J&A Lots 8 - 12 redacted by legal 15 June 09.doc

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND

NAVAL AIR SYSTEMS COMMAND HEADQUARTERS

IN REPLY REFER TO

47123 BUSE ROAD, UNIT IPT BLDG 2272, ROOM 256

PATUXENT RIVER, MD 20670-1547

J&A No. 06-244

CLASS JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Systems Command Headquarters

2. Description of the Action Being Approved. Award of contract(s) on a sole source basis for continued missile production and related support of AIM-9X missiles from The Raytheon Company. Authority to act under this class justification expires on 30 Sep 2012.

3. Description of Supplies/Services. This contract(s) is for a base year and four option years for the procurement of AIM-9X Sidewinder Missiles, including tactical missiles, Captive Air Training Missiles, containers, technical, integration, engineering, logistics, and software support, training, warranty and non-warranty repairs, and related supplies and services for the United States Navy, United States Air Force, and various Foreign Military Sales (FMS) customers. The estimated total dollar value is $907M. This effort is covered under Acquisition Plan Number 06-02 dated 19 Sep 2006.

The quantities identified below are estimated, and may be adjusted to reflect other such quantities as may be authorized and appropriated by Congress. While there are currently no signed Letters of Offer and Acceptance (LOAs) for FMS, 140 missiles are estimated for each year along with associated spares and technical support. FMS quantities are based on historical FMS quantities on contract and may be adjusted with the advent of each signed LOA.

This requirement will be funded with the following appropriations:

Missiles in each lot will be delivered over a 12-month period beginning 18 months after contract award.

4. Statutory Authority Permitting Other Than Full and Open Competition. The statutory authority permitting other than full and open competition is Title 10, U.S.C. 2304 (c) (1), as implemented by subsection 6.302-1 of the Federal Acquisition Regulation (FAR), which states that only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority. In 1996, The Raytheon Company was competitively selected to be the designer, developer and manufacturer of the AIM-9X missile and is the only source capable of manufacturing the missile. As a cost-savings initiative, the Government did not procure a technical data package for reprocurement purposes and allowed the contractor to retain configuration control of items not affecting the system specification. It is estimated that it would cost between $173M and $275M to qualify a second source, based upon historical second sourcing start-up costs for similar missile programs. The second source start-up costs include procurement of data rights, a full data package, non-recurring engineering costs for the second source, and additional Government support and testing. These costs would not be recovered through competition. This analysis is based on applying historical competition data from similar missile programs to the AIM-9X business case. Therefore, the efforts described herein cannot be performed by any source other than The Raytheon Company without duplication of effort and unacceptable programmatic risks.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable. The proposed contract was synopsized on the FEDBIZOPS website on 21 Sep 2006 and no other potential 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 The Raytheon Company to provide the required supplies and services.

7. Determination of a Fair and Reasonable Cost. The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this Class J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition. For the reasons set forth in paragraph 5, the Naval Air Systems Command 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, the Naval Air Systems Command will assess whether competition for future requirements is feasible.