JA SPN50 Final_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 23-0012

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 a class of actions on a sole source basis to Saab Defense and Security, USA, LLC (hereinafter referred to as

�Saab�), East Syracuse, New York, for Shipboard Air Traffic Radars (SATR) AN/

SPN-50(V)1. Authority to act under this class justification expires on 30 September 2026.

3. Description of Supplies/Services.

The procurements executed under this authority are intended to be incorporated into existing contract N00019-20-C-0072 via multiple modifications throughout the duration of this authority. The primary modification will include supplies and services required for production and delivery of AN/SPN-50(V)1 radars; Initial Checkout (INCO), Depot and On Board Repair Parts (OBRP) spares; interim sustainment to include software, installation and integration support; and Contractor Engineering Technical Services. The total estimated quantity of AN/SPN-50(V)1 radars to be procured is up to four per Fiscal Year (FY) (up to eight total).

Additional modification(s) are anticipated for Engineering Change Proposals (ECPs). ECPs will be procured in two areas: Fleet Operating Requirements, to resolve issues discovered during active operational use of the SPN-50 system, and for Emergent Requirements supplementing existing obsolescence efforts, cybersecurity requirements, and/or reliability and maintainability of the SPN-50 system.

CJ&A 23-0012

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.

A full and open competition for the AN/SPN-50(V)1 was completed in September 2016, resulting in the award of the Engineering and Manufacturing Development (EMD) contract to Saab. The U.S. Navy did not procure the Technical Data Package (TDP) that would allow another source to produce the AN/SPN-50(V)1 radar because the acquisition strategy was to procure a mature, commercial system already deployed and then modify it to incorporate unique U.S. Navy Air Traffic Control radar capabilities. As such, it would not be possible for another source to execute the anticipated engineering changes without a TDP. Current Contract N00019-20-C-0072 procured FY2020 through 2022 AN/SPN-50(V)1 radar units, interim sustainment, spares and associated data.

In accordance with FAR 6.302-1(a)(2)(ii)(A), award of additional AN/SPN-50(V)1 radar units to a source other than Saab would result in substantial duplication of cost not expected to be recovered through competition. The NAVAIR Cost and Schedule Analysis Department estimated that the Government would spend in excess of in duplicative costs if this effort was competitively procured. The estimate is based on the design and realized technical complexities of the associated EMD effort, as well as the testing and qualification costs for an alternate radar system.

An additional element considered part of the duplicative cost estimate includes the impact of limited data rights that would preclude the Government from awarding a production contract for the current configuration to an alternate source. (When NAVAIR requested Rough Order of Magnitude pricing for the TDP in support of AN/SPN-50(V)1 radar acquisitions in 2018, 2021 and in support of the current acquisition, Saab declined to sell them.)

Additionally, in accordance with FAR 6.302-1(a)(2)(ii)(B), award to a source other than Saab would result in an unacceptable delay in fulfilling agency requirements to procure and deliver the AN/SPN-50(V)1 radars and associated spares. It is estimated that it would take approximately 18 months to award a new contract to an alternate source for production units.

Based on NAVAIR�s AN/SPN-50(V)1 EMD and Low Rate Initial Production (LRIP) experience and Naval Sea Systems Command�s comparable Multi-Mode Radar experience, a new contractor would require an additional 18 months to develop/modify their radar, 24 months to manufacture and test a first article and production lead-time would be 18 months to produce the subsequent radars. These assumptions and calculations were reviewed and verified by the NAVAIR Cost and Schedule Analysis Department. Overall, it is expected to take 78 total months for a new contractor to complete the first LRIP units and this would delay delivery to the Fleet until mid to late 2029. Due to obsolescence and sustainment of existing legacy systems, this would create an unacceptable capability gap to planned Fleet upgrades and operational support as well as alignment of the AN/SPN-50(V)1 installations to new ship construction.

As a result, in accordance with FAR 6.302-1(a)(2)(ii)(A) and 6.302-1(a)(2)(ii)(B), the Government has determined Saab is the only responsible source capable of meeting the Government�s minimum needs and award to any other source would result in unacceptable delays and substantial duplication of cost to the Government that is not expected to be recovered through competition in fulfilling the Navy�s requirements.

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

The Sources Sought required by Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance, and Information (PGI 206.302-1) was posted on the SAM website on April 1, 2022 and no responses were received. In accordance with FAR 5.201, the proposed contract was synopsized on the SAM website on April 14, 2022 and no other sources expressed an interest in this requirement. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than Saab 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.

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. If another potential source emerges, NAVAIR will assess whether competition for future requirements is feasible.

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 justification (CJ&A 18-

0415) 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).