V-22_SUSTAINING_JA_Redacted.docx

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

IN REPLY REFER TO:

J&A #16-0362

J&A#16-0362

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

Naval Air Warfare Center Aircraft Division (NAWCAD) Lakehurst, NJ

2.0 Description of Action Being Approved.

This justification and approval authorizes and approves issuance of a contract on a sole source basis with the Bell Boeing Joint Program Office (BBJPO) for sustainment services in support of all fielded V-22 Operational Test Program Sets (OTPSs), the V-22 Hydraulic Automated Test System (VHATS), and the Hydraulic Test Program Sets (HTPSs). The contract will be issued on a Cost Plus Fixed-Fee, Level of Effort basis, and contain one base year and four one-year options.

3.0 Description of Supplies/Services.

The scope of the sustaining efforts will cover both the HTPSs supported on VHATS, as well as avionic (Lots I through IV) OTPSs supported on the CASS Family of Testers (CASS/RTCASS/eCASS). Support of OTPSs with eCASS is anticipated to begin in fiscal year 2020 for fielded V22 OTPSs; post eCASS Transition Testing and Resolution. Development of the Integrated Avionics Processor (IAP) Midwing Avionics Obsolescence (MAO) OTPSs is expected to be complete in fiscal year 2020 and 2021, respectively. Combo #5 HTPSs support is anticipated to begin in fiscal year 2019. All other efforts will begin in fiscal year 2017.

The sustainment services consist of the following:

(a) The analysis of design changes to develop hardware /software proof of concept engineering models that address component obsolescence due to Unit Under Test (UUT) or OTPS/VHATS/HTPS Engineering Change Proposal (ECP) changes. The contractor shall provide the resident expertise required in support of V-22 aircraft changes that impact the OTPS/VHATS/HTPSs hardware that may include, but are not limited to, redesign of the Panel Interface Device (PID), cables, electronic components, holding/ test fixtures, and software products (i.e. test software source code, and Functional Extension Programs (FEP)).

(b) Conduct Engineering Investigations (EIs) of OTPS/VHATS/HTPS hardware and software issues, and provide recommended solutions. Engineering Investigations may require the failed UUT/OTPS/VHATS/HTPS affected hardware and the latest released software to duplicate the discrepancy originating in the fleet. Investigation of reported defects may require hardware and/or software modifications in which the contractor is required to recommend solutions and update the necessary changes to the drawings, software (to include Source and executable code), technical publications or IETMs. Historically 30 EIs (against the CASS family of tester OTPSs) per year have initiated 30 tasks, when sustaining 24 fielded OTPSs; no VHATS/ HTPS data is available at this time.

(c) Coordinate configuration management status updates for all V-22 OTPSs/VHATS/HTPSs at bi-weekly Integrated Product Team (IPT) telecoms, and the estimated six (6) Configuration Control Board (CCB) meetings per year.

(d) Update Interactive Electronic Technical Manuals (IETMs) and technical publications per the assigned Technical Publication Deficiency Reports (TPDRs).

(e) Recommend upgrades/modifications to the V-22 OTPS/VHATS/HTPS hardware and software to improve the performance and/or functionality of the subject support equipment.

The total estimated value of the contract is approximately $9.0M and will be funded as set forth in the table below.

Estimated Dollar Value in Thousands

APN funding will be used for interim period before full transition to FST.

4.0 Statutory Authority Permitting Other Than Full and Open Competition.

The statutory authority permitting other than full and open competition is Title 10 United States Code 2304(c)(1) “only one responsible source and no other supplies or services will satisfy the requirements” as implemented by the Federal Acquisition Regulation Part 6.302-1.

5.0 Rationale Justifying Use of Cited Statutory Authority. The sustainment tasks to be performed require UUT and system integration expertise to investigate symptoms of tester problems that surface during testing but have their root cause in the UUT design. The integration of the avionics into the aircraft is the responsibility of the BBJPO as only they have the extensive knowledge of the entire V-22 avionics systems and the way in which the UUTs communicate with each other.

BBJPO is the original designer, developer, manufacturer and prime integrator of the V-22 Aircraft. They have the unique ability to rapidly acquire information, technical data regarding specific test procedures developed previously by the Original Equipment Manufacturers (OEMs) of the various V-22 aircraft components that require testing, the Units Under Test (UUTs) on the CASS/ RTCASS/ eCASS Automated Test Equipment (ATE) and on the VHATS.

BBJPO, as the prime integrator, investigates obsolescence issues, system upgrades and fleet issues and generates aircraft/platform level ECPs for analysis, review and government approval. The BBJPO is currently investigating several V-22 aircraft and OTPS ECP’s. This requires the BBJPO to evaluate and determine the impact of these ECPs to existing V-22 OTPS’s hardware and software. The BBJPO has extensive knowledge of each IETM developed in support of all the fielded V-22 OTPSs. The BBJPO has developed the necessary aircraft data and alone possesses the technical data and necessary data rights in order to support the UUTs that have been replaced on the aircraft. Access to both the aircraft and UUT data is critical for the sustainment of the subject V-22 OTPSs. The Government does not have access to the aircraft data, and acquiring complete aircraft data is prohibitively expensive. The aircraft data necessary includes approximately 65 complex avionics components, and potentially other aircraft components that interface with the avionics. Because of the magnitude of the data requirements, the price to obtain the data would not be recoverable through future competition. Access to UUT data for Lots I through IV is limited as the Government had not acquired Unlimited rights in data from the Original Equipment Manufacturer (OEM) during the design and development of the UUTs. Acquiring such data is prohibitively expensive. Therefore, full sustainment of fielded test equipment through Lots I through IV will require system integrator (BBJPO) participation. Newly developed UUTs (and OTPSs) are anticipated to be delivered with complete Unlimited rights data packages to allow for sustainment support.

