Fibre Channel Network Switch (FCNS) Production Ramp Asset Repairs

In accordance with FAR 16.103(d)(1), and on the basis of the following findings and determination, the proposed order described below may be entered into on a Cost Plus Fixed Fee (CPFF) contract basis.

FINDINGS 

The Naval Air Systems Command (NAVAIR) proposes to enter into a CPFF type order issued against Basic Ordering Agreement (BOA) N00019-16-G-0010 with Harris Corporation (Harris) for Fibre Channel Network Switch (FCNS) Production Ramp Asset Repairs for the F/A-18, FCNS Ramp Repairs for E-2D and FCNS-24 Engineering and Manufacturing Development (EMD) Repairs.

A synopsis was posted on 10 March 2016 stating that NAVAIR intends to request a proposal and negotiate on a sole-source basis with Harris for the effort described above.  Harris is the sole designer, developer, and manufacturer of all FCNS. Harris Corporation is the only company that has the knowledge, experience and technical data required to successfully deliver the FCNS system to meet the requirements of the F/A-18E/F, EA-18G and E-2D production aircraft delivery. 

Given the contract is for performing system support services activities, a cost-reimbursement contract was found suitable.  In accordance with FAR 16.301-2, a cost-reimbursement contract is suitable for this effort because uncertainties involved in contract performance do not permit costs to be estimated with sufficient accuracy to use any type of fixed-price contract.  Therefore, the execution of a fixed price type contract would transfer too much risk to the Contractor and use of a cost type contract is considered appropriate.

In accordance with FAR 16.301-3(a), the current action with Harris is not limited from using a cost reimbursement contract because "the contractor's accounting system is adequate for determining costs applicable to the contract or order, and appropriate Government surveillance during performance will provide reasonable assurance that efficient methods and effective cost controls are used".  On 16 October 2006 the DACO issued a determination letter indicating Harris Overall Accounting System is acceptable and requested a comprehensive audit of Harris accounting system on 1 October 2016.

The Government will manage and mitigate cost type risks by requiring the contractor to submit monthly invoicing and monthly corrective action status reports.  In addition, the cognizant Administrative Contracting Officer (ACO) will oversee the contract to ensure the contract requirements meet performance specifications and are delivered on time and within cost.

DETERMINATION  

Given the findings above, it is determined that the use of a CPFF contract action is in the best interest of the Government for the tasks conducted in support of the FCNS Ramp Repairs for E-2D and FCNS-24 EMD Repairs.