JA_Boeing_Limited_Comp_Commercial_RAAF_REDACTED.doc

J&A_17_0026

17-0026

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 procurement of various Boeing Commercial Common Support Equipment (CSE) required to support the airframe of the P-8A aircraft for the Royal Australian Air Force (RAAF). The resultant contract will be issued on a Firm Fixed Price basis. This procurement will be limited to the small business manufacturers authorized by Boeing to manufacture this equipment.

3. Description of Supplies/Services.

This acquisition is for various Boeing CSE. The CSE is used to perform numerous airframe maintenance, installation, and removal tasks. The various Boeing CSE include the following:

The quantities above fill deficits for the RAAF.

See Appendix A for Estimated Dollar Value

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.

Boeing is the original designer, developer and manufacturer of the support equipment identified above. The equipment has been specifically designed by Boeing to support Organizational (O) level maintenance operations for the 737 and P-8A aircraft. This data is proprietary to Boeing and was developed, in part, from equipment designs Boeing previously developed for similar 737 commercial aircraft. Boeing is not willing to sell the data and associated rights necessary to manufacture these items and the equipment is available only from Boeing or their small business authorized manufacturers: Farwest Aircraft, AirSpares, Spec Tool, Industrial Automation, Seyer and Menches. Boeing has tested and validated the above support equipment to perform the maintenance tasks of the 737 and P-8A aircrafts. The commercial CSE was selected by Boeing based on 737 requirements and was not developed at Government expense, therefore the Government does not possess the data rights or the functionality requirements for all commercial common pieces of SE and cannot evaluate other competitors. Training, licensing, tech manuals, publications, and other logistics elements have been developed to support this unit.

An adequate purchase description or other information suitable to solicit by full and open competition has not been developed because the Government does not have sufficient engineering data or drawings to organically design the above items and enable a competitive procurement. Additionally, PMA-290 procured the P-8A and all associated support elements through Boeing under the original contract (N00019-09-C-0022), with the exception of Boeing Contractor Logistics Support for life. The program shifted the strategy to organic support at the O-level, and has since continued to deviate from dependence on Boeing. All the ground support equipment for the P-8A was identified and assigned prior to this decision by the PMA. The program procured the initial stand-up of SE through Boeing via Low Rate Initial Production (LRIP) contracts 1-4. After LRIP 4, the decision was made to sever the procurements of support equipment from Boeing as a cost savings measure since they did not directly manufacture any of the equipment. The above part numbers were validated and tested by United States Navy starting in August 2011 and have been authorized for fleet use. P-8 Engineer, Robert Cardone verified that this information is accurate and up to date as of October 2016.

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

Market research was conducted and confirmed that there are multiple vendors authorized by Boeing to manufacture the Boeing CSE required. Various Internet search engines (Google, Yahoo & Bing) were queried for potential sources of the CSE to meet P-8A requirements. Boeing was contacted and provided a list of authorized vendors capable of meeting the requirements. These items of commercial CSE were selected by Boeing based on 737 interface requirements which were not developed at Government expense, therefore the government does not possess the data rights, the interface requirements or the functionality requirements for all commercial common pieces of SE and cannot evaluate other competitors. An adequate purchase description or other information suitable to solicit by full and open competition has not been developed because the Government does not have sufficient engineering data or drawings to organically design the above items and enable a competitive procurement. The resultant Request for Proposal will be issued as a Combined Synopsis Solicitation on the FedBid website.

7. Determination of Fair and Reasonable Cost.

The negotiation and establish of a fair and reasonable price will be conducted in accordance with FAR 15.4. As stated in FAR 15.402, the Contracting Officer shall ensure that all supplies and services under this contract are procured at a fair and reasonable price.

8. Actions to Remove Barriers to Future Competition.

For reasons set forth in paragraph 5, NAVAIR has no plans to conduct a full and open competition for future procurements. If another potential source emerges, NAVAIR will assess whether a full and open competition for future requirements is feasible.

Appendix A

Estimated Dollar Value in Thousands

$201K

$201K

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