21RWS59_JA_REDACTED.pdf

DEPARTMENT OF THE NAVY

CRANE DIVISION

NAVAL SURFACE WARFARE CENTER

300 HIGHWAY 361

CRANE INDIANA 47522-5001

In Reply refer to:

J&A Number: CR-21239 Code: 0242

P.R. Number: N0016422RWS59

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Surface Warfare Center Crane Division (NSWC-CR), Airborne and Expeditionary Electronic Warfare Branch (Code 0242).

2. Description of the Action Being Approved

Award of a Firm-Fixed-Price, Indefinite-Delivery Indefinite- Quantity, (IDIQ) supply contract with an ordering period of five (5) years on a sole-source basis for upgrades of the Gun Bay Power Supply, Weapon Replaceable Assembly 9 (hereafter referred to as WRA9) to Crane Electronics, Inc., 84 Hill Ave NW, Fort Walton Beach, FL 32548. The WRA9 is a component of the AN/ALQ-218(V)2 Tactical Jamming Receiver System (TJRS), which is installed on the Navy�s EA-18G Growler Aircraft.

3. Description of Supplies/Services

The required supplies consist of upgrades associated with the WRA9. This J&A is inclusive of future variant/ derivative supplies resulting from enhancements, obsolescence replacements, and follow-on equipment installed as a result of approved Engineering Change Proposals and/or in support of other programs.

Efforts associated with this IDIQ include: 1) Upgrade of Original-version WRA9s to Airborne Electronic Attack (AEA) System Enhancement (ASE) version; 2) Upgrade of ASE-

J&A Number: CR-21239

5. Rationale Justifying Use of Cited Statutory Authority

Crane Electronics, Inc. is the only source capable of satisfying the agencies� requirements. As detailed below, award to a source other than Crane Electronics, Inc. would result in substantial duplication of cost that is not expected to be recovered through competition and unacceptable delays in fulfilling the agencies� requirements.

The WRA9 was developed under the EA-18G System Development and Demonstration (SDD) contract (N00019-04-C-0005), which was competed and awarded to Boeing in 2004. More specifically, Northrop Grumman (a subcontractor to Boeing under the SDD contract) contracted with Crane Electronics Inc. for the design, development, and manufacture of the WRA9. As the original developer and supplier of the WRA9, Crane Electronics Inc. maintains a high degree of technical expertise with respect to the assembly. NSWC Crane contracted with Crane Electronics on BOA N00164-16-G-WS99, under which Crane Electronics is currently supplying the WRA9 for the AN/ALQ-218 and maintains the WRA9 production and repair facilities. This effort will be a follow-on to N00164-16-G-WS99, specifically Job Order N0016421FW048.

Award of the WRA9 requirements to another source would result in substantial duplication of costs that is not expected to be recovered through competition. In accordance with 10 U.S.C. § 2304(c)(1), FAR 6.302-1(a)(2)(ii)(A). The Government does not currently possess a Level III Technical Data Package for the WRA9 and Crane Electronics is not willing to sell it to the Government. The Government has inquired multiple times in recent years and Crane Electronics has denied all offers. Since the Government does not possess a Level III Technical Data Package, the WRA9 would have to be completely redesigned via reverse engineering and then undergo certification testing. This testing would include laboratory, ground, and flight testing from component level testing through full-up EA-18G weapons system performance flight testing in order to certify a new power supply from a vendor other than Crane Electronics Inc.

This effort would be an open competition, so this would include multiple tests with multiple vendors to determine the best design. The expected cost would be very high due to aircraft/flight worthiness requirements to ensure interoperability with the rest of the electronic attack pallet. The cost of developing a replacement WRA9 and this testing is estimated at $24.44M for the EA-18G. The cost was determined using previous estimates from FY16 and using updated hourly rates based on a 3% inflation rate. The breakdown is as follows:

EA-18G ALQ-218(V)2 WRA9 Power Supply Duplication Project Management & Administration $596,517 Reverse Engineer System $1,258,993 Develop Technical Data Package $1,130,205 Prototype Development $672,367 DevelopmentCertification - ATP $219,672 Develop Test Station & Repair Plans $807,169 Systems Engineering Technical Review Events $1,716,398 MIL-STD Testing (Includes Flight Testing) $14,613,786 Material (Includes Misc. HW and Test Equipment) $3,420,000 Total Estimated Duplication Costs $24,435,107

Moreover, the costs of supporting multiple configurations- Crane Electronics Inc.'s and another vendor's power supplies

- would further increase the Government's costs over the lifecycle of the EA-18G. These extra logistics costs for maintaining multiple configurations are not included in the development costs of a replacement WRA9.

It could take up to five (5) years, depending on the vendor design, for another vendor to design and create similar systems. A new vendor would require approximately one year to design acceptable new systems based on similarly complex systems. Another year would be needed to perform recertification testing, based on similarly complex systems.

Developing new Automated Test Equipment (ATE) would be required to support another vendor�s design as the current ATE was OEM developed and unique to the current fielded WRA9. Developing typical Test Program Sets including the functional test program and the diagnostic test program take up to three (3) years depending on complexity based on similar systems used.

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

A sources sought notice was issued and uploaded to the beta.SAM website on 3 Feb 2021 for this IDIQ. There have been no responses received to the sources sought notice. A synopsis of the proposed IDIQ was published on the beta.SAM website on 29 Mar 2021. There have been no responses received to the synopsis. No additional market research was performed because this effort is to support the repair depot for these systems and the OEM is the only source that can meet the Government�s current requirements to do the same.

It is not practicable, for the reasons discussed in paragraph 5 above, for any company other than Crane Electronics to provide the required supplies. Any responses from interested sources received prior to award will be considered.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies covered by the J&A will be fair and reasonable. The Contracting Officer will use cost and price analysis to determine a fair and reasonable price. Assistance from the Defense Contract Management Agency (DCMA) may be requested to analyze, evaluate, and negotiate based upon detailed cost or pricing data, which will be certified by Crane Electronics at the conclusion of negotiations. Comparisons to historical purchases for the same items and to the independent Government estimate may be used as necessary.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, NSWC Crane Division has no plans at this time to compete future contracts for the types of supplies covered by this document. If another potential source emerges, NSWC Crane Division will assess whether competition for future requirements is feasible.