G15_-_Redacted_CJ&A.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND

RADM WILLIAM A. MOFFET BUILDING

47123 BUSE ROAD, BLDG 22n

PATUXENT RIVER. MARYLAND 20670·1547

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Systems Command (NA V AlR) Headquarters

IN REPL V REFER TO:

CJ&A 16-0319

2. Description of the Action Being Approved.

This Class Justification and Approval (CJ&A) authorizes the issuance of a Basic Ordering Agreement (BOA), and the individual orders issued thereunder, for the BQM-177 A Subsonic Aerial Target (SSA T) program to Composite Engineering lnc. (CEi) of Sacramento, CA. Authority to act under this CJ&A expires on the later of 30 September 2021 or five years after CJ&A approval. Accordingly, this BOA will cover BQM-177 A specific related requirements from the current Engineering, Manufacturing, and Development (EMO) phase through Low Rate Initial Production (LRIP), and into Full Rate Production (FRP), pending successful Milestone Decision Authority approval at the appropriate milestone gateways. The authorized BOA orders may be placed on either a Fixed-Price or Cost-Reimbursement basis depending on the scope of the requirement.

3. Description of Supplies/Services.

The Contractor, in accordance with each individual delivery order, shall provide to the United States Navy (USN) and Foreign Military Sales (FMS) customers the supplies, services, support and hardware deliveries for BQM-177 A product related requirements including, but not limited to: engineering, technical, design, fabrication and training support; test support and analysis, technical data, trade studies and analysis, design and integration support, Cost Improvement Initiatives (Cll), Engineering Change Proposals (ECPs), Non-Recurring Engineering (NRE) services, engineering investigations, data analysis, hardware and software development, modifications, and deliveries, engineering and feasibility studies, support equipment modifications, special tooling and test equipment supplies and support, test and inspection, repair services, mission kits and spares, flight consumables, logistics support, information assurance/cybersecurity related support, and programmatic support.

The total estimated value of the orders covered under this BOA is $18.13M and will be funded as set forth in the table below. USN RDT&E, WPN-2, WPN-6 and FMS funding adjustments to the table below shall not necessitate an update to this Memorandum nor shall increases to funds or quantities as a result of supplemental authorizations by Congress.

CJ&A 16-0319

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 2304(c)(I), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale J ustifying Use of Cited Statutory Authority.

Contract NOOO 19-11-C-0024 was competitively awarded to CEi on 28 January 2011 to deliver a SSA T (BQM L 77 A) system that meets the requirements of Performance Specification PMA208-00800 I. CEi is the sole designer, developer, and manufacturer of the BQM-177 A aerial target to include special tooling and support equipment. CEi is also the only known source with the requisite knowledge, experience, and noncommercial technical data and software rights to meet Government requirements on a timely basis. During the current EMD phase the Government is receiving technical data with Government Purpose Rights, limited and restricted rights. The Government and CEi have discussed the cost for the Government to obtain technical data license rights of the BQM-177 A. An informal quote was received from CEi and is in excess of PMA-208 has estimated it would cost to qualify another source in addition to the to procure the Level III technical data package. The PMA-208 estimate, with an inflation factor applied, is based on a previous effort to procure the BQM-74E SSAT Level Ill data package. This cost analysis also showed the time required to recover the initial investment as approximately nine years. A ward to any other source would result in substantial duplication of costs not expected to be recovered through competition and unacceptable delays in qualifying a threat representative composite subsonic target, which would result in a failure to fulfill the Navy's requirement.

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

The Program Management Office, PMA-208 Aerial Target and Decoy Systems, under PEO (U& W), surveys the industry market and has not identified any other source currently capable of working on the BQM-177 A. It is not practical, for the reasons described in Paragraph (5) for any source other than CEi to provide the required supplies and services. However, market research efforts will be reviewed for all prospective orders under the BOA.

Additionally, in accordance with FAR 5.201 (b)(I), each order will be synopsized prior to issuance of a Request For Proposal (RFP) and any responses to the synopsis will be evaluated by the Contract Specialist and Contracting Officer prior to release of an RFP.

A separate Memo To File for the Class Waiver of DFARS PGI 206.302-1 Request for Information/Sources Sought Requirement has been concurrently submitted for approval with this CJ&A.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer shall ensure that all supplies and services purchased under this agreement are procured at a fair and reasonable price, using cost and price analysis techniques pursuant to FAR Subpart 15 .4. Analysis of the proposals will be perfonned by a multi-discipline team of Subject Matter Experts (SMEs) including engineers, cost analysts, program analysts and contract specialists. Additional field pricing and/or audit assistance may be requested from the Defense Contract Management Agency (DCMA), and/or the Defense Contract Audit Agency

(DCAA).

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NA VAIR 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, NA VAIR will assess the feasibility of competition. This action is not a non-competitive follow-on to a previous award for the same supply or service supported by a justification for other than full and open competition citing the authority at FAR 6.302-1.

Accordingly, the DFARS determination cited at DF ARS PGI 206.304(a)(ii) (i.e. regarding the completion of planned actions to remove barriers to competition cited on the previous justification) is not applicable.