(G16) Redacted JA 21-0174 -- Boeing IDIQ Ceiling Increase_FINAL_Redacted.pdf

J&A 21-0174

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMEPETITION

1. Contracting Activity.

Naval Air Warfare Center Training Systems Division (NAWCTSD) Orlando, FL

2. Description of the Action Being Approved.

This Justification and Approval (J&A) authorizes and approves a ceiling increase to sole source

Indefinite Delivery Indefinite Quantity contract N6134019D0906 with The Boeing Company

(Boeing), Saint Louis, MO, to procure new training systems, as well as upgrades and modifications to the existing F/A-18E/F Super Hornet and EA-18G Growler aircrew and maintenance training systems to ensure that the training systems are representative of the Fleet aircraft and systems. Spares, support equipment, technical manual updates and on-site training will also be procured under this contract.

3. Description of Supplies/Services.

Under existing IDIQ N6134019D0906, NAWCTSD has acquired new F/A-18E/F and EA-18G aircrew and maintenance training systems and subsystems, which have included small footprint training and development devices, modification and upgrades to existing F/A-18E/F and EA-18G aircrew and maintenance training systems and subsystems. These systems include 25 Tactical

Operational Flight Trainers (TOFTs), three Advanced Development Stations, eight Low Cost

Trainers, and six Integrated Visual Environment Maintenance Trainers. Modifications and upgrades have included incorporation of aircraft engineering change proposals (ECPs), Systems Configuration

Set (SCS) updates to H14 and H16, and incorporation of major subsystems; TOFT Software

Discrepancy Report correction efforts; and development of new and updates to existing courseware curriculum. Logistics support, comprised of spares procurement, support equipment, technical manual updates and on-site training has also been included. The initial funding estimates were based on execution of efforts for the existing Block II configuration. Recently, the Block III configuration has been incorporated into the aircraft design and mandated to be applied to the training systems, which has caused an impact to the magnitude of the scope of the work initially envisioned under this

IDIQ. Block III is a significant and complex change to both hardware and software components.

Now, in addition to modifying the physical training systems to a Block III configuration, the

SCS/OFP upgrades such as H16 must be compatible with both Block II and Block III; and upgrades such as H18 and H20 that were planned for Block II will now be required to function with the more costly and complex Block III configuration.

The training and training systems provide training events and qualification exercises which, to the extent practicable, give pilots and maintainers events identical to those performed in the aircraft. The projected requirements (subject to change based on aircraft configuration changes and aircraft procurement program changes) have been derived from the aircraft procurement program’s roadmap.

The supplies and support acquired will satisfy the Government’s minimum needs.

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER TRAINING SYSTEMS DIVISION

12211 SCIENCE DRIVE

ORLANDO, FLORIDA 32826-3224

J&A Number: 21-0174

The following tables provide details of the necessary funding to complete the previously envisioned efforts to the Block III configuration along with other Block III requirements:

ESTIMATED DOLLAR VALUE IN MILLIONS

REQUIRED ADDITIONAL FUNDING

FY21 FY22 Total

Total $99.4M

The action being approved will increase the ceiling of the IDIQ by $99.4M in the remaining Fiscal

Years of the IDIQ’s ordering period. The need for Block III emerged in FY17 and was therefore not known at the time of initial IDIQ planning nor anticipated in the initial ceiling amount.

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.

The complexity and evolving nature of the F/A-18E/F and EA-18G aircraft requires that training systems and training are developed and implemented concurrently with the aircraft. Aircrew and maintenance training systems need to provide a robust, dynamic and accurate representation of the delivered aircraft and associated systems and subsystems prior to or when delivered to the Fleet.

Boeing has developed and built all the F/A-18E/F and EA-18G aircrew and maintenance trainers to date. Boeing, through its Flight Simulation Division, creates F/A-18E/F and EA-18G aircraft systems software and modifies the aircraft’s SCS to include Operational Flight Program (OFP) software.

Boeing provides software for design, engineering simulations, and operational evaluation that are used in the development of the F/A-18E/F and EA-18G aircraft. These newly created and modified subsystem models are used to develop and test the SCS/OFP and are an essential element used in the development of F/A-18E/F and EA-18G aircraft and aircrew/maintenance training systems.

