CJandA.pdf

DEPARTMENT OF THE NA VY

NAVAL AIR SYSTEMS COMMAJ"ID

RADM WLLLLAM A. MOFFET BUILDING

47123 BUSE ROAD

PATUX ENT RIV ER, MD 20670-1547

CLASS JUSTIFICATION AND APPROVAL

IN REPLY REr ER TO

CJ&A Number: 18-0249

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

This Class Justification and Approval (CJ&A) authorizes and approves the issuance of orders under the Basic Ordering Agreement (BOA) (NOOO 19-1 8-0-0029) with Lockheed Martin Rotary and Mission Systems (LM RMS). Orders will be placed with LM RMS on a sole source basis for all Type/Model/Series (T/M/S) H-60 aircraft weapon systems and subsystem requirements for the United States Navy (USN) and Foreign Military Sales (FMS) variants. Authority to act under this CJ&A expires on 30 September 2023.

3. Description of Supplies/Services

This CJ&A provides coverage for multiple orders under the BOA with LM RMS. The supplies and services covered under this CJ&A are as follows:

a. Development, manufacture and installation of Engineering Change Proposals (ECPs) for block, segment, tech-insert, upgrades, Diminishing Manufacturing Sources and Material Shortages (DMSMS)/Obsolescence solutions, retrofit kits including, but not limited to, associated non-recurring engineering (NRE), systems engineering, integrated logistics support, production support, prototyping, validation and verification of changes, development, validation, and verification of technical publications, manuals, changes, and directives, associated logistics impacts, testing of retrofit safety and test equipment changes, spare and repair parts for aircraft, subsystems, training simulators/devices, support equipment and related software efforts;

b. Software development and infrastructure support related to systems and subsystems originally developed and integrated by LM RMS. These systems and subsystems include, but are not limited to, avionics and air vehicle management systems upgrades, training simulator/device concurrency and modernization upgrades, weapons systems and sensors, avionics support and hardware upgrades to implement software updates;

c. Testing, including but not limited to, bench testing, avionics system testing, training systems testing, qualification testing, characterization testing, airworthiness, ground and fatigue engineering, modeling and simulation, ground and flight testing, data reduction and analysis of flight test data, technical publication source data, flight clearance recommendation and tactics development, and related test support for aircraft and subsystems;

CJ&A Number: 18-0249

d. Obsolescence management for aircraft and training systems, includes, but is not limited to, obsolescence trade studies, obsolescence component testing and implementation and bridge or life-of-type buys of obsolete parts when required;

e. Support to in-service aircraft including, but not limited to, engineering investigations, service life assessment support, service life extension support and studies, development/update of the applicable Bills-of-Materials (BO Ms) and Interactive Electronic Technical Manuals (IETM);

f. Requalification efforts for subsystems or parts; and

g. Technical and engineering support related to systems and subsystems originally developed and integrated by LM RMS.

The total value of this CJ&A is , compromised of the funding types identified below.

Estimated Dollar Value in Millions

FUNDING ($M) IN THEN YEAR DOLLARS

APPN ($M) FY19 FY20 FY21 FY22 FY23 Total

APN

RDT&E

FMS

O&MN

TOTAL

4. Statutory Authority Permitting Other Than Full and Open Competition

The statutory authority for these efforts that permit other than full and open competition is 10 U.S.C. 2304(c)( l ), as implemented by Federal Acquisition Regulation (FAR) 6.302-1, "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- l (a) (2)(ii)(A) and (B), the Government has deemed the requirements listed above in paragraph 3 for the continued development or production of a major system to be available only through the original source and award to any other source would result in substantial duplication of costs to the Government, which would not be recovered through competition, and unacceptable delays in fulfilling the Navy's requirements as discussed below.

LM RMS is the sole source designer, developer, manufacturer, and supplier of H-60 aircraft, which includes SH-60B, SH-60F, HH-60H, and MH-60R/S, since the competitive fly-off of the Blackhawk helicopter prototypes and subsequent award of a production contract in December 1976. LM RMS is the only source with the unique and specialized engineering capability, resources, subject matter expertise, tooling, facilities, test equipment, proprietary data, and requisite knowledge of the design, fabrication, and production of the H-60 aircraft required to satisfy the Government' s minimum requirements. LM RMS is the only Contractor able to provide to the USN the production line changes to components common with US Army UH-60 Black Hawk, and ensure alignment between USN and other services related to retrofit configurations. In addition, LM RMS is the only source with the requisite knowledge of the aircraft integrated weapon systems, mission systems, avionics, software and other subsystems, design, aircraft structural loads, safety factors, aerodynamic and structural appraisal of fatigue effects databases, unique operational performance, maintenance and support characteristics of the H-60 aircraft to meet the Government's future sustainment requirements. Furthermore, LM RMS has established a supplier base, as well as the engineering and manufacturing processes that are critical for the continued support of these requirements.

Historically, PMA 299 has primarily used a BOA with LM RMS for ECP follow-on retrofit requirements wherein LM RMS performs the NRE and production cut-in of the ECPs. Since LM RMS designs and incorporates the engineering changes, all other sources lack the technical data, engineering knowledge, and experience that are inherent to LM RMS as the original equipment manufacturer.

