Redacted_CJA_MYP_11_164333_(30_AUG_12).doc

CJ&A_11_16433

CJ&A_11_16433

CLASS 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 Actions Being Approved.

This Class Justification and Approval (CJ&A) authorizes and approves the issuance of contract actions to Northrop Grumman Systems Corporation-Aerospace Systems (NGSC-AS) for E-2D Advanced Hawkeye (AHE) Full Rate Production (FRP) Multi-Year Procurement (MYP) Lots 2-6 aircraft. This CJ&A also covers subsequent procurements for non-recurring engineering, special tooling, product support, engineering sustainment, engineering investigations, software sustainment, initial spares, and peculiar support equipment. Authority to act under this CJ&A ends on 30 September 2021.

3. Description of Supplies/Services.

The proposed actions require NGSC-AS to provide labor, procure parts and material necessary to support the manufacture of an estimated 32 E-2D AHE FRP aircraft. The estimated aircraft procurements by year are: five (5) in FY14 (FRP Lot 2); five (5) in FY15 (FRP Lot 3); six (6) in FY16 (FRP Lot 4); eight (8) in FY17 (FRP Lot 5); and eight (8) in FY18 (FRP Lot 6). A variation in quantity clause of up to five (5), (two (2) in FY15 and three (3) in FY16) additional aircraft or other such quantities as may be authorized and appropriated by Congress may be incorporated into the contract. In addition to the aircraft procurement, the supplies and services to be procured in support of the MYP aircraft include but are not limited to: Program Management; Systems Engineering; Non-Recurring Engineering; Production Engineering Support; Production Management; Quality Assurance; Integrated Logistics Support; Interim Support Spares; Organizational and Intermediate-Level Peculiar Support Equipment; Organic Depot and Core Logistics Transition Support; Training and Training Support; Configuration Changes; and Technical, Administrative, and Financial Data in support of these items. The estimated period of performance of this effort is FY14-21 with aircraft deliveries starting in FY16. Key E-2D AHE objectives include: improved battle space target detection and situational awareness, especially in the littorals; support of Theater Air Missile Defense operations; and improved Operational Availability. E-2D AHE major systems include, but are not limited to: AN/APY-9 Radar system, upgraded electronically scanned Identification Friend or Foe system, modernized tactical cockpit, new Intercommunication System, T-56 427-A engines, NP-2000-3 propellers, and engine driven generator and cooling capabilities. Additionally, the E-2D AHE will assist in meeting the Chief of Naval Operations' System Communications, Navigation, and Surveillance/Air Traffic Management requirements for reduced communications channel spacing, improved navigation accuracy, and reporting own ship identification codes for civil airspace surveillance. In addition, this effort is consistent with the most recent E-2D AHE Acquisition Plan PMA-231-06-01 revision 7 dated 30 August 2012. The total estimated value of these procurements is $6,764,825K, or as otherwise appropriated and authorized.

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.

Since the inception of the E-2 aircraft in 1964, NGSC-AS has been the sole designer, developer, and manufacturer of the E-2 weapon system. NGSC-AS was awarded the E-2D AHE System Development and Demonstration (SD&D), Pilot Production, and Low Rate Initial Production (LRIP) Lot 1-4 contracts. NGSC-AS is the only source with the requisite knowledge and experience to complete development, integration, and production of the E-2D AHE to meet the Navy's requirements. The Navy does not have a complete technical data and computer software package, nor sufficient license rights in the technical data and computer software necessary to conduct a competition, and NGSC-AS will not sell such a package to the Navy. Therefore, NGSC-AS is the sole source that can complete these requirements.

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

For the reasons stated in paragraph 5 above, a market survey was not performed. In accordance with FAR 5.201(b), the requirements for the E-2D AHE MYP (FRP Lots 2-6) was synopsized in the Federal Business Opportunities on 23 August 2012. Any responses received prior to contract award will be evaluated.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402(a), the contracting officer must ensure that all supplies and services are procured at a fair and reasonable price. The contractor will submit cost or pricing data in accordance with FAR 15.403-4. Analysis of proposals will be performed by engineers supporting the Program Office, NAVAIR 4.2 cost department, and contract specialists, with the assistance of Defense Contract Management Agency (DCMA) and Defense Contract Audit Agency (DCAA) auditors. The Contracting Officer will analyze various cost elements that are presented in the proposals, requests for information, and use data from other programs for comparison. DCAA will assist in evaluating the material and subcontract positions in addition to reviewing the Contractor's use of escalation. The program engineers and Navy Price Fighters will evaluate the proposed labor hours and provide a detailed report which will be utilized to establish the Navy position. Rate recommendations provided by DCAA or DCMA will be evaluated for incorporation in the Navy position. The contracting officer will use cost and price analysis as the basis for negotiating fair and reasonable prices.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in paragraph 5 above, there are no plans to compete future contracts for the types of supplies/services covered by this document. Competitive opportunities will continue to be considered if feasible, particularly regarding potential component break-out opportunities, as this program matures.

PAGE