The training systems require concurrent incorporation of advanced and emerging technologies specific in design or application to the F/A-18E/F and EA-18G aircraft. Boeing is the only contractor that can build and upgrade F/A-18E/F and EA-18G trainers concurrently with the changes being made to the aircraft; because only Boeing has access to the requisite aircraft design data, aircraft specific software and simulated models during the design/development of the aircraft. Any new modification or upgrade to F/A-18E/F and EA-18G training systems must be fully integrated and interoperable with the currently fielded devices and will require the use of computer software, computer software documentation and technical data that is not available to other contractors and is proprietary to Boeing. Specifically, many of the key training systems’ components (e.g., host computer) were developed by Boeing exclusively at private expense and delivered with less than unlimited rights and the source code for these components was not included. These elements include the Advanced Mission Computer Emulation Software, Simulated Joint Helmet Mounted Cueing

System, Coordinate Conversion Utilities, Advance Electronic Scanned Array radar software, Airborne Electronic Attack software, Integrated Defensive Electronic Counter Measures software, and Distributed Simulation Application Components. The lack of license rights does not allow for the acquisition of new training systems that would require this technical data to permit competition for new F/A-18 and EA-18G training systems. Since the Government does not have the source code for the components specified above nor sufficient technical data rights, the only source is Boeing.

This proprietary information and data are essential for building, updating and maintaining a common supportable configuration that satisfies Fleet training requirements.

Government efforts to seek additional licensing rights to date have been unsuccessful. In the latest attempt, on 11 May 2017, in an effort to promote competition for future procurements under the program, the Government requested from Boeing the cost of obtaining the rights of the above-mentioned components and source code. On 5 June 2017, Boeing declined to provide the cost estimate as requested by the Government and cited DFARS 227.7103-1-(c), which does not require contractors to sell or relinquish rights in technical data related to items, components or processes developed at private expense.

Training system concurrency with Fleet aircraft is the Fleet’s number one training system priority for

F/A-18E/F and EA-18G communities. Concurrency between the aircraft and the training systems is achieved by incorporating Statements of Requirements (SORs) and Mission Systems Operational and

Flight Descriptions (MSOFDs). These SORs and MSOFDs are generated for the aircraft platform, and continue throughout the development of the aircraft SCS/OFP. In order to maintain concurrency with the Aircraft, the training systems contracts must be started three years in advance of the release of the SCS/OFP. At that point in time, final versions of the SOR/MSOFD sheets are not available.

Since Boeing creates F/A-18E/F and EA-18G aircraft systems software and modifies the aircraft’s

SCS/OFP, the training systems contracts are able to commence prior to the availability of the final versions of the SOR/MSOFD. Should the training systems attempt to compete efforts, it would be necessary to wait until the SOR/MSOFD sheets are final before release of a Request for Proposal.

Delaying until that time would put the TOFTs two to three years behind the aircraft from a concurrency perspective, and render the TOFTs unsuitable for Fleet training.

As the current sole designer, developer, integrator, manufacturer and supplier of Navy F/A-18E/F and

EA-18G aircrew and maintenance training systems and F/A-18E/F and EA-18G unique software required to support aircraft SCS/ECP programs, only Boeing possesses the requisite knowledge, engineering expertise, and data rights required to design, build, modify, upgrade and deliver F/A-

18E/F and EA-18G training systems and subsystems to ensure concurrency with the Fleet aircraft within the Government’s requisite delivery schedule.

For these reasons, in accordance with FAR 6.302-1(a)(2)(ii)(B), award to any contractor other than

Boeing would create unacceptable delays of aircraft representative training in fulfilling F/A-18E/F and EA-18G mission training requirements.

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

NAWCTSD maintains in-depth knowledge of simulation and training system technology developments and industrial base. NAWCTSD representatives maintain this knowledge through routine review of industry journals and attendance at the annual Training and Simulation Industry

Symposium and the annual Interservice/Industry Training, Simulation and Education Conference.

These representatives also periodically visit industry provider facilities for briefings on Independent

Research and Development efforts. Based on its knowledge and expertise, NAWCTSD has determined that no company other than Boeing has the knowledge and technical capability required to provide F/A-18E/F and EA-18G training systems.

The proposed contract action was synopsized as a sources sought notice on 18 February 2021 on beta.SAM.gov for ten days with no responses received. Following the sources sought a synopsis of the proposed contract action was posted on 02 March 2021 to notify interested parties of the intent to increase the ceiling of a sole source contract to Boeing. The synopsis was posted for fifteen days with no responses received. No additional market research was conducted because it is not practicable, for the reasons stated above and discussed in paragraph 5. Any responses received prior to contract award will be evaluated by the Contracting Officer.

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 J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in paragraph 5, NAWCTSD has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another source emerges that can integrate into the existing trainers’ configuration without affecting performance, Boeing makes available additional rights, or funds are made available to redesign or replace the training systems, NAWCTSD will assess whether competition for future requirements is feasible. 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 J&A was provided to the approval authority for review.

Approval of this J&A signifies the approval authority has made the determination required by

DFARS PGI 206.304(a)(ii).