CJA 21-0132 DAIRCM Redacted.pdf

CJ&A_21_0132

5. Rationale Justifying Use of Cited Statutory Authority.

In accordance with Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(iii)(A), NAVAIR has determined that award of the DAIRCM program requirements to any source other than SYSCO would result in substantial duplication of cost to the Government that is not expected to be recovered through competition.

The DAIRCM system was selected as the materiel solution for the JUONS requirement and sole source contracts were awarded to DRS and Daylight on 24 March 2016, on the basis of urgency. Leonardo DRS acquired Daylight in March 2017. On 11 June 2020, an undefinitized contract was awarded to SYSCO, the holding company to DRS and Daylight, for completion of the baseline EMD efforts. Based on the authorization approved herein, a contract modification will be executed with SYSCO.

DRS is the sole designer, developer and manufacturer of the DAIRCM processor and the stacked focal plane arrays associated with the DAIRCM D2 sensor. Daylight, now part of SYSCO, is the sole designer, developer and manufacturer of the Quantum Cascade LASER and the fiber-optic cable assembly (FOCA).

Accordingly, SYSCO is the only qualified source with the comprehensive knowledge of the associated design requirements to modify the DAIRCM design, fabricate the Engineering and Manufacturing Development (EMD) hardware and support the Government’s qualification efforts within the required schedule to support aircraft deployment for additional platforms. SYSCO has a unique and in-depth knowledge of the system’s design and manufacturing complexities and the system’s operational and aircraft integration requirements due to the ongoing JUONs efforts with DRS and Daylight.

Substantial duplication of costs to the Government, not expected to be recovered through competition, would be incurred if the required services and supplies were developed and procured through another source. The duplicative cost estimate was derived by the NAVAIR cost department and is estimated to be approximately $357M. The duplicative cost estimate includes the costs for design and development, hardware, software, test and evaluation, flight testing, personnel, and publications pertaining to development of another system. For this reason, this effort cannot be performed by any source other than SYSCO without resulting in substantial duplication of costs.

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

NRL conducted extensive market research and issued Broad Agency Announcements to evaluate and mature any available sources for DAIRCM technologies. PMA-272, Headquarters Marine Corps (HQMC) and N98 conducted additional market research during FY2014 and FY2015, to include industry briefs and assessment of other service programs. The results of the market research resulted in DRS and Daylight being the only sources capable of providing the required supplies and services within the required timeline.

PMA-272 conducted additional market research in April 2018. DRS and Daylight now conducting business as SYSCO, were the only contractors identified capable of meeting the DAIRCM requirements. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than SYSCO to provide the required supplies and services.

The Sources Sought required by DFARS PGI 206-302.1 was posted on 06 August 2020 and no responses were received. In accordance with FAR 5.201(b)(1), this modification was synopsized and posted on the beta.sam.gov website on 19 April 2021 and no responses were received. Any responses received will be evaluated by the Contracting Officer prior to award of the modification.

CJ&A_21_0132

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402, the Contracting Officer shall ensure that all supplies and services provided under this contract modification 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. The proposal will be reviewed by experienced technical analysts, cost analysts and contract specialists with the aid of field pricing support from Defense Contract Management Agency and Defense Contract Audit Agency, as required. 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.

NAVAIR will continue to evaluate opportunities for future competition or component breakouts throughout the life of the program. If another potential source emerges, NAVAIR will assess whether competition for future requirements is feasible. Because this effort is a follow-on for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(i), the prior J&As were provided to the approval authority for review. Approval of this J&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(ii).