ALE-70 JA Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND

RADM WILLIAM A. MOFFET BUILDING

47123 BUSE ROAD, BLDG 2272

PATUXENT RIVER, MARYLAND 20670-1547

IN REPLY REFER TO: CJ&A_23_0023

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 Action Being Approved.

This Class Justification and Approval (J&A) authorizes and approves the issuance of a contract on a sole source basis to BAE Systems, Electronic & Integrated Solutions, herein referred to as BAE Systems, for the procurement of all variants of the ALE-70 Countermeasure and repair of government-owned tooling and test equipment. This follow-on contract for highly specialized supplies and services will consist of a base year and up to four options. Future modifications may be required to negotiate options that could not be adequately priced in the initial contract award due to current market conditions and supply base concerns.

Authority to act under this class justification expires on 30 September 2028.

3. Description of Supplies/Services.

The scope of this justification includes the continued procurement of all ALE-70 countermeasure variants to provide required radio frequency countermeasure capability to the DoD, Foreign Military Sales (FMS), and partner countries and repair of government-owned tooling and test equipment. This effort will be funded with Fiscal Year (FY) 2024 through 2028 Procurement of Ammunition, Navy and Marine Corps (PANMC), Foreign Military Sales (FMS), and Other Customer Funds (OCF). The total estimated value of this CJ&A is

. The estimated dollar value below is based on anticipated maximum quantity.

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

CJ&A_23_0023

10 U.S.C. 3204(a)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

In accordance with Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(ii)(A)-(B) and (iii)(A)-(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 in fulfilling the Navy’s requirements and substantial duplication of cost that would not be recovered through competition.

BAE Systems is the sole designer, developer, and manufacturer of all variants of the ALE-70. The Government does not possess a Type 3-Dimensional (3D) Product Technical Data Package (TDP) as well as the specific processes, testing and testing equipment, program tooling, and factory tooling required for the production of the ALE-70. On 22 June 2022, NAVAIR requested a rough order of magnitude (ROM) from BAE Systems for a Type 3D Product TDP with a Government Purpose Rights (GPR) license. On 30 June 2022, BAE Systems provided a response, declining to provide a ROM. There is no other contractor who can meet the U.S. Government requirements. The prior ALE-70 contract award was not competed.

Award of this contract to any source other than BAE Systems would result in an unacceptable delay.

Approximately 12 months would be required to conduct a competition to select a new source. In addition, a new source would require at least four years to achieve the desired product maturity in order to provide the required supplies. The unacceptable delay product maturity calculation includes three years for development and verification and one year for productionization in preparation for a low rate production line. This estimate is based on subject matter expert analysis of historical information, including the most recent production lots. Any interruption in production would pose critical setbacks to current schedules and requirements. Based on unacceptable delays, the Government has determined that BAE Systems is the only responsible source capable of meeting the U.S. Government’s requirements.

In addition to an unacceptable delay, substantial duplication of costs to the Government, not expected to be recovered through competition, would be incurred if the required supplies were developed and procured through another source. The duplicative cost is estimated to be approximately ALE-55 development costs were used as the basis of estimate for duplication of development costs for ALE-70 (ALE-70 development was paid for on the JSF development contract and it could not be segregated for use in this estimate). ALE-70 actual procurement pricing was used to estimate the theoretical cost of the first unit and calculate the “loss of learning” associated with starting a new production line. The duplicative cost estimate includes the costs for hardware, software, test and evaluation, flight testing, personnel, and publications pertaining to development of another system. Costs associated with establishment of Special Access Program security requirements, Classified Information Technology networks, Classified documentation storage as well as development and construction of a secure production facility are not included as part of this cost.

The efforts described herein cannot be performed by a source other than BAE Systems without unacceptable delays in deliveries to the Fleet and substantial duplication of cost to the Government, which is not expected to be recovered through competition.

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

The Sources Sought required by DFARS PGI 206-302.1 was posted on 25 August 2022. A second sources sought notice was posted on 02 June 2023 to ensure the latest available industry data and capability was considered in the agency’s market research. No responses were received in response to either Sources Sought notice. The proposed contract was synopsized on the SAM website on 20 September 2022 and no inquiries to the synopsis have been received to date. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than BAE Systems to provide the required supplies and services. Any inquiries received will be addressed by the PCO 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 CJ&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

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

As this is a follow-on for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(S-70)(i), the prior J&A (J&A #18_0047) was provided to the approval authority for review. Approval of this CJ&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(S-70)(ii).

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Signature Name (Printed) Phone No. Date

SENIOR PROCUREMENT EXECUTIVE APPROVAL

Upon the basis of the above justification, I hereby approve, as Senior Procurement Executive of the Navy, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 3204(a)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

Frederick J. Stefany Date Assistant Secretary of the Navy Research, Development and Acquisition Acting