Attachment_1_-_JA_Malabar_Limited_Comp_REDACTED.docx

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

IN REPLY REFER TO: J&A_16_0541

J&A_16_0541

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 a limited competition between Malabar International of Simi Valley, CA and their authorized distributor Integrated Procurement Technologies of Vandalia, OH, for the manufacture and delivery of Dispenser, Turbine Oil, 1 Quart, Hand Held; Forward Body Jack; Jack, Hydraulic, Tripod, 50 Ton; Cart, Servicing Landing Gear Shock Strut; Dispenser, Skydrol, Portable 5 GAL; Coolant Service Cart; and Aft Body Jack.. This resultant Firm Fixed-Price contract will provide requirements to support initial outfitting for P-8A aircraft Product Support for the United States Navy, the Advanced Airborne Sensor P-8A configuration, and the Royal Australian Air Force (RAAF).

3. Description of Supplies/Services.

This acquisition is for the manufacture of the following items:

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

41 U.S.C. 1901, Simplified acquisition procedures (Certain Commercial Items).

5. Rationale Justifying Use of Cited Statutory Authority.

Malabar International (Malabar) is the original designer, developer and manufacturer of the P-8A and 737 commercial support equipment identified above. The equipment has been specifically designed by Malabar to support the commercial 737 and P-8A Organizational (O) level maintenance operations. Malabar is the only source with the technical data necessary to manufacture this equipment. This data is proprietary to Malabar. Malabar is not willing to sell the data and associated rights necessary to manufacture these items. If performance specifications for these items could be developed, there would be additional duplicative costs and delays in fielding this equipment since the items would be required to undergo Verification/Validation (VER/VAL) testing and require additional logistics support data items.

Any new support equipment items to be considered for use would be required to successfully pass VER/VAL testing. In addition to incurred costs and time, each item to be evaluated would have to be purchased prior to testing. The acquisition of the items and completion of VER/VAL testing is estimated to take at least six (6) months which would be an unacceptable delay in initial outfitting of P-8A sites which is required by February 2017 or earlier. The total cost associated with the VER/VAL testing would be $172,000.00.

Additionally, if an item successfully passes VER/VAL testing, any new item of support equipment would require a new lifecycle logistics support data package. The logistics support costs include: conversion of commercial manuals to MIL-STD-3001 requirements, Manual/Publication updates. Also, the Forward Body Jack, 50 Ton Tripod Jack, and the Aft Body Jack would require training, operator certification and maintenance plan development. The logistics support data package alone would total $907,500.00 and the total cost duplication covering VER/VAL testing and logistics support data packages for all four items would be $1,079,500.00. The delay in initial outfitting would be ten (10) months. This cost represents a substantial duplication of costs which would not be expected to be recouped through competition and also represents an unacceptable delay in initial outfitting of P-8A aircraft.

Malabar has only one authorized distributor of the aforementioned support equipment, Integrated Procurement Technologies of Vandalia, Ohio. As such, the support equipment is only available through Malabar and Integrated Procurement Technologies.

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

Market research was conducted and confirmed that Malabar International is the only source that can provide these required items. Various internet search engines (Google, Bing, and Yahoo) were queried for potential sources of these items to fill the needed requirements, of which, only Malabar International was identified. After further market research, there is no known source other than Malabar International and their authorized distributor Integrated Procurement Technologies that can provide the support equipment for the P-8A requirements for maintenance procedures on the aircraft. In accordance with FAR 5.201, a combined synopsis/solicitation will be posted on the Fedbid website.

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. Malabar International’s proposal will be reviewed by experienced technical analysts and contract specialists. The Contracting Officer will utilize 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, NAWC-AD has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, NAWC-AD will assess whether competition for future requirements is feasible.

Appendix A

Estimated Dollar Value in Thousands

$747.9K

$62.4K

$321.2K

$1,131.5K image1.wmf