redact_Digtial_Torque.doc

J&A_19-0033

J&A_19-0033

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 five-year, Fixed Price, Indefinite Delivery/Indefinite Quantity type contract to Advanced Torque Products, LLC. (cage code 3GWU8) for the manufacture of the Digital Torque Multiplier Set, P/N ATP2014. These Digital Torque Multiplier Sets are required to install or remove the mast nut on the main rotor head of the MQ-8C Unmanned Aircraft System (UAS) at land-based sites and aboard Littoral Combat Ships.

3. Description of Supplies/Services.

This acquisition is for the manufacture of the following items and quantities to fulfill United States Navy requirements:

See Appendix A for Estimated Dollar Value

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

10 U.S.C 2304(c)(1) and FAR 6.302-1(a)(2), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

The MQ-8C Unmanned Air System (UAS) requires the Digital Torque Multiplier Set, P/N ATP2014. The components within this set are used by many commercial and military customers. They were designed and developed at the expense of the Original Equipment Manufacturer (OEM), Advanced Torque Products, LLC, for maintenance on various commercial helicopters including the Bell 407, upon which the MQ-8C is based.

This Digital Torque Multiplier Set was the only item found with the required tools, torque capacity, resolution, and other physical characteristics to torque the mast nut to the required 750-800 ft-lb required in accordance with Bell publications or to break loose the mast nut for removal, which can exceed 1000 ft-lbs. It has been proven through testing, redesign and retesting to be compatible with the MQ-8C main rotor head. Furthermore, the MQ-8C Reaction Stand within this set is modified COTS that was developed at the OEM's expense specifically for the unique rotor head configuration of the MQ-8C. Other torqueing tools have been considered and tested but cannot complete the maintenance task satisfactorily.

Advanced Torque Products, LLC has retained proprietary rights to the technical data and drawings as the Government did not procure the technical drawing package.

Our subject matter expert has identified Advanced Torque Products, LLC as the actual manufacturer of this Support Equipment, in possession of the required drawings and capable of manufacturing the required items. Market Research has confirmed that no alternate sources are able to manufacture these items.

Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in a Substantial duplication of cost to the Government that is not expected to be recovered through competition.

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

Market research was conducted and confirmed that Advanced Torque Products, LLC is the only source that can provide these required items. The Digital Torque Multiplier Set is the only product that will meet the Government’s requirement based on its ability to interface with the aircraft and to adequately torque and remove the mast nut. Various internet search engines (Google, Small Business Database) were queried for potential sources of this item to fill the requirements, of which, only Advanced Torque Products, LLC was identified. A Request for Information (RFI) was posted for this procurement on FedBizOpps on 04 Oct 2018 and closed on 19 Oct 2018 respectively with no responses. 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.

7. Determination of Fair and Reasonable Cost.

The negotiation and establishment 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 purchase all supplies and services at a fair and reasonable price. Based upon historical cost data, the Contracting Officer, Defense Contract Management Agency, and Defense Contract Audit Agency auditors have adequate information and background to determine 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