CJA 23-0207_Redacted.pdf

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Attached to
MH-60R Digital Magnetic Anomaly Detection (DMAD) Hardware Procurement
Solicitation number
N00019-23-RFPREQ-APM299-0069
Issued by

About this file

This document is a Class Justification and Approval (CJ&A) for the Naval Air Systems Command (NAVAIR) to issue orders under a Basic Ordering Agreement (BOA) with Lockheed Martin Rotary and Mission Systems (LM RMS). The CJ&A authorizes orders to support ongoing production, retrofit, engineering changes, obsolescence management, testing, and in-service support for all H-60 aircraft weapons systems and subsystems for the U.S. Navy, Foreign Military Sales, and the Capability Assurance Program. The CJ&A states that LM RMS is the only responsible source with the unique capabilities and data to fulfill the Navy's requirements, and that it would take 8 years for another source to qualify. The Contracting Officer has determined the anticipated costs will be fair and reasonable. NAVAIR will continue to conduct market research to assess the industrial base and potential for future competition.

The related federal contract opportunity is for the procurement of hardware required for the Digital Magnetic Anomaly Detection (DMAD) to be utilized for Foreign Military Sales (FMS) Royal Australian Navy (RAN) and United States Navy MH60R aircraft. The contract was awarded on a sole source basis to Lockheed Martin Rotary and Mission Systems for $60,637,800. The contract has a base year and two option years, with an estimated completion date of April 30, 2026.

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Text version

J&A: 23-0207

CLASS 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 Class Justification and Approval (CJ&A) authorizes and approves the issuance of orders under a Basic Ordering Agreement (BOA) with Lockheed Martin Rotary and Mission Systems (LM RMS).

Authority to act under this CJ&A expires on 30 September 2028.

3. Description of Supplies/Services

Actions authorized under this CJ&A will support ongoing production and retrofit integration, Engineering Change Proposals (ECPs), obsolescence, reliability and sustainability improvements, testing, and in service support for all Type/Model/Series (T/M/S) H-60 aircraft weapons systems and subsystems requirements for United States Navy (USN), PMA-299 Capability Assurance Program –Project Arrangement (CAP-PA), and Foreign Military Sales (FMS) variants. Orders under this CJ&A for domestic and FMS will include:

a. Development, manufacture and installation of ECPs for block, segment, tech-insert, upgrades, Diminishing Manufacturing Sources and Material Shortages (DMSMS)/Obsolescence solutions, retrofit kits including associated non-recurring engineering (NRE), systems engineering, integrated logistics support, production support, prototyping, validation and verification of changes, development, validation, and verification of technical publications, manuals, changes, and directives, associated logistics impacts, testing of retrofit safety and test equipment changes, spare and repair parts for aircraft, subsystems, training simulators/devices, support equipment and related software efforts;

b. Software development and infrastructure support related to systems and subsystems originally developed and integrated by LM RMS. These systems and subsystems include avionics and air vehicle management systems upgrades, training simulator and device concurrency and modernization upgrades, weapons systems and sensors, avionics support and hardware upgrades to implement software updates;

c. Testing, including bench testing, avionics system testing, training systems testing, qualification testing, characterization testing, airworthiness, ground and fatigue engineering, modeling and simulation, ground and flight testing, data reduction and analysis of flight test data, technical publication source data, flight clearance recommendation and tactics development, and related test support for aircraft and subsystems;

d. Obsolescence management for aircraft and training systems includes obsolescence trade studies, obsolescence component testing and implementation and bridge or life-of-type buys of obsolete parts, when required;

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:

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.

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, and the subject specialized H-60 BOA delivery order supplies and services. For these reasons, LM RMS is the only responsible source that has the unique capabilities and data to be able to 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 02 August 2022 to seek sources from industry, and to date, no responses have been received.

A Synopsis was posted to the SAM website on 30 August 2022 and included a point contact for subcontracting opportunities to broaden industry and small business participation. In accordance with FAR 5.201, orders will be individually synopsized on the SAM website. The contracting officer will evaluate any responses received prior to award of each order. Additionally, parties interested in subcontracting opportunities will be referred to LM RMS to maximize competition in subcontracted efforts.

7. Determination of Fair and Reasonable Cost

The Contracting Officer has determined the anticipated cost to the Government of the suppliers/services covered by this CJ&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. NAVAIR will continue to conduct market research to assess the industrial base. If other potential sources emerge, NAVAIR will assess the feasibility for future competition and/or break out opportunities.

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 CJ&A 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)(S-70) (ii).

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