JA 23-0286_MJU-68_Redacted.pdf

J&A_23_0286

5. Rationale Justifying Use of Cited Statutory Authority.

CHA is the only manufacturer that possesses the technology, infrastructure and capacity to produce and conduct verification testing for the MJU68/B within the timeframe to meet United States Navy

(USN) deployment schedules as well as United States Air Force (USAF) requirements and other

Global F-35 operations. Award of this contract to any source other than CHA would result in an unacceptable delay. The Government also considered Chemring USA (Kilgore Flares Company

(KFC)) in Toone, TN, which is another Magnesium Teflon Viton (MTV) flare producer (another business unit of CHA) that previously manufactured the MJU- 68/B; however, Chemring USA experienced production line shutdowns due to repeated explosive incidents beginning in FY2018 and is now permanently shutting down their legacy lines due to safety concerns. Therefore, they no longer have the capacity to manufacture this device. If the requirements contemplated under this

J&A were to be produced by Chemring USA, assuming continuous production at historical delivery rates and no further production setbacks, it is anticipated that the Government’s FY24 requirements would not be fulfilled until November 2026 as Chemring USA would need to requalify its facility and conduct a First Article Test (FAT). This timeframe does not support approved USN and USAF deployment dates or Global JSF theater operations. CHA is capable of fulfilling the Government’s delivery requirements no later than November 2024. Any interruption in procurement of these items would pose critical setbacks to JSF fielding plans and further exacerbate inventory levels, impacting operational readiness.

As a result, in accordance with Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(ii)(B), the

Government has determined Chemring Australia is the only responsible source capable of meeting the Government’s minimum needs and award to any other source would result in unacceptable delays in fulfilling these requirements for the Navy, FMS customers, and Other Customers.

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

The sources sought notice required by Defense Federal Acquisition Regulation Supplement

(DFARS) Procedures, Guidance, and Information (PGI) 206.302.1 was posted on 31 May 2023. No responses other than CHA were received in response to the sources sought notice. In accordance with FAR 5.201(b)(1), the proposed contract action was synopsized and posted on the SAM.gov website on 16 June 2023 and no inquiries to the synopsis have been received to date. No additional market research was conducted because it is not practicable, for the reasons discussed in Paragraph

5 above, for any company other than CHA 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 J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NAVAIR has no plans at this time to provide for a full and open competition for the types of supplies/services covered by this document.

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 CJ&A was provided to

J&A_23_0286 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).