CUI_Redacted CJA-25-204_GATOR SELS 2.0_FINAL APPROVED_Posted SAM.gov_.pdf

UNITED STATES MARINE CORPS

MARINE CORPS SYSTEMS COMMAND

2200 LESTER STREET

QUANTICO VIRGINIA 22134-5050

IN REPLY REFER TO:

CT 028-PEO LS

CJ&A No. 25,204

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

Marine Corps Systems Command, Program Executive Officer (PEO) Land Systems (LS) Marine Corps, 2200 Lester Street, Quantico, VA 22134-5050

2. Description of the Action Being Approved

This Class Justification and Approval (CJ&A) authorizes and approves the use of other than full and open competition to award a follow-on Basic Ordering Agreement (BOA) and a class of orders on a sole source basis for Sustaining Engineering and Logistics Support (SELS) for the Ground/Air Task Oriented Radar (G/ATOR) to Northrop Grumman Systems Corporation (NGSC), 1580A W. Nursery Road, Linthicum Heights, MD 21090-2202. Authority to order under this class justification expires on 19 January 2031.

3. Description of Supplies/Services

The SELS BOA will provide the services necessary for resolution of warfighter reported problems and engineering and logistics issues associated with the G/ATOR Program of Record, which only NGSC can provide because of proprietary rights to underlying tracking software, electronic protection techniques, and hardware calibration capability. These services include engineering changes, contractor logistics support, depot life cycle support, Software Support Activity support, Diminishing Manufacturing Sources and Material Shortages support, technical refresh, and studies and analyses. This effort also includes the services for the retrofit of six fielded Gallium Arsenide (GaAs) G/ATOR Low-Rate Initial Production systems, with Gallium Nitride (GaN) technology. Additionally, the SELS BOA will provide for operational spares buys, software development for current and future radar systems, and the 5G America’s Mid-Band Initiative Spectrum accommodation.

The orders issued under this BOA will be funded with appropriations from Research, Development, Test and Evaluation

(RDT&E); Procurement, Marine Corps (PMC); Procurement, United States Air Force (USAF); Operations and Maintenance Marine Corps (OM,MC); non-appropriated funds from Navy Working Capital Fund (NWCF); and Spectrum Relocation Fund (SRF), as appropriate.

The funding table below shows the funding profile in millions of dollars by Fiscal Year (FY) and appropriation type and represents the total ceiling value for the services described in this justification. Each order will be funded with then-current appropriations, consistent with that appropriation’s purpose, to fulfill a valid bona fide need at the time the order is placed.

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

The Government does not own a G/ATOR comprehensive Technical Data Package (TDP) to allow future competition for proprietary supplies and services contracts. As a follow-on procurement, in accordance with 10 U.S.C § 3204(b)(B) as implemented by FAR § 6.302- 1(a)(2)(ii)(A) and (B) and (iii)(A) and (B), awarding to a source other than NGSC would result in substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the agency’s needs.

NGSC owns the proprietary rights to underlying tracking software, electronic protection techniques, and hardware calibration capability. Although the Government procured a Level 3 Technical Data Package (TDP) for the G/ATOR system, the Government only has limited rights in technical data and restricted rights to use computer software for some aspects of the G/ATOR. For example, the Government only has limited rights to technical data for the antenna array, and for the Radar Equipment Group (REG) subsystem and its associated components.

The antenna array is the most complex component of the G/ATOR REG, and without a full TDP, the Government is limited on developmental work for future capabilities without a sizable investment in reverse engineering. Similarly, the Government also has only limited rights to technical data for the G/ATOR unique REG Transmit/Receive (T/R) modules that are auto calibrated, ambient air cooled and maintained across a wide range of operating temperatures. The ability to provide SELS for the G/ATOR system is dependent on the use of the same complex engineering and technical data used in the design and development process by NGSC.

Re-engineering or replacing the NGSC proprietary products, components, and software would result in the Government incurring substantial duplication of costs that are not expected to be recovered through competition and increases the probability of complicated divisions in the configuration baseline. The Government previously requested an estimate for the necessary rights in technical data for the TDP from the contractor and was informed that a rough estimate exceeds $1 billion, and a more specific estimate could be substantially higher. These costs are not expected to be recovered through competition because the scope of work requires highly specialized services that are uniquely known to NGSC as the original developer of the G/ATOR system and its proprietary technologies. Attempting to competitively award such a contract to another vendor would require that vendor to replicate NGSC's expertise and intellectual property at a significant cost that outweighs the benefits of competition.

