENIOR PROCUREMENT EXECUTIVE APPROVAL

Upon the basiS of the above Class iustificatum, I haeby awm>ve, as SeDior Procurement

· Bx~ve of the Navy, the soHcitati.On. of the~ proourem.e.Ots described here.in 'lishJa

·o other than :tbll&Dd open competition, Pursuant to the authority of 10 U.S.C. 2304(c)(1~

·~0 Sean J. Stacldey

ASN{JU>&A)

· 7/Z.Itlo-11 '2 Date