Redacted_CJA_V22_MYII.pdf

DEPARTMENT OF THE NA VY

NAVAL AIR SYSTEMS COMMAND

RADM WILLIAM A. MOFFETT BUILDING

47123 BUSE ROAD, BLDG 2272

PATUXENT RIVER, MD 20670-1547

CLASS JUSTIFICATION AND APPROVAL

IN AEPL Y REFER TO

CJ&A No. 11-53000

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Naval Air Systems Command Headquarters.

2. Description of the Action Being Approved: This Class Justification and Approval (CJ&A) authorizes and approves the issuance of a second Multi-Year Production (MYP2) contract to the Bell-Boeing Joint Project Office (Bell-Boeing) to procure production and related support for the V-22 Osprey Tiltrotor Aircraft. It is anticipated that the follow-on MYP2 contract will cover requirements for fiscal year (FY) 13 through 17 (Lots 17-21). Should Congress not grant multi-year authority, this CJ&A authorizes procurement of FYI 3-17 (Lots 17-21) requirements under a single year contracting approach. In either situation, the CJ&A authorizes and approves the issuance of an Advance Acquisition Contract (AAC) in FY12 for the procurement of long lead material and associated efforts in order to protect the production and delivery schedule for Lot 17. Authority to act under this CJ&A expires 31March2018.

3. Description of Supplies/Services: This CJ&A authorizes and approves the issuance of contract actions necessary for the follow-on production and delivery of V-22 aircraft and related supplies and services, including production support, special/rate tooling and test equipment, systems engineering, production management, parts obsolescence, engineering change proposals and technical, administrative and financial data. The planned V-22 aircraft procurement quantities set forth below are based on the V-22 program of record for United States Marine Corps (MV-22) and United States Air Force (CV-22) requirements. Aircraft deliveries for the planned quantity are projected to occur at 3.n average of approximately 2-3 per month throughout the contract delivery period(s). Additional aircraft may be procured as subsequently authorized and appropriated by Congress and/or to provide for Foreign Military Sales requirements. The Government intends to include variation in quantity and/or pre-priced options within awarded contract(s) to cover such contingencies.

Planned Aircraft Quantities FY13 FY14 FY15 FY16 FY17 Total

MV-22 23 23 23 23 23 115

CV-22 4 3 0 0 0 7

Total 27 26 23 23 23 122

The estimated value of the MYP2 contract is $8,127,300,000.00 allocated per the funding profile set forth below which is based upon the FY 2012 Department of the Navy (DoN) budget in support of the V-22 program of record.

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CJ&A No. 11-53000

($M) F di Profil un ng 1e Appropriation Aircraft FY12 FY13* FY14 FY15 FY16 FY17 Total

APN-1-USN MV-22 134.0 1,547.5 1,459.8 1,475.9 1,506.3 1,453.2 7,576.7

Procurement CV-22 20.0 244.0 173.8 0 0 0 437.8

USAF

Procurement CV-22 2.9 61.7 48.2 0 0 0 112.8

SOCOM

TOTAL 156.9 1,853.2 1,681.8 1,475.9 1,506.3 1,453.2 8,127.3

*Includes Econormc Order Quanttty funding

Upon receipt of Congressional authorization, it is anticipated that advance procurement funding of long lead material and associated efforts for Lot 17 will be obligated in FY12. In addition, Economic Order Quantity funding will be obligated in FY13 upon award of MYP2. Future lots will follow the same approach for the funding of long lead material with advance procurement funding obligated in the FY prior to full funding being obligated.

4. Statutorv Authoritv Permitting Other Than Full and Open Competition: The statutory authority permitting other than Full and Open Competition is 10 U.S.C. §2304(c)(l), as implemented by Federal Acquisition Regulation (FAR) 6.302-1, "Only one responsible source and no other supplies or services will satisfy agency requirements."

