JA_-_F414_squadron_transition_-_Rhinestahl_REDACTED.docx

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 Firm Fixed-Price contract with Rhinestahl Customer Tooling Solutions, 7687 Innovation Way, Mason, OH 45040, CAGE Code 5QE71, for the procurement of F414 engine support equipment. This will be a delivery order against Defense Logistics Agency (DLA) Basic Ordering Agreement (BOA) SPE4A1-18-G-0011, and will be in support of the F/A-18 program.

3. Description of Supplies/Services.

This acquisition is for the procurement of F414 engine peculiar support equipment (PSE) in support of the F/A-18 squadrons transition from legacy to super hornet at Fleet Readiness Center Mid Atlantic, Naval Air Station Oceana. The F414 PSE will provide the squadrons the capability to repair and maintain F414 engines at the organizational level.

Estimated Dollar Value in Thousands

RDT&E

APN-1

O&MN

Total

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 Requirement.

5. Rationale Justifying Use of Cited Statutory Authority.

General Electric Company is the original designer, developer, and the original equipment manufacturer (OEM) of the F414 engine. As the OEM, General Electric Company has authorized Rhinestahl Customer Tooling Solutions as its sole provider of F414 engine PSE and as such, Rhinestahl Customer Tooling Solutions is the only company that has the requisite knowledge, sufficient technical data, drawings, software, and trained technical personnel to provide these items. The data rights for the F414 engine are proprietary to General Electric Company and have not been transitioned to the Navy to support a competitive acquisition. Rhinestahl Customer Tooling Solutions is the only source who can provide the F414 engine PSE which is needed to maintain the operational readiness of the aircraft.

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

Market Research was conducted by performing a web search on the items by part number and nomenclature, which resulted in no other vendors being identified that can provide these items. Rhinestahl Customer Tooling Solutions was the only authorized source capable of meeting this requirement. An RFI was posted on 04 June 2018, and ended 09 June 2018. A response was received from one (1) vendor, US Aeroteam Inc. The TPOC reviewed their capabilities and the following was determined and relayed to the vendor:

Rhinestahl is the only approved vendor to provide F414 support equipment designed by GE. There was an agreement between GE and Rhinestahl, which included certifying Rhinestahl as the only approved vendor for GE parts. Part of the certification includes ensuring that the parts are built to print per specifications, and drawings are fully updated. Rhinestahl (as part of the agreement) assumes all risks or other issues on the deliverables.

The issues with US Aeroteam reverse-engineering these parts are cost and schedule. US Aeroteam is not an approved vendor by GE and are not certified to provide GE parts. This certification, which will include testing, will incur additional (non-recurring) cost. As for the schedule, part of this certification will result in a delay of delivering the support equipment. In this particular buy, we are procuring support equipment for the Super Hornet transition at FRCMA Oceana, which has set dates for the site activations. Going with another vendor that is currently not certified to provide GE parts will result in a delay of the delivery, which will have a significant impact to the transition. The vendor agreed with the statements made, and withdrew their interest.

The synopsis required by FAR 5.201 was published to Federal Business Opportunities on 01 August 2018. No responses to the synopsis were received.

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. An analysis of Rhinestahl’s proposal will be performed by technical analysts and contract specialists, with the assistance of Defense Contract Management Agency (DCMA) 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 review the actuals from previous procurements, if applicable. The Contracting Officer will use Government expertise, including DCMA, DCAA, and other Government resources, to evaluate the proposal material, labor, and subcontracts. A detailed report, developed as part of the Government evaluation, will be utilized to establish a NAVAIR position. As discussed in this paragraph, the Contracting Officer will use cost and price analysis as the basis for negotiating a fair and reasonable price for the supplies and services covered by this J&A.

8. Actions to Remove Barriers to Future Competition.

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

J&A Number: 18-0347

For the reasons set forth in Paragraph 5, NAVAIR has no plans at this time to compete future contracts for F414 peculiar support equipment. If another potential source emerges, NAVAIR will assess whether competition for future requirements is feasible.

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