JA 200360 HD MTS REDACTED.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

IN REPLY REFER TO:

J&A_20-0360

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

Naval Air Warfare Center Aircraft Division (NAWCAD), Lakehurst, NJ

2. Nature and/or Description of the Action Being Approved:

This Justification and Approval (J&A) authorizes and approves, on a sole source basis, a Firm Fixed-Price delivery order under the NAWCAD Basic Ordering Agreement # (N6833520G1043) for the procurement of Non-Recurring Engineering (NRE) for the Navy AN/AAS-44C (V) Multi-spectral Targeting System-A (MTS) from Raytheon Company, 2501 W University Drive, McKinney, TX 75071, in order to solve obsolescence and software discrepancies currently fielded in the existing system. The required mission critical engineering services include Raytheon proprietary software and several obsolescence fixes which, if not corrected immediately, will cause a stop to all depot level repairs and cause an operational unit level inability to turn in broken units and receive replacements in a timely manner. Additionally, this NRE effort will resolve integrating the current external boresight set into an internally mounted configuration. This engineering service is required due to configuration management as contracted with our Foreign Military Sales (FMS) partner, India.

3. Description of Supplies/Services

The MTS is a missions/weapons system component of the MH-60R/S, which combines an imaging system capable of collecting real time passive imagery in the visible, near infrared, and mid-wave infrared regions of the electromagnetic spectrum with laser emitters, which are used for the purpose of range finding and designation. This system consists of an Electronics Unit (EU), a Turret Unit (TU), a Hand Control Unit, and a Power Converter Unit. The MTS includes three laser assemblies, a Class IV Laser Rangefinder/Designator, a Class IV Laser Target Marker, and an Eye-safe Laser Rangefinder. This system is currently fielded as a mission system on both MH-60 R/S aircraft variants and is supported at both intermediate level and depot level repair facilities. There are several sensors and circuit card assemblies (CCAs) that have been identified as obsolete with limited ability to repair and no ability to procure and replace. In order to continue to field the MTS, the software must be updated based on the replacement components identified for the obsolete components. Currently, if there are MTS identified as beyond capable maintenance (BCM) there is no ability to procure replacement TU’s and EU’s for both domestic and FMS partners. Therefore, the NRE is required to update the software based on the identified replacements for the obsolete components.

The original equipment manufacturer (OEM) has identified four (4) replacement sensors and two

(2) CCAs that are no longer procurable and if BCM, not replaceable. The NRE to be performed under this contract will correct software deficiencies currently identified in Raytheon’s proprietary software, create a new baseline software to support full high definition sensors and CCAs, and correct known obsolescence issues in order to provide a repairable and procurable system. This new baseline software will also require a separate technical data package for our FMS partner configuration.

As a new FMS partner, India has requested that the current externally mounted boresight set be configured to an internal design. The current boresight set is a maintenance tool used to ensure the proper alignment of the sensors and lasers prior to flight. With the planned operational use of the MTS by India, an internally mounted boresight is required due to extreme shifts in temperatures that are that are expected during normal flight operations. These temperature shifts have the potential to cause boresight misalignment and require inflight boresight alignment by the operators.

4. Statutory Authority Permitting Other Than Full and Open Competition

10 USC 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

Raytheon Company is the OEM of the commercial off the shelf MTS product line, utilizing proprietary software, which is currently being used on both the MH-60 R/S helicopters with approximately 622 USN / 76 FMS supported mission kits and 134 spares currently in use. As a result of multiple obsolescence issues that have been identified, the product line can no longer be produced for current Naval Supply Systems Command (NAVSUP)/Defense Logistics Agency spares procurements nor can it be repaired if those obsolete items are BCM. In order to meet the needs identified above, the timeline to initiate the NRE design to replace the obsolete items has been identified as twelve (12) months from the contract award. This timeline is compressed due to the needs of the fleet to have timely repairs, asset turnaround times, and fully mission capable aircraft.

The Government does not currently own the technical data and the system uses Raytheon proprietary software which limits the ability, at this time, for the Government to develop or seek a different manufacturer to develop a new system and still meet the needs and timeline to address current obsolescence issues. Projected timelines to source, contract, develop, test, and field a new system would be in excess of three years and would require a complete retrofit of the entire fleet with a new electro-optic targeting system. The current system is in a critical maintenance position with many units in an unrepairable status due to unavailability of parts.

Additionally, the current supportability plan has a limited intermediate level and a full depot level repair capability through a Public-Private Partnership with Raytheon Company, and is working toward award for a new Performance Based Logistics contract with NAVSUP.

With the current needs to cure the obsolescence, maintain and repair software, and meet FMS partner configuration requirements, the cost to procure an entirely new system would exceed current funding available and timelines to meet the operational needs of the US Navy.

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

In accordance with DFARS 206.302-1, a Sources Sought Notice/Request for Information was posted on the Beta System Award Management (SAM) website on 24 March 2020 for fifteen

(15) days and one (1) response was received. FLIR Systems, Inc. submitted a white paper for use in current and future planning that the Contract Specialist forwarded on to the Technical team.

There was no further challenge from FLIR. A synopsis was posted to the Beta SAM website on 07 May 2020 for fifteen (15) days and no responses were received. Any response received expressing interest at the prime level will be reviewed by the Contracting Officer, in coordination with the technical and requirement cognizance.

7. Determination of Fair and Reasonable Cost:

In accordance with FAR 15.402, the Contracting Officer shall ensure that all supplies and services provided under this contract are procured at a fair and reasonable price. An analysis of Raytheon's proposal will be performed by technical analysts and the Contract Specialist, with the assistance of Defense Contract Management Agency (DCMA) and Defense Contract Audit Agency (DCAA) auditors, as needed. The Contracting Officer will analyze the various cost elements that are presented in the proposal, as well as review the actuals from previous procurements, if applicable. The Contracting Officer will use Government expertise, including DCMA, DCAA, and other Government resources, to evaluate the proposed material, labor and subcontract positions. A detailed report developed as part of the Government evaluation will be utilized to establish a NAVAIR position. As discussed in this paragraph, the Contracting Officer will use cost and price analysis as the basis for negotiating a fair and reasonable price for the supplies and support covered by this J&A.

8. Actions to Remove Barriers to Future Competition

For the reasons set forth in paragraph 5, NAVAIR has no plans at this time to compete future contracts for the types of supplies/services covered by this document. The US Navy’s H-60 Multi-Mission Helicopters Program Office (PMA-299) will continue to conduct market research for future requirements on existing and new technologies as it becomes available.