Additionally, BBJPO designed, developed, tested and produced the VHATS and related HTPSs, including the respective technical data packages (TDP). The sustainment of these specific HTPSs requires ongoing access to a VHATS in order to prove out concepts and provide their recommended solutions. The current VHATS at Fleet Readiness Center (FRC) are fully utilized for production and HTPS development by the In Service Support Center (ISSC) – Cherry Point. The unique hydraulic qualities of the V-22 aircraft are driven by the tilt rotor characteristics and overall aircraft size and weight. Operating requirements that must be tested on the VHATS, using HTPSs to ensure safe operating conditions of the V-22 hydraulics, include 1) operating pressure of 5200 pounds per square inch gauge (psig) (+/- 50 psig), 2) minimum proof pressure of 7500 psig (+/- 50 psig) for the press port and 5000 psig for the return port and 3) flow rate of 0-40 gallons per minute (+/- 2%). The only test station capable of testing to these parameters is the VHATS.

BBJPO is the sole source that can meet the V-22 PMA-275 sustaining requirements for the V-22 OTPSs/ HTPSs, and is the only source with the requisite system knowledge, technical data and technical data rights, experience, aircraft integration information, and engineering expertise to fulfill this requirement for 100% of all V-22 OTPS/ HTPS.

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

Market Research was conducted to identify sources capable of meeting this requirement. This included discussions with industry and Government subject matter experts, as well as numerous internet search-engine perusals via websites such as Google.com, Dogpile.com and Yahoo.com. BBJPO was the only source found to be capable of meeting this requirement. In addition, the marketplace was canvassed via a Request for Information (RFI) that initially was posted on the FedBizOpps website on 4 January 2016 with a close date of 19 January 2016. This initial RFI received one (1) response from industry. This response, from Rudley Technology Solutions LLC, was reviewed by the V-22 technical team and although this company has a wealth of V22 experience, the company cannot demonstrate an existing V22 Sustainment support capability for the CASS, VHATS ATE or respective V22 OTPSs required for this procurement. Additionally, there is a risk that the Bell/Boeing relationships with their suppliers may not transfer over to a new entity, thereby making Mr. Rudley’s lack of UUT TDP information an unacceptable risk to the program.

As a result of the initial RFI, the Government determined that its content appeared to discourage or restrict competition. An amended RFI was issued which revised the requirement to be significantly less restrictive, which was posted on 14 January, with a close date of 29 January 2016. Once again, Rudley Technology Solutions LLC responded to the Amended RFI with the following statement “I will monitor the FBO Website for any further announcements on “V-22 Sustainment Services”.

Subsequently, the proposed acquisition was synopsized on the FedBizOpps website on 22 March 2016. The primary synopsis period expired 6 April 2016, no inquiries or challenges were received or presented. Should any parties interested in subcontracting opportunities surface, they will be referred to BBJPO to maximize competition in subcontracted efforts.

7.0 Determination of Fair and Reasonable Cost

In accordance with FAR 15.402, the Contracting Officer will ensure that all supplies and services provided under this contract are procured at a fair and reasonable price. The Contractor will be required to submit a formal price proposal with certified cost or pricing data and sufficient information to support the accuracy and reliability of the estimate on which the proposal is based. Analysis of the proposal will be performed by technical analysts and contract specialists, with the assistance of Defense Contract Management Agency (DCMA) analysts 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 actual costs from previous procurements. The Procuring Contracting Officer (PCO) will use Government expertise, including DCMA, DCAA, the Program Management Activity (PMA) and other Government resources to evaluate the proposed material, labor, indirect and subcontract costs. A detailed report developed as part of the Government evaluation will be used to establish a NAVAIR position. While there is not currently a rate agreement in place between Bell or BBJPO and DCMA, for the timeframe covered under the anticipated contract, the PCO will work with DCMA and DCAA to establish a rate position for negotiation of the contract. The PCO will use cost and price analysis as the basis for negotiating a fair and reasonable price for the supplies/support covered by this J&A.

8.0 Actions to Remove Barriers to Future Competition.

The majority of the requirements under this requirement represent new sustainment support for OTPSs that have not been previously fielded (MCOI/MAO/AMFD) and future OTPSs as well as the VHATS and associated HTPSs that were also not part of the previous OTPS Sustainment Contract N68335-08-0002, DO 0006. A small portion of the current sustainment support requirement (OTPS sustainment for Lots 1, 2, 3, and 4) represents a residual requirement for services previously awarded under Contract N68335-08-0002, DO 0006. J&A #11-8504 approved on 10 August 2011 authorized this sole source procurement from the BBJPO. As stated in the J&A, it was anticipated that the Fleet Readiness Centers would have sufficient time to obtain the requisite technical data and expertise for OTPS sustainment by contract end and would consequently assume the responsibility. Thus, a continuing sustainment requirement was not envisioned for Lots 1, 2, 3, and 4. Most of the sustainment support requirements for OTPS Lots 1, 2 and 3 OTPSs have been absorbed as planned by the Fleet Readiness Center; however, there are still some technical issues with the recently fielded Lot 4 OTPSs that may require future sustainment support. These represent a small portion overall of the sustainment support needed under this effort. The Fleet Readiness Center will continue to progress toward organic capability for all V-22 OTPSs; but, in the meantime, there is little likelihood that another cost-effective source will emerge. The PMA will continue to monitor the market for potential alternate sources.

For the reasons set forth in Paragraph 5, NAWCADLKE has no plans at this time to compete future contacts for the types of supplies/services covered by this document. If another potential source emerges, NAWCADLKE will assess whether competition for future requirements is feasible.

image1.wmf