F135 ECU Risk Reduction CJA-Redacted.pdf

CJ&A Number: 2.6/24-428

CUI//REL TO US ONLY

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

1. Contracting Activity.

Naval Air Systems Command (NAVAIR), F-35 Lightning II Joint Program Office (JPO), 200 12th Street South, Suite 600, Arlington, VA 22202-5402

2. Description of the Action Being Approved.

This Class Justification and Approval (CJ&A) authorizes and approves the issuance of multiple contract actions on a sole-source basis to Pratt & Whitney Military Engines (P&W), Raytheon Technologies Corporation (RTC), East Hartford, CT, for F135 Engine Core Upgrade (ECU) Propulsion System Risk Reduction Engineering. The requirements covered by this CJ&A include F135 ECU design, test article manufacturing and development, test asset procurement, verification and validation activities, weapon system integration necessary to support air system capability increases, test equipment procurements, and developmental hardware procurements.

The proposed contracting approach involves the utilization of the primary contract with provision for the Program Office to issue ad hoc delivery orders under Basic Ordering Agreement N0001921G0005 (or successor agreements) to alleviate administrative complexities associated with amending the principal contract for such adjustments. Authority to act under this CJ&A expires 31 Mar 2027, .

3. Description of Supplies/Services.

The contract actions authorized by this CJ&A are necessary to support F135 ECU EMD to meet F-35 Enterprise requirements as described below. This is a follow-on action to modify the existing F135 propulsion system to meet current flight hour performance requirements. The descriptions below reflect the currently planned allocation of tasks to contract; however, work may be merged into consolidated contract actions or split into multiple contract actions during execution.

F135 ECU Risk Reduction Design o This scope extends the design work initiated under prior contract actions awarded under CJ&A 2.6/22-553 and will include all necessary labor, material, and engineering resources necessary to continue design of the F135 ECU and its necessary support equipment. This work is expected to culminate in a design review in mid-2025 and inform formal entry into the Engineering & Manufacturing Development (EMD) phase.

F135 ECU Test Asset Development and Procurement o This scope is to procure hardware and material for test assets including test rigs, subcomponents for testing, and developmental test engines for verification and validation.

F135 ECU Verification and Validation o This scope includes all necessary labor, material, and engineering resources to execute subcomponent verification and validation.

Weapon System Integration o This scope is to procure all necessary labor, material, and engineering resources to support weapon system integration and ground support activities, to include activities to integrate the F135 ECU into existing F-35 aircraft and F-35 aircraft equipped with a modernized Power Thermal Management System (PTMS) and other upgraded utility systems being developed concurrently by another contractor. These contract actions will also procure P&W support for that other contractor’s efforts to develop the upgraded PTMS and utility subsystems solution and ensure they are compatible with the current F135 and ECU.

The contract costs shall be funded via budget allocations amongst the three Services and International Cooperative Partners in accordance with the Procurement, Sustainment, and Follow-On Development Memorandum of Understanding's (PSFD MOU) governing financial provisions, including the associated Composite Share Ratios (CSR). The estimated total dollar value (in Then-Year Millions (TY$M)) is for the supplies and services to be procured under this contract. An estimated breakout by appropriation is as follows:

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.

When the supplies or services required by the agency are available from only one responsible source, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for. Federal Acquisition Regulation (FAR) 6.302-1(a)(2).

Furthermore, the existence of limited rights in data and secret processes may justify the “only

1 The JPO consists of the three U.S. Services and seven International Cooperative Partners, which, pursuant to the PSFD MOU, share costs for common development efforts. The cost sharing agreement necessitates inclusion of Partner funding in the table; however, these Partners are distinct from the JPO’s multiple Foreign Military Sales customers.

one source” determination. FAR 6.302-1(b)(2). Here, Pratt & Whitney (P&W) is the original designer, developer, and manufacturer of the F135 propulsion system for F-35 aircraft. As such, they are the only responsible source with the requisite technical data rights and processes needed to redesign F135 internal components and systems to improve the engine’s performance.

The F-35 is facing a growing and maturing threat environment and without engine improvements and modernization, the platform will not be able to overcome those threats. The F-35 draws approximately twice as much engine bleed air as specified in the original F135 engine design.

This increased demand reduces engine life and increases the F135’s program projected life cycle repair costs by an estimated $38B. If unmitigated, the limited power and cooling capacity of the engine and aircraft subsystems would constrain future F-35 mission systems enhancements.

