LM Pres Helo JA Funds and Signature Redacted.docx

DEPARTMENT OF THE NAVY

NAVAL AIR

SYSTEMS COMMAND AIRCRAFT DIVISION

21983 BUNDY ROAD

BUILDING 441, UNIT 7

PATUXENT RIVER

MARYLAND

20670

IN REPLY REFER TO:

CJ&A_12_22162

CJ&A_12_22162

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center Aircraft Division (NAWC-AD) Patuxent River, MD

1. Description of the Action Being Approved.

This class Justification and Approval (J&A) authorizes and approves on a sole source basis the issuance of a cost plus fixed fee indefinite delivery/indefinite quantity (IDIQ) contract to Lockheed Martin Logistics Services (Cage 1FUD6) for the design, modification, limited production and repair of VH-60N and VH-3D avionics of which Lockheed Martin Logistics Services is the Original Equipment Manufacturer (OEM). Authority to act under this CJ&A expires on 30 SEP 2017.

1. Description of Supplies/Services.

This effort will provide uninterrupted prototyping, fabrication, modification, integration, installation, certification testing, logistics support/repair and fielding, and engineering design support of existing and upgraded avionics required for the VH-60N and VH-3D Presidential Helicopters. Lockheed Martin Logistics Services is the OEM for unique avionics components that are currently installed onboard the VH-60N and VH-3D or are in the process of being modified as part of the platforms crypto modernization program. These avionics include the Communication Interface Unit (CIU P/N VH83001-1 and VH93001), SATCOM Integrated Mount (SIM P/N VH70201 and VH90201), Common Fill Panel (CFP P/N VH85601-1), SATCOM Fill Panel (SFP P/N VH72601), Remote Fill Panel (RFP P/N VH62401), Mil-Aide Panel (MAP P/N VH62201), Emergency Control Panel (ECP P/N VH62140), Navigation Interface Unit (NIU P/N VH61001), VHF-FM Radio (ARC-209(B) P/N VH77001 and AN/ARC-244A), Direction Finding Switching Unit (DFSIU P/N VH51001) and Automatic Test Equipment required to repair previously identified Avionics (ATE P/N VH84001).

1. 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.

1. Rationale Justifying Use of Cited Statutory Authority.

Lockheed Martin Services is the Original Equipment Manufacturer (OEM) that designed, certified and repairs the VH unique avionics identified in Paragraph 3.0. Therefore, Lockheed Martin is the sole contractor that possesses the technical expertise, component firmware and technical data packages required to manufacture, modify and support the VH-60N and VH-3D platform specific avionics components without critical program delay and additional set-up expenses. No other sources have been identified that would be capable of satisfying the requirement.

The current contract number, N00421-05-D-0054, was procured through full and open competition. Only one offer was received and it was from Lockheed Martin Logistics Services Inc, the sole source justified herein. The predecessor contract, N00421-00-D-0340, was also procured through full and open competition. Similarly, only one offer was received and it was from Martin Marietta (prior to its merger with Lockheed and designation as Lockheed Martin Logistics Services, Inc).

The avionics architecture built by Lockheed Martin is unique and designed specifically for the Presidential Helicopters (VH-3D/VH-60N). These avionics components are not utilized by any other military or commercial aircraft. The estimated cost and schedule for another company to stand up this capability is $10 million and 5 to 7 years, respectively. As indicated by the lack of responses to the prior competitive solicitations, the combination of duplicative start-up costs and the limited production quantities of the relatively small fleet of Presidential Helicopters make it cost prohibitive for another company to establish the required capabilities.

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

In accordance with FAR 5.201(b), a Sources Sought Synopsis was posted on the FEDBIZOPS website on 10 June 2011 and a synopsis posted on 20 July 2011. To date no other sources have expressed an interest or demonstrated capability to satisfy the requirement. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than Lockheed Martin Logistics Services, Inc to provide the required supplies and services.

1. 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 contractor’s proposals will be performed by technical analysts and contract specialists, with the assistance of DCMA analysts and DCAA auditors as needed. The Contracting Officer will analyze the various cost elements that are presented in proposals, as well as review the actuals from previous procurements, if applicable. The Contracting Officer will use Government expertise, including DCMA, DCAA, the PMA, and other Government resources, to evaluate the proposal's material, labor, and subcontract positions. A detailed report developed as part of the Government evaluation will be utilized to establish a NAVAIR position. If a rate agreement is not in place between Lockheed Martin and DCMA at the time of proposal evaluation, the Contracting Officer will work with DCMA and DCAA to establish a rate position, to include escalation, for negotiation of the contract action. 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/support covered by this CJ&A.

1. Actions to Remove Barriers to Future Competition.

For reasons set forth in paragraph 5, NAVAIR has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If other potential sources emerge, NAVAIR will assess capabilities and determine the feasibility for competition.

image1.wmf