TMIDIQ II Redacted Justification and Approval.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND

RADM WILLIAM A. MOFFET BUILDING

47123 BUSE ROAD, BLDG 2272

PATUXENT RIVER, MARYLAND 20670-1547

J&A: 24-0220

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Systems Command (NAVAIR) Headquarters, Patuxent River, MD.

2. Description of the Action Being Approved.

This Justification and Approval (J&A) authorizes and approves, on a sole source basis, the award of an Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract to Lockheed Martin Rotary and Mission Systems (LM RMS) for MH-60 technical analysis, engineering, and integration support.

3. Description of Supplies/Services.

This IDIQ contract, with a five (5) year ordering period, is for the procurement of technical and engineering efforts to provide analysis of urgent MH-60 user needs and evolving technology enhancements and assist in accelerating the introduction of enhancements identified by the Government. This effort includes, but is not limited to:

a. Technical analysis, engineering, cybersecurity, integration support

b. Requirements development support to include Security Engineering and Cybersecurity

c. Initial technical, cyber, and integration analysis

d. Interface management

e. Modeling and simulation

f. Risk/opportunity mitigation

g. Engineering and integration support for emergent systems

h. Fleet readiness improvements

i. Impact analysis for current and future configurations

j. Systems Engineering Technical Reviews (SETR) analysis.

The total estimated value of the actions under this J&A is

Estimated Dollar Value in Millions

FY25 – 30

Total

APN

RDT&E

FMS

CAP-PA

Total

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

10 U.S.C. § 3204(a)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

In accordance with FAR 6.302-1(a)(2)(ii) and (iii), LM RMS is the only source that has the unique capabilities and complete data necessary to fulfill the Navy’s requirements without unreasonable delay and substantial duplication of cost that are not expected to be recovered through competition. In early 1978, NAVAIR awarded Sikorsky Aircraft (purchased by LM RMS in 2015) the Engineering and Manufacturing Development (EMD) Contract under full and open competition with the first H-60 Seahawk entering service in 1984. Since 1978, NAVAIR has awarded LM RMS a series of contracts for production, sustainment, and software development of the H-60 as they are the sole source designer, developer, and manufacturer of the MH-60 helicopter, including the avionics suite, common cockpit, and all subsequent changes and improvements therein to the aircraft. The Avionics Operational Program (AOP) software operating in the MH-60 mission computer controls the operations, including the controls and displays of the helicopter, Smart Multi-Functional Displays (SMFD), Multi-Mode Radar (MMR), and Flight Management Program (FMP), and interfaces with the algorithms residing in Electronic Support Measures (ESM) software. LM RMS developed portions of the AOP, FMP, MMR, and ESM software at private expense. In addition, LM RMS developed the SMFD software and Mission Avionics system for the MH-60 series entirely at private expense. Therefore, LM RMS is the only source with the requisite skilled personnel, test equipment, laboratory facilities, and proprietary data to perform the required in-depth engineering and programmatic support to design, develop, and incorporate urgent user needs and evolving technology enhancements into the MH-60 aircraft and operating software. NAVAIR has sought to acquire, as of January 2024, sufficient rights in technical data to compete this effort, but LM RMS is not willing to sell them to NAVAIR. LM RMS is also unwilling to enter into a special licensing agreement that would allow for the competitive acquisition of these efforts.

Without the appropriate data rights, the Government estimates the duplicative cost to stand up another source for the specialized supplies and services with unique H-60 capabilities would be (based on the EMD effort awarded to Sikorsky and escalated to current year costs utilizing Office of the Secretary of Defense 2023 Research, Development, Test and Evaluation, Navy inflation rates), which would not be recovered through full and open competition. Furthermore, unacceptable delays in fulfilling the agency’s requirements would result if the subject orders were attempted to be procured through another source. The Navy estimates that it would take eight (8) years to complete system development, qualification testing, flight tests, and sustainment activities to qualify a new source to fulfill the H-60 mission based on previous program requirements. For these reasons, LM RMS is the only responsible source that can fulfill the Navy’s requirements set forth in the subject orders.

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

In accordance with DFARS PGI 206.302-1(d), a Sources Sought notice was posted to the SAM website on 12 June 2024 to seek sources from industry. To date, seven (7) responses have been received. The Government analyzed the responses and determined none of respondents adequately addressed how they would gain access to LM RMS proprietary data to appropriately assess impacts of new capabilities or technology enhancements to the AOP software, SMFD, FMP, or MMR.

Additionally, a Synopsis was posted to the SAM website on 24 July 2024, including a point contact for subcontracting opportunities to broaden industry and small business participation. No responses were received to date. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than LM RMS to provide the required supplies and services.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable.

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/services covered by this document. If another potential source emerges, NAVAIR will assess whether competition for future requirements is feasible.

As this is a follow-on for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(S-70)(i), the prior J&A was provided to the approval authority for review. Approval of this J&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(S-70)(ii).