REDACTED_J&A_N0042115C0010_Final_Draft_FED_BIZ_OPPS.docx

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND AIRCRAFT DIVISION

21983 BUNDY ROAD BUILDING 441 UNIT 7

PATUXENT RIVER, MARLAND 20670

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center Aircraft Division (NAWC-AD) Patuxent River, MD

2. Description of the Action Being Approved.

This Justification and Approval (J&A) authorizes and approves award of a contract action on a sole source basis to Northrop Grumman Systems Corporation (Grumman), 17066 Goldentop Road, San Diego, CA.

3. Description of Supplies/Services.

This effort provides modification and operational maintenance support of the MQ-8B/C Unmanned Aerial Vehicle (UAV) test assets to be assigned to the Naval Test Wing Atlantic and operating at Webster Outlying Field Annex, St. Inigoes, Maryland. The MQ-8B/C (Firescout) aircraft constitute limited numbers of highly specialized and uniquely configured non-production representative test beds that are used primarily for the purpose of developmental testing, experimentation and technology Demonstrations. This effort encompasses all engineering, logistics, and maintenance support functions required to support safe, reliable and available fielding and operation of the MQ-8B/C aircraft through certification of Initial Operating Capability (IOC). The services to be provided include modification and preparation of the aircraft for test operations, correcting safety of flight discrepancies, conducting quality control inspections, performing engineering investigations, logistics and parts support.

This is a new requirement driven by re-designating the MQ-8 operating location from the Naval Test Wing Pacific to the Naval Test Wing Atlantic (NTWL), to be augmented into the Unmanned Aircraft Systems Test Directorate (UASTD) operating out of Webster Field. The base period of performance will be from 1 Feb 2017 to 31 Jan 2018; with one option period of 1 Feb 2018 to 31 Oct 2018, for total planned contract duration of twenty-one months. The total contract duration was chosen to align with the planned competitive award of the UASTD maintenance support follow-on contract into which this requirement will be incorporated. During the period of performance of this contract MQ-8C aircraft and Mission Control System technical manuals, Periodic Maintenance Information Cards (PMIC), Material Support Date, Optimized Organizational Maintenance Activity (OOMA) and MQ-8B Mission Control System technical manuals and PMIC will be completed and validated allowing inclusion of the MQ-8 platform into the competitive UASTD maintenance support contract. FAR Clause 52.217-8, Option to Extend Services, will be included in the contract and evaluated prior to award to provide the opportunity to extend performance should the follow-on competitive schedule slide to the right.

The estimated dollar value of $XXXX displayed in the funding table is inclusive of the twenty-one month planned contract duration, plus the potential additional six-month extension authorized by clause 52.217-8.

See Appendix A for a breakdown of total estimated dollar value by fiscal year and appropriation.

4. 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.

5. Rationale Justifying Use of Cited Statutory Authority.

The MQ-8C is in the process of obtaining Initial Operating Capability (IOC) and is still in the process of releasing the NAVAIR issued technical publications, Material Support Date (MSD) and OOMA capability. Northrop Grumman, the

MQ-8B/C OEM, is the only source that possesses the specific MQ-8B/C proprietary information, engineering data, system knowledge, tooling abilities and expertise necessary for the unique maintenance requirements of the MQ-8B test and MQ-8C Pre-IOC development. These aircraft are highly instrumented test beds and are not yet in a configuration consistent with production aircraft; therefore maintenance manuals, Periodic Maintenance Information Cards, Individual Material Readiness List assets, Tool Control Manual, and ground support equipment that will be developed for production systems are not yet available, requiring OEM support. Northrop Grumman currently possesses the specific MQ-8B/C experience in modifying and repairing the aircraft's complex UAS rotary-wing propulsion, guidance, COBRA and remote mission control systems. As described in paragraph 4.10 (Repair Procedures) of the Performance Based Statement of Work, some repairs will be performed using proprietary OEM maintenance manuals. Although the MQ-8B achieves full organic supportability prior to the MQ-8C, retaining OEM support for both platforms through the planned UAV Maintenance support competition provides efficiencies in manpower cross training, common tool application, and maintenance data tracking system transition. The NAICS code of 541990 (Professional, Scientific, and Technical Services) is consistent with the unique engineering and technical support required during this transition period to organic Navy sustainment processes and documents.

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

The market research requirements outlined in DFARS PGI 206.302-1 were waived by the AIR-2.0 Assistant Commander for Contracts on 8 August, 2016 in accordance with NAVAIR Communique 15-38: “FAR 6.302-1 J&A RFI/SS Requirement.” No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than Northrop Grumman to provide the required services. A full range of market research will be conducted in support of the follow-on competition for this effort.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402, the Contracting Officer shall ensure that all supplies and services provided under this contract are procured at a fair and reasonable cost. The Contractor will submit a formal price proposal with certified cost and pricing data and sufficient information to support the accuracy and reliability of the estimate. Grumman's proposal will be reviewed by experienced technical and contracting personnel. Analysis will be based on historical cost data available from the most recent contract, as well as input from the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA). The Contracting Officer will use this analysis as a basis for negotiating a fair and reasonable price.

8. Actions to Remove Barriers to Future Competition.

During the period covered by this sole source contract it is expected that all required sustainment parts, processes, and procedures will be in place and certified maintenance documents published, allowing future MQ-8 support requirements to be offered for competition under the traditional fleet maintenance NAICS code of 488190, Aircraft Maintenance and Repair Services, transitioning from the current NAICS code of 541990, Professional, Scientific, and Technical Services. The requirements for Firescout aircraft maintenance services will be incorporated into the upcoming UAV maintenance support competition anticipated to be awarded in July 2018.

Appendix A

Estimated Dollar Value in Thousands:

FUNDING TABLE REDACTED

*Documented to accommodate FAR Clause 52.217-8 Option to Extend Services Clause image1.png