EMALS ESS Sustainment IDIQ JA Redacted.pdf

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Attached to
Electromagnetic Aircraft Launching System (EMALS) Energy Storage Subsystem (ESS) Sustainment IDIQ
Solicitation number
N00019-25-RFPREQ-TPM251-0320
Issued by

About this file

This is a Justification and Approval (J&A) document for a sole source indefinite delivery, indefinite quantity (IDIQ) contract award.

The Department of Navy's Naval Air Systems Command (NAVAIR) is issuing a sole source IDIQ contract to Kato Engineering of Mankato, Minnesota to support sustainment requirements for the Ford-class Electromagnetic Aircraft Launch System (EMALS) Energy Storage Subsystem (ESS) on fielded Ford-class CVNs 78-80. The contract encompasses a five-year ordering period with an estimated total dollar value redacted in the document. Supplies and services include development of pre-engineering change proposals, technical data development, product improvements and design recommendations, remote and on-site technical support and repair/overhaul, shipboard launch activities support, failure reporting and corrective action systems, logistics products maintenance, supportability analysis updates, repair level analysis, maintenance planning, training support, quality assurance management, and material support for repairs and overhauls. The justification cites 10 U.S.C. § 3204(a)(1) as the statutory authority for sole source procurement. Kato is deemed the only responsible source based on its proprietary data, unique engineering capabilities, established tooling, and requisite knowledge as the original designer, developer, and manufacturer of the EMALS ESS. NAVAIR conducted market research through a sources sought notice posted to SAM.gov on April 29, 2025, closing May 14, 2025. Three vendors responded (Kato, General Atomics, and Begini Howard Private Equity LLC), but only Kato provided requested supplemental information demonstrating capability. The Government determined that awarding to another source would result in substantial cost duplication ($117.3 million in estimated stand-up costs) and unacceptable delays of no less than nine years due to required development, facility establishment, manufacturing process development, and qualification testing. A synopsis documenting intent to award to Kato was posted to SAM.gov on June 4, 2025. The Contracting Officer has determined the anticipated cost to be fair and reasonable.

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J&A

TDP and licensing agreements, non-recurring engineering (NRE) costs for designing a new ESS and TDP, manufacturing prototypes, testing, and qualification. The NRE is required to develop an ESS that meets the current specifications in order to allow for future development/systems improvement efforts. In addition to the NRE, the new source would require government funding for tooling to stand-up a duplicate production capability. The Government would not expect to recover these costs through competition.

Pursuant to FAR 6.302-1(a)(2)(iii)(B), awarding to a new source would also result in unacceptable delays in fulfilling the agency’s EMALS ESS sustainment requirements. The rapid supportability required to support Ford-class EMALS ESS sustainment efforts is key to maintaining Ford’s availability, reliability and maintainability for mission readiness. The on-time sustainment activities of the EMALS ESS components are key to maintaining USN ship deployment critical paths. Currently, award to any source other than Kato would result in an unacceptable delay to providing critical sustainment support to ensure continuity of operations.

Using EMALS ESS and production timelines of previous CVN shipsets as the basis, specifically using Critical Design Review (that gated ESS manufacturing during SDD) and high-cycle testing dates (demarking the completion of qualification with the completion of 30,000 cycles), a new source would require at least four years to develop missing data, stand-up facilities, establish manufacturing processes, and build the system. Additionally, a minimum of two years would be required to complete the qualification process of the completed unit. With a three-year EMALS ESS production lead-time, this amount of time would present an unacceptable delay in delivering the EMALS ESS of no less than nine years.

Based on the substantial duplication of costs and unacceptable delays that would result from the possible award to another source, the Government has determined Kato is the only responsible source capable of meeting the Government's needs.

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

Market research conducted for this acquisition includes ongoing research of EMALS ESS-related technologies including reviews of electromagnetic high-power electronics, energy storage and control technology engineering trade journals. The existing EMALS ESS is not commercial in the present application as the system requires integrated, diverse technology for the unique application of launching Nose Gear Launch (NGL)-equipped aircraft onboard aircraft carriers.

Program office experts, who monitor trade studies and the technology environment, have no knowledge of any other capable sources that could support the advanced development of the systems.

In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance, and Information (PGI) § 206.302-1(d), the NAVAIR Procurement Group posted a sources sought notice to Sam.gov on 29 April 2025. Three sources, Kato, General Atomics (GA) and Begini Howard Private Equity (BHPE) LLC, responded and provided Capability Statements prior to the sources-sought notice closing on 14 May 2025 that were reviewed by the Government. After initial review, it was determined that all interested vendors’ responses were lacking enough information to demonstrate the capabilities as outlined in the sources-sought notice. NAVAIR requested additional information to support each vendors’ submission on 28 May 2025, and Kato was the only vendor to provide the information requested. Based on

J&A

NAVAIR’s requirements, it was determined that GA and BHPE LLC are incapable of meeting these requirements because they do not possess or have authorized access to the technical data necessary to complete all of the tasking described in the sources-sought notice and, further, do not have a viable plan to obtain, generate, or otherwise secure authorized access to such technical data. Determinations of capability or incapability were released to the respondents on 04 June 2025.

In accordance with FAR Subpart 5.201(b), NAVAIR posted a synopsis to SAM.gov on 04 June 2025 documenting NAVAIR’s intent to negotiate and award a sole source contract to Kato for the EMALS ESS Sustainment IDIQ requirements. This posting included a recommendation for companies interested in subcontracting opportunities to contact the Kato small business liaison.

No responses have been received to date. The Procuring Contracting Officer will review any responses prior to contract award. Additionally, the Procuring Contracting Officer will refer parties interested in subcontracting opportunities to Kato to maximize competition of subcontracted efforts.

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. Action Taken to Remove Barriers to Competition: For the reasons set forth in paragraph five, NAVAIR has no plans at this time to compete future contracts for the type of supplies/services covered by this J&A. If another potential emerges, NAVAIR will assess whether competition for future requirements is feasible.

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