Planned future weapon systems capabilities will increase power and cooling demands on the engine, negatively affecting engine life. As the demand continues to increase, eventually a point will be reached where engine life can no longer be traded for performance and the system will not be able to meet cooling and power requirements. This will make many of the upgrades nonfunctional. The F135 ECU will enhance the engine to meet the future increased power and cooling demand, while improving engine durability to meet its original engine flight hour requirements and mitigate projected life cycle cost growth. The F135 ECU offers the only viable solution in fielding meaningful propulsion system capabilities in response to all validated requirements for F-35 customers. These requirements are codified in the Declared Statement of Requirements FD-652 approved through the F-35 governance process. The summarized requirements for an upgraded engine are:

Meet original F135 engine durability thresholds Power/cooling capacity of 62kW (threshold), 80kW (objective) Improve F-35B vertical lift by 2.5% (threshold), 3% (objective) Economically retrofittable & sustainable Aircraft range, acceleration, signature no worse than existing configuration Retrofit F135s at scheduled engine overhaul Retrofit Technology Refresh 3 (TR-3) aircraft Common across all F-35 variants Exportable to international partners & foreign military sales customers Target to begin production by 2029

Throughout the F135’s roughly twenty years of use within the F-35 Program, the Government has contracted for technical data rights ranging from limited rights to government purpose rights. The engine’s complexities include, but are not limited to, the three engine variations, vertical lift capabilities, critical interdependencies with air systems design, and rigorous verification and testing requirements. The result is a propulsion system that has a significant quantity of technical data and contractor-specific processes. As such, the Government does not possess a complete technical data package to facilitate full and open competition.

Based on the above, P&W is the only known responsible source that currently possesses the required technical knowledge, expertise, data, and facilities required to meet the Government’s minimum needs.

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

On 22 August 2022 a Class Waiver to the requirements set forth in DFARS PGI 206.302-l was approved by the F-35 Joint Program Office Director of Contracts. The Government determined additional market research was not necessary because the knowledge within the Program Office was deemed appropriate to the circumstances on the basis described within paragraph five above, for any company other than P&W to provide the required supplies and services. On 10 October 2023, a synopsis for F135 ECU EMD was posted on the www.sam.gov website, and a response was received from General Electric Aerospace (GE Aerospace) to inquire for more details on the program’s requirements. On 27 November 2023, a revised synopsis was posted with additional details on the program’s requirements. Another response was received from GE Aerospace requesting additional detail. On 14 February 2024, the Government sent a letter to GE Aerospace to provide the detailed requirements. On 29 February 2024, GE Aerospace responded. The facts conveyed in this series of correspondence did not reveal any new, pertinent information to indicate the existence of another viable source capable of meeting all validated requirements.

7. Determination of Fair and Reasonable Cost.

In accordance with Federal Acquisition Regulation (FAR) 15.402, the Contracting Officer has determined the anticipated cost to the Government of the supplies and 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 five above, the Government has no plans at this time to compete the F135 ECU in the future but will continue to explore other opportunities for Air System and Propulsion Modernization.

The Government promotes competition for subcontract opportunities by referring companies that express interest in procurement actions publicized on www.sam.gov to P&W’s Subcontracts Department. P&W has an effective Subcontractor Plan and is encouraged to foster competitive environments among subcontractors to the maximum extent possible.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

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.

�'J? _-\,--. £. l), lff"tt Gen Michael J. Schmidt Signature Name (Printed)

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

DIDIERBROOKE.N ==:MAOMl1m2 AOMl.1537208631 =·2024JJ4.2A07S:11-o<'IX)'

Signature Brooke N. Didier Name (Printed)

CONTRACTING OFFICER CERTIFICATION

(703) 602-7640 Phone No.

(703) 859-0183 24 April 2024 Phone No. Date

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

POLA.LUIS.F =1�:r.a16728

.1514876726 :-� 202-4.0U-4 07:l58:21

Signature Luis F. Pola

Name (Printed)

SENIOR PROCUREMENT EXECUTIVE APPROVAL

(571} 601-5533 24 Apr 2024 Phone No. Date

Upon the basis of the above justification, I hereby approve, as Senior Procurement Executive of the Navy, 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. 3204(a)(l), Only one responsible d no er ppr s or se • ces will satisfy agency requirements.

onorable icko as H. Guertin Assistant Secretary of the Navy Research, Development and Acquisition

MAY 10 2024

Date