PPELS_JA_REDACTED.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND

RADM WILLIAM A MOFFETT BUILDING

47123 BUSE ROAD BLDG 2272

PATUXENT RIVER MARYLAND 20670-1547

IN REPLY REFER TO:

J&A 24-0260

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center Aircraft Division (NAWCAD) Patuxent River, MD

2. Description of the Action Being Approved.

This Justification and Approval (J&A) authorizes and approves issuance of an Indefinite Delivery, Indefinite Quantity (IDIQ) contract and the issuance of task orders on a sole source basis to The Boeing Company (Boeing), St. Louis, MO for the procurement of Post-Production, Engineering and Integrated Logistics Support Services (PPELS) supporting the T-45 aircraft.

3. Description of Supplies/Services.

Boeing will provide PPELS related to the sustainment of the T-45 aircraft and associated systems, subsystems, support equipment and ancillary equipment. The efforts include program management, engineering and logistical support for the following tasks: (a) support reviews, prototype hardware verifications and validations related to the integration of engineering changes into the T-45 aircraft; (b) Support Part I Engineering Change Proposals (ECPs) and engineering drawings associated with the development and integration of new and modified hardware and software into the T-45 aircraft; (c) studies, analysis, design, test, and reports associated with modernization and obsolescence activities;

and (d) engineering, technical and logistics support related to Navy queries involving areas such as mishap investigations, Engineering Investigations (EIs), bulletins, Interim Technical Directives and other technical/logistics support. This effort will have a five-year ordering period from the date of award. The estimated contract value is $81M, and will be funded as identified in the table below:

Estimated Dollar Value (FY25 – FY29)

($M)

Funding/Appropriation FY25-FY29 Total ($M)

O&MN

RDTE

APN

Total $81

The current CJ&A (CJ&A 18-0135), approved on 29 May 2018 in support of the FY19-25 PPELS IDIQ is valid from 01 October 2018 through 30 September 2028 with an estimated value of $92.85M.

After re-analyzing the remaining four years of the contract, the estimated funding required for the remaining scope would surpass what was originally approved on the CJ&A. Due to unforeseen requirements that were not taken into account in the current estimated value, such as required analysis to facilitate the future development of the subsystem modifications and/or redesigns necessary to

J&A Number: 24-0260 extend their life until potentially 2035, it has been determined that a new IDIQ will be required to support PPELS efforts for FY25-FY29.

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

10 U.S.C. 3204(a)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

In accordance with FAR 6.302-1(a)(2)(iii)(B), the Government has deemed the requirements listed above to be available only through the original source, Boeing, and award to any other source would result in unacceptable delays in fulfilling the USN requirements.

The proposed acquisition is a follow-on requirement to a sole source procurement for the continuation of PPELS support, which requires highly specialized services that are dependent upon the OEM’s proprietary data, processes and subject matter expertise that are not available from other commercial sources but are necessary for PPELS of T-45 aircraft. This would require other sources to procure the data from Boeing as the original source or reverse engineer the data independently, both of which would result in an unacceptable delay in fulfilling the USN requirements. Full and open competition would result in failure to meet program requirements while increasing program cost, delaying critical support needs of the fleet and increasing overall program risk without a reasonable means of mitigation.

The Government estimates a delay of 24 to 48 months in procuring these services from another vendor.

The time it would take to qualify a new vendor would be a detriment to the Government and would delay critical work in support of the platform and the Training Command. As the designer, develop, manufacturer and supplier of the T-45 aircraft and its systems, Boeing is the only source in the commercial market with the data, processes and expertise required to fulfill the specific PPELS requirements. Boeing owns and maintains all developmental, design, test and qualification data and the necessary processes and analytical tools needed for aircraft PPELS and certification functions. Neither the Government nor another commercial source have access to the data within the T-45 technical data package or the experience and unique capabilities of Boeing to perform these functions. Performance of the PPELS efforts by any source other than Boeing is not possible without the technical data package.

Although the Government did ask Boeing on July 8, 2024, for an estimate to sell or license rights to its data to the Government, Boeing declined on July 23, 2024. Accordingly, only Boeing can execute the requirements of this procurement in the needed time frame.

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

A Sources Sought to determine potential qualified sources, and their technical capabilities was posted to SAM.gov on May 23, 2024. Respondents were also invited to contact Boeing directly for subcontracting opportunities, if they believed they could satisfy some of the requirements. The only respondent was Boeing.

In accordance with FAR 5.201(b)(1), the Government posted a synopsis on SAM.gov announcing the intent to award an IDIQ for the T-45 PPELS effort on a sole source basis to Boeing on July 10, 2024;

which resulted in no responses. If any responses are received at a later date, the Contracting Officer will give proper consideration prior to award. The T-45 IPT maintains a constant survey of the aircraft industry and has not identified any other sources capable of performing the T-45 PPELS efforts within the schedule and fiscal constraints of the program. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any other company

J&A Number: 24-0260 other than Boeing to provide the required services.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NAWCAD 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 prior to the expiration of the IDIQ contract in 2030, NAVAIR will assess whether competition for future requirements is feasible.

As this is a follow-on for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(S-70)(i), the prior justification (CJ&A 18-0135) was 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)(S-70)(ii).