Lot 4 Redacted JA.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:

J&A_21-408

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 Justification and Approval (J&A) authorizes and approves a contract modification to an existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract, N00019-20-D-0008, on a sole source basis to Raytheon Missiles and Defense (RMD), Tucson, Arizona for the addition of a fourth ordering year for Fiscal Year (FY) 23 Lot 4, Recertification and Modernization of Tactical Tomahawk (TACTOM) Block IV All-Up-Round (AUR) missiles. TACTOM Recertification also includes the refurbishment/modernization of the TACTOM tooling, test equipment and lab assets necessary to execute the cradle to grave program. This J&A also covers TACTOM Block V production activities associated with procurement of modernized antenna hardware, recertification spares, TACTOM Block IV and V obsolescence and health monitoring, TACTOM Depot support, TACTOM flight test support, engineering support, and associated hardware procurements. These requirements support the U.S. Navy (USN) and Foreign Military Sales (FMS) customers.

3. Description of Supplies/Services.

This J&A authorizes the recertification and modernization of TACTOM Block IV AUR missiles with an estimated quantity of 324 missiles for the USN and FMS. Deliveries of Lot 4 recertified missiles will occur through FY25.

This J&A also authorizes procurements of the following to support the FY23 efforts for both the USN and FMS:

• Composite Capsule Launching Systems (CCLS) Capsules remanufacture/refurbishment and repair;

• Procurement of TACTOM modernization/Navigation upgrades;

• TACTOM Spares and/or replacement components, including rotable pool assets;

• Repair, upgrade and procurement of Government Special Tooling, and Special Test

Equipment;

• Upgrades, obsolescence and support of Government Furnished Property (GFP), and

Hardware-in- the-Loop (HWIL) such as System Integration Lab (SIL), Special Tooling, and Special Test Equipment;

• Simulations and maintenance of simulation software and data;

• Missile Operational Embedded Software maintenance;

• Missile conversions to flight test configuration;

• Pre-test, and post-test support for Tomahawk Flight Tests and Functional Ground Tests;

• Flight abort/anomaly/failure investigations and analysis;

• Preparing and conducting training courses;

• Upgrades, support and/or procurement of Guidance Test Sets (GTS);

• Cost reduction and affordability improvements;

• Obsolescence management, resolution of subsystem/component obsolescence, and implementation of obsolescence solutions for: TACTOM Block IV AUR missile hardware, Flight Test Kits, CCLS, GTS and associated tooling and test equipment;

• Systems engineering, logistics support, emergent systems engineering studies and other related efforts and tests;

• Technical and administrative data and documentation;

• Over and above repair for rejected warranty missiles; Unscheduled maintenance or over and above work for all missile variants, and repair of components (not covered under the TACTOM Block IV production warranty);

• Magazine storage;

• Service Life Assessment Program;

• Related Engineering Support Services;

• Integrated logistics services and other related efforts;

• AUR demilitarization preparation;

• Integration of new capabilities into Recertified missiles

The total estimated value of this J&A is $287M

Estimated Dollar Value in Millions

FY23

Operations & Maintenance, Navy

(O&MN) 7

Weapons Procurement, Navy

(WPN) 232

Research, Development, Test and Evaluation, Navy (RDT&EN) 3 Foreign Military Sales

(FMS) 44

Other Customer Funds

(OCF) 1

Total 287

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.

Pursuant to Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(ii), NAVAIR has determined the required supplies and services are available only from the original source. This procurement is a follow-on contract for the continued development or production of a major system or highly specialized equipment. To include major components thereof, and award to any other source would result in substantial duplication of costs. As well as delay of recertified missiles to the Fleet, which the Government is not expected to be recovered through competition. NAVAIR estimates the duplicative cost to be upwards of $877 million and a minimum of 5 years of delay, based upon the estimated cost of the requisite design, testing, and requalification of a new contractor’s missile system.

As a result of a competitive procurement in 1994, RMD was selected as the sole producer of the TACTOM AUR missile, and depot maintenance. To date, RMD has been contracted on a sole source basis for the recertification of the TACTOM Block IV missiles Lots 1-3. RMD maintains and controls both the Level III Technical Data Package (TDP) and the manufacturing documentation for the TACTOM Block IV AUR and associated Government special tooling, and special test equipment and Government Property due to the performance-based nature of the TACTOM Block IV AUR development and production contracts. TDPs adequate for competition of both the TACTOM Block IV AUR missile and depot were not procured by the USN. Further, RMD is not willing to sell the USN the Level III TDP, which would be required for a competitive procurement. Use of the TDP is required to perform recertification and depot activities, delivery, and install of the identified components and modernization kits based on the complexity of those items and performance integration requirements.

RMD is the only known source that currently possesses the required technical knowledge, expertise, data, and facilities required to recertify the TACTOM AUR Block IV missile to meet USN Fleet and FMS customer requirements.

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

In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance and Information (PGI) 206.302-1, a Sources Sought (SS) was issued on SAM.gov on September 09, 2021. No responses were received. In accordance with FAR 5.201(b), NAVAIR synopsized the recertification TACTOM AUR missile requirement on SAM.gov on September 24, 2021 and received no responses. No additional market research was conducted because it is not practicable for any company other than RMD to provide the required supplies and services for the reasons discussed in paragraph five. Any responses received before contract award will be evaluated to determine whether the potential sources are technically acceptable to adequately satisfy the Government's requirements. Additionally, any interested parties may be referred to RMD’s subcontracting managers for possible subcontracting opportunities.

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 five, NAVAIR has no plans at this time to compete future contracts for the types of supplies and services covered by this document. If another potential source emerges, NAVAIR will assess whether competition for future requirements is feasible.

Because this 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).

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

Thomas Matthews (301)757-6404 Signature Name (Printed) Phone No. Date

Requirements Cognizance:

V. J. Red, CAPT, USN (301)757-6408 Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Michael Genchi (301)757-5383 Signature Name (Printed) Phone No. Date

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

Diana Harritt (301)342-3692 Signature Name (Printed) Phone No. Date

SENIOR PROCUREMENT EXECUTIVE APPROVAL

Upon the basis of the above justification, I hereby approve, as Senior Procurement Executive of the Navy, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

Fredrick Jay Stefany Date Principal Civilian Deputy Assistant Secretary of the Navy (Research, Development and Acquisition) Performing the Duties of the Assistant Secretary of the Navy (Research, Development and Acquisition)