TAB B1-FINAL_JA_FRCE_Schenck balancer.pdf

J&A_ 21-042

Ser F2552/ J&A 21-042

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

Naval Air Systems Command (NAVAIR), Commander, Fleet Readiness Center (COMFRC)

Procurement Group, Patuxent River, MD

2. Description of the Action Being Approved:

This Justification and Approval (J&A) authorizes and approves the issuance of a Firm Fixed-

Price contract to Schenck USA Corp., 535 Acorn Street, Deer Park, NY 11729 for the procurement of technology refresh of instrumentation, hardware, and software to existing

Schenck balancing machines as required by the Fleet Readiness Center (FRC) East, Marine Corp

Air Station (MCAS) Cherry Point, NC.

3. Description of Supplies/Services

The purpose of this requirement is to upgrade eleven Dynamic Balancer Systems located in shop

96559, Engine Rotor Repair/Balance/Test Shop, shop 94402 Starters and Turbines, shop 94403

EDC Gas Turbine Compressor, and shop 94315 Gearbox Shop, in Buildings 137, 133, and 4224.

This procurement will provide the latest OEM software and controllers. It is expected to utilize existing utilities and will require no facility modifications.

Estimated Dollar Value in Thousands

FY 21 FY 22 FY 23 FY 24 FY 25 Total

NWCF $452K

Total $452K

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND, COMMANDER,

FLEET READINESS CENTER PROCUREMENT GROUP

47038 MCLEOD ROAD BUILDING 448

PATUXENT RIVER, MD 20670

IN REPLY REFER TO

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

In accordance with FAR 6.302-1(a)(2)(ii)(A), supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would cause substantial duplication of cost to the Government that is not expected to be recovered through competition. The current balancer instrumentation is unsupportable and one failure away from creating a work stoppage of the component they support. Average price of a new balancer is ≈$400K. Average price of each instrumentation upgrade is ≈$50K or approximately 13% of a new machine. As all other balancer components are readily available, an instrumentation upgrade will return the existing balancers to current or “like new” capability at a percentage of the cost of competitively procured new balancer units.

Additionally, the Schenck USA Corp. CAB 925 instrumentation was completely developed, designed, and manufactured at the expense of Schenck USA for the commercial marketplace.

Therefore, the OEM, Schenck USA Corporation, maintains all data rights to their equipment. As such, the incumbent has unique and peculiar knowledge of the software, and the support associated therewith. Schenck USA Corp. prevents any other company from accessing, manipulating or using their source code without express permission from the incumbent. To date, the incumbent has not given such permission to any other company. Therefore, no other company has the in-depth knowledge or access to proprietary resources, which is needed for the execution of this requirement. The incumbent has 100% ownership of the CAB 925 Balancing

Machine software and hardware. Restrictive rights result in the required instrumentation and software being available from only one source.

There is no other company currently known that has the specific proprietary Performance

Testing software that is compatible with Schenck USA Dynamic Balancers. The objective is for compatibility and similarity between the upgraded electronics and the existing controls and balancer hardware to continue to provide depot repair capability to critical fleet components.

Purchasing the Schenck USA CAB 925 instrumentation and software will allow the existing

Schenck USA balancing equipment to be “as new” at a fraction of the cost of replacing the entire system.

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

FRCE reviewed market capabilities via internet search and queried subject matter experts.

Market research determined that no sources other than Schenck can meet the requirement.

Additionally, in accordance with Defense Federal Acquisition Regulation Supplement (DFARS)

Procedures, Guidance, and Information (PGI) 206.302-1, a sources sought request for information notice was posted requesting alternative sources to upgrade the existing Schenck equipment on the Government’s beta.SAM.gov website on 24 June 2021. On July 16, 2021

COMFRC received a confirmation from Schenck that they are able to work the requirement.

Otherwise, the Government did not received a response to the Sources Sought notice posted to beta.SAM.gov. The Contract Specialist, in consultation with the FRCE Program Office, confirmed the Schenck USA Corp. is able to fulfill the requirements for this procurement.

Therefore, Schenck USA Corp. is the sole source capable of supplying the required equipment upgrade. The Contracting Officer intends to post a sole source pre-solicitation synopsis pursuant to FAR 5.201(b).

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 price. The Contractor will submit a formal commercially priced proposal and sufficient information to support the accuracy and reliability of the estimate. The proposal will be reviewed by experienced technical and cost analysts with the aid of necessary field pricing support to confirm the pricing is fair and reasonable. The Contracting Officer will utilize cost and price analysis as the basis for negotiating a fair and reasonable price.

8. Actions to Remove Barriers to Future Competition

For the reasons set forth in paragraph 5, COMFRC has no plans at this time to compete future contracts for the requirements covered by this document. If another potential source emerges, COMFRC will assess whether competition for future requirements is feasible.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this

Justification and its supporting acquisition planning documents, except as noted herein are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

Neil Taylor Date

Electronics Engineer

Requirements Cognizance:

George Griffin Date

Acquisition Program Specialist

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Kirsten Jabara Date

COMFRC Counsel

CONTRACTING OFFICER CERTIFICATION

Upon the basis of the above justification, I hereby approve the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1).

Jessica L. McGee Date

COMFRC PCO