JA_for_H640_Test_Set_rev5_21_Nova.pdf

J&A Number 16-0478

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 contract to Howell

Instruments, Inc., a Small Business firm in Fort Worth, TX, for the procurement of fifty (50) H640

Engine Test Sets. This will be a 3-year, Indefinite-Delivery/Indefinite-Quantity type contract. The total estimated dollar value is $2,925,000.00.

3. Description of Supplies/Services.

This acquisition is for the procurement of fifty (50) H640 Engine Test Sets. The H640 Engine Test Set is designed to replace the currently fielded, but unsupported, H337NP-600A Engine Test Set. The H640

Engine Test Set is used to measure the Variable Geometry Vane (VGV) angles on T-64 engines. In addition, the test set will display Stage 1 variable vane angle, engine compressor speed (Ng), and ambient temperature (TAMB-engine inlet temperature) concurrently. The H640 Engine Test Set will be used to immediately provide support to the currently fielded CH/MH-53E helicopters.

See Appendix A for Estimated Dollar Value.

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 engine test set that is currently in use in the CH/MH-53E community, the H337NP-600A Engine

Test Set, was designed, developed, and manufactured by Howell Instruments Inc, for use in a wide variety of various Type/Model/Series aircraft. The H337NPNP-600A Engine Test Set also had a multitude of functions and tests that it was capable of performing. Over the years, as several aircraft

Type/Model/Series have been retired, fewer Naval aircraft were serviced by this test set, finally only the

CH/MH-53E community was the sole user. As a result the H337NP-600A Engine Test Set has become obsolete and is no longer supported by Howell Instruments. The H337NP-600A Engine Test Set exhibits chronic supportability and performance issues. Therefore, the Fleet user cannot accurately determine maximum engine efficiency, which thereby causes a serious safety of flight condition. Furthermore, this lack of supportability represents a readiness and mission performance degrader to a critical Naval aviation platform that is experiencing additional and unrelated mission availability issues. The CH/MH-

53E fleet requires a replacement for the H337NP-600A Engine Test Set that will seamlessly interface with the T64-GE-416/419 engine.

Howell Instruments designed the H640 Engine Test Set as a replacement for its H337NP-600A Engine

Test Set, which has been successfully fielded since the 1980s. As the Original Equipment Manufacturer

(OEM), Howell Instruments owns the technical data and is the sole designer, developer and manufacturer of the H640 Engine Test Set. Award to any other source would result in an unreasonable delay due to the required design, development and first article testing of an alternate replacement test set. For Howell Instruments, development is not required and the procurement lead time is 6 months with an additional 6 months to account for production lead time. The procurement and development lead time for any source other than Howell Instruments would be at least 2 years [one (1) year for procurement and one (1) year for design, development and first article testing] with an additional six (6) months to account for production lead time.

Due to the readiness issues related to the H337NP-600A Engine Test Set described above, a separate procurement has been awarded under the authority of 10 U.S.C. 2304(c)(2) for fifteen (15) each H640

Engine Test Sets, or one (1) for each squadron. However, the unusual and compelling urgency is only a short-term solution as the requirement, based on the Support Equipment Resources Management

Information System (SERMIS), is for five (5) engine test sets per squadron. Even with one (1) each

H640 Engine Test Sets, each squadron will only be at 20% capacity. Each H-53E Squadron is allocated five (5) engine test sets. This number is based on three test sets (3) for the parent unit and two (2) test sets for detachments. With the initial outfitting of one (1) test set per squadron, there will be some short-term immediate relief, but not a complete fix to the readiness issue posed by the obsolescence of the

H337NP-600A Engine Test Set. Readiness and maintenance efforts are impacted by the lack of available test sets.

As a result, there can be no unreasonable delay in ensuring all CH/MH-53E squadrons reach full capacity, and an award to Howell would minimize the negative impact to the mission capability and readiness of the CH/MH-53E aircraft.

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

In accordance with Department of Defense Federal Acquisition Regulation Supplement 206.303-2, a

Request for Information (RFI) was posted on the Federal Business Opportunities website on 19 October

2016, seeking potential sources for the procurement of a replacement test set for the NP-600. No responses were received to the RFI. The synopsis required by FAR 5.201 was published on the Federal

Business Opportunities website on 2 November 2016. The primary synopsis period has elapsed with no responses; however, the Contracting Officer will evaluate any responses received prior to award.

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 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.

It is anticipated that the quantities being procured under this contractual action will satisfy all known current and future requirements. Howell Instruments currently has no interest in selling the data rights for the H640 Engine Test Set to the Government. Should additional requirements arise, the Government will inquire with Howell Instruments again regarding the purchase of unlimited data rights to the H640

Engine Test set.