CJA 23-0202__redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

21983 BUNDY ROAD BLDG 441

PATUXENT RIVER, MARYLAND 20670-1127

CJ&A Number: 23-0202

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center Aircraft Division (NAWC-AD) Patuxent River, MD

2. Description of the Action Being Approved.

This follow-on Class Justification and Approval (CJ&A) authorizes and approves the issuance of orders under Basic Ordering Agreement (BOA) N0042123G0004 effective 01 January 2024 with General Electric Company (GE) 1000 Western Ave, Lynn, MA 01905 for the Propulsion and Power (P&P) Component Improvement Program (CIP) for U.S. Navy and Foreign Military Sales (FMS) customers. These orders will be in support of the F404, F414, T64, T700, CT7, J85, and T408 aircraft engines. These engines support the F/A-18 (all variants), H-53 (all variants), H- 60 (all variants), H-1 (all variants), VH-92, T-38 and F-5 Adversary aircraft. Authority to act under this CJ&A expires on 31 December 2028.

3. Description of Supplies/Services.

Design, analysis, and testing under the P&P CIP will be performed to improve safety and readiness; maintain specification performance; redesign low reliability parts; forecast hardware wear-out rates and life limits; and resolve problems. The deliverables under the BOA orders will include engineering change proposals (ECPs), manufacturing drawings, operating instructions and limits, maintenance instructions, rework/repair procedures, life limits, reliability predictions, technical reports, specification change notices, and test reports. Orders under this BOA will be funded with FY24 through FY29 Research, Development, Test and Evaluation, Navy (RDT&E,N) and FMS funds. The total estimated value of orders under this CJ&A is as shown in table below.

Estimated Dollar Value in Millions

CJ&A Number: 23-0202

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.

GE is the designer, developer, original equipment manufacturer (OEM), and integrator of the F404, F414, T64, CT7, T700, and T408 aircraft engines. As a result, GE is uniquely qualified to provide the complete range of program support required by the Fleet. GE is also the only known company that possesses the technical data, drawings, and specifications necessary to fulfill the Government's requirements. Given GE's involvement with the design, development, qualification, manufacturing, and continuing improvements of the engines, GE possesses the original design documentation, original engineering drawings, and the most recent design changes to these engine types, which are necessary to avoid undesirable interactions between existing and redesigned hardware. In addition, GE has immediate access to the special tooling, special test equipment, and testing facilities (full-scale models, simulation, and bench type laboratories) necessary to prototype and test proposed engineering solutions. Furthermore, GE developed much of the technical data, material, and manufacturing processes required to perform this effort.

The above-described capabilities and expertise, along with the proprietary rights identified above, provide GE with the unique ability to provide the Government with the full range of P&P CIP efforts for each of the six (6) engine types. The technical data and equipment described above is used by current GE personnel, including support, test, structural integrity, technical field support engineers, manufacturing technicians, and logisticians to perform the tasking required by this effort. Their experienced staff gives GE the unique capability to identify critical features of the engine parts that may be limited by fatigue and the ability to assign service life limits to these features of the critical engine parts. This effort is essential in order to prevent catastrophic engine failures. Any degradation or delay in the provision of these P&P CIP efforts will compromise the Navy’s ability to respond to emerging Fleet issues.

Awarding to another source to perform the highly specialized services and to develop improvements under the CIP would result in a substantial duplication of cost to the Government that is not expected to be recovered through competition as described in FAR 6.302- 1(a)(2)(iii)(A). To do so would require the Government to procure and establish another organic support infrastructure for the P&P CIP which, based on historical data, could result in additional estimated costs of . These estimated costs would include establishing a new infrastructure for gas turbine components, full-scale engine test facilities, Full Authority Digital Engine Control (FADEC) simulators, and component test benches that are integral to the process of supporting the USN Fleet of aircraft engines. Additionally, qualifying another contractor’s engineers, engineering processes, and supplying Government program management and engineering analysis support would be necessary to make readiness, safety, and affordability improvements to the six

(6) GE engine models and these functions are major contributors to the substantial cost increase for the P&P CIP. Therefore, based on the aforementioned justifications, the Government has determined that GE is the only responsible source capable of providing supplies and/or services within the program cost and schedule constraints.

CJ&A Number: 23-0202

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

In accordance with FAR 5.201 and DFARS PGI 206.302-1, the Government posted a Sources Sought (Request for Information)/Synopsis for the required effort under BOA N0042123G0004 on the SAM website on 17 April through 03 May 2023. Only GE expressed an interest in this requirement. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than GE to provide the required supplies and services. Pursuant to FAR 5.201(b), each order will be synopsized via the SAM website. Any responses from an interested source will be elevated by the Contracting Officer for possible opportunities for competition. Additionally, any interested parties will be referred to GE for possible subcontracting opportunities.

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, NAWC-AD has no plans at this time to compete future requirements for the types of technical support covered by this CJ&A. However, NAWC-AD does have Government Purpose Rights licenses for design changes and modification kits/hardware developed under the P&P CIP so that competition can be pursued in the procurement of modifications as well as spare and repair parts. In addition, for future procurements, during the ECP process, each modification kit/hardware developed under the P&P CIP will be analyzed to determine whether an alternative manufacturing source (for components and piece parts) is feasible through the Alternative Source Qualification process per SECNAVINST 4140.2.

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 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 PGI 206.304(a)(S-70)(ii).