CJA SSST Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND

RADM WILLIAM A. MOFFET BUILDING

471 23 BUSE ROAD, BLDG Ll.72

PATUXENT RIVER, MARYLAND 20670-1547

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Systems Command (NA VAIR) Headquarters

2. Description of the Action Being Approved.

IN REPLY REFER TO:

CJ&A_ 16-0407

This Class Justification and Approval (CJ&A) for Other Than Full and Open Competition authorizes and approves the award on a sole-source basis of Fixed-Price Contracts with Options to Orbital Sciences Corporation (OSC) for the procurement of supplies and services in support of Full Rate Production (FRP) lots 11-17 of the GQM-163A Coyote Supersonic Sea-Skimming Target (SSST) for the United States Navy (USN), Foreign Military Sales (FMS) and other customers.

3. Description of Supplies/Services.

This CJ&A covers the procurement of the GQM-163A surface launched aerial target system that emulates anti-ship cruise missiles in support of weapon system test and evaluation. The scope of the CJ&A includes, but is not limited to GQM-163A target vehicles and related equipment; technical support services and related supplies; and, technical and administrative data. The estimated dollar value reflects production quantities up to 24 targets per lot to procure a total of 135 assets required to meet USN requirements and additional assets to fulfill planned and projected FMS/Other Customer Funds (OCF) requirements. In addition to the targets, this CJ&A also authorizes procurements of mission kits, replenishment spares and advance long lead steel in support of production. The total estimated CJ&A value is and is projected to be funded as indicated in Appendix A. The basis of the estimated contract cost was obtained via a NA VAIR 4.2 estimate and assumes the planned and projected FMS cases are approved and funded. The USN funding outlined is consistent with President's Budget (PB) 17 program budgeted levels and will support production quantities.

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

10 U.S.C. 2304(c)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

Contract No. N00019-00-C-0255 was competitively awarded to Orbital Sciences Corporation (OSC) on 29 June 2000 to deliver a GQM-163A system that meets the requirements of Performance Specification AS-9208.

OSC, now a wholly-owned subsidiary of Orbital Alliant Techsystems (Orbital ATK), is the sole designer, developer, and manufacturer of the GQM-163A target system. OSC is the only known source with the requisite knowledge, experience, and noncommercial technical data and software rights to meet the Government's requirements on a timely basis. During the Engineering and Manufacturing Development (EMO)

CJ&A_ 16-0407

phase, the Government received a technical data package that was delivered with a combination of Government Purpose Rights, and Limited and Restricted Rights (data which OSC funded at private expense).

OSC is unwilling to sell sufficient license rights to the Government to support competition. PMA-208 has estimated it would cost approximately to qualify another source. This estimate is based on the original procurement cost for qualifying the target. Award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition. Additionally, the unacceptable delays caused by awarding and qualifying another source would result in failure to fulfill the Navy's requirement to meet annual inventory demands in support of operational test and evaluation events for numerous Major Defense Acquisition Programs (MDAPs) including LHA 6, CVN 78, DOG 1000, LCS, AEGIS, SM-6, SM-2, RAM, and ESSM as well as foreign customers.

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

The Program Management Office, PMA-208 Aerial Target and Decoy Systems, under Program Executive Office Unmanned Aviation and Strike Weapons (PEO (U&W)), diligently surveys the industry market and has identified no other source currently capable of satisfying the Government's requirement. A Class Waiver of Defense Federal Acquisition Regulation Supplement (DFARS) PGI 206.302-1 Request for Information/Sources Sought Requirement was approved on 4 September 2015. A synopsis for FRP 11-13 was posted on 15 August 2016 as required by FAR 5.201(b) to Federal Business Opportunities stating the Navy's intention to award a sole source contract. No responses were received. An additional synopsis for FRP 14-17 was posted on 7 September 2016. Any inquiries resulting from future notices will be given full consideration prior to award. No additional market research will be conducted for this procurement, as it is not practicable, for the reasons discussed above in paragraph (5), for any source other than OSC to provide the required supplies and services.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR Subpart 15.404-1, the Procuring Contracting Officer (PCO) will determine that the procured supplies and services authorized under this CJ&A are a fair and reasonable price. 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. In order to support the PCO's determination, the contractor will be required to substantiate its proposed cost or price by providing varying types of cost or pricing information as defined under FAR Subpart 15.4. The contractor and its subcontractors, as appropriate, will be required to certify its cost or pricing data in accordance with FAR 15.403-4. The Contracting Officer's determination of a fair and reasonable price will be based upon information received from historical data, field audits, independent technical evaluations, and thorough cost and price analysis.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in paragraph (5) and (6), NAVAIR has no plans to compete future contracts for the types of supplies and services covered by this document. NAVAIR is working with OSC to maximize competition through subcontracting opportunities in accordance with FAR Part 15.

Because this effort is a follow-on for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(i), the prior Justification and Approval (J&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)(ii).