Currently, award of any of the efforts listed above to any source other than LM RMS would result in an unacceptable delay to fielding the requirement. Approximately 24 months would be required to conduct a competition to select a new source, and a new source would require as much as 36 months to complete design efforts, depending on the complexity of the effort. The H-60 aircraft are either currently deployed or will be deployed in support of critical national tasking. In order to minimize impacts to the fleet, aircraft retrofit schedules are planned and synchronized around operational deployments with aircr~ft available for only a limited period of time to accomplish the necessary mission critical H-60 aircraft modifications. Modernization efforts for flight training devices must similarly be acquired concurrent with incorporation of aircraft ECPs to ensure critical combat training and mission rehearsal capability is provided to meet Fleet readiness requirements.

Delays associated with pursuit of other sources and expected learning curves for adequate familiarity of the aircraft would result in H-60 aircraft squadrons deploying without incorporation of mission critical modifications and training. These delays would also result in missing retrofit installs on the aircraft going through depot-level planned maintenance intervals. Therefore, the cumulative effect of delays would degrade the operational readiness, effectiveness, safety and/or performance of H-60 assets.

Although the PMA-299 program office possesses certain Unlimited Rights technical data to support Provisioning and certain Depot-level organic maintenance issues, the Navy does not possess sufficient data rights necessary to enable it to competitively sustain the MH-60 fleet. The Government does not possess sufficient data rights in manufacturing and repair data to permit it to competitively award the required H-60 PPS. A significant population of MH-60 aircraft are well into the final decade of their planned 30-year service life, and are experiencing serious fatigue issues that require engineering expertise that is only resident with the Original Equipment Manufacturer (OEM), LM RMS. NA VAIR has sought to acquire, but LM RMS is not willing to sell NA VAIR sufficient rights in technical data to compete this effort. LM RMS is also unwilling to enter into a special licensing agreement that would allow for competition of these efforts. Only LM RMS possesses the proprietary data, unique engineering structural and failure data, established tooling, support equipment, facilities, and requisite knowledge of the design, fabrication, and production of the H-60 aircraft required to perform the efforts required. Additionally, LM RMS is presently under contract with NA VAIR to conduct a Fatigue Life Analysis to support decisions regarding the potential for extending the service life of this aging Fleet until a replacement air vehicle is identified and fielded. Under these circumstances, it has become evident that NA VAIR will not be funded to acquire additional contractor data or technical data packages to support competitions for these or future requirements.

There will be limited opportunities to acquire new technical data through procurements under future individual BOA orders that may be placed to support in-service sustainment of the H-60 aircraft and systems/subsystems.' As part of the NA VAIR Data Requirements Review Board process, PMA-299 will review the requirements under each order, assess the actual need for each technical data deliverable, and determine the appropriate data rights required to support the effort, as well as any future competitive opportunities. PMA-299 will weigh the costs of the data against the long term need and return on investment for the most affordable approach and benefit to the government and/or FMS Case countries.

Based on unacceptable delays and substantial duplication of costs that would result from the possible award to another source, the Government has determined that LM RMS is the only responsible source capable of meeting the Government's minimum needs in the timeframe required.

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

In accordance with DFARS PGI 206.302-l(d), a sources sought was posted to the Federal Business Opportunities (FBO) website on 13 March 2018 to seek sources from industry and to date, no responses have been received.

A synopsis was posted to the FBO website on 26 April 2018, and included a point of contact for subcontracting opportunities to broaden industry and small business participation. ln accordance with FAR 5.201, orders will be individually synopsized on the FBO website. The contracting officer will evaluate any responses received prior to award of each order. Additionally, parties interested in subcontracting opportunities, including those who responded to the sources sought notice, will be referred to LM RMS to maximize competition in subcontracted efforts.

7. Determination of Fair and Reasonable Cost

In accordance with FAR 15.402(a), the Contracting Officer has determined that the anticipated costs to the Government for the supplies and services covered by this CJ&A will be fair and reasonable.

The Contractor will submit cost or pricing data in accordance with FAR 15.403-4. Analysis of proposals will be performed by the PMA-299 Program Office, NA VAIR 4.2 Cost Department, and NAV AIR Contract Specialists, with the assistance of the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA). The Contracting Officer will analyze various cost elements that are presented in the proposal, requests for information, review actuals and data from previous procurements and programs for comparison. If a rate agreement is not in place between LM RMS and DCMA at the time of proposal evaluation, the Contracting Officer wi ll work with DCMA and DCAA to establish a rate position, to include escalation, for negotiation of the contract action. The Contracting Officer will utilize cost and price analysis as the basis for negotiating a fair and reasonable price.

8. Actions to Remove Barriers to Future Competition

This is a follow-on for supplies and services previously awarded on a non-competitive basis. In accordance with DF ARS PGI 206.304(a)(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 OF ARS PGI 206.304(a)(ii). If another potential source emerges, NA VAIR will assess whether competition for future requirements is feasible. In addition, in each BOA order, NA VAIR will include required and appropriate technical data and software clauses, and enforce those clauses to ensure that it receives the license rights that the Government is due. NA VAIR will continue to work with LM RMS on an order basis to determine whether there are mutually acceptable terms by which NA VAIR could receive sufficient technical data rights to pursue competition.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

CJ&A Number: 18-0249

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein are complete and accurate to the best of my knowledge and belief.

Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have detennined this Justification is legally sufficient.

Name (~rioted) Phone No. Oat

CONTRACTING OFFICER CERTIFICATION

I c ify that · s Justification is accurate and complete to the best of my knowledge and belief.

~ed) Phone No. Date

APPROVED

Upon the basis of the above justification, I hereby approve the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(l).

' Date