G-16 CJA_PMA-208 Supersonic Target GQM-163A_approved 1_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND RADM WILLIAM A.

MOFFET BUILDING 47123 BUSE ROAD, BLDG 2272

PATUXENT RIVER, MARYLAND 20670-1547

IN REPLY REFER TO:

CJ&A_23_0327

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Systems Command (NAVAIR) Headquarters

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 Northrop Grumman Systems Corporation (NGSC), Launch Vehicle Division (LVD), previously identified as Orbital Sciences Corporation (OSC). The procurements are for supplies and services in support of Full Rate Production (FRP) Lots 18 through 23 of the GQM-163A Coyote supersonic sea-skimming target (SSST) for the United States Navy (USN), Foreign Military Sales (FMS), and other customers. The Government will endeavor to contract for as many FRP Lots per contract action as possible but recognizes multiple contract actions will likely be necessary to acquire all required Lots. Authority to act under this CJ&A expires on 31 December 2030.

3. Description of Supplies/Services.

This CJ&A authorizes and approves 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 includes: (1) GQM-163A target vehicles and related equipment; (2) technical support services and related supplies; (3) Engineering Change Proposals (ECPs) and related support; and (4) technical and administrative data for the USN, FMS, and other customers.

The total estimated value of all Lots is for the maximum quantity. The estimated quantities to be procured between FY25-FY30 range from 146 targets up to an estimated 168 targets. The quantities per Lot will be established during negotiations to account for supplemental authorizations by Congress for the USN and potential FMS/OCF requirements. Deliveries covered by this CJ&A are anticipated to be complete by end of 1st quarter FY33.

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.

In accordance with FAR 6.302-1(a)(2)(ii)(B) and (iii)(B), NGSC, LVD is the only source for this follow-on procurement of the GQM-163A FRP Lots 18 through 23 as award to any other sources would result in unacceptable delays to fulfill the Navy's requirement.

During the Engineering and Manufacturing Development (EMD) phase, the Government received a technical data package (TDP) that was a combination of Government Purpose Rights and Limited and Restricted Rights (documentation which NGSC, LVD funded at private expense). On 20 October 2021, Naval Air Systems Command (NAVAIR) Program Management Activity (PMA)- 208 Aerial Targets, requested from NGSC, LVD a license of the complete technical data package for the GQM-163A. On 04 November 2021, NGSC, LVD stated they were unwilling to sell sufficient license rights to the Government to support the data rights sufficient for competitive solicitation. An EMD Competition for design and development of a new system would take approximately 18 months. It would take an estimated five (5) years for testing and qualification of the new system prior to entering production. After a subsequent award of a production contract, deliveries would take approximately 24 months thereafter. These timelines are based on the time spent on the original EMD contract award and current production schedules. This would result in unacceptable delays and 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. Only NGSC, LVD, as the sole designer, developer, and manufacturer of the GQM-163A can successfully deliver the system without delay in fulfilling the USN’s requirement.

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

A sources sought waiver of DFARS PGI 206.302-1, Request for Information/Sources Sought, was approved on 04 June 2023. In accordance with FAR 5.201, a Pre-solicitation Notice for FRP Lots 18-20 was synopsized on the SAM website on 09 August 2023 and notified Industry of the Government’s intent to solicit and negotiate with only one source under the authority of FAR 6.302.

To date, no responses have been received by the Government. Pre-solicitation Notice(s) for FRP Lots 21-23 will be posted to the SAM website prior to the issuance of the solicitation(s). In the event a contractor other than NGSC, LVD expresses interest, the Procuring Contracting Officer (PCO) will evaluate any responses received prior to contract award. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than NGSC, LVD to provide the required supplies and services.

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.

The Government will assess the feasibility of a future competitive contract if other potential sources emerge.

As this is a follow-on for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(S-70)(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 DFARS PGI 206.304(a)(S-70)(ii).