CJA 22-0070 Redacted -- CID Systems BAE Corporate BOA_DP.docx

CJ&A 22_0070

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND

NAVAL AIR SYSTEMS COMMAND HEADQUARTERS

47123 BUSE ROAD, UNIT IPT BLDG 2272, ROOM 453

PATUXENT RIVER, MD 20670-1547

IN REPLY REFER TO

Ser: AIR-2.2.4.3

CJ&A_22_0070

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Systems Command (NAVAIR) Headquarters

1. Description of the Action Being Approved.

This Class Justification and Approval (CJ&A) authorizes and approves the issuance of orders on a sole source basis to BAE Systems Information and Electronic Systems Integration (hereinafter referred to as “BAE Systems”), Nashua, New Hampshire under the planned fiscal year (FY) 2022-2027 Corporate Basic Ordering Agreement (BOA). The BOA orders are for supplies and services associated with FY2022-FY2027 Combat Identification Systems (CID) for the United States Navy and Foreign Military Sales (FMS), Army, Coast Guard or other service or agency. Authority to act under this CJ&A expires on 30 March 2027.

1. Description of Supplies/Services.

Orders placed under the BOA will support the following systems to include nomenclature changes and upgrades: AN/APX-117/117A(V), AN/APX-118/118A(V), and AN/APX-123/123A(V) Common Digital Transponder (CXP); AN/UPX-37, AN/UPX-41(C), AN/UPX-42(C), AN/UPX-45(C), and AN/UPX-50 Digital Interrogator Set (DI); AN/APX-111(V) Combined Interrogator/Transponder (CIT); and OE-120() Antenna Group. Supplies and/or services to be procured under the BOA may include the following: certification testing; configuration changes; data collection, processing, and analysis; design, manufacture, assembly, installation and test of breadboards and/or prototypes; data development and software update/development; engineering/trouble report investigations; engineering change proposals; feasibility and integration studies/efforts; interchangeability assessments; laboratory simulations; logistics products; obsolescence mitigation; government furnished equipment repairs, to include depot repair support and re-builds; support of the Secure Internet Protocol Router Network (SIPR Net) capability installed at BAE Systems’ facility; and test plans/testing.

Quantity and delivery requirements will be established in each order. The total estimated cost of the orders under this CJ&A is $ . Orders under the BOA may be funded with Other Procurement, Navy (OPN); Ship Construction, Navy (SCN), Aircraft Procurement, Navy (APN); Research, Development, Test and Evaluation (RDT&E); Other Customer Funds (OCF) to include Army and Coast Guard funds; Operational Maintenance, Navy (OMN); and Foreign Military Sales (FMS) funds as delineated in the table below:

Estimated Dollar Value in Thousands

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

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1) "Only one responsible source and no other supplies or services will satisfy agency requirements.”

1. Rationale Justifying Use of Cited Statutory Authority.

In accordance with FAR 6.302-1(a)(2)(ii)(A) and 6.302-1(a)(2)(iii)(A) the Government has deemed the requirements listed above to be available only through the original source and award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition in fulfilling the Navy’s requirements.

The efforts identified in paragraph three require an intricate knowledge of the CID system’s design and of the engineering details of interdependent aircraft and ship systems and subsystems. BAE Systems is the sole designer, developer, and manufacturer of the CXP, DI, CIT, and OE-120 systems, which were all originally competitively awarded over 10 years ago. It has been determined in every subsequent procurement, and associated J&A, that BAE Systems is the only known source for these Systems with the integration capabilities, technical data, and experience required to perform the efforts.

The Government does not possess adequate data or the rights necessary to competitively award these requirements. BAE Systems is in sole possession of the data as well the capability and experience required to perform the efforts described and the only company with access to all of the data and software necessary to successfully accomplish these efforts. Furthermore, when NAVAIR requested Rough Order of Magnitude pricing for the CID systems data rights, BAE Systems declined to sell the data rights. For an alternate source to provide these requirements, substantial technology development would be required to ensure changes implemented to the systems do not inadvertently affect form, fit, or function. The NAVAIR Cost and Schedule Analysis Group used past actuals that have been adjusted for inflation to estimate that if this effort was awarded to an alternate source, the Government impact would be $ of duplicative costs. This estimate assumes the alternate source would need to perform non-recurring engineering activities similar to the original design, development, testing, and qualification efforts required to field the existing CID systems. If form, fit, function changes are not possible, additional costs would likely be incurred both in fielding the alternative hardware and also in sustaining multiple configurations. There are no indications that an alternative source would provide savings sufficient to recover these duplicative costs.

Based on substantial duplication of costs that would result from award to another source, NAVAIR has determined BAE Systems is the only responsible source capable of meeting the Government’s minimum needs.

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

As discussed in paragraph five, it is not practical for any source other than BAE Systems to provide the required supplies and services. In accordance with FAR 5.201, this proposed requirement was posted on the SAM website on 15 June 2021, and was later amended to incorporate the AN/UPX 42(C) on 21 December 2021. No responses were received. Any future responses will be evaluated by the Procuring Contracting Officer prior to award. A synopsis will be issued prior to awarding any order under the BOA. A waiver of DFARS PGI 206.302-1, Request for Information/Sources Sought Requirement, was approved on 21 December 2021 for the CID systems supplies and services identified in paragraph three.

1. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the supplies and services covered by this J&A will be fair and reasonable.

1. Actions to Remove Barriers to Future Competition.

For the reasons set forth in paragraph five, NAVAIR has no plans at this time to compete future contracts for the types of supplies and services covered by this document. NAVAIR will continue to assess the market and determine if competitive acquisitions for these requirements are feasible.

Because this is a non-competitive follow-on acquisition to a previously awarded non-competitive action for the same type of supplies and services, the prior justification (CJ&A_18_0059) is provided in accordance with DFARS PGI 206.304(a)(i). Approval of this CJ&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(ii).

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