Retractable_Sheaves_JA-redacted_version.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

IN REPLY REFER TO:

J&A_ 18_0006

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 Firm Fixed Price contract for the procurement and delivery of three Retractable Sheaves (STARBOARD) Part Number

3941AS0500-2, three Retractable Sheaves (PORT) Part Number 3941AS0500-3, associated engineering test reports and an Integrated Master Schedule in support of CVN 79 Advanced

Arresting Gear (AAG). The required Retractable Sheaves are Critical Safety Items (CSIs) and therefore it is the Navy’s intent to pursue a limited competition contract based on the results of the market research. According to the Technical Data Requirement (TDR) package #17-19004 the following vendors are qualified to provide these CSIs:

The Entwistle Company, 6 Bigelow Street, Hudson, MA

Penn State Tool and Die Corporation, 7590 Route 30, North Huntingdon, PA 15642

3. Description of Supplies/Services.

A requirement exists to procure and deliver three Retractable Sheaves (STARBOARD), Part

Number 3941AS0500-2, and three Retractable Sheaves (PORT), Part Number 3941AS0500-3, engineering test reports, and an Integrated Master Schedule in support of CVN 79 Required In

Yard Date of 02 February 2020. The value of this procurement is $2,400,000. The Retractable

Sheaves facilitate the routing and payout of the arresting engine purchase cable from the through deck sheave to the cross deck pendant. The components are unique in that it may be lowered from its operational position to a point where it is flush with the flight deck in order to accomplish unobstructed aircraft handling on the flight deck.

Estimated Dollar Value in Thousands

FY 17 FY 18 FY 19 FY 20 FY 21 Total

SCN $2,400K $2,400K

RDT&E

OPN

O&MN

Total $2,400K

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 Retractable Sheave Assemblies are CSIs which will be used as part of AAG. Given its CSI designation any departure from the requirements could result in loss in life, serious personnel injury, loss of a combat system and/or the loss of the aircraft. In addition the subsystem requires highly specialized manufacturing processes to include welding, heat treatment, High Velocity

Oxygen Fuel, workmanship, and material certification. Therefore, the acquisition strategy will be to pursue a limited competition among the approved, qualified vendors with the proper resources and processes to manufacture and deliver the units, as identified in the Technical Data

Requirements (TDR) Package #17-19004. The vendors, identified in the TDR package are CSI approved sources.

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

Market research, completed in April 2017, confirmed the existence of the two qualified vendors cited in paragraph 2, as identified in the TDR package. No other sources have been approved since the last procurement. Additional discussions with the Quality Assurance 4.8.8.3 and ALRE

Engineering 4.8.2.7 competencies indicated that the vendors’ previous deliveries of other CSI components were satisfactory to the Navy.

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 Contractors will submit formal price proposals with cost or pricing data and sufficient information to support the accuracy and reliability of the estimate. Contractors’ proposals 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 competition as the basis for establishing price reasonableness.

8. Actions to Remove Barriers to Future Competition.

Given the CSI designation, a vendor must submit its application to NAVSUP to be qualified, which is a lengthy process. The Retractable Sheave Required-In-Yard to CVN 79 is Feb 2020.

If there is a delay in delivery, the Navy will incur additional cost and negatively impact the ship construction schedule. For any future procurement of the Retractable Sheaves, another round of market research will be performed to gauge the availability of any other CSI-qualified vendors who can meet the Navy's requirement via the Request for Information (RFI) process.