JA-13-16431_E-2D_AHE.docx

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_13_16431

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 action to Northrop Grumman Systems Corporation-Aerospace Systems (NGSC-AS), Bethpage, NY, for E-2D Advanced Hawkeye (AHE) capabilities added post-Initial Operational Capability (IOC).

3. Description of Supplies/Services.

This contract effort will provide capabilities added post-IOC for the E-2D AHE. In particular, the capabilities to be provided include Secure Internet Protocol Router (SIPR) Chat, Tactical Targeting Network Technology (TTNT) and Cooperative Engagement Capability (CEC) Accelerated Mid-Term lnteroperability Improvement Program (AMliP). These capabilities will augment and enhance the E-2D AHE warfighting capability. The proposed contract includes all non-recurring efforts but are not limited to, the design, development, prototype fabrication and assembly, integration, installation, furnishing of equipment, management, test, evaluation, documentation, Integrated Logistics Support (ILS), procurement of developmental spare items to support lab and flight testing and development of training source materials for the software and hardware, and engineering associated with the acquisition of the added capabilities, over the planned period of performance (FY14-FY18).

The SIPR Chat capability will fulfill a fleet need to have real-time Beyond Line of Sight connectivity to command and control elements such as the Combined Air and Space Operations Center. TTNT will replace the current Multifunctional Information Distribution System (MIDS) Low Volume Terminal (LVT-1} with a MIDS Joint Tactical Radio System (JTRS) TTNT capable terminal, and integrate and test an improved TTNT waveform with increased capability in the E-2D AHE. AMliP is a set of known software changes that will address Battle Group CEC/Link-16 lnteroperability issues.

The estimated total value of the capabilities added post-IOC contract effort is $122,385,000 and will be funded with FY14-FY18 Research Development Test and Evaluation (RDT&E) funds.

The supplies and support acquired via this procurement will satisfy the Government's minimum needs. This effort is consistent with the Acquisition Plan PMA-231-06-01, Revision 9 dated 17 Oct 2013.

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.

Since the inception of the E-2 aircraft in 1964, NGSC-AS has been the sole designer, developer, and manufacturer of the E-2 weapon system. NGSC-AS was awarded the E-2D AHE System Development and Demonstration (SD&D), Pilot Production, and Low Rate Initial Production (LRIP) Lot 1-4 contracts. NGSC AS is the only source with the requisite knowledge and experience to complete development, integration, and production of the E-2D AHE capabilities added post-IOC to meet the Navy's requirements. The Navy does not have a complete technical data and computer software package, nor sufficient license rights in the technical data and computer software necessary to conduct a competition, and NGSC-AS will not sell such a package to the Navy (as of 11 June 2013). Therefore, NGSC-AS is the sole source that can complete these requirements.

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

Program office experts in the field, current on trade studies and the technology environment, have no knowledge of any other capable sources. In accordance with FAR 5.201(b), the requirements for the E-2D capabilities added post-IOC (SIPR CHAT, TTNT and CEC AMliP) were synopsized in Federal Business Opportunities on 4 June 2013 and no responses have been received. Any responses received prior to contract award will be evaluated by the contracting officer.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402(a), the contracting officer shall ensure all supplies, data and services are procured at a fair and reasonable price. The contractor will submit cost or pricing data in accordance with FAR 15.403-4. Analysis of proposals will be performed by technical analysts, the NAVAIR 4.2 cost department and contract specialists, with the assistance of the Defense Contract Management Agency analysts and Defense Contract Audit Agency auditors. The contracting officer will analyze various cost elements that are presented in the proposals, requests for information, and use data from other programs for comparison. DCAA will assist in evaluating the material and subcontract positions in addition to reviewing the contractor's use of escalation. The program engineers will evaluate the proposed labor hours and provide detailed reports which will be utilized to establish the Government's positions. Rate J&A 13 16431 recommendations provided by DCMA will be evaluated for incorporation in the Navy positions. The contracting officer will utilize cost and price analysis as the basis for negotiating fair and reasonable prices.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in paragraph 5 above, NAVAIR has no plans 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. Competitive opportunities, if feasible, will be considered, particularly potential component break-out opportunities, as this program matures.

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