CJ A_15_24408_(Redacted).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:

CJ&A_15_24408

CLASS 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 Class Justification and Approval (CJ&A) authorizes the use of other than Full and Open Competition for the development, integration, and procurement of Automatic Dependent Surveillance - Broadcast (ADS-

B) Out systems for the T-6B (USN) and T-6D (USA) primary trainer aircraft in order to comply with Federal

Aviation Administration (FAA) mandated requirements for continued operations in the National Airspace beyond 2020.

3. Description of Supplies/Services.

The CJ&A covers the design, development, integration, test and procurement of an engineering change required to modify the T-6B/T-6D aircraft to ensure compliance with the FAA ADS-B Out mandate as established in 14 CFR 91.225 and 91.227. Under this contract, Beechcraft Defense Company (BDC), a subsidiary of Textron Aviation, as the Original Equipment Manufacturer (OEM) will develop, integrate, test and certify an ADS-B Out capability for the T-6B/T-6D, to include assets for test and evaluation and verification and validation kits. The development of the ADS-B Out system will include upgrading the

Integrated Avionics Computers (IACs) Global Positioning System (GPS) card assembly with a new Space

Based Augmentation System (SBAS)/Wide Area Augmentation System (WAAS) GPS card, replacement of the Mode S Transponder, replacement of the GPS antenna, and upgrade to the T-6B Ground Based

Training System (GBTS) IACs. The upgrade will include software modifications to the Flight Management

System (FMS) to integrate the avionics components into the T-6B/T-6D Integrated Avionics System (IAS) and meet FAA Supplemental Type Certification. This requirement covers Fiscal Years (FY) 2015 through

2019 and is in accordance with the NAVAIR Acquisition Plan Number 273-2014-10-08-R0. The proposed procurements will consist of a base period of performance funded with Navy and Army Research

Development Testing and Engineering (RDT&E) and two production lots funded with Aircraft Procurement

(Navy) (APN-5) and Aircraft Procurement (Army) (APA) as outlined in Appendix A.

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.

The Government does not possess the data or the rights to use the data that would permit a competition.

BDC, who has an exclusive agreement with Esterline CMC Electronics, Inc. (CMC) to use CMC’s data for this effort, rejected a Government request to provide a Rough Order of Magnitude estimate of the cost to procure the technical data rights for the T-6B/T-6D in August 2014. The Government contacted CMC and made a similar request, which CMC rejected. Also, CMC rejected a request from a potential prime offeror to be a subcontractor stating CMC would only enter a partnership with BDC and CMC declined to participate as a prime contractor for this effort. As a result, BDC is the only potential offeror who has access to the data necessary to execute this effort.

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

A sources sought notice for the T-6A/T-6B/T-6D ADS-B Out requirement was posted on 27 January 2014 to FedBizOps to determine capability for upgrading T-6A and T-6B/D aircraft. It included undefined requirements for ADS-B Out integration capability. As a result, 24 companies responded but did not adequately address the integration of ADS-B Out into the existing Integrated Avionics System (IAS) of the

T-6B. Only CMC proposed an integrated technical solution based on ownership of intellectual property rights to hardware and software in the integrated avionics in the T-6B. Between January and October

2014 the U.S. Air Force and Navy refined T-6B integration requirements and requested detailed integration approaches from contractors. An amended sources sought was posted 24 September 2014 to further define the integrated nature of the effort and request specific information regarding how a potential offeror would obtain the technical data necessary to perform. Eight companies responded to the amended sources sought proposing solutions for the T-6B/T-6D. All respondents lacked proprietary data needed for

ADS-B Out integration. One respondent, Camber Corporation, replied to the amendment stating that it approached CMC to establish a partnership to acquire T-6B proprietary data and was turned down.

Another respondent, Southeast Aerospace, replied to the amendment with a point of contact at CMC to verify its claim that a partnering agreement could be established with CMC. CMC later acknowledged the discussions with Southeast Aerospace but concluded that no agreement would be established with

Southeast Aerospace or any other contractor for ADS-B development on the T-6 aircraft. Southeast

Aerospace was then notified by CMC that a partnering arrangement would not be established. The evaluation concluded that only BDC can satisfy the requirement because CMC will not propose as a prime for this effort and will only partner with BDC. A synopsis was posted on 6 January 2015. To date, no responses have been received. The Contracting Officer will evaluate any responses received prior to award.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402(a), the Contracting Officer must ensure that all supplies and support are procured at a fair and reasonable price. A NAVAIR (4.2) Independent Cost Estimate (ICE) has been obtained for this effort to aide in the determination of a fair and reasonable price. The Contractor will submit cost and pricing data in accordance with FAR 15.403. Analysis of the proposal will be performed by technical analysts and contract specialists, with the assistance of DCMA analysts and DCAA auditors as needed. The Contracting Officer will analyze the various cost elements that are presented in the proposal, as well as review the actuals from previous procurements. The Contracting Officer will use government expertise, including DCMA, DCAA, the PMA and other government resources as needed, to evaluate the proposal's material, labor, and subcontract positions. 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 types of supplies covered by this document.

Appendix A

Estimated Dollar Value in Thousands

FY15 FY16 FY17 FY18 FY19 FY20 TC Total

RDT&EN 957 3131 4361 0 0 0 0 8449

APN-5 0 0 0 16317 12041 0 0 28358

RDT&E, ARMY 15 48 66 129

ARMY, AI3 273 273

Total 972 3179 4427 16317 12314 0 0 $37209k