CJA 23-0163- TACAN FY 24-28 -- Redacted.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_23-0163

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 award of a class of actions on a sole source basis to Thales USA, Inc. (hereinafter referred to as “Thales”), Salt Lake City, Utah, for OE-4691(V)/URN Tactical Air Navigation (TACAN) Antennas and AN/URN- 32/33 TACAN Transponder Systems (hereinafter referred to as “TACAN Beacons”). Authority to act under this CJ&A expires on 30 September 2028.

3. Description of Supplies/Services

This procurement includes supplies/services required for production and delivery of “TACAN System” hardware which consists of Antennas, Antenna Control Indicators and Antenna Radomes; Beacons, Beacon Kits, Beacon Series 2 Assemblies including High Power Amplifiers, Low Power Amplifiers and Remote Monitor Maintenance Control circuit cards; Remote Control Status Unit (RCSU) Upgrade Kits; Remote Monitor and Maintenance Interface cards; production support; and technical data. (The OE-4691(V)/URN Antenna is the modernized version of the OE-273(V)/URN Antenna. Beacon Kits convert legacy AN/URN-25 hardware to the AN/URN- 32 configuration and consist of both Transponder Kits and Remote-Control Status Unit Kits.)

The resulting contract is anticipated to be for a base plus four option years. The total estimated value of this requirement, including anticipated additional option years, for TACAN hardware is to be funded with Other Procurement Navy (OPN), Shipbuilding and Conversion, Navy (SCN) and Other Customer Funding (OCF).

Appropriations are planned to be used as delineated below:

Estimated Dollar Value ($M) and Estimated Quantities

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 3204(a)(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 FAR 6.302-1(a)(2)(ii)(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.

Moog Inc. (hereinafter referred to as “Moog”) purchased the data rights to the OE-273(V)/URN Antenna over 25 years ago and owned, maintained and controlled the production level Technical Data Package (TDP). Moog is the original designer, developer and manufacturer of the modernized OE-4691(V)/URN Antenna. Moog was the original designer, developer and manufacturer of the TACAN Beacons that were originally competitively awarded over 10 years ago. On 06 December 2021 Thales acquired Moog’s ground-based navigation aids business.

With this acquisition, Thales has the unique knowledge, proprietary design and technical data required to produce the TACAN Systems hardware. The Government does not have a production level TDP for the TACAN Systems. In response to a Government request for a Rough Order of Magnitude to sell the TDP, Thales stated that it is not willing to sell it at this time due to the fact that they have just acquired this product line and plan to make significant investments in it.

Without the TDP, an alternate source would need to develop compatible hardware and software that works with the existing Navy and Coast Guard TACAN System, interfaces operationally with existing ship configurations and supports fleet needs. The NAVAIR Cost and Schedule Analysis Department estimates that if this effort was awarded to an alternate source, the Government impact would be $ of duplicative costs. These costs include non-recurring engineering efforts to design/modify, qualify, build and test prototypes as well as the additional cost required to integrate non-form, fit, function replacements internal to the TACAN Beacon System. Fielding of alternative hardware/modules would also require ship drawing updates and additional installation costs to accommodate modifications to the ship footprint, cabling and existing software not included in this estimate.

Additionally, in accordance with FAR 6.302-1(a)(2)(ii)(B), award to any other source other than Thales would result in an unacceptable delay in fulfilling agency requirements to support operational ship schedules. Approximately two years would be required to award a contract to an alternate source and produce production representative units. Furthermore, approximately 24 months would be required to reverse engineer the required backwards compatibility and an additional 24 months would be required to complete compatibility testing and required qualification testing for installation aboard shipboard systems. Based on previous NAVAIR TACAN production experience, this delay is estimated to prevent the Navy from supporting/installing TACAN Systems on a minimum of 98 ships. Failure to meet these requirement schedules would result in TACAN System outages that would impede aircraft operations and endanger aircrew lives by severely compromising the ability of the ship to control and retrieve aircraft.

As a result, in accordance with FAR 6.302-1(a)(2)(ii)(A) and FAR 6.302-1(a)(2)(ii)(B), the Government has determined Thales is the only responsible source capable of meeting the Government’s minimum needs and award to any other source would result in unacceptable delays and substantial duplication of costs to the Government that is not expected to be recovered through competition in fulfilling the Navy’s requirements.

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

Market research was conducted by NAVAIR’s TACAN Subject Matter Experts (SME) via the internet for available companies that could provide TACAN Antennas and Beacons, including related subsystem nomenclatures to assess additional sources. The SME’s market research also included a search of Haystack, Fedlog and the Dynamic Small Business internet site (web.sba.gov/pro-net/search). Their research revealed no additional responsible sources.

The Sources Sought notice required by DFARS Procedures, Guidance, and Information (PGI 206.302-1) was posted on the Sam.gov website on 13 January 2023 and an expanded notice was posted on 25 May 2023. Two initial inquiries were received and subsequently the first was withdrawn. The NAVAIR SMEs determined the second contractor could not meet the Government’s requirements as described in paragraph five above. Their analysis is detailed in the OE-4691(V)/URN TACAN Antennas and AN/URN-32/33 TACAN Transponder Systems Sources Sought Responses White Paper dated 01 August 2023 and incorporated into the official contract file. The Government will include each company in future TACAN market research.

No other responses have been received. In accordance with FAR 5.201, the proposed contract was synopsized on the Sam.gov website on 14 February 2023 and no other sources expressed an interest in this requirement. Any future responses will be evaluated by the Procuring Contracting Officer prior to award.

7. Determination of Fair and Reasonable Cost

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

8. Actions to Remove Barriers to Future Competition

For the reasons set forth in Paragraph 5, NAVAIR has no plans at this time to compete future contacts for the types of supplies/services covered by this document. If another potential source emerges, NAVAIR will assess whether competition for future requirements is feasible.

As this is a follow-on for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(S-70)(i), the prior justification’s (J&A 20_0238, 20- 0080, 21-0145 and 23-0011) were provided to the approval authority for review. Approval of this CJ&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(S-70)(ii).