Justification and Approval 22-0046.pdf

J&A Number: 22-0046

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center Weapons Division (NAWC-WD) China Lake, CA.

2. Description of the Action Being Approved.

This Justification and Approval (J&A) authorizes and approves on a sole source basis an Indefinite-Delivery, Indefinite-Quantity (IDIQ) contract for H-1 System Configuration Sets (SCS) providing new H-1 upgrades to airframes, drive systems, electrical power system, weapons system flight controls, and embedded software support. This contract is a follow-on to N68936-15-D- 0022. The contractor is Bell Textron, Incorporated (Bell), 3255 Bell Flight Blvd, Fort Worth, TX 76118.

3. Description of Supplies/Services.

The contract action to be issued under this J&A provides upgrades for the H-1 aircraft, including [Redacted], based on SCS life cycle phases. An SCS consists of all software and hardware required to implement new capabilities on the aircraft, including fleet documentation and updated trainers. While Bell provides a portion of the SCS, the actual SCS is delivered to the fleet by the Government.

Significant nonrecurring efforts requiring formal operational testing will be performed under this contract. The tasking and deliverables for this contract include Bell SCS work on the airframe, aircraft wiring interface terminals, flight controls, and weapon systems interfaces. The effort includes creating prototypes of system capability improvements to the Fleet in support of emerging needs. The contractor will research alternatives; investigate, and document new capabilities, and anomalies related to flight controls, wiring harnesses, and weapons; and develop, integrate, verify, validate, and test these systems. The requirements also include identification of maintenance activities required to support the systems. Research, investigation, development, integration, verification, validation, and testing may include upgrades and/or updates related to test equipment, and other support equipment. The effort will also cover research, development, and support of studies and analysis related to areas such as configuration items, new subsystems, weapons integration, engineering, and logistics activities. It includes all efforts required to accomplish analysis of alternatives, system design, integration, testing, rapid response activities, [Redacted] and Fleet support.

The ordering period for this contract will be 5 years for a total value of approximately $229 million.

Estimated Dollar Value in Millions

Appropriation FY 22-27 Total* [Redacted]

TOTAL $229

*PB23 resulted in revised appropriation totals that differ from the ISTRAP funding table. The ISTRAP anticipated an award in October 2022 (FY23); however, FY22 funding has been budgeted in anticipation of a September 2022 award as shown in the table above.

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.

In accordance with FAR 6.302-1(a)(2)(iii)(A), award of this follow-on contract to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition. ]

Bell is the original H-1 aircraft manufacturer and is the only source capable of performing this effort to meet fleet needs. As the sole designer, developer, integrator, manufacturer, and supplier of the H-1 aircraft, Bell is the only company that possesses the requisite knowledge of the aircraft and its unique weapon systems. Only Bell has the unique combination of airframe and weapons system integration knowledge to fulfill the contract requirements.

The Government has limited rights to the aircraft technical data package that would be required to perform this effort. In order for any other vendor to accomplish updating the hardware and software, they would require access to Bell's technical data package and proprietary processes for the aircraft. The SCS is comprised of both hardware and software from multiple avionics components and managed by Government adjudicated interface control documents. These SCSs are retrofitted in fleet aircraft. Only Bell has the requisite technical data and knowledge to ensure compatibility and integration between software and aircraft systems due to the ongoing changes, upgrades, and system enhancements that are made to fleet aircraft.

Based on historical data, NAWC-WD estimates the costs to design, build, and qualify an equivalent new system to be upwards of $2.8B, inclusive of the non-recurring engineering (NRE), major subcontractor suppliers, test articles (parts and full-up aircraft), developmental testing/operational testing costs. The $2.8B is broken down as follows: [Redacted] to the Prime and subcontractors for NRE efforts and recurring engineering for test hardware, [Redacted] for

Government engineering and program support (e.g. program management, integrated product team support, system engineering, structural engineering, specialty engineering, etc.), and [Redacted] for Government testing. This includes only the development cost and does not include the recurring cost of replacing the entire fleet of aircraft or logistics costs of fielding a new system. Therefore, award of a contract to any other source would result in substantial duplication of costs that are not expected to be recovered through competition.

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

In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) PGI 206.302- 1(d), a sources sought announcement was posted to Contract Opportunities in beta.SAM.gov on 23 December 2019. No responses were received. In accordance with FAR 5.201(b)(1), the proposed contract was synopsized in SAM.gov on 4 November 2021. No responses or inquiries have been received. Any future responses 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, NAWC-WD has no plans at this time to compete future contracts for the types of services/supplies covered by this document. However, the Government is currently pursuing procurement of a complete data package on a separate contract vehicle at Patuxent River, MD in order to facilitate the possibility of future competitions. Any portion of the effort able to be separated and competed will be implemented in the future. If another potential source emerges, NAWC-WD 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 will be 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).