Redacted JA.docx

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center Aircraft Division (NAWCAD) Lakehurst, NJ.

1. Description of the Action Being Approved.

This Justification and Approval authorizes and approves the issuance of a sole source firm fixed price contract for the procurement of one modified commercial-off-the-shelf brand name Tri-Chromate Line (TCL) Pre-Treatment equipment system to P.K.G. Equipment Incorporated (Inc.).

1. Description of Supplies/Services.

The NAWCAD Webster Outlying Field (WOLF) Engineering and Prototyping Branch (E&PB) has been tasked to procure one TCL Pre-Treatment equipment system that includes hardware, setup, installation, and one-time training. The equipment will be comprised of a system with built in heating and chemical agitation and a conveyor movement system. Use of pre-treatment equipment is a required and integral step in the corrosion protection process when components and assemblies require corrosion protection. The TCL Pre-Treatment equipment system will be utilized to efficiently produce parts for prototypes and sustainment of legacy systems by providing part finishes as required per governing Military Specification Standards MIL-DTL-5541F and MIL-DTL-81706B.

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.

Due to an aging pre-treatment equipment system, the E&PB has experienced an increased dependency upon private industry partners to complete seventy-five (75) percent of jobs, ultimately increasing time and cost to the customer. The new equipment will reduce time and cost providing the ability to treat multiple parts simultaneously in an effort to avoid outsourcing. Additionally, procurement of the TCL Pre-Treatment equipment system will increase the E&PB’s in-house treatment capabilities of larger items given the current system has a maximum allowance of 2x3 feet per component. Due to this current restriction, the E&PB is required to send components exceeding the maximum size requirement to alternate facilities. The new system will double the capability by allowing for a maximum of 3x6 feet per component to be treated. The new system will also reduce material cost considering the new chemicals are chromate free and cheaper to procure. Overall, the new equipment system will allow faster and more efficient chemical treatment and increased throughput of critical parts delivered to the fleet. This will be a direct cost savings for the E&PB customers and will ultimately ensure faster delivery to the warfighter.

The procurement of the TCL Pre-Treatment equipment system through a vendor other than P.K.G. Equipment Inc. would result in duplicative costs in direct relation to generating the final design, site visits, meetings and the development of engineering documentation required to complete the system specifications and requirements. If an alternate vendor was selected, the additional effort to complete the final design of a new system taking into consideration labor and time already invested in generating the proposed system specifications and requirements based on the most recent federal regulations for this type of equipment. Also, the system includes customized spill controls, a main control board, automatic fire controls, and a tank design.

In addition, there would be a schedule delay to finalize the proposed system specifications and requirements to include the most recent federal regulations and P.K.G Equipment Inc.’s customized spill controls, a main control board, automatic fire controls, and tank design options. The E&PB workload and customer base has been expanding over the past several years with many requirements for rapid prototypes and sustainment of legacy systems necessary to meet warfighter requirements. Procurement of the pre-treatment equipment from an alternate vendor would create a work stoppage for several projects, leaving the E&PB incapable of meeting various mission essential requirements due to the growing workload, ultimately preventing delivery to the warfighter.

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

The E&PB conducted thorough market research via the Federal Procurement Data System, the Dynamic Small Business Search, and Google, which resulted in four vendors in addition to P.K.G. Equipment Inc. Aside from P.K.G. Equipment Inc., only one of the vendors responded and they were unable to meet the Government’s requirement. Additional market research was conducted via site visits to fabrication facilities in order to obtain industry capabilities that could meet this requirement; all cited P.K.G. Equipment Inc. as the provider of their pre-treatment equipment.

A request for information (RFI) for this requirement was posted via the Beta System for Award Management (SAM) beta.SAM.gov website. No responses were received. A pre-solicitation synopsis was posted on the beta.SAM website No responses were received.

1. Determination of Fair and Reasonable Cost.

In accordance With (IAW) FAR 15.402, the Contracting Officer shall ensure that the price negotiated is fair and reasonable. The contractor will submit a formal price proposal with other than certified cost or pricing data and sufficient information to support the accuracy and reliability of the estimate for this procurement. Each proposal will be reviewed by experienced technical personnel and the cognizant Contract Specialist. The Contracting Officer will utilize price analysis IAW FAR 15.404-1, including a review of historical data and commercial price lists, as the basis for negotiating a fair and reasonable price.

1. Actions to Remove Barriers to Future Competition.

For the reasons stated in paragraph 5, at this time, P.K.G. Equipment Inc. is the only company able to meet the requirements of this effort. The Government will continue to evaluate other technologies that would allow future competition and will conduct market research to determine if there are any future vendors that have the capability to meet this requirement.

image1.wmf