3. Clean JA 25_0028 --CXP Tech Refresh Productionization_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAMD

NAVAL AIR SYSTEMS COMMAND HEADQUARTERS

47123 BUSE ROAD, UNIT IPT BLDG 2272

PATUXENT RIVER MARYLAND 20670-1547

IN REPLY REFER TO

J&A_25_0028

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 issuance of a Basic Ordering Agreement (BOA) order modification on a sole source basis to BAE Systems Information and Electronic Systems Integration (hereinafter referred to as “BAE Systems”), Greenlawn, New York, for the productionization of the Common Identify Friend or Foe (IFF) Digital Transponder (CXP) Technology Refresh.

3. Description of Supplies/Services.

The CXP Technology Refresh development effort was awarded to BAE Systems under BOA N00019-22- G-0009, order number, N0001924F1886. The CXP Technology Refresh is an update to the AN/APX- 123/123A(V) to address obsolescence issues and meet National Security Agency (NSA) Cryptographic Modernization 2 (CM2) requirements; Critical Design Review is expected to be complete by May 2025.

The anticipated BOA order modification covered in this J&A procures the “productionization” of the CXP Technology Refresh. Productionization refers to the process of transitioning from lab-built prototypes to units that can be produced in an electronics manufacturing environment to streamline production and reduce costs. The CXP Technology Refresh productionization effort includes the design and fabrication of unique CXP Technology Refresh test equipment and procedures, as well as integration into existing CXP test equipment to ensure the CXP Technology Refresh meets all specified requirements.

The total estimated cost of the anticipated BOA order modification under this J&A is and is anticipated to be funded as follows:

Estimated Dollar Value ($M) Funding/

Appropriation

FY25

FY26 FY27 Total ($M)

APN

OPN

OMN

RDT&E

FMS/SDAF

Total

4. Statutory Authority Permitting Other Than Full and Open Competition.

The statutory authority permitting other than full and open competition is 10 U.S.C. 3204(a)(1). Only one responsible source and no other supplies or services will satisfy agency requirements as implemented by

Federal Acquisition Regulation (FAR) 6.302-1, "Only one responsible source and no other supplies or services will satisfy agency requirements."

5. Rationale Justifying Use of Cited Statutory Authority.

BAE Systems is the sole designer, developer and manufacturer of the AN/APX-123/123A(V) CXP and is the only responsible source with the ability to satisfy agency requirements. BAE Systems is the only entity capable of producing the system and has produced it for over 15 years. BAE Systems retains the Technical Data Package (TDP). BAE Systems is currently under contract for the development effort of the CXP Technology Refresh. Therefore, BAE Systems, as the only manufacturer, is the only known source that has the unique knowledge, experience and special skills required to perform the productionization effort and provide the required supplies and services under the anticipated BOA order modification.

In accordance with Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(ii)(A), the Government has deemed the requirements listed above to be available only through the original source and award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition in fulfilling the Navy’s requirements. The NAVAIR Cost and Schedule Analysis Group estimates that an award to a source other than BAE Systems would result in approximately of duplicative costs. The Cost and Schedule Analysis Group estimate is based on the cost to develop the CXP Technology Refresh which consists of a drop-in replacement for the AN/APX-123/123A(V) CXP to address obsolescence issues and meet National Security Agency (NSA) Cryptographic Modernization 2 (CM2) requirements. Without a production level TDP, an alternate source would be required to duplicate design efforts, in addition to qualification, testing, certification, and air/ship integration. Not included in the duplicative cost estimate are the logistics support costs associated with maintaining multiple configurations throughout the Fleet.

In accordance with FAR 6.302-1(a)(2)(ii)(B), the Government has deemed the requirements listed above to be available only through the original source and award to any other source would result in unacceptable delays to the Government that are not expected to be recovered through competition in fulfilling the Navy’s requirements.

BAE Systems is the sole designer, developer and manufacturer of the CXP family of systems and has been the only entity producing the AN/APX-123/123A(V) CXP for over 15 years. BAE Systems is currently under contract for the development effort of the CXP Technology Refresh. As stated previously, a new source without the TDP would be required to design, manufacture and qualify a unit that would meet the requirements. This would include the development and integration of highly complex Contractor-developed algorithms in conjunction with Government cooperation using organically developed algorithms for target processing. Also, the system needs to be specialized for operation with Automatic Dependent Surveillance

– Broadcast (ADS-B) and Traffic Alert and Collision Avoidance System (TCAS), involving characterization of the system of systems in their operational environment to ensure requirements are met.

These CXP Technology Refresh requirements are in support of active new air and ship production lines including but not limited to: CH-53K, P-8A, CVN, DDG, LCS, and SSN in addition to FMS customer production lines. Any delay associated with development by a new source would result in failure to provide CXP Technology Refresh units by the required delivery date to manufacturers and shipbuilders for the identified production lines. Missing deliverable deadlines would further affect testing, operational capability and ability to deploy.

As a result, the Government has determined BAE Systems is the only responsible source capable of meeting the Government’s minimum needs and award to any other source would result in unacceptable delays and substantial duplication of cost to the Government that are not expected to be recovered through competition in fulfilling the Navy’s requirements.

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

NAVAIR conducted a joint Request for Information with the US Army in October 2022 to research potential alternative CXP systems that could be incorporated as “drop-in” replacements; none were identified. Additionally, market research conducted by the Combat Identification Subject Matter Experts in November 2024 concluded that there are no other industry sources that provide similar products to CXP Technology Refresh.

The Sources Sought required by Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance and Information (PGI) 206.302-1 was posted on the Sam.gov website on 20 November 2024 and no responses were received. In accordance with FAR 5.201, a synopsis for the anticipated contract action was posted on the Sam.gov website on 27 November 2024 and no other manufacturing sources expressed an interest in this requirement. Any future responses will be evaluated by the Procuring Contracting Officer prior to award.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in paragraph five, NAVAIR has no plans at this time to compete future contracts for the types of supplies/services covered by this document. NAVAIR will continue to assess the market and determine if competitive acquisitions for these requirements are feasible.

Because this is a non-competitive follow-on acquisition to a previously awarded non-competitive action for same type of supplies and services, the prior justification (J&A 22-0070) is provided in accordance with DFARS PGI 206.304(a)(i). Approval of this J&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(ii).