Redacted_JA_20-0303_Oxygen Systems IDIQ Increase_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND

RADM WILLIAM A. MOFFET BUILDING

47123 BUSE ROAD, BLDG 2272

PATUXENT RIVER, MARYLAND 20670-1547

J&A_20-0303

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 an increase in quantities against the issued FAR Part 12, commercial sole-source Indefinite Delivery/Indefinite Quantity (IDIQ) contract, N68335-18-D-0039, for the procurement of P-8A Poseidon Oxygen Systems from

Avox Systems Inc., 225 Erie Street, Lancaster, New York 14086. This resultant action will be a modification to the referenced three-year contract for Oxygen Systems and would increase the quantities required to meet P-8A production schedules, as well as future additional quantities as authorized by Congress. In addition, additional ship sets will be procured for the Royal

Australian Air Force (RAAF) and Foreign Military Sales (FMS) customers as required to support the P-8A Production Line. The RAAF is a P-8A Cooperative Partner.

The base contract was awarded for on 14 August 2018, for the following items:

Item Description Qty / Per SS SS Totals CLIN Totals

MF20-560 Crew mask 27 59 1593

MXP806-3 Stowage box 7 59 413

801307-00 Cylinder assembly 4 59 236

808158-01 Portable cylinder 5 59 295

36758-32 Top Bracket 5 59 295

36758-31 Bottom Bracket 5 59 295

804185-07 Thermal comp 4 59 236

5500-A1U-BF23A Portable Oxygen Tank 1 59 59

Incorporating the additional quantities listed below within paragraph 3 would increase the potential contract ceiling by .

3. Description of Supplies/Services.

J&A 17-0470, approved on 4 October 2017, authorized and approved the issuance of a three (3) year sole source IDIQ type contact for the procurement of P-8A Poseidon

Oxygen Systems. The estimated dollar value of the original effort was

This action is for the increase in the maximum ordering quantities for the following:

Item Description Qty / Per SS CLIN Totals

MF20-560 Crew Mask 28 360

MXP806-3 Stowage Box Mask 8 220

36758-32 Top Bracket 5 45

36758-31 Bottom Bracket 5 45

5500-A1U-BF23A Portable Oxygen Tank 1 10

808158-01 Portable Cylinders 5 65

Estimated Dollar Value in Thousands

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

The statutory authority permitting other than full and open competition is Title 10 U.S.C. Section

2304(c) (1) as cited in the 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.

Avox Systems Inc. is the sole designer, developer, and manufacturer of the oxygen system for use in the P-8A. The oxygen system was integrated into and tested on the P-8A during an extensive, competitively awarded P-8A system development and demonstration phase. The oxygen system was provided as contractor furnished property, via subcontract with Avox

Systems Inc., by the P-8A prime contractor in previous production lots, but will be procured separately and provided as government furnished property for production of Lot 9 through Lot

11. Avox Systems Inc. is the only known source with the requisite knowledge of the design, technical data (Avox Systems Inc. is supplying drawings (as required with future ECPs), instruction manuals, installation procedures, and maintenance data necessary to support/sustain the whole system), fabrication, performance, and operational characteristics of the oxygen system capable of meeting the P-8A requirements, and is therefore uniquely qualified to perform the efforts contemplated under this J&A. Award to any other source would disrupt on-going P-

8A production by delaying the delivery of qualified and properly integrated oxygen systems to the P-8A line. The timeline to compete and qualify a second source to fulfill the P-8A production weapon system requirements is estimated to be approximately .

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

As required by FAR 5.201, the proposed effort was synopsized on the Beta.SAM.gov website on

14 April 2020 and closed on 28 April 2020, with no responses or inquiries received. A Request for Information (RFI)/Sources Sought Notice was posted to the Beta.SAM.gov website on 4 May

2020. On 14 May 2020, submitted information related to the RFI. The information provided by was thoroughly reviewed by Government technical personnel and a determination concluded that the efforts required to develop a technical data package needed to adequately define the oxygen system requirement, conduct a competitive source selection, and to complete all required certification and testing would add excessive and unrecoverable cost while inducing schedule risk to the P-8A program. Therefore, it was determined that is unable to meet the government’s requirement. An e-mail was sent to e on 28 May 2020 informing them of this determination, and no response has been received to date. No other responses were received.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402(a), the Contracting Officer must ensure that all supplies and services are purchased at a fair and reasonable price. The Contracting Officer will use price analysis based upon historical pricing as the basis for negotiating a fair and reasonable price for the supplies/services covered by this J&A.

8. Actions to Remove Barriers on Future Competition.

The immediate acquisition does not represent a planned follow-on requirement but rather results from an increase in quantities required to meet P-8A production schedules, as well as future additional quantities as authorized by Congress, and additional ship sets to be procured for the

Royal Australian Air Force (RAAF) and Foreign Military Sales (FMS) customers, as required.

For reasons set forth in paragraph 5, NAVAIR has no plans at this time to compete future contracts or procure a Level 3 data package for the P-8A Poseidon oxygen system. In addition, Lot 11 is the last P-8A production lot. PMA-290, in conjunction with the Fleet Readiness Center

(FRC) Business Office and the Fleet Logistics Center in Jacksonville, FL are currently investigating a Navy repair capability to reduce the sustainment cost of P-8A Poseidon oxygen systems and to organically support throughout sustainment.