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The Naval Air Systems Command (NAVAIR) awarded a cost-plus-fixed-fee (CPFF) delivery order for the procurement of retrofit A-kits with Increment 3 Block 2 (I3B2) Engineering Change Proposal (ECP) 6 capabilities, installations of I3B2 retrofit A-kits and government furnished B-kits onto P-8A aircraft, and non-recurring engineering to address P-8A I3B2 related diminishing manufacturing sources and material shortages. Boeing is the sole designer, developer, and manufacturer of the P-8A airframe, as well as the sole integrator of the avionics systems, and therefore is the only responsible source with the requisite knowledge, experience, and technical data that can meet the Government's requirements without resulting in unacceptable delays in fulfilling the Navy's requirement to procure ECP 6 A-kits and ECP 6/7 aircraft modifications. It was determined that a CPFF contract action was the appropriate contract type pursuant to FAR 16.103(d)(1). There are significant cost uncertainties related to the required engineering, material, structural components, and associated equipment necessary for the installation of the parts required for the P-8A ECP6 modified aircraft, which means the use of a fixed-price type contract would not provide an equitable and sensible allocation of program risk between the Government and the Contractor.
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