CJ_A 20-0471_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND

RADM WILLIAM A MOFFETT BUILDING

47123 BUSE ROAD BLDG 2272

PATUXENT RIVER MARYLAND 20670-1547

V2223

CJ&A 20-0471

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 (CJ&A) authorizes and approves the issuance of a class of sole-source contract actions under an existing General Atomics (GA) Basic Ordering Agreement (BOA) N00019-16-G-0006. These orders will support the U.S. Navy Advanced Arresting Gear (AAG) requirements. Authority to act under this CJ&A expires 30 September 2023.

3. Description of Supplies/Services: The BOA orders covered under this CJ&A will support the Depot Planning Phase II efforts, depot stand-up efforts, and engineering change proposals (ECPs) for GERALD R. FORD-class aircraft carriers as approved by the Aircraft Launch and Recovery Equipment Program Office Decentralized Change Control Board.

Supplies and/or services procured under these BOA orders include the following:

Development and delivery of depot-level logistics support products to include supportability analysis, maintenance planning, reliability maintenance, support equipment recommendations, provisioning data, post-production support, overhaul recommendations, and depot technical manual and support program development.

Development, manufacture and installation of ECPs for forward fit, retrofit kits or new complete end items. These efforts include associated non-recurring engineering, integrated logistics support updates, validation and verification of technical directives and associated logistics impacts, prototype testing, test plans and reports, computer software, spare parts for near term-sustainment, manufacturing acceptance tests, fielding support and related program management, systems engineering, and logistics and financial management functions.

Quantity, delivery requirements, and periods of performance will vary in each order. The total estimated value of these efforts is approximately . NAVAIR will execute these orders using fiscal year (FY) 2020-2023 Research, Development Test and Evaluation (RDT&E) and Other Procurement, Navy (OPN) appropriations as delineated in the table below.

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: In accordance with Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(ii)(A), NAVAIR has determined award of the effort procured through the anticipated contract actions to any source other than GA would result in substantial duplication of cost ( ) that is not expected to be recovered through competition.

After the Program Definition and Risk Reduction phase, NAVAIR conducted a limited competition and selected a single design. NAVAIR awarded a cost-type contract to GA Electromagnetics Systems (EMS) Division for further development during the System Development and Demonstration (SDD) phase. GA EMS Division began the SDD phase in FY 2005.

The Government does not have sufficient technical data to support a competitive award for these efforts. In September 2019, PMA 251 requested the Naval Air Warfare Center Aircraft Division AIRworks evaluate the AAG technical data package (TDP) for completeness/maturity, source control, manufacturing qualification to include an option for supplier change, special qualifications/ processes, unique tools and fixtures, and system integration risk. AIRworks concluded some drawings were releasable; some drawings have source-controlled markings and insufficient data to release to a third party; and some drawings within the existing TDP require review, redlines/ updates for clarification, and corrections to drawing standards. As such, the TDP in its current format does not support a competitive procurement.

To satisfy the agency’s requirements, an alternate source would be required to design improvements and manufacture the associated kits for the existing design while not negatively affecting other parts of the overall systems performance and ease of installation. An alternate source could not complete this effort on the existing AAG configuration without a complete TDP. In addition, the alternate source will be required to provide recommendations to identify inspection and replacement criteria for components and/or parts in AAG hardware configuration items. To complete these efforts, the alternate source would require detailed experience with the designing, production, testing, troubleshooting, and reliability of the AAG system and the operation of a shipboard Arresting Gear Engine. To gain this knowledge the alternate source would need to repeat a portion of the SDD program. The NAVAIR Cost Department estimated that such effort would cost approximately

As the prime system integrator and developer of AAG products under the AAG SDD contract, GA possess a detailed understanding of system design, performance, and reliability that can only be obtained through multiple years of development, testing, and operational performance on the ship. In addition, during the AAG SDD contract, GA completed more than eighty percent of the Depot Technical Manual under the Depot Planning Phase I effort. GA is the only known source with the intimate familiarity and practical operational knowledge of the existing AAG system to complete these efforts.

In addition to needing to repeat a portion of the SDD program ), the Government would incur other substantial duplicative costs if another source was competitively awarded a contract for the Depot Planning Phase II efforts, depot stand-up efforts, and engineering change proposals. Using the Joint Precision Approach and Landing System as an analogous program, NAVAIR estimates the cost to stand-up an alternate source for Depot Stand-up is approximately

(including stand-up new production facilities, first article test, functional configuration audit, physical configuration audit, and updates to associated logistics documentation). Also, another source would be required to redevelop the technical manual that, based on actual costs incurred during Depot Planning Phase I efforts, the NAVAIR Cost Department estimates the duplicate cost to be

The Government could not expect to recover any of the above-mentioned costs through competition. For these reasons, the Government has determined that GA is the only responsible source of meeting the Government’s minimum needs.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable: Program office experts in the field, who are current on trade studies and the technology, have no knowledge of any other capable sources. In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance, and Information (PGI) 206.302-1, the Director of the V22 Procurement Department approved a class waiver from posting the required sources sought notice for the AAG requirements on 22 May 2017. In accordance with FAR Subpart 5.201(b), NAVAIR posted the synopsis for the planned efforts on 9 July 2020 on the beta.SAM.gov website, and specifically stated the Government’s intent and rationale to contract on a sole-source basis with GA. To date, no other viable source has expressed an interest.

However, the Procuring Contracting Officer (PCO) will evaluate any responses received prior to contract award.

7. Determination of Fair and Reasonable Cost: In accordance with FAR Subpart 15.402(a), the PCO must ensure that all supplies and services are procured at a fair and reasonable price. The contractor will be required to submit proposals with sufficient information to support the accuracy and reliability of the estimates. The contractor will submit cost or pricing data in accordance with FAR Subpart 15.403-4; and experienced engineers, cost analysts, and contract specialists with the aid of necessary field pricing support will perform the analysis of the proposals. NAVAIR will evaluate rate recommendations provided by Defense Contract Audit Agency or Defense Contract Management Agency for incorporation in the cost positions. The PCO will use cost and price analysis as the basis for negotiating a fair and reasonable price for each order.

8. Action Taken to Remove Barriers to Competition: For the reasons set forth in paragraph five, NAVAIR has no plans at this time to compete future contracts for the type of supplies and services covered by this CJ&A. If another potential source emerges, NAVAIR will assess whether competition for future requirements is feasible.