CJA_for_GQM163A_BOA4 FINAL_Redacted.pdf

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Attached to
Fiscal Year (FY) 2023 Replenishment Spares in Support of the GQM-163A Coyote Supersonic Sea-Skimming Target (SSST) System
Solicitation number
N00019-22-RFPREQ-WPM208-0118
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This is a Class Justification and Approval (CJ&A) document from the Naval Air Systems Command authorizing other than full and open competition for Cost-Reimbursement and Fixed-Price orders under a Basic Ordering Agreement (BOA) with Northrop Grumman Systems Corporation (NGSC) Launch Vehicles division for the GQM-163A Coyote Supersonic Sea Skimming Target (SSST) program through December 31, 2027.

The document justifies NGSC as the sole source provider based on their unique technical knowledge, experience, and proprietary data rights for the GQM-163A system. The scope includes engineering and logistics support, repair parts procurement, field support, technical studies, training, and target hardware including modification kits. NGSC declined to sell license rights to enable competition, and the estimated cost to develop an alternative source would result in unacceptable duplication of costs. The Program Management Office (PMA-208 Aerial Target Systems) determined no other capable sources exist, though individual orders will be synopsized per FAR requirements. Pricing will be determined fair and reasonable through certified cost/pricing data, DCMA/DCAA support, and thorough cost analysis.

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

10 U.S.C. Section 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.

Contract N00019-00-C-0255 was competitively awarded to NGSC, LV on 29 June 2000 to deliver a SSST (GQM-163A) system that meets the requirements of Performance Specification AS9208. NGSC, LV is the only known source with the requisite knowledge, experience, and noncommercial technical data and software rights to meet the Government’s requirements on a timely basis. On 29 August 2019, NAVAIR PMA-208 requested from NGSC, LV a license of the complete technical data package for GQM-163A SSSTs. On 3 September 2019, NGSC, LV stated they were unwilling to sell sufficient license rights to the Government to support competition. During the Engineering and Manufacturing Development (EMD) phase, the Government received a technical data package that was a combination of limited and restricted Government purpose rights (documentation which NGSC, LV funded at private expense). Based on Cost & Schedule Analysis Department (CSA) analysis, it would cost to complete the design, test, qualify, and produce an alternative target. This estimate is based on the total research and development cost as well as non-recurring engineering costs for the program. In accordance with Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(ii)(A), award to any other source would result in unacceptable duplication of cost to the Government that is not expected to be recovered through competition.

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

The Program Management Office, PMA-208 Aerial Target Systems, under Program Executive Office (PEO) Unmanned Aviation and Strike Weapons (U&W), surveys the industry market and has identified no other source currently capable of satisfying the Government’s requirement. Each individual order will be synopsized in accordance with FAR 5.201.

SER 2441-19-163 waiver of DFARS PGI 206.302-1 Request for Information/Sources Sought Requirement was approved.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.404-1, the Procuring Contracting Officer (PCO) will determine that the procured supplies and services authorized under this CJ&A are from a responsible source at a fair and reasonable

(b) (4)

(b) (4) 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. The negotiated actions will be conducted in accordance with FAR Subpart 15.4 by the PCO, with support as needed, from Defense Contract Management Agency (DCMA) and Defense Contract Audit Agency (DCAA) personnel to ensure that fair and reasonable prices are established. The Contracting Officer’s determination of fair and reasonable price will be based upon information received from historical data, field audits, independent technical evaluations, and thorough cost/price analysis.

8. Actions to Remove Barriers to Future Competition.

For the reason set forth in paragraphs (5) and (6), NAVAIR has no plans to compete further contracts for the types of supplies and services covered by this CJ&A. The quantity of targets purchased each year does not justify the additional nonrecurring costs associated with developing a second source. NAVAIR is working with NGSC, LV to maximize competition through subcontracting opportunities.

This effort is a follow-on to a supplies and services contract previously awarded on a non-competitive basis.

In accordance with DFARS PGI 206.304(a)(i), the prior CJ&A (16-0004) was provided to the approval authority for review. Approval of this CJ&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(ii).

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