JPALS_Class_J&A_Redacted.DOCX

IN REPLY REFER TO:

DEPARTMENT OF THE NAVY

PROGRAM EXECUTIVE OFFICER

TACTICAL AIRCRAFT PROGRAMS

47123 BUSE ROAD, BLDG 2272

PATUXENT RIVER, MARYLAND 20670-1547

CJ&A_18_0173

Ser: AIR-2.2.4.3

CJ&A_18_0173

CLASS JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Systems Command Headquarters (NAVAIR)

2. Description of the Action Being Approved.

This Class Justification and Approval (CJ&A) authorizes and approves the sole source award of a Low Rate Initial Production (LRIP) contract to Raytheon Company (hereinafter referred to as “Raytheon”), Fullerton, California. The recurring efforts associated with the incorporation of Engineering Change Proposals (ECPs) into production hardware will be covered under this contract by modifications to resolve obsolescence issues, provide new technology insertions or implement safety improvements.These contract actions will procure Fiscal Years (FY) 2019 through 2023 Sea-Based Joint Precision Approach and Landing System (JPALS) units, production and installation of Engineering Development Model (EDM) unit upgrade kits, interim sustainment, ECPs, and associated data. Future modifications may be negotiated to incorporate interim sustainment efforts, as well as integrating engineering changes into the production units before the units are delivered to the Government. Authority to act under this CJ&A expires on 30 September 2025.

3. Description of Supplies/Services.

JPALS is the primary precision landing system for F-35B/C, MQ-25, and future platforms aboard CVN and LHA/D-type ships. JPALS is required on all CVN and LHA/D-type ships to provide precision navigation, coupled approach and landing, and over the air inertial alignment capability for F-35B/C, MQ-25, and future air platforms.

This procurement includes supplies and services required for the following: (1) production and delivery of JPALS units to support warfighter needs; (2) upgrade of three EDM units to the LRIP configuration; and (3) interim sustainment from delivery of first LRIP unit to MSD planned in FY22, to include: a) Contract Engineering Technical Services Representatives, b) interim Repair-of-Repairables, c) spares and d) support equipment; and (4) new requirements within the scope of the contract, except as identified below, will be negotiated and the contract will be modified to integrate engineering changes into the production hardware before delivery to the Government. The total estimated quantity of JPALS units being procured is 23. It is anticipated that the interim sustainment requirements will be negotiated and incorporated into the production contract as a modification.

The non-recurring to upgrade the ARC-210 Gen 5 radio to the ARC-210 Gen 6 is currently being conducted under another contract. The recurring effort will be incorporated into the production contract via a