N6134018C0022_Redacted_CJA_18-00052.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER TRAINING SYSTEMS DIVISION

12211 SCIENCE DRIVE

ORLANDO, FLORIDA 32826-3224

IN REPLY REFER TO:

AIR 2.5.3.4

CJ&A 18-0052

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center Training Systems Division (NAWC-TSD) Orlando, FL

2. Description of the Action Being Approved.

This class justification and approval authorizes and approves on a sole source basis for Northrop Grumman Technical Services, Inc. to provide engineering and technical services to repair E-2/C- 2 avionics systems, and provide logistical and engineering reach-back services on the E-2C, E- 2D and C-2A series aircraft, associated avionics and support equipment. A firm fixed price contract with a base period of performance of one year plus six one-year options, and one seven-month option period to take the requirement through the end of the program sundown date of 31 DEC 2025. In addition, FAR clause 52.217-8 (Option to Extend Services) will be incorporated in Section I of the solicitation. The option clause will allow the Government to extend the total period of performance of the contract by an additional six months, if necessary. The contract will support E-2/C-2 requirements of Fleet Readiness Center Mid-Atlantic (FRCMA), Naval Air Station Norfolk, Norfolk, VA; and Fleet Readiness Center Southwest (FRCSW), Detachment, Naval Base Ventura County, CA, and Fleet Readiness Center Southwest (FRCSW), Naval Air Station North Island, San Diego, CA.

Northrop Grumman Technical Services (NGTS), Inc. is currently providing E-2/C-2 avionics systems repair support and logistical support services to FRCMA under contract N61340-13-C- 0009. The period of performance for this contract ends 04 JUN 2018. The authority to act under this CJ&A expires 31 DEC 2025.

NGTS is currently providing E-2/C-2 avionics systems repair support and logistical support services to FRCSW under contract N61340-13-C-0008. The period of performance for this contract ends on 04 JUN 2018. The authority to act under this CJ&A expires 31 DEC 2025.

3. Description of Supplies/Services.

The contractor shall provide Beyond Capable Maintenance Interdictions (BCMI) capabilities that provide avionics technical solutions for E-2/C-2 aircraft assets using legacy test equipment and onsite personnel at the Government facilities. NGTS is to fully utilize the skills, talents, and experience of their interdictions Specialist to reduce Aviation Depot Level Repairable (AVDLR) costs, decrease Turn-around-times, increase the Fleet Readiness Centers’ (FRC) repair capabilities and bring Weapons Repairable Assembly/Sub-Repairable Assemblies (WRA/SRA) repairs closer to the flight line. These requirements will be achieved through advanced Intermediate and Depot-level testing, maintenance, and repair of E-2/C-2 aircraft assets located at NAS Norfolk and NAS North Island. The contractor will be required to provide avionics that are Ready for Tasking (RFT). The contractor shall comply with all maintenance, safety, and quality assurance criteria as specified in the SOW and maintenance documents, manuals, directives and instructions.

Via on-site personnel at the Government’ facilities, the contractor shall provide Original Equipment Manufacturer (OEM) access to systems that provide logistical and engineering reach-back support for parts procurement and other services required to resolve procurement problems, which develop on the E-2C, E-2D and C-2A aircraft platforms. The contractor’s Supply Support Representatives (SSRs) will perform supply research on open purchase assets, new OEM parts without national stock numbers, as well as, lateral support assets. The estimated dollar value of this requirement is $11M, and all actions executed pursuant to this C&JA are anticipated to be completed by 31 DEC 2025. Below is the funding profile.

Base Year Option 1 Option 2 Option 3 Option 4 Option 5 Option 6 Option 7 TOTAL

Fiscal Year FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY18-FY25 Est. OM&N Value $ 1,354,110 $ 1,383,901 $ 1,414,347 $ 1,445,462 $ 1,477,263 $ 1,509,762 $ 1,542,937 $ 919,848 $ 11,047,630

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.

Historically, the E-2 and C-2 aircraft have needed continuing maintenance and upgrade to meet the diverse requirements of Commander, Naval Air Forces Pacific (CNAP) and Commander, Naval Air Forces Atlantic (CNAL). The configuration and age of these aircraft have also resulted in increased requirements for rebuild and repair. To accomplish CNAP and CNAL readiness and flight safety requirements for these platforms, avionics maintenance personnel must: possess manufacturer-level functional knowledge of E-2C, E-2D, and C-2A avionics’ Weapons Repairable Assemblies (WRA), Shop Repairable Assemblies (SRA), and associated test equipment; be able to evaluate and test failed components; and provide timely and efficient maintenance and repair actions. The individuals who possess the skills necessary to accomplish this avionics maintenance and repair efforts are employed entirely by NGTS.

NGTS currently provides Radar Communications (RADCOM) support via two AN/USM-467 weapons system test stations, as well as sub-repairable assembly testing via two AN/USM-429 Computerized Automated Testers (CAT IIID). NGTS also provides all RADCOM and CAT IIID Test Program Sets (TPS) and has the only test stations still supporting these avionics systems.

NGTS is the only source that possesses RADCOM and CAT IIID maintenance support equipment to accommodate the unique requirements of the E-2C, E-2D, and C-2A aircraft.

