MSMA CESI IDIQ CJA 23-03 LMSIGNED_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

21983 BUNDY ROAD, BLDG. 441

PATUXENT RIVER, MARYLAND 20670-1547

CJ&A 23-0003

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

Naval Air Warfare Center Aircraft Division (NAWCAD) Patuxent River, MD

2. Description of the Action Being Approved

This Class Justification and Approval (CJ&A) authorizes and approves the issuance of orders to procure Common Electronic Standby Indicators (CESI) on a sole-source basis under an

Indefinite Delivery Indefinite Quantity (IDIQ) Contract with General Electric Aviation Systems

(GEAS), Gloucestershire, United Kingdom. This CJ&A will also support future modifications to the IDIQ to add technical and logistics support, if required by the Government. Authority to act under this class justification expires on 31 December 2028.

3. Description of Supplies/Services

The CESI is a Commercial-Off-The Shelf/Non-Developmental Item (COTS/NDI) Weapons

Replaceable Assembly (WRA), and serves as a backup flight display for the pilot or co-pilot on both fixed wing and rotary wing platforms. This requirement is to procure a total estimated quantity of 622 CESIs, P/N: 10540MFSD1-1, over a five-year ordering period in support of multiple U.S. Navy and Marine Corps aircraft, including, but not limited to: C-2A; E-2C; TE-

2C; C-130; CH-53K; FMS CH-53K; MV-22B; and V-22. This is part of the Communication

Navigation Surveillance/Air Traffic Management (CNS/ATM) cockpit upgrade and production, providing a common part number across these fixed and rotary wing platforms. Future contract actions may include technical and logistics support elements, including repair of repairables;

testing; integration; and technical documentation.

Estimated Dollar Value in Thousands

Appropriation

FY23-FY29

Total

Procurement

FMS

RDTE

OMN

OCF

Total $ 27,207

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.

GEAS is the Original Equipment Manufacturer (OEM) of the CESI. GEAS is the only company with the required CESI production support equipment, including the associated technical data and data rights, necessary to meet the Government’s requirement for production, and technical and logistics support. In addition, GEAS developed the software source and proprietary inertial navigation algorithms for Naval Aviation ship-board use. The

Government does not possess sufficient technical data to competitively award the requirement because the WRA’s to be procured are COTS products, developed by GEAS for commercial applications and modified for ship-board use. The key data required to duplicate the capabilities required for CNS/ATM platforms is proprietary to GEAS. Further, while there are other Standby Indicator’s in the market place, there are none that meet the military ship-board requirements, software configuration tables, and proprietary inertial navigation algorithms necessary to meet the Government’s requirement like the CESI. Additionally, in accordance with FAR 6.302- 1(a)(2)(ii)(A), the Non-Recurring Engineering (NRE) expenses to make any necessary changes and qualify a new CESI is estimated to be approximately

$4.9M, which is a substantial duplication of cost to the Government that is not expected to be recovered through competition. Therefore, GEAS is the only responsible source and no other supplies or services will satisfy agency requirements.

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

The Government issued a sources sought on SAM.gov on 16 February 2023 to determine if additional sources were capable of satisfying the CESI, and the associated technical and logistics support requirements. The Government received five responses from GEAS, Global Aviation

Technologies, Spirit Avionics, LTD, Industrial Electronic Engineers, Inc., and Innovative

Solutions & Support, Inc. All of the responses were evaluated based on the criteria established in the sources sought, and only one, GEAS demonstrated the ability to meet all the criteria. None of the other companies had a COTS product that is mil-standard qualified. The Government issued letters on 05 April 2023 to each company identifying them of the Government’s assessment of their capability based on the information provided in the sources sought. GEAS was informed they were deemed capable, and the remaining four respondents received letters explaining why the Government did not determine them capable. The Government had additional communication with one company, ISS. The PCO communicated to ISS the

Government’s lack of proprietary information, which is owned by GEAS for this effort, and to date no additional communication has been received. Subsequently, the Government synopsized this effort on SAM.gov on 17 May 2023 and no responses were received. No additional market research was conducted because it is not practicable for the reasons discussed in paragraph 5 above.

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, NAWCAD has no plans to compete future contracts for the types of supplies/services covered by this document. However, the Government will continue to conduct ongoing market research via internet, SAM.Gov, and interfacing with subject matter experts. If another potential source emerges, NAWCAD will assess whether competition for future requirements is feasible at that time.

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 J&A was provided to the approval authority for review. Approval for this CJ&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(S-70)(ii).