CJA_Redacted_BQM177A SSAT.pdf

CJ&A_21-0072

The FRP contract includes production Lots 4-7 of the BQM-177A that emulates Anti-Ship Cruise Missiles for the USN in support of weapon systems training, testing, and evaluation exercises. The scope of the FRP contract includes BQM-177A target vehicles, Rocket Assisted Take Off (RATO) and mission installation kits, and technical and administrative data. The contract will include a base year and three options. The total estimated dollar value of FRP 4-7 reflects production quantities of up to 70 targets per lot, for a total quantity of up to 280 targets to meet USN requirements and additional assets to fulfill anticipated FMS/Other Customer Funds (OCF) requirements. Estimated delivery dates for the base and three options is through FY27.

The total estimated cost of the orders covered under the BOA is ; and will be funded as set forth in the table below. The total estimated value for the Software IDIQ is ; as set forth in the table below.

The estimated cost of the FRP contract is and will be funded as set forth in the Table below. All costs are based on the BQM-177A authorized and appropriated budget and assumes the anticipated FMS cases are approved and funded. The intent is to procure supplies and services up to the authorized and appropriated budgets shown in the table below or other such funding as may be authorized by Congress.

Estimated Dollar Value in Millions

* Based on OSD-22 Budget Profile (FY22-26)

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

10 U.S.C. Section 2304(c)(1), One source or limited sources.

5. Rationale Justifying Use of Cited Statutory Authority.

Contract N00019-11-C-0024 was competitively awarded to Composite Engineering, Inc. (CEI) on 28 January 2011 to deliver a SSAT (BQM-177A) system that meets the requirements of Performance Specification PMA208-008001. Kratos Unmanned Aerial Systems (KUAS) (formerly CEI) is the sole designer, developer and manufacturer of the BQM-177A SSAT to include unique mission kits, special tooling, software and support equipment. KUAS is the only known contractor with the requisite knowledge, maintenance and repair experience, and noncommercial technical data and software rights to meet the Government’s requirements for the BQM-177A SSAT system. During the Engineering Manufacturing and Development and Low Rate Initial Production phases, the Government received technical data with limited and restricted rights. However, the Government does not have adequate rights in the technical data or software to compete the requirement and has not procured a technical data package (TDP) that would be adequate for competition. KUAS is willing to provide a complete TDP and associated unlimited data rights at an estimate of , to include paper drawings, tools and models, software (inclusive of source code), training and technical manuals, firmware, and associated testing documentation and projected sales over the life of the product. PMA-208 does not intend to procure the TDP and associated unlimited data rights, as the cost has been determined to be cost prohibitive.

Based on the NAVAIR Cost & Schedule Analysis Department (CSA) analysis, it would cost and an additional four years to design, test, qualify, and produce an alternative target. This estimate is based on the total research and development cost as well as non-recurring engineering costs for the program. In accordance with Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(ii)(A), award to any other source would result in unacceptable duplication of cost to the Government that is not expected to be recovered through competition.

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

The Program Management Office, PMA-208 Aerial Targets, under Program Executive Office, Unmanned Aviation and Strike Weapons (PEO(U&W)), maintains a constant survey of the industry market and has identified no other source currently capable of satisfying the Government’s requirement. Each individual order under the BOA will be synopsized in accordance with FAR 5.201.

In accordance with FAR 5.201, the proposed Software IDIQ contract was synopsized on the Beta.SAM website on 26 January 2021 and the proposed FRP 4-7 contract was synopsized on the Beta.SAM website on 24 February 2021. No responses have been received to date for these procurements.

Ser 244-20-084 waiver of DFARS PGI 206.302-1 Request for Information/Sources Sought Requirement was approved to cover the above contract actions. No additional Market Research will be conducted as it is not practicable, for the reasons discussed in paragraph 5, for any company other than KUAS to provide the required supplies and services.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.404-1, the Procuring Contracting Officer (PCO) will determine that the procured supplies and services authorized under this CJ&A are from a responsible source at a fair and reasonable price. The Contractor will submit formal price proposals with certified cost or pricing data, as required and sufficient information to support the accuracy and reliability of the estimates. The negotiated actions will be conducted in accordance with FAR Subpart 15.4 by the PCO, with support as needed, from Defense Contract Management Agency (DCMA) and Defense Contract Audit Agency (DCAA) personnel to ensure that fair and reasonable prices are established. The Contracting Officer’s determination of fair and reasonable price will be based upon information received from historical data, field audits, independent technical evaluations, and thorough cost/price analysis.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in paragraph 5, PMA-208 has no plans to compete future contracts for the types of supplies and services covered by this CJ&A. The quantity of targets purchased each year does not justify the additional nonrecurring costs associated with developing a second source. PMA-208 is working with KUAS to maximize competition through subcontracting opportunities.

This effort is a follow-on to supplies and services contracts previously awarded on a non-competitive basis.

In accordance with DFARS PGI 206.304(a)(i), the prior CJ&A (16-0319), CJ&A (18-0218), and J&A (19- 0504) 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)(ii).