CH53K_Phase2_CJA_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 20-492

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Systems Command (NAVAIR) Headquarters via Naval Air Warfare Center Training Systems Division (NAWC-TSD).

2. Description of the Action Being Approved.

This Class Justification and Approval (CJ&A) authorizes and approves the issuance of orders and modifications, on a sole source basis, under Basic Ordering Agreement (BOA) N0001919G0029 and any subsequent follow on BOA with Sikorsky Aircraft Corporation (A Lockheed Martin Company), Stratford, CT to procure Containerized Flight Training Device(s) (CFTDs), Flight Training Device (FTD), and the associated non-recurring engineering, equipment and support for the United States Marine Corps (USMC) CH-53K Heavy Lift Helicopter. Authority to act under this CJ&A expires 31 October 2025.

3. Description of Supplies/Services.

This CJ&A covers the procurement of CH-53K Phase II Training Systems to include CFTD #2 (Base), CFTD #3 (Option), CFTD #4 (Option), CFTD #5 (Option), and FTD #1 (Option). The scope of this action also includes spares, special tooling, support equipment, test equipment, training equipment/services, non-recurring and recurring engineering associated with engineering changes, publications, technical data, logistics support, installation of Government Furnished Equipment (GFE) and facilities, and assembly, test and delivery of the Training Systems.

Budget (PB) 21 for the USMC CH-53K Program. The Government intends to include variation in quantity and/or pre-priced options within the awarded order to cover procurement of additional CFTD/FTDs as subsequently authorized and appropriated by Congress to support additional CH-53K requirements. The total estimated value of the action under this CJ&A is $92M and is anticipated to be funded by the fiscal years and appropriation set forth in the table below:

CJ&A 20-492

Estimated Dollar Value in Millions

APPN FY21 FY22 FY23 FY24 TOTAL ($M)

APN-1 $18.5 $52.5 $15.0 $ 0 $86M

APN-6 $ 0 $ 2.0 $2.0 $ 2.0 $ 6M

Total $18.5 $54.5 $17.0 $ 2.0 $92M

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.

Sikorsky is the Original Equipment Manufacturer (OEM) of the legacy H-53 fleet and is the only known responsible source possessing the requisite knowledge, technical expertise, special skills, technical data, facilities and experience to complete development, integration and production, and training systems of the CH-53K to meet USMC requirements. Sikorsky was awarded the Systems Development and Demonstration (SDD) contract in 2006 and subsequently awarded a modification to the SDD contract for four (4) System Demonstration Test Article (SDTA) aircraft in 2013. In addition, a modification was awarded in 2013 to the SDD contract for design, development, NRE and delivery of the initial Containerized Flight Training Device (CFTD #1).

As such, Sikorsky is the only source qualified to develop the CH-53K helicopter training system, possessing the technical skill and equipment used for training system development, and testing necessary to meet the CH-53K program requirements and capabilities. Although the Government has obtained some technical data rights for the CH-53K aircraft, Sikorsky has asserted, pursuant to DFARS 252.227-7017, limited rights for the essential technical data to support a competitive effort, specifically, the Sikorsky CH-53K GenHel Aero Model, an aerodynamic software model required to simulate aircraft performance in the CFTDs. The Government has attempted to obtain the data rights, however, Sikorsky is currently unwilling to sell the CH-53K data rights required to support a competitive acquisition of the training systems. Procurement of another CFTD design at this time would require additional NRE, as well as re-design or retrofit of CFTD #1, resulting in a duplication of costs of approximately $30M. Based on this information, award to any other source would result in substantial duplication of costs to the Government that would not ordinarily be recovered through competition. Therefore, NAVAIR has determined that

CJ&A 20-492

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

Market research, in compliance with PGI 206.302-1, was conducted for the proposed effort via a Sources Sought Notice posted to the beta.SAM.gov (SAM) website on 7 April and closed on 17 April 2020 with no responses. In accordance with FAR 5.201, a Pre-solicitation Notice for this effort was posted to the SAM website on 14 May and closed on 29 May 2020. No responses were received. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than Sikorsky to provide the required supplies and support.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402(a), the Contracting Officer must ensure that all supplies and support provided under this contract are procured at fair and reasonable price. The Contractor will submit a formal price proposal with certified cost or pricing data and sufficient information of the proposals will be performed by technical analysts and contract specialists with assistance from field pricing support, as needed. The Contracting Officer will utilize cost and price analysis as the basis for negotiating a fair and reasonable price. The Contracting Officer will analyze the various cost elements that are presented in the proposals and may review actuals from previous procurements, as needed. The Contracting Officer may use Government expertise, including DCMA, DCAA, the program office and other Government resources as needed, to evaluate the proposal material, labor, and subcontract positions.

8. Actions to Remove Barriers to Future Competition.

For the reason set forth in paragraph (5), Sikorsky is the only contractor that can meet the current requirement for this trainer production effort. The lack of responses to the sources sought notice and pre-model is the primary barrier to future competition, the Program Office is investing in an organically (government) developed aero-model through the Naval Air Warfare Center, Aircraft Division (NAWCAD), Aircraft Simulation Division, Manned Flight Simulator (MFS). With an anticipated development timeframe of three years, a government developed and owned aero-model would not be completed in time to support this effort. However, it would potentially be available to support a follow-on competitive effort for additional CFTDs/FTDs in FY25 and beyond. In addition, the Government will continue to attempt procurement of the technical data from Sikorsky sufficient to enable competitive support strategies in the future.