J&A_ATFLIR_OTPS_Redacted.docx

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

IN REPLY REFER TO:

J&A_17_0036 J&A_17_0036

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center Aircraft Division (NAWC-AD) Lakehurst, NJ

2. Description of the Action Being Approved.

This justification and approval authorizes and approves on a sole source basis a Firm Fixed-Price contract with The Boeing Company for the procurement of critical spares in support of the Advanced Targeting Forward Looking Infrared (ATFLIR) Operational Test Program Sets (OTPS). The ATFLIR OTPSs are used on Consolidated Automated Support System Electro-Optical (EO3) stations to support the AN/ASQ-228 ATFLIR which is a multi-sensor, electro-optical targeting pod incorporating thermographic camera, low-light television camera, target laser rangefinder /laser designator, and laser spot tracker.

This contract action will be in support of the Switzerland F/A-18C/D program.

3. Description of Supplies/Services.

This action is a procurement for critical spares in support of the ATFLIR OTPSs as required by the Switzerland F/A-18 Program. The vendor shall manufacture, test, and deliver the attached spares list (see attached, “Boeing ATFLIR OTPS 0023 & 0033 I-Level Spares”).

The estimated total value of this contract is $1,900,000 and will be funded as set forth in the table below.

Estimated Dollar Value in Thousands

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 items listed are the only items authorized to meet the logistics requirement of the support equipment end item. Procurement of any other critical spare parts would result in substantial duplication of program costs that would not be expected to be recovered through competition. The duplicate costs would consist of, but are not limited to, the following: engineering development, testing, updating of maintenance plans, technical publications, and training in the amount of approximately $100,000. As the Original Equipment Manufacturer, Boeing has proprietary rights to the technical data and drawings and is the sole designer, developer and manufacturer of these items above. Boeing is the only known source for the ATFLIR components required.

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

A web search was conducted by part number and nomenclature using multiple search engines and the Small Business Dynamic Search Site. All of these efforts lead to no other sources for these items other than Boeing. In accordance with FAR 5.201, the proposed procurement action was synopsized on the Federal Business Opportunities website on 15 June 2015. No inquiries were received. Additionally, in accordance with DFAR PGI 206.302-1, the proposed procurement action was posted as a Sources Sought Notice on Federal Business Opportunities web site on 28 May 2015. No inquiries were received.

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. An analysis of Boeing’s proposal 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 the proposal, as well as review the actuals from previous procurements, if applicable. The Contracting Officer will use Government expertise, including DCMA, DCAA, and other Government resources, to evaluate the proposal material, labor, and subcontracts. A detailed report, developed as part of the Government evaluation, will be utilized to establish a NAVAIR position. 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 supplies and services covered by this J&A.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in paragraph 5, the U.S. Government has no plan at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, the U.S. Government will assess whether competition for future requirements is feasible.

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