JA_Readiness_SE_Boeing_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 (J&A) authorizes and approves the establishment of a Firm Fixed Price sole source contract with The Boeing Company, 6200 JS McDonnell Blvd. Saint Louis, MO 63134-1939 (CAGE: 76301) for the procurement of Peculiar Support Equipment (PSE). As per the National Defense Strategy Implementation Memorandum from the Deputy Secretary of Defense dated 08 September 2018, direction has been given to achieve mission capability targets by the end of the Fiscal Year 2019 (FY19) for critical aviation platforms, specifically the F/A-18. A minimum of 80% mission capability rates need to be met. As a part of the F/A-18 corrective action plan, a F/A-18 Independent Readiness Review was conducted and the results have shown that the age and insufficient inventory of F/A-18 support equipment are degrading maintenance capabilities directly impacting Aircraft Readiness. In an effort to meet the capabilities need as described above, the U.S Navy is required to procure additional support equipment.

3. Description of Supplies/Services.

This acquisition is for the procurement of eighty-six (86) PSE end items in support of the aforementioned memorandum as listed in Enclosure I. This PSE is required to perform Intermediate and Organizational Maintenance tasks on F/A-18 E/F aircraft.

Estimated Dollar Value in Thousands

RDT&E

APN

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 requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

The Boeing Company is the only source that can meet the scheduled requirement to achieve mission capability target of 341 Primary Aircraft Authorized (PAA) by the end of FY19 as per the National Defense Strategy Implementation Memorandum from the Deputy Secretary of Defense dated 08 September 2018. An award made to any other source would result in unacceptable delays in fulfilling the agency’s requirements. It is estimated that initiating a procurement for the PSE through another source would produce a seven (7) year delay. This delay would consist of a minimum of five (5) years for non-recurring engineering that would be required to develop a bench, as well as a minimum of two (2) years for production before the Navy would be able to acquire the PSE end items. This would be an unacceptable interruption, as the F/A-18 E/F must be fully supported by the end of September 2019.

The Boeing Company is the original equipment manufacturer (OEM) designer, developer, manufacturer and prime integrator of the F/A-18E/F aircraft. As the OEM, The Boeing Company is the only source with the requisite knowledge, experience, technical expertise and technical data to provide the PSE for the F/A-18 E/F requirements. The Government does not own rights to the drawings and technical data package (TDP) for the F/A-18 E/F PSE to support a competitive acquisition. The drawings for the PSE have been left under Boeing Configuration Management and Boeing is the “Design Activity” for the items. Furthermore, the production line is still open, Aircraft changes are still taking place, and PSE is currently being incorporated into the drawings which the Government does not own.

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

Market research was conducted in accordance with FAR Part 10 by the NAWC-AD Lakehurst, NJ technical team, which consisted of various searches by part number, National Item Identification Number, and nomenclature via Google, Yahoo, and Bing search engines. Results indicated that The Boeing Company was the only known source capable of meeting this requirement.

A Request for Information (RFI) and Synopsis of this procurement were released to Federal Business Opportunities in accordance with DFARS 206.302-1(d) and FAR 5.201 on 19 December 2018 and 26 December 2018, respectively, to assist the NAVAIR Lakehurst team in identifying other potential companies. One response to the RFI was received by ETI Tech, LLC, a small business who asserted that they produce several PSE items for Boeing. The company requested the technical data package from NAVAIR. Due to the reasons detailed in the above paragraph, a TDP was not provided to ETI. Instead, the Government recommended that ETI contact The Boeing Company for potential subcontracting opportunities. Further, ETI’s ability to provide the PSE was not evaluated by the Government technical team as a formal RFI response in support of ETI’s capabilities had not been received. No further communications were received from ETI.

No responses to the synopsis were received. Any future responses will be evaluated by the Procuring Contracting Officer 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. An analysis of The Boeing Company’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 covered by this J&A.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, at this time, only The Boeing Company can meet the Navy’s requirement. Should the Government acquire rights to the technical data, a decision whether to compete future contracts for the PSE will be assessed. Because this is a follow-on effort for supplies previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(i), the prior justification (J&A 13-23664) is provided to the approval authority for review. Approval of this J&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(ii).

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

J&A Number:19-0139 J&A Number: 19-0139

ENCLOSURE I

MOD KIT 5924LKA145676SX

image1.jpeg