CJA 20_0136 LJDAM CJA Lots 9-15_updated by DASN.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_0136

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND COMPETITION

1. Contracting Activity:

Department of the Navy, Naval Air Warfare Aircraft Division (NAWC-AD) Lakehurst, NJ.

2. Description of the Action being Approved:

This Class Justification and Approval (CJ&A) authorizes and approves the issuance of multiple sole source contract actions to The Boeing Company (Boeing), 6200 James S. McDonnell Blvd, St Louis, MO 63134-1939. Authority to act under this CJ&A expires on 31 December 2027.

3. Description of Supplies/Services:

This CJ&A covers the procurement of Full Rate Production (FRP) Lot 9 & 10 (FY21/FY22) and Lots 11 through 15 (FY23 through FY27) for the Detector Sensor Unit (DSU)-38A/B (500

lb) Precision Laser Guidance Set (PLGS), the DSU-40A/B (2,000 lb General Purpose) PLGS, and the DSU‐42/B (2,000 lb penetrator) PLGS and associated hardware. When the PLGS is attached to the Joint Direct Attack Munition (JDAM), it becomes the Laser Joint Direct Attack

Munition (LJDAM). The Contractor will also provide production engineering support; special tooling and test equipment; and logistics support to include maintenance, trainers, spare parts, and logistics data. The estimated cost is based on historical DSU-38A/B, DSU- 40A/B, and

DSU-42/B hardware pricing, multiplied by the most likely procurement quantities for each

PLGS variant in FY21 through FY27 depicted below.

Estimated Dollar Value in Millions

FY21 FY22 FY23 FY24 FY25 FY26 FY27 Total

O&MN $0.350 $0.357 $0.364 $0.371 $0.378 $1.820

PANMC $12.473 $12.847 $20.559 $21.176 $21.811 $22.466 $23.140 $134.472

OPAF $96.580 $99.261 $102.030 $104.889 $107.837 $510.597

PAAF $76.180 $78.463 $154.643

FMS $69.065 $70.977 $49.555 $50.825 $52.142 $53.503 $54.910 $400.977

Total $157.718 $162.287 $167.044 $171.619 $176.347 $181.229 $186.265 $1,202.509

4. Statute Authority Permitting other than Full and Open Competition:

10 U.S.C. 2304(c)(1), One source or limited sources.

5. Rationale Justifying Use of Cited Statutory Authority:

This procurement is a follow-on contract for the continued production of a major weapon system. Award to a source other than Boeing would result in unacceptable delays in fulfilling the agency's requirements. It took Boeing 4 years to develop the DSU-38/B, 1.5 years for the USN to finish qualification testing on the DSU-38/B, and almost 2 years to complete Production

Acceptance Test and Evaluation on the DSU-38/B. It is estimated that it would take 3-4 years to qualify another source and 2-3 years to test and certify the weapon system, which would result in a delivery schedule that would be detrimental to the warfighter.

The United States Air Force (USAF) awarded a sole source contract, FA 8618-070C-0209, to

Boeing for an initial fielding of LJDAM units to fulfill a United States Central Command urgent operational need to field a Direct Attack Moving Target Capability (DAMTC) in October 2008 for the USAF and United States Navy (USN). The Office of the Assistant Secretary of the Navy, Research, Development and Acquisition (ASN (RD&A)) directed the Program Executive

Officer, Unmanned Aviation and Strike Weapons (PEO (U&W)) to transition the DAMTC requirement to a program of record to include full and open competition of the material solution.

Therefore, in February 2010, the USN conducted a full and open competition and competitively awarded contract, N00019-10-C-0030 to the Boeing Company to fulfill the DAMTC requirement with DSU-38/B PLGS (predecessor to the current configuration (DSU-38A/B)).

Current PLGS configurations stem from the DSU-38/B PLGS, produced by Boeing as the initial

DAMTC materiel solution which, when added to the Navy and USAF existing JDAM inventory became LJDAM. The competitive award was a non-developmental effort that included production acceptance test and evaluation of the LJDAM with Low Rate Initial Production and

FRP Options, but did not include the procurement of the Boeing Technical Data Package (TDP) or proprietary data rights for the PLGS or USAF managed JDAM Guidance Kit.

Under 10 U.S.C. 2304(c)(1), Contract N00019-16-D-1002 for Lots 4 through 8 was awarded sole source to Boeing. The first subject effort Lots 9 and 10, for FY21-22, will award as a series of sole source modifications to that contract under the same authority. Concurrently, the second subject effort for Lots 11–15 is a follow-on contract to the current sole source contract (N00019-

16-D-1002). The follow-on contract is planned for a period of five years utilizing the same statutory authority 10 U.S.C. 2304(c)(1).

Based on the initial procurement, Boeing is the sole qualified designer, developer, manufacturer and integrator of the LJDAM and its related equipment. Boeing is the sole owner of the DSU-

38A/B, DSU-40A/B, and DSU-42/B PLGS proprietary data including the LJDAM design, technical data package, and the assembly instruction. Boeing alone has the experience, special skills, proprietary technical documentation and software, facilities and manufacturing techniques required to furnish the supplies and services. NAVAIR has confirmed that Boeing's Proprietary

Data is not for sale at this time or for the foreseeable future.

An independent analysis performed by the NAVAIR Cost team estimated it would cost the

Government approximately $117.8M and take roughly 3-4 years in front-end investment to develop and deliver a complete system with moving target capability. The estimate is based on the non-recurring engineering costs for the three variants of laser JDAM (DSU-38/DSU-

40/DSU-42B). The developed solution would then require integration into numerous platforms used by the USN, USAF, and International partners. Based on the analysis, the cost to develop and qualify a second source for a complete weapon system that provides the same capability would not be recovered though competition.

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

The Program Executive Officer, Unmanned Aviation and Strike Weapons (PEO (U&W)) maintains a constant survey of the missile industry and can identify no other source capable of satisfying the Government's requirement. Boeing confirmed that as of 12 April 2018 their

LJDAM proprietary data is not for sale. The Government has made additional inquires since then and Boeing’s position has not changed. A Request for Information (RFI)/Sources Sought

(SS) requirement was released 4 October 2019. A pre-solicitation notice for current USN and

USAF requirements was released 16 January 2020 on BetaSAM at https://beta.sam.gov / and closed on 31 January 2020. Boeing was the sole respondent to the notice.

7. Determination of Fair and Reasonable Cost:

In accordance with FAR Subpart 15.404-1, the Procuring Contracting Officer (PCO) will determine that the supplies and services authorized under this CJ&A are awarded at a fair and reasonable price. The Contractor will submit a formal price proposal with certified cost or pricing data and sufficient information to support the accuracy and reliability of the estimate.

The negotiated action will be conducted in accordance with FAR Subpart 15.4 by the PCO, with support, as needed, from Defense Contract Management Agency and Defense Contract Audit

Agency personnel to ensure that fair and reasonable prices are established. The Contracting

Officer's determination of fair and reasonable price will be based upon information received from historical data field audits and cost returns, independent technical evaluations, and thorough cost/price analysis.

8. Actions to Remove Barriers to Future Competition:

NAVAIR will continue to perform market research through the lifecycle of this contract as required by FAR Part 10, including maintaining a market survey, and if another potential source emerges, NAVAIR will assess whether competition for future DAMTC requirements is feasible.

NAVAIR will also enforce applicable contract clauses to ensure that it receives the technical data and/or computer software that it is due. Additionally, NAVAIR will continue to work to determine whether there are mutually acceptable terms by which NAVAIR could receive sufficient technical data rights to pursue competition.

https://beta.sam.gov/

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.

Technical Cognizance:

Mark Lakner 301-757-7445

Signature Name (Printed) Phone No.

Requirements Cognizance:

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

Kevin Smith 732-323-7789

SENIOR PROCUREMENT EXECUTIVE APPROVAL

Upon the basis of the above justification, I hereby approve 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.2304(c)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

Mr. Frederick J. Stefany

Assistant Secretary of the Navy (Research, Development and Acquisition) (ASN(RDA))

Acting

D. P. Blottenberger, for J. E. Dougherty IV, CAPT, USN 301-757-7477

Philip Mitchell 301-757-5360