JUSTIFICATION AND APPROVAL FOR USE OF OTHER THAN FULL AND OPEN COMPETITION 1. Contracting Activity. Naval Air Systems Command (NAVAIR) Headquarters 2. Description of the Action Being Approved. This Justification and Approval (J&A) authorizes and approves the award of a firm fixed price (FFP) contract action to Rolls Royce Corporation (RRC), Indianapolis, Indiana covering Fiscal Year (FY) 13 requirements for Contractor Field Service (CFS) representatives supporting Outside Continental United States (OCONUS) deployed contingency operations for the V-22 Osprey tilt rotor aircraft AE1107C engine. . 3. Description of Supplies/Services. This J&A authorizes and approves the issuance of a FFP contract for AE1107C CFS representatives. Efforts will include assistance to the Government in the identification and implementation of the engine maintenance necessary to meet at least full Organizational-level capability for aircraft based and/or deployed OCONUS. Specific duties of the CFS representatives will include technical assistance, training, engineering and/or maintenance effort or support. The CFS representatives will possess specialized knowledge, experience, and skills and have access to information covering the installation, operation, modification, and maintenance of AE1107C engines and components to support all levels of maintenance. The estimated dollar value for the procurement is $xxx($K) and will be funded as set forth in Appendix A Table - Estimated Dollar Value ($K). 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. RRC, as the original equipment manufacturer (formerly Allison Engines), was selected in 1993 on a sole source basis to integrate the T406 engine to the V-22 aircraft under contract N00019-93-C-0052. The T406 engine was designated as the baseline for the commercial variant AE1107C in 1996. The Government subsequently determined that the AE1107C met the definition of a commercial item resulting in FAR Part 12 awards for production and spare engines under contracts N00019-95-C-0209, N00019-07-C-0060, N00019-10-C-0020, and N00019-12-C-0007. As such, RRC is the designer, developer, and sole producer of the commercial AE1107C production and spare engines utilized in a common configuration in both the MV-22 and CV-22 aircraft variants. RRC commercial equivalent engines (AE2100 and AE3007) are based on the AE1107C (T406-AD-400) baseline and are utilized in other aviation platforms including commercial turbo-prop airliners (Embraer ERJ-1351140/145, Cessna Citation, SAAB 2000) and military aircraft (C-27J, C-130J, P-3, US-2, RQ-4). As the sole designer and developer, RRC is the only source possessing in-depth knowledge of the AE1107C engine requirements that can combine the technology, manufacturing engineering expertise, and technical data for this commercial product. There is no other alternate source to provide the engine support for V-22 aircraft at the present time. Further, as the AE1107C is a commercial engine, the Government does not have rights in the technical data necessary to perform the efforts authorized under this J&A. Consequently, RRC is the only contractor that can meet the Government's requirements. 6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable. Market research and/or a survey was not conducted for the reasons set forth in paragraph (5) above. Pursuant to FAR 5.201, a synopsis was posted on 07 September 2012 for informational and subcontracting opportunities only. One response has been received to date. The responding company was evaluated and was determined unable to perform the necessary tasks needed based on the company's primary focus of being an outsourcing point with concentration in market research, administrative and procurement of tasks and projects. It was further determined that the responding company does not possess the technical expertise to perform the necessary services. Any future responses received by the Contracting Officer prior to award of this procurement action will be coordinated with the prime contractor and the NAVAIR Small Business Office to maximize competition for subcontract opportunities. 7. Determination of Fair and Reasonable Cost. In accordance with FAR 15.402(a), the Contracting Officer must ensure that all supplies and support are procured at a fair and reasonable price. Analysis of the proposal will be performed by technical analysts and contract specialists, with the assistance of Defense Contract Management Agency (DCMA) analysts and Defense Contract Audit Agency (DCAA) as needed. The Procuring Contracting Officer (PCO) will analyze the various cost elements that are presented in the proposal, as well as review the actual costs from previous procurements. The PCO will use Government expertise, including DCMA, DCAA, the PMA and other Government resources, to evaluate the proposal's material, labor, and subcontract positions if needed. A detailed report developed as part of the Government evaluation will be utilized to establish a NAVAIR position. The PCO will utilize cost and price analysis as the basis for negotiating a fair and reasonable price for the supplies/support covered by this J&A. 8. Actions to Remove Barriers to Future Competition. For the reasons set forth in paragraph 5 and 6, NAVAIR has no plans at this time to compete future contracts for the types of supplies/support covered by this document. If another potential source emerges, NAVAIR will assess whether competition for future requirements is feasible. Appendix A Estimated Dollar Value ($K) Funding Platform FY13 TOTAL OM,N MV-22 $xxx $xxx TOTAL ($K) $xxx $xxx
