CJA_Redacted_23-0255.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND

RADM WILLIAM A. MOFFET BUILDING

47123 BUSE ROAD, BLDG 2272

PATUXENT RIVER, MARYLAND 20670-1547

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

IN REPLY REFER TO:

CJ&A 23-0255

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 issuance of orders on a sole source basis to Mercury Systems, LLC (Mercury) under the V-22 Program Basic Ordering Agreement (BOA), N00019-24-G-0003. Authority to award orders pursuant to this CJ&A expires on 13 December 2028.

3. Description of Supplies/Services.

Actions authorized under this CJ&A will support non-recurring engineering, reliability/ sustainability improvements, test, repair, modification, logistics support, training, obsolescence management, program management, spare and repair parts, kitting, support equipment, and procurement of Mercury components and software to include Avionics Weapons Repairable Assemblies/Line Repairable Units on the V-22 aircraft in support of efforts including but not limited to Joint Avionics Reconfigurable Virtual Information System, (JARVIS), Data Transfer System (DTS) Data Transfer Unit (DTU), Removable Storage Module (RSM), Advanced Multifunction Display (AMFD), and Federated System Processor (FSP) and software CSCIs JMM-JARVIS Map Module, JDM-JARVIS Display Modules and related software applications.

Orders under the V- 22 Mercury BOA and authorized under this CJ&A will include, but are not limited to:

a. Support activities related to Mercury supplied equipment for the V-22 to include integrated logistics support tasks, logistics studies, investigations, and associated data, diminishing manufacturing sources and material shortages, and obsolescence mitigation actions.

b. Design and manufacture change kits for safety and equipment changes and Operational and Safety Improvement Programs.

CJ&A 23-0255

c. Technical data documentation and manuals, coding improvements and updates, Contractor maintenance and engineering services, integrated logistics support, technical publication updates, logistics management information/logistics supportability analysis, change kits, and augmented support for spare and repair parts directly impacted by changes resulting from Mercury original engineering change kits or production line changes.

d. Training parts for existing operational and/or maintenance trainers, and/or other relevant trainers.

e. Contract plant services (factory training). New Peculiar Support Equipment (PSE) and/or change kits to existing Contractor manufactured support equipment required as a direct result of Mercury Engineering Change Proposals (ECPs) or Mercury equipment.

f. Change kits (and forced retrofit where appropriate) to fleet spares critical to maintain supportability in the fleet, reflecting unique changes made by Mercury to the V-22 configurations.

g. Unique Mercury spare and repair parts to include repair parts for Mercury manufactured new PSE.

h. Repair of aircraft and/or Government Furnished Equipment.

i. Engineering studies and investigations, and associated data to include investigation of feasibility or practicality of proposed changes.

j. Design, manufacture, assembly, and test of components and/or prototype hardware or software, and associated data resulting from Mercury engineering changes and/or Bell- Boeing engineering studies performed on the V-22 series aircraft; and

k. Recurring data deliverable reports for Mercury maintenance and use of repair parts on V- 22 equipment.

l. Program management reports, data, and reviews for any efforts contracted under the

BOA.

m. Update software in response to latest DoD security updates and conduct bench or on-aircraft tests to assure there are no impacts resulting from software changes.

Quantity and delivery requirements will be established in each order. The estimated total value of orders placed against the V-22 Mercury BOA under this CJ&A is and is anticipated to be funded by the fiscal years and appropriations as set forth in the table below.

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.

A Small Business Innovative Research (SBIR) Phase III Basic Ordering Agreement (BOA) under topic N102-129 was awarded to Physical Optics Corporation on 31 Mar 2017 as a Sole Source after the completion of the Phase I and II Contracts. Mercury acquired the company in second quarter ending January 1, 2021. Mercury now possesses the unique engineering data, technical skills, established tooling, support equipment, facilities, and requisite knowledge of the design, fabrication and production of the V-22 avionics and displays required to perform the efforts contemplated under this follow-on BOA. Under the February 2014 version of DFARS 252.227-7018, Rights in Noncommercial Technical Data and Computer Software—Small Business Innovation Research (SBIR) that was in effect at the time of contract award, SBIR data rights provide only Limited Rights in technical data and do not convert to Unlimited Rights until five years after the completion of the SBIR project. Any contract executed prior to March 2020 uses the 2014 version of the DFARS clause. A recent modification to a delivery order under a 2017 POC BOA has extended the period of performance for the SBIR project to 30 Nov 2027 for the Joint Avionics Reconfigurable Virtual Information System (Jarvis) and the re-design of the Removable Storage Module (RSM). Therefore, the Government does not gain Unlimited Rights for those components until 30 Nov 2032. The Government currently has Government Purpose Rights and Unlimited Rights in the other components and software included in the scope of this effort.

The Government has invested approximately overall into the V-22 Mercury components to include Joint Avionics Reconfigurable Virtual Information System, (JARVIS), Data Transfer System (DTS) Data Transfer Unit (DTU), Removable Storage Module (RSM), Advanced Multifunction Display (AMFD), and Federated System Processor (FSP) and software CSCIs JMM-JARVIS Map Module, JDM-JARVIS Display Modules and related software applications, System hardware designs and drawings, acquisition of multiple system hardware components, and related non-recurring engineering. In addition, the Government has incurred the cost of integration and flight qualification of these Mercury components on the V-22 aircraft via various Bell Boeing Joint Project Office contracts as a supplier. The aforementioned costs would be duplicative to the Government if required to design, develop, integrate, test, and procure alternate components. These costs are not expected to be recovered through competition. Based on the foregoing, Mercury is the only responsible source capable of satisfying the Government’s requirement without substantial duplication of costs.

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

Market research was conducted through a sources sought notice posted to the System for Award Management (SAM) website on 20 March 2023 seeking sources from industry for support of production and retrofit integration, ECPs, production transition, and reliability/sustainability improvements on production and fielded V-22 avionics and displays. There was one (1) not capable response received from MBDM Inc. MBDM does not have the data rights to produce the Mercury components, to address the sustainment needs of both the fielded and production V- 22 aircraft today and in the future. Accordingly, MBDM was notified on 19 April 2023 of the not capable determination resulting from the analysis of the materials provided within the sources sought response.

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 J&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 contracts for the types of supplies/support covered under this CJ&A. NAVAIR will continue to conduct market research and if other potential sources emerge, NAVAIR will assess whether competition or breakout opportunities are available.