Re-engineering would also result in a significant program delay, in excess of 10 years, based on the developmental timeline for the G/ATOR program of record. This delay estimate is derived from the initial NGSC competitively awarded contract in 2005 through operational assessment in 2017 for the design, development, fabrication, and test of the G/ATOR hardware and software, and all aspects of system integration. Providing SELS for the G/ATOR systems requires technical and engineering knowledge of three G/ATOR subsystems: the REG, the Communications Equipment Group (CEG), and the Power Equipment Group (PEG). The development effort to operational assessment for these subsystems provides a baseline for estimating the time quired for re-engineering. The SELS BOA directly supports the fielded G/ATOR Syst s to the Marine Forces and will pport the remaining through Re-engineering would increase operating and upport co nd induce significant programmatic, logistics, and operational delays which would impede support to the warfighter. Any delay, therefore, in the SELS of the G/ATOR systems would knowingly impede the fielding and support of fielded systems to the warfighter, which would be unacceptable.

The program office has determined that sustainment efforts for the G/ATOR system will be provided through a combination of Government support activities and NGSC, with NGSC providing support for the products the Government has determined to contain proprietary products, software, and systems developed by NGSC. To support a competitive SELS contract for G/ATOR systems, the Government would need a comprehensive TDP with not less than Government Purpose Rights. Without such a TDP and sufficient rights, the SELS of the G/ATOR systems would require a significant amount of re-engineering effort by any contractor other than NGSC.

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

Two Requests for Information (RFIs) were used to assess industry’s capabilities to provide sustaining engineering and logistics for G/ATOR systems being operated by the warfighter. Sources sought notice, M67854-24-I-0042, was issued on the System for Award Management (SAM) website 30 January 2024. The notice assessed industry’s capability to provide long-term, complex logistics capabilities, and experience in logistics coordination, repair, and part procurement. In addition to NGSC, one other response was received from Vertex Company, LLC. Program Manager (PM) Expeditionary Radars (ExR) representatives reviewed both responses and determined that Vertex Company, LLC is not capable of performing this effort as it would require access to the G/ATOR TDP to provide the requisite services.

Sources sought notice, M67854-24-I-0154, was issued on the SAM website 14 August 2024. The notice assessed industry’s capability to continue Sustaining Engineering and Logistics Support of fielded G/ATOR systems by providing Depot Facilitation, resolving problems through development of engineering changes, incorporating those changes while providing configuration management, and identifying alternative sources of supply. In addition to NGSC, one other vendor response was received from Tiger Team Engineering (TTE). PM ExR representatives reviewed both responses and determined that TTE is not capable of performing this effort as it would require access to the G/ATOR TDP to provide the requisite services. Programmatic personnel have continued informal market research well into FY25 but concluded that this industry segment has remained relatively stable and the lack of a sufficient TDP remains a barrier to any competitive procurements.

As stated above, the Government does not have a comprehensive TDP; therefore, the Government has only limited rights in significant aspects of the TDP. Given the unavailability of a comprehensive TDP, any contractor other than NGSC would require some alternative means of developing technical data, such as reverse engineering, to be able to effectively provide the required services. Support of the G/ATOR systems would require a significant amount of re-engineering effort by any contractor other than NGSC that would not be recovered. In addition, these efforts would exceed the schedule requirements for this sustaining engineering and logistics effort.

Based on the Government’s assessment of the responses received, the Government determined that NGSC is the only known source able to fulfill the requirement for engineering changes, contractor logistics support, depot life cycle support, Software Support Activity support, Diminishing Manufacturing Sources and Material Shortages support, technical refresh, and studies and analyses for the G/ATOR systems.

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, PEO LS has no plans to compete future contracts for the proprietary types of supplies/services covered by this document. However, the Program continues to implement and expand cost savings initiatives to reduce the cost of the G/ATOR systems and other subcomponents.

If another potential source emerges, PEO LS will assess whether competition for future requirements is feasible. Any future actions will be reviewed by PEO LS to offer competition to the greatest extent possible.

As this is a follow-on for supplies and services previously awarded on a non-competitive basis, in accordance with Defense Federal Acquisition Regulation Supplement Procedures, Guidance and Information (DFARS PGI) 206.304(a)(S-70)(i), the prior CJ&A 23,134 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).