JA 24-0227 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:

J&A 24-0227

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 Justification and Approval (J&A) authorizes and approves the issuance of an Indefinite Delivery, Indefinite Quantity (IDIQ) contract on a sole-source basis to OnTime Networks, LLC, Latham, NY. The IDIQ contract will include a five-year ordering period for firm fixed price type orders, and will provide for the procurement of OnTime Networks, LLC Ethernet Expansion Devices (EEDs) for the V-22 aircraft.

3. Description of Supplies/Services.

This procurement is for the EED, a common avionics part which allows for increasing ethernet capability in each V-22 variant as new mission systems are implemented. The procurement will include program quantities and spares. The estimated total value of orders placed against this J&A is $22.5M from FY24-28, and is anticipated to be funded by the fiscal years and appropriations as set forth in the table below.

Estimated Dollar Value

FY24-FY28

APN-5 $17M

APN-6 $1M

BP-11 $4M

BP-16 $.5M

Total $22.5M

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

The statutory authority permitting other than full and open competition is 10 U.S.C. 3204(a)(1), as implemented by the Federal Acquisition Regulation (FAR) 6.302-1, “Only one responsible source and no other supplies or services will satisfy agency requirements”.

5. Rationale Justifying Use of Cited Statutory Authority.

OnTime Networks, LLC is the only source that can provide the above supplies and no other supplies will satisfy program requirements. OnTime Networks, LLC is the Original Equipment Manufacturer (OEM) of the EED, which meets the V-22-unique combination of requirements for flight clearance, cybersecurity approvals, and compatibility with existing aircraft systems.

OnTime Networks, LLC is also the sole manufacturer and distributor of the OnTime Networks, LLC EEDs.

The OnTime Networks, LLC EEDs successfully passed Military Standard 461G, Department of Defense Interface Standard: Requirements for the Control of Electromagnetic Interference Characteristics of Subsystems and Equipment, testing in March 2022; classified formal hardware/software integration testing in April 2022; and began operational testing during quarter three of FY23. The requested EEDs have modern Cyber Security certification (NIAP) which was sponsored via SBIR under contract number FA8649-22-P-0848.

The OnTime Networks EEDs were previously procured under sole source contracts N68335-23- D-0038 and N00421-21-P-0659. The OnTime EEDs are currently in use on variants of the V-22 Osprey, supporting common fit, form, and function. Selection of a new source would result in duplication of cost to the Government that is not expected to be recovered through competition.

Selection of an alternate vendor would require additional laboratory, ground and flight testing to ensure that the requirements of PMA-275 are met. Current implementation of the EED has software that was specifically designed to integrate with the OnTime Networks EEDs to enable a field loadable software capability. Selection of a new vendor would require new software design and integration to maintain this capability. Additionally, this would require new and updated cyber approvals for the aircraft baseline. Current estimates to perform these additional, duplicative efforts would cost approximately $3.045M and incur a two-year delay. These estimates were the NRE cost and schedule to qualify the EED for the CMV-22 Communications Upgrade program and include the requirements to perform technical testing ($150K), obtain cyber certifications ($220K), perform lab testing ($175K), and conduct flight tests ($2.5M).

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

The PMA leveraged market research previously conducted in September 2022 under prior contract N00421-21-P-0659. Under Contract N68335-23-D-0038, a Request for Information (RFI) for an “Ethernet Switch with Router” was posted on 06 September 2022 with a response date of 13 September 2022. No RFI responses were received.

In addition, the General Services Administration (GSA) Advantage and Defense Logistics Agency’s (DLAs) Public Logistics (PUB LOG) Federal Logistics Information System (FLIS) databases yielded no results when further verified in January 2024 by the PMA-275 Communication/Navigation and Core Teams.

A Sources Sought notice was posted on the SAM website on May 16, 2023 seeking sources to provide the Ethernet Expansion Devices for all the variants of the V-22 type/model/series tilt-rotor aircraft, as required by DFARS PGI 206.302-1. No responses were received to the Sources Sought notice.

In accordance with FAR 5.201, the proposed contract action was synopsized on the Sam.gov website on 14 December 2023 stating the Government’s intent to award a sole source contract to OnTime Networks, LLC. Three responses were received: CMC Electronics; Raytheon, An RTX Business; and KPaul. The CMC response did not meet the NAVAIR EED replacement requirement. Raytheon wanted to provide the entire kit and integration, an approach that would result in the aforementioned duplication of costs/unacceptable delay. KPaul provided no capability statement. Each company was notified of the Government’s findings and intent to proceed with a sole source procurement on 15 February 2024 and no response was received.

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).