APR-39 J A Signed 28Nov11.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_11_13288

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 the issuance of a contract on a sole source basis to Northrop Grumman Corporation, Electronic Systems, Defensive Systems Division, Rolling Meadows, IL (NGC Rolling Meadows) for the correction of deficiencies against the APR-39 Radar Warning Receiver (RWR).

3. Description of Supplies/Services.

The APR-39 RWR is installed on the CH-53E/K, AH-1W/Z, UH-1N/Y, MV-22B, and C-130T aircraft. The United States Navy has a requirement to upgrade the APR-39 RWR to remedy performance issues identified during operational evaluation. The upgraded APR-39 RWR shall be known as the APR-39D(V)2.

The estimated total value of the APR-39D(V)2 contract is $41.7M and will be funded with FY12 through FY15 APN-5 funds. The contract for this correction of deficiencies effort will contain a base contract with three (3) option exercises and a CLIN for repair of repairables to repair testing assets, as required. The base effort and option 1 will be for the design and nonrecurring engineering work resulting in the submittal of a Class 1 Engineering Change Proposal (ECP). The second option will be for the manufacturing of APR- 39D(V)2 test articles consisting of approximately 11 processors, 44 quadrant antennas, 30 crystal video receivers, 11 dual sail antennas, and 2 test bench fixtures. NGC Rolling Meadows will also provide support for flight and laboratory testing, an operational software package, and training on the upgrades under the second option. The third option will be for the manufacturing of one (1) APR-39D(V)2 First Article Test asset for future production quality control. NGC Rolling Meadows will also provide support for First Article Testing, a Functional Configuration Audit, and a Physical Configuration Audit under the third option.

See Appendix A for Estimated Dollar Value

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.

NGC Rolling Meadows is the sole designer, developer, and manufacturer of the APR-39 RWR and is the only contractor with the requisite knowledge, experience, and technical data that can perform these efforts.

The Government has never purchased a technical data package for the APR-39 RWR which would be suitable as a basis for competition. On 26 October 2010, the Government asked NGC Rolling Meadows to provide a rough order of magnitude (ROM) cost estimate for providing a Type 3D (3-Dimensional) Product Technical Data Drawing Package with Government Purpose Rights (GPR) license for the APR-39. This drawing package would be suitable for use as a basis for full and open competition for the APR-39D(V)2 Correction of Deficiencies effort. On 19 November 2010, NGC Rolling Meadows provided a ROM cost estimate of $80M for the aforementioned drawing package. This $80M amount is economically unfeasible within the funding provided for the program of record as it is almost twice the amount of $41.7M (see funding table above) budgeted for the APR-39D(V)2 Correction of Deficiencies effort. Based on this, there is no other contractor who can meet the U.S. Government requirements within the time and budget available.

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

This proposed effort was synopsized under FEDBIZOPPS on 29 March 2011. To date, only one response has been received to this synopsis. The respondent was Crane Aerospace & Electronics, Chandler, AZ (Crane). Crane expressed interest in subcontracting with NGC Rolling Meadows under this effort. Crane did not challenge our intention to award the APR-39D(V)2 Correction of Deficiencies effort to NGC Rolling Meadows on a sole source basis. The contract specialist advised Crane of our acquisition schedule for this effort and reminded Crane that the synopsis contained a subcontracting opportunities point of contact at NGC Rolling Meadows. No subsequent correspondence has been received from Crane. In the event that additional responses to the synopsis are received, they will be considered by the Procuring Contracting Officer (PCO) prior to award. No additional market research will be conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than NGC Rolling Meadows to provide the supplies and services covered by this J&A.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402, the Contracting Officer shall ensure that the all supplies and services provided under this contract are procured at a fair and reasonable price. The Contractor will submit a formal price proposal with certified cost or pricing data and sufficient information to support the accuracy and reliability of the estimate. NGC Rolling Meadows proposal will be reviewed by experienced technical analysts, cost analysts and contract specialists with the aid of necessary field pricing support by DCMA and DCAA. The Contracting Officer will utilize cost and price analysis as the basis for negotiating a fair and reasonable price.

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 AN/APR-39 systems covered by this document. If another potential source emerges, NAVAIR will assess whether competition for future requirements is feasible.

Appendix A

Estimated Dollar Value in Thousands

FY12 FY13 FY14 FY15 Total

APN-5 8500 12700 18100 2400 41700

Total 8500 12700 18100 2400 41700