N6134019D0003_T_45_CJA_SIGNED_(Redacted)_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER TRAINING SYSTEMS DIVISION

12211 SCIENCE DRIVE

ORLANDO, FLORIDA 32826-3224

CLASS JUSTIFICATION AND APPROVAL

IN REPLY REFER TO:

CJ&A 18-0135

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 (J&A) authorizes and approves issuance of an Indefinite

Delivery, Indefinite Quantity contract and the issuance of task orders on a sole source basis to

The Boeing Company (Boeing) for the procurement of engineering and Integrated Logistics

Support (ILS) services and related supplies for the Post Production Support (PPS) phase of the

T-45 aircraft. Authority to act under this CJ&A commences upon signature and expires on 30

September 2028.

3. Description of Supplies/Services.

This CJ&A covers the procurement of engineering and logistics supplies and services related to the aircraft and associated systems? subsystems, support equipment and ancillary equipment require~ to sustain the T-45. The efforts include: (a) Non-recurring engineering and logistics services to complete Systems Requirements Reviews (SRRs), Preliminary Design Reviews

(PDRs), Critical Design Reviews (CDRs), and Test Readiness Reviews (TRRs) related to the integration of engineering changes into the T-45 aircraft; (b) Prototype and validation hardware for testing, flight test and engineering validations; ( c) Class I Engineering Change Proposals

(ECPs) and engineering drawings associated with the development and integration of new and modified hardware and software into the T-45 aircraft; ( d) Studies, analysis, design, test, and reports associated with modernization and obsolescence activities; and ( e) Engineering, Technical and Logistics support related to Navy queries involving areas such as mishap investigations Engineering Investigations (Els), Bulletins, Interim Technical Directives and other technical/logistics support. The period of performance for this requirement is from 1 October

2018 through 30 September 2028. The estimated contract value is $92.85M as identified in the table below:

Estimated Dollar Value in Thousands

TOTAL

J&A 18-0135

Total 92,850

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

10 U.S.C. 2304(c)(l), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

In March 2017, there were ten physiological events (PEs) at CNATRA training sites which led to· an extended pause ofT-45 student pilot training. No existing reach back contract was in place with The Boeing Company, the Original Equipment Manufacturer (OEM), which would enable immediate turn-on of engineering investigations of the PE issues, determination of root cause, and initiation non-recurring engineering efforts to mitigate the PE issue through design changes to the T-45 aircraft. As a result, the program is establishing a long term Post-Production

Engineering and Logistics Support contract to enable the OEM's rapid response to existing and future T-45 technical and logistics issues.

Award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition. Boeing is the designer, developer, manufacturer, and supplier of the T-45 aircraft and its systems. The Government does not possess the necessary Technical Data Package (TDP) consisting of data in the design, engineering, and performance details of the aircraft needed to perform the engineering and logistics investigations or integration of design changes into the aircraft. On 1 February 2018, Boeing formally declined to sell this TDP to the Government. Performance of these efforts by any source other than the OEM is not possible without the TDP. The Government estimates that the design, development, integration and production of a new T-45 trainer aircraft would be required at an estimated cost of $12.9 billion .. Therefore, Boeing, the sole T-45 Training System

(T-45TS) manufacturer, is the only responsible source capable of performing the engineering an~

Integrated Logistics Support (ILS) support for the Post Production Support (PPS) phase for the

T-45TS.

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

A sources sought was released on 8 January 2018. Only one response was received from

JIRACOR, a small business·who stated they are interested in supporting Boeing under a subcontracting arrangement. As a result, Boeing is the only company considered responsible and qualified to perform these types of efforts as the Prime Contractor. A pre-solicitation notice was posted to FEDBIZOPPS on 26 January 2018.

J&A 18-0135

No additional market research was conducted because it is not practicable, for reasons discussed in Paragraph 5 above, for any source other than Boeing to provide the required supplies and services. Any subsequent responses to the synopsis will be evaluated by the Contracting Officer.

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. The Boeing Company's 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, the Government does not intend to compete efforts for the supplies and services covered by this document at this time ..