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 commercial-off-the-shelf brand name OMAX 55100 JetMachining Center from Phillips Corporation-Federal Division. The period of performance is anticipated to be 16 weeks.

1. Description of Supplies/Services.

The NAWCAD Webster Outlying Field (WOLF) Organic Product Development (OPD) Engineering and Prototyping Branch (E&PB) has been tasked to procure one OMAX 55100 JetMachining Center to include hardware, rigging, assembly, installation, warranty, and on-site training. The OMAX 55100 JetMachining Center is required for fabrication of prototypes and low-rate production parts. The JetMachining Center is also used during reverse engineering of critical legacy-fielded items no longer supported by an original equipment manufacturer as well as lifecycle sustainment and extension efforts of legacy fleet systems.

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.

The E&PB workload and customer base has expanded over the past several years. To satisfy the demands of the increasing workload, there is an urgent need to replace the existing obsolete OMAX 55100 JetMachining Center. Overall, procurement of a new OMAX 55100 JetMachining Center will result in a cost savings and one-time cost avoidance.

Currently, increasing costs and downtime are associated with the use of the existing, obsolete equipment. When maintenance and downtime are taken in to account, the procurement of a new OMAX 55100 JetMachining Center would result in overall cost savings. The combined operation and maintenance savings will provide an estimated return on investment of one year.

· The existing OMAX 55100 JetMachining Center does not have an associated maintenance agreement; therefore, to keep equipment functional E&PB personnel must perform engineering modifications with associated costs for the following:

· Labor and parts to maintain existing equipment.

· Troubleshooting, diagnosing breakdowns with OMAX customer support, and the procurement of parts.

· The JetMachining Center operates for 35 hours per week. Downtime associated with maintenance and repairs performed on the current JetMachining Center is estimated to be five hours per week. Delayed completion of projects will result in loss of income.

The procurement of an OMAX brand name JetMachining Center, as opposed to the procurement of a JetMachining Center from an alternate manufacturer, would result in a one-time cost avoidance when infrastructure modifications, tooling, accessories, consumables, software, and training are taken in to account.

· The footprint and infrastructure requirements of the OMAX 55100 JetMachining Center are directly compatible with the new state-of-the-art E&PB facility being constructed.

· By procuring an OMAX brand JetMachining Center, the E&PB will avoid a one-time cost by eliminating facility infrastructure modification requirements including electrical power, compressed air, and water connections.

· The E&PB currently possesses tooling, accessories, consumables, and software that are compatible with the OMAX 55100 JetMachining Center.

· Procurement of a JetMachining Center from a different manufacturer would result in an additional cost associated with discarding and re-procuring tooling, accessories, and consumables.

· The IntelliMax software associated with OMAX equipment has previously been approved (as of 19 December 2019). Software associated with a different manufacturer would require functional area management approvals and risk management framework authority to operate, whereas cost avoidance can be accomplished through continued use of OMAX software.

· The E&PB has experience with OMAX systems. Procurement of a JetMachining Center from a different manufacturer would require initial operator training at a one-time estimated plus additional costs due to loss of equipment use while redeveloping operational expertise.

The purchase of a new OMAX 55100 will also cause the E&PB to avoid schedule delays. Downtime experienced with the current JetMachining Center combined with downtime that is estimated to occur from procuring an alternate brand name JetMachining Center would cause schedule delays and work stoppage in the E&PB’s rapid response to fleet requirements for several projects, leaving the E&PB incapable of meeting various mission critical schedules and ultimately preventing delivery to the warfighter. If delivery is delayed, the warfighter will experience a halt in receiving the necessary prototyping and sustainment of Shipboard Air Traffic Control and Landing Systems (i.e., combat systems on landing helicopter dock and aircraft carrier, fixed wing, nuclear powered platforms). The warfighter will also experience a halt in support of combat identification systems on almost all shipboard platforms; combat system communications for land, air, and sea platforms; and unmanned aircraft systems.

Currently, use of the existing JetMachining Center causes routine schedule delays in completion of the E&PB projects due to equipment downtime associated with maintenance and repairs. Schedule delays would continue to occur if a JetMachining Center were procured from an alternate manufacturer due to the above-mentioned facility infrastructure modifications, initial operator training, loss of equipment use while redeveloping operational expertise, and obtaining information technology approval for software.

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 by using the Google search engine, which resulted in Phillips Corporation-Federal Division as the sole authorized seller of the OMAX 55100 JetMachining Center.

A request for information for this requirement was posted via the Beta System for Award Management (SAM) beta.SAM.gov website on 23 March 2020 and closed on 30 March 2020. One response was received from Phillips Corporation-Federal Division. An Exclusive Distributor Statement was provided by OMAX Corporation confirming that OMAX Corporation utilizes Phillips Corporation-Federal Division as the exclusive OMAX distributor for federal Government accounts. Additionally, according to this statement, Phillips Corporation-Federal Division is authorized to work on behalf of and represent OMAX to the federal Government and notes that no other distributor or agent is authorized to represent OMAX in the federal Government space. A pre-solicitation synopsis was posted on the beta.SAM.gov website on 12 May 2020 and closed on 27 May 2020. One response was received. The technical POC determined this vendor was not capable of meeting the requirements due to system capabilities and schedule delays with an alternate brand and the vendor was notified.

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 at the E&PB 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, the OMAX 55100 JetMachining Center is the only equipment 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.

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