CJA_AIR_CH53K BOA 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:

CJ&A 20-0508

CLASS 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 Class Justification and Approval (CJ&A) authorizes and approves the issuance of orders on a sole source basis to Sikorsky, A Lockheed Martin Company, Stratford, CT, under the Basic

Ordering Agreement (BOA) N00019-19-G-0029 (covering ordering periods FY2019—FY 2023) and the follow-on BOA (covering ordering periods FY2024 – FY2028), for CH-53K Program.

Authority to act under this CJ&A expires 30 September 2025.

3. Description of Supplies/Services.

This CJ&A permits BOA orders for supplies and services to provide technical and logistics support, program management, recurring and non-recurring engineering for ECPs in support of the CH-53K training simulators, devices, and aircraft, including retrofit and production forward fit tasks. Delivery Orders may include:

a) Development, manufacture and installation of engineering change proposals for upgrades and obsolescence, forward fit and/or retrofit kits including, but not limited to, associated production assessments/life cycle analyses, non-recurring engineering, systems engineering, integrated logistics support, production support, prototyping, validation and verification of changes, development, validation and verification of technical publications/manuals/changes/directives, testing of retrofit safety and test equipment changes, spare and repair parts for aircraft, subsystems, training simulators/devices, tooling and tooling support, support equipment, and cost reduction initiatives;

b) Software development and infrastructure support related to systems and subsystems originally developed and integrated by the aircraft Original Equipment Manufacturer

(OEM) including, but not limited to, avionics and vehicle management system upgrades, training simulator/devices and upgrades, avionics support and any hardware upgrades required to implement software updates;

c) Testing including, but not limited to, bench testing, avionics system testing, qualification testing, characterization testing, airworthiness, ground and fatigue engineering, modeling and simulation, wind tunnel testing, ground and flight testing, data reduction and analysis, technical publication source data development, flight clearance recommendation development, and tactics development;

d) Logistics support including, but not limited to, developing product support packages in support of Test & Evaluation, Interactive Electronic Technical Manual (IETM) updates, repair and test of Peculiar Support Equipment (PSE), new PSE, prediction of

Intermediate and Depot-Level Maintenance, Reliability Centered Maintenance analysis, engineering support for damage limits assessment and repair procedures, diagnostics engineering support for the Integrated Vehicle Health Monitoring System (IVHMS), Integrated System Support/Integrated Computing Platform (ISS/ICP) support and updates, providing engineering and sustainment support to the Fleet Common Operating

Environment (FCOE), providing concurrency of Sikorsky and NAVAIR Product

Lifecycle Management (PLM) information systems and the development and delivery of

Operational Test Program Sets for the Program Loading Set for Contractor Furnished

Equipment;

e) Obsolescence management efforts including, but not limited to, obsolescence trade studies, obsolescence component testing and bridge or life-of-type buys;

f) Support to aircraft including, but not limited to, engineering investigations, service life assessment/service life extension analyses and studies;

g) Requalification efforts for subsystems or parts including procurement of kits/spares to support CH-53K production as well as test support, parts obsolescence analysis, ECP implementation, production tooling and/or tooling modifications, repair analysis, and repair of repairables.

The planned funding is based on Program Office estimates and the President’s Budget (PB) 21 for the USMC CH-53K Program. The total estimated value of the action under this CJ&A is xxxx and is anticipated to be funded by the fiscal years and appropriation set forth in the table below: xxxx

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

10 U.S.C. 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.

The CH-53K is the only heavy lift aircraft that will satisfy the USMC requirements within the required time frame to meet the planned Fleet deployment schedule. Based on CH-53K Systems

Development and Demonstration (SDD) performance, the Government estimates that it would take a minimum of ten years to develop and qualify another source required to transition this effort and meet the USMC Heavy Lift requirements. A delay of this magnitude is unacceptable as it would impact the replacement of the aging CH-53E Heavy Lift aircraft and significantly degrade the readiness of the USMC in support of their national mission tasking.

Sikorsky was the Original Equipment Manufacturer (OEM) of the legacy H-53 fleet. , . Sikorsky was awarded a sole-source SDD contract in 2006 as a major design change to the legacy CH-

53E, resulting in a new CH-53 series helicopter, the CH-53K. Since inception of the program in

2005, (formerly known as the Heavy Lift Replacement (HLR) Program), Sikorsky has been the sole designer, developer and manufacturer of the CH-53K weapon system. Sikorsky is the only known responsible source possessing the requisite knowledge, technical expertise, special skills, technical data, facilities and experience to complete development, integration, and production of the CH-53K to meet USMC requirements within the required time frame. In addition, Sikorsky is the only source qualified to successfully complete the tasking described in paragraph 3. The

Government has pursued the procurement of a technical data rights license necessary for competition in support of engineering change proposals, obsolescence issues, non-recurring engineering, integrated logistics support and production support with Sikorsky. To date, Sikorsky has not been willing to provide a CH-53K data rights license to the Government that would enable a competitive acquisition of these efforts. Considering the absence of data required for competition and Sikorsky’s experience with the CH-53K, Sikorsky is the only responsible source capable of meeting the Government’s needs in the required timeframe.

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

Market research was conducted for the proposed effort via a Sources Sought notice posted to beta.SAM.gov (SAM) website on 3 August 2020; there were no responses. As such, in accordance with FAR Part 5.201, a pre-solicitation notice was posted on 24 August 2020 to

SAM; there were no responses. In accordance with FAR 5.201, a Pre-Solicitation Notice for each task or delivery order will be individually posted to SAM. Responses from interested sources will be evaluated by the Contracting Officer prior to contract award. Additionally, parties interested in subcontracting opportunities will be referred to Sikorsky to maximize competition in subcontracted efforts.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402(a), the Contracting Officer shall ensure that all supplies and support are procured at fair and reasonable prices. Analysis of the proposals will be performed by technical analysts and contract specialists with the assistance of Defense Contract

Management Agency (DCMA) analysts and Defense Contract Audit Agency (DCAA) auditors as needed. The Contracting Officer will analyze the various cost elements that are presented in the proposals and review actuals from previous procurements. The Procuring Contracting

Officer (PCO) will use Government expertise, including DCMA, DCAA, the program office and other resources as needed, to evaluate the proposal material, labor, and subcontract positions. A detailed report developed as part of the Government evaluation will be utilized to establish a

NAVAIR position. The Government will utilize the recommended rates from DCMA Forward

Pricing Rate Recommendation(s) (FPRR) and will utilize DCMA recommended rates until a

Forward Pricing Rate Agreement (FPRA) is achieved between DCMA and Sikorsky. As discussed in this paragraph, the PCO will use cost and price analysis for the basis of negotiating a fair and reasonable price for the supplies/support covered by this CJ&A.

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 requirements covered under this CJ&A. If another potential source emerges, NAVAIR will assess whether competition for future requirements is feasible.