Although information pertaining to the repair of avionics assets for E-2C, E-2D, and C-2A systems exists, the information available to the military maintainers is not all-encompassing and does not adequately address all troubleshooting and repair procedures. The original award (Contract N61340-12-P-0092) was not competed. The Government did not obtain applicable supply and repair data in the form of technical manuals and drawings from the OEM, Northrop Grumman, for more than 300 changes to the E-2 and C-2 configurations. Without access to this data the U.S. Navy would incur unacceptable safety risks, and it would be impossible for the E-2 and C-2 fleet of aircraft to meet their mission requirements.

Mr. Stephen K. Mullens, Sr. Contracts Administrator with NGTS located in St. Augustine, FL, stated on 5 JUN 2012 that Northrop Grumman is unwilling to sell the necessary maintenance support equipment and proprietary technical data required to maintain the various E-2 and C-2 avionics configurations. Mr. Mullins re-affirmed NGTS’ position on 6 SEP 2012, when the U.S.

Navy first discussed awarding the current contracts out of NAWCTSD instead of the NAVSUP FLC Norfolk Contracting office. As a result of NGTS’ unwillingness to sell the proprietary data, it is hereby determined that IAW FAR 6.302-1(a)(2)(ii)(A) substantial duplication of cost to the Government would be incurred that is not expected to be recovered through competition, and secondly, IAW FAR 6.302-1(a)(2)(ii)(B) unacceptable delays in fulfilling the agency’s requirements would be experienced. (See 10 U.S.C. 2304(d)(1)(B))

E-2 and C-2 aircraft are out of production and in non-standardized configurations. Because of proprietary data rights regarding these aircraft systems designed and built by NGTS, only NGTS has the engineering, maintenance and logistical reach-back capability to draw upon technical resources such as schematics and technical drawings. Support from NGTS’ SSRs also directly impacts CNAP and CNAL readiness and flight safety requirements since E-2 and C-2 repairs involve assets, parts and manufacturing information available through Northrop Grumman only.

Without this reach-back, the backlog of components awaiting repair would increase, having a negative impact to naval readiness, as aircraft would not be mission capable.

In September 2012, CDR Geoffrey McAlwee (CNAL-N422) and CDR Scott Samples of the Commander Airborne Command Control and Logistics Wing (COMACCLOGWING) presented their detailed analysis of continuing SSR support for GFY 2013. Their conclusion was that NGTS’ SSRs are of vital importance to the fleet, act as “force multipliers” and “support amplifiers” which return at least a 3 to 1 return on investment, and provide a single point of reference to squadron personnel for OEM reach-back.

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

The proposed contract action was synopsized on Navy Electronic Commerce Online (NECO) and Federal Business Opportunities (FEDBIZOPS) websites on 23 OCT 2017, in accordance with

FAR 5.201 and no sources expressed an interest in this requirement. IAW FAR 10.001(c)(1), NAWCTSD consulted with Leslie Faircloth, Deputy for Small Business Programs, in concert with Thomas VanHorn, local Small Business Administration (SBA) Procurement Center Representative (PCR). A consolidation of the two current contracts is deemed necessary and justified IAW FAR 7.107-2 (15 U.S.C. 657q). No small business impact is anticipated as a result of this acquisition strategy (see Tab B18 for details). (See Tab A18 Memorandum for Record (MFR) Market Research for details.)

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. NGTS' proposal will be reviewed by experienced technical 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.

The projected date that the aforementioned requirements are expected to reach their end-of-lifecycle is not until the year 2025. Currently, the U.S. Navy does not possess the requisite proprietary data to organically repair and maintain the E-2C, E-2D, and C-2A aircraft. Future competition is not anticipated at this time due to the prohibited nature of the proprietary technical data.

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: Requirements Cognizance:

Digitally signed by COURTNEY.BERNAR COURTNEY.BERNARD.N.JR.11790

D.N.JR.1179016210 16210

Date: 2018.02.05 11:30:54 -05'00'

SCOTT.FREDERIC Digitally signed by

SCOTT.FREDERICK.N.1082327408

K.N.1082327408 Date: 2018.02.05 08:47:33 -08'00'

Bernard Courtney, Program Manager Frederick N. Scott, CNAP Program Analyst

(407) 380-4880 (619) 545-5005

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

GRIFFITHS.JULIE.C.1186

993779

Digitally signed by

GRIFFITHS.JULIE.C.1186993779

Date: 2018.02.08 14:36:01 -05'00'

Julie C. Griffiths, Legal Counsel

(407) 380-4971

CONTRACTING OFFICER CERTIFICATION

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

Alan Arblaster, Contracting Officer

(407) 380-8170

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), Only one responsible source and no other supplies or services will satisfy agency requirements.

Timothy P. Cichon, Chief of the Contracting Office

(407) 380-4083 Procurement Activity Competition Advocate

CICHON.TIMOTHY.P.12288

30646

Digitally signed by

CICHON.TIMOTHY.P.1228830646

Date: 2018.02.21 13:10:13 -05'00'

ARBLASTER.JAMES.A.103

9342835

Digitally signed by ARBLASTER.JAMES.A.1039342835 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USN, cn=ARBLASTER.JAMES.A.1039342835 Date: 2018.02.16 10:46:11 -05'00'