N6134019D0004_CJARedacted.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND

RADM WILLIAM A. MOFFET BUILDING

47123 BUSE ROAD, BLDG·2272

PATUXENT RIVER, MARYLAND 20670·1547

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center Training Systems Division (NAWCTSD) Orlando, FL

2. Description of the Action Being Approved.

IN REPLY REFER TO:

CJ&A 17-0106

This Class Justification and Approval (CJ&A) authorizes and approves the issuance of a requirements contract on a sole source basis to Rolls-Royce Corporation (RRC), 450 Meridian St., Indianapolis, IN 46225-1103, for maintenance, logistics, engineering, and related support for the T-45 F405-RR-401 Adour engine and MK II Gas Turbine Starter (GTS) system. The contract will be negotiated in two or more phases. The first contract action will establish the base period for up to one year of engine support requirements. The follow-on phase(s) will add negotiated options to the contract. Authority to act under this CJ&A commences upon signature and expires on 31 March 2024.

3. Description of Supplies/Services.

The engine contract establishes the maintenance and logistics support requirements for the F405-RR-401 engine and MK II GTS system utilized by the T-45A/C Jet Trainer. This contract will include the effort required for the engine Contractor to provide all Intermediate (1)-level and Depot (D)-level maintenance and logistics support for the F405-RR-401 engine and MK II GTS. The contract also includes all required engineering elements necessary to support the engine at the Organizational (0)-level, I-level and D-level.

Orders for engine repair services will be in support of Naval Air Station (NAS) Kingsville, Texas; NAS Meridian, Mississippi; NAS Pensacola, Florida and NAS Patuxent River, Maryland. The proposed contract will be based on a Performance Based Logistics (PBL) strategy. The resulting Requirements contract will include a firm-fixed-price per flight hour. This requirement is expected to cover fiscal years (FY) 2019 through 2024. The proposed procurements will consist of up to a one-year base period of performance (phase 1) and negotiation and award of one or more one-year options to cover support requirements through FY23 (phase 2). The contract will also include an FY24 Option to Extend Services for six months IAW FAR 52.217-8. The contract will be funded primarily with Operations and Maintenance, Navy (O&M,N) flight hour program funds from the Chief of Naval Air Training, along with a smaller amount of Research, Development, Test & Evaluation (RDT&E) and Aircraft Procurement, Navy (APN-5) funds. The total estimated value of the 66 month support effort is $ M and the following table is the estimated value by

FY:

CJ&A 17-0106

Estimated Dollar Value in Thousands

FY19 FY20 FY21 FY22 FY23 FY24 Total

APN-5

RDT&E

O&M,N

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 satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1), only one responsible source, as implemented by FAR 6.302-1(a)(2). The Model F405-RR-401 Adour engine is the only engine qualified for use in the T -45 aircraft. Rolls-Royce is the designer, developer, and sole manufacturer of the Model F405-RR-401 Adour engine. Rolls-Royce will have served as the prime contractor for the T-45 F405-RR-401 Adour engine and MK II GTS system CLS effort for over 15 consecutive years at the conclusion of the current contract, N00019-14-D-0016 in September 2018. Rolls Royce developed the Adour engine at its own expense and does not sell it commercially. The data associated with the F405-RR-401 Adour Engine is proprietary to Rolls-Royce; NAVAIR has only obtained a limited rights license to a minimal quantity of the F405-RR-401 series engine data, which precludes the establishment of an adequate technical data package suitable for a competitive procurement of the support required for the engines and components. On 01 February 2017, Rolls-Royce indicated that it would not grant a license to the Navy for the engine related data. As a result, Rolls-Royce, as the sole engine manufacturer, is the only source that possesses the technical data necessary to engineer and produce the F405-RR-401 engine parts, and thus perform I-level and D-level maintenance. In addition, Rolls-Royce, as the Original Equipment Manufacturer has the ability and resources to properly forecast parts and logistics requirements and to adjust its manufacturing priorities in real time in order to meet maintenance requirements. Without Rolls-Royce's data, it is estimated that it would require several hundred million dollars and 10 years to qualify a new competitor engine. This substantial duplication of costs would not be recovered through competition. Further, a delay of 10 years to establish a second source would result in unacceptable delays for the Government while awaiting this capability.

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

A Sources Sought notice was released on the Federal Business Opportunities (FEDBIZOPPS ) website on 21 December 2016 and no other potential sources have expressed an interest in this requirement. A pre solicitation notice was posted to FEDBIZOPPS on 14 September 2017. For the reasons discussed in paragraph 5 above there are no other contractors that can meet these requirements in the necessary timeframe. Any subsequent responses to the synopsis will be evaluated by the Contracting Officer prior to award.

CJ&A 17-0106

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402(a) the Contracting Officer shall ensure that all supplies and services are procured at a fair and reasonable price. An Independent Government Cost Estimate (IGCE) was developed using historical cost data adjusted for the anticipated flight hours that will be required over the period of performance. The contractor will provide cost and pricing data in accordance with FAR 15.403-4.

The Defense Contract Management Agency and Defense Contract Audit Agency at RRC will also be requested to provide input. Therefore, the Contracting Officer will have sufficient information to determine a fair and reasonable price.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NAWCTSD has no plans at this time to compete future contracts for the types of effort covered by this document. The lack of a complete technical data package precludes the establishment of a competitive procurement for these services. If another potential source emerges, NAWCTSD will assess whether competition for future requirements is feasible.