5. Rationale Justifying Use of Cited Statutory Authority: Bell-Boeing is the sole designer, developer, integrator and producer of the V-22 Tilt-Rotor Aircraft. In December 1981, the Secretary of Defense issued a Milestone 0 Decision Memorandum for the concept definition and formulation of a joint requirement for a multi-mission vertical lift aircraft. In December 1982, the Secretary of Defense issued the Milestone I Decision Memorandum for the approval of the Joint Services Advanced Vertical Lift Aircraft (NX) Program Acquisition Strategy as well as the approval to release a competitive request for proposal (RFP) for Preliminary Design of the aircraft. The NX Program would later be designated as the V-22 Program. Bell-Boeing was awarded a preliminary design contract in April 1983 and the Full-Scale Development (FSD) contract was awarded to Bell-Boeing in May 1986 following Milestone II approval in April 1986. Since FSD, Bell-Boeing has been the sole designer and producer of the V-22 aircraft through ten Low Rate Initial Production (LRIP) procurements, the first Full Rate Production buy following Milestone m approval in October 2005, and the first Multi-Year Production contract issued in FY08. As such, Bell-Boeing is the only known responsible source possessing the engineering data, technical skills, requisite knowledge of the design, fabrication, performance, and operational characteristics of the V-22 aircraft required to perform the necessary follow-on production efforts within the required timeframes. In addition, Bell-Boeing is the only responsible source qualified to manufacture the V-22 aircraft as no other company produces an aircraft or possesses the technical skill, production tooling testing and other equipment, and necessary information that can meet the V-22 aircraft program requirements or capabilities.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable: The proposed procurement contract was synopsized on the FedBizOps website on 02 December 2010 for informational and subcontracting opportunities. Any responses received by the Contracting Officer prior to the award of this procurement action will be coordinated with the prime contractors and the NA VAIR Small jamie.schoemaker Highlight

CJ&ANo. 11-53000

Business Office to maximize competition for subcontract opportunities. For the reasons set forth in paragraphs 4 and 5 above, a market survey was not performed.

7. Determination of Fair and Reasonable Cost. In accordance with FAR 15.402(a), the contracting officer must ensure all supplies and services are procured at a fair and reasonable price. The contractor will submit cost and pricing data in accordance with FAR 15.402-4. Analysis of the proposals will be performed by technical analysts and contract specialists, with the assistance of the Defense Contract Management Agency analysts and Defense Contract Audit Agency auditors. The contracting officer will use cost and price analysis as the basis for negotiating a fair and reasonable price.

8. Actions Taken to Remove Barriers to Comretition. For the reasons set forth in paragraph 5, NA VAIR has no plans at the present time to compete future prime contracts for the requirements covered in the document. If another potential source emerges, NA VAIR will assess whether competition for future requirements is feasible. The V-22 Program Office will continue to look for potential subsets of the overall effort that could be practicably broken out in order to give Small Businesses the opportunity to compete. Competition is pursued by the Bell-Boeing team for subcontracted efforts wherever practicable.

Specifically, Bell sole source procurements over $3,000 require completion and internal review of a Sole Source Justification document to support the request and include an external review for sole source procurements over $2,000,000. Boeing utilizes an enterprise wide procedure to govern all source selection activity and a set of instructions that govern requirements when conducting procurement actions.

CJ&A No. 11-53000

TECHNCIAL AND REQUlREMENTs CERTIFICATION

I certify that the facts and representations under my cogni:r.ance, which are included in this Justification and its supporting acquisition planning document, are complete and accurate to the best of my knowledge and belief.

~Gre&Masie!lo.C.01.QSMC Signature Program.Manager, V-22

Name

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

~,.,'..2 Brid!ret Jaryis. AIR-11.1 Name

CON'IRACTING OFFICER CERTIFICATION ·

301-757-5162 Phone No.

. 301-757-6007 Phone No.

1"2.-2./- lb Date

1£-~-IO

Date

I certify that this Justification is accurate and complete tD the best of my knowledge and belief.

Pamela Qmy. AIR-2.3.3 Name

SENIOR PROCUEMENT EXECUTIVE APPROVAL

301-757-5299 Phone No.

(2-2.I • 10 Date

Upon the basis of the above Justification. I hereby approve, as Senior Procurement Executive of the Navy, the solicitation of the proposed procurements described herein using other than full and open competition, punuant to the authority of 10 U.S.C. §2304(c)(1).

SeanJ~-

ASN(RDA) ,

31 JAAl Ultl Date