CJA 21-0111 SNC BOA REDACTED.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT

DIVISION

21983 BUNDY ROAD BLDG 441

PATUXENT RIVER, MARYLAND 20670-1127

IN REPLY, REFER TO:

CJ&A_21_0111

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center Aircraft Division (NAWCAD) Patuxent River, MD.

2. Description of the Action Being Approved.

This Class Justification and Approval (CJ&A) authorizes and approves the issuance of service orders on a sole source basis under Basic Ordering Agreement (BOA) N68335-19-G-0013 issued by NAWCAD Lakehurst and awarded to Sierra Nevada Corporation (SNC) for hardware, engineering, and technical services including fabrication, modification, repair, replacement, upgrades, and improvements to Precision Approach Landing Systems (PALS) components, assemblies, and associated hardware in support of the NAWCAD Webster Outlying Field Air Traffic Control and Landing Systems (ATC&LS) Division. Orders will be Firm-Fixed-Price (FFP) and Cost-Plus-Fixed-Fee (CPFF). Authority to act under this CJ&A expires on 26 December 2025.

3. Description of Supplies/Services.

This action is for the procurement of services and incidental materials to fabricate, modify, repair, replace, upgrade, and improve PALS components, assemblies, and associated hardware.

PALS components that will be supported include, but are not limited to, the AN/SPN-46(V) Radar Doppler Video Processor (RDVP), AN/SPN-46(V) Radar Control Group, AN/SPN-46(V) Unit 19 Upgrade, AN/SPN-46(V) Receiver and Transmitter, Link 4A, AN/APN-245 Radio Beacon Sets, the Unmanned Common Automatic Landing System (UCARS), AN/SPN-35C Receiver, and the AN/SPN-35C Radar Processor Controller.

The function of PALS is to provide precision landing information to air traffic controllers and pilots during final approach while landing aircraft aboard aircraft carriers and amphibious assault ships. The PALS equipment must be repaired, maintained, and certified as fully-operational to ensure maximum fleet readiness. If the equipment is not fully operational, the fleet will be directly and adversely impacted as the capability to track and land aircraft aboard vessels will be severely restricted. The AN/SPN-35C and AN/SPN-46(V) are required to operate through 2040 due to a Landing Systems Upgrade Plan that was a result of changes in Research and Development budgets. This will require the replacement/repair of obsolete/damaged components, the development and testing of these components, and re-certification of the systems. The systems will also need to be modernized to meet supportability and maintainability requirements for mission essential equipment.

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

10 U.S.C. 2304(c)(1), as promulgated in 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.

The AN/SPN-46(V), UCARS, and the AN/SPN-35C are complex radar systems. SNC, as the Original Equipment Manufacturer (OEM) of specific system components, is the only company that possesses the technical expertise and production level data to modify these components without extensive and costly reverse engineering efforts. The services and incidental material to be procured under this follow-on sole source BOA are integral to the AN/SPN 46(V), UCARS, and AN/SPN-35C systems; they are also critical for ensuring operational readiness is maintained.

SNC developed the modernized code for the radar software, which includes the OEM field change kit for shipboard upgrades as part of the Block II Life Cycle Extension Program. SNC is also the OEM for the Radar Control Group Unit 19, which is the control center of the AN/SPN- 46(V). SNC holds unique technical data for the RDVP, for which functionality is required to be moved from Unit 19 to the newer receiver within Units 24 and 25. The unique technical data and special tooling that SNC possesses will significantly reduce the risk associated with this transition.

SNC was awarded sole source orders to modify their air traffic control components. As such, SNC is the OEM of major components of currently-fielded equipment and holds exclusive data rights to various components of the PALS radar equipment. On 12 August 2019, the ATC&LS Division requested a Rough Order of Magnitude from SNC to procure level III production grade drawings to facilitate future competition. To date, SNC has not quoted this effort. Using an alternate source would require the reverse engineering of the SNC OEM equipment. The estimated cost for a vendor to reverse engineer the SNC hardware and software is approximately $20M. In addition, flight safety requirements mandate extensive land-based electrical, environmental, and flight-testing in order to qualify a new source for ATC&LS hardware. This testing would take 24 months and cost approximately $49.25M to complete.

Furthermore, approximately 100 hours of flight-testing would be necessary at approximately $30K per flight hour, totaling $3M; re-certification of the new equipment on an aircraft carrier would cost approximately $3M. Based on the above, the total cost would be $75.25M to utilize alternate sources.

The PALS equipment is currently experiencing obsolescence issues and additional component obsolescence requirements are projected. If the equipment is not fully operational, the fleet will lity to track and land aircraft aboard vessels will be severely restricted. This restriction would result in U.S. aircraft carriers being unable to recover aircraft during adverse weather and sea state conditions.

In summary, attempting to qualify another vendor would be cost prohibitive and lead to unacceptable delays to fleet operations.

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

In Accordance With (IAW) FAR Part 10, the ATC&LS Division conducted market research.

Market research efforts included releasing a Request for Information (which posted on 30 June 2020 and closed 15 July 2020) and a Pre-Solicitation Synopsis (which posted on 23 July 2020 and closed on 08 August 2020) via beta.SAM.gov. No responses were received. Internet searches were also conducted and results included SNC, Northrop Grumman Corporation, Raytheon Company, and Lockheed Martin Corporation; however, SNC is the only company currently capable of providing the services and incidental material required. Northrop Grumman and other distributors were partially capable as they are able to purchase equipment from SNC and distribute the equipment at a marked-up cost; however, they are not capable of upgrading specific OEM components. Raytheon and Lockheed Martin Corporation have experience in radar and navigation, but they were found not capable due to a lack of specific PALS component and subcomponent experience that is necessary for this requirement. Therefore, it was determined that Northrop Grumman Corporation, Raytheon Company, and Lockheed Martin Corporation cannot provide the required services and material without extensive cost and schedule impacts to the U.S. Navy. All orders will be synopsized IAW FAR 5.201(a).

7. Determination of Fair and Reasonable Cost.

Individual orders will be negotiated on a FFP and CPFF basis, as applicable. IAW FAR 15.402, the Contracting Officer shall ensure that all services and incidental material provided under this BOA are procured 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. Experienced technical analysts, cost analysts, and Contract Specialists will review SNC’s proposals with the aid of necessary field pricing support. The Contracting Officer will utilize cost and price analysis as the basis for negotiating a fair and reasonable price.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in paragraph 5, the ATC&LS Division has no plan at this time to compete future contracts for the types of services covered by this CJ&A. The Government does not possess the required Technical Data Package (TDP) and specifications necessary for unrestricted competition. As the OEM, SNC is the only company that currently possesses the technical expertise and special tooling required to perform design modifications and upgrades, in addition to the ability to repair associated parts for these complex systems. There are no other sources for spare parts. If another potential source emerges, or the ATC&LS Division becomes capable of procuring the TDP required for repairs of the PALS components and assemblies, the ATC&LS Division will then assess whether competition for future requirements is feasible.

Because this effort is a follow-on to an expiring CJ&A for supplies and services previously awarded on a non-competitive basis, IAW DFARS PGI 206.304(a)(S-70)(i), the prior CJ&A was provided to the approval authority for review. Approval of this CJ&A signifies the approval authority has made the determination required by DFARS PGI206.304(a)(S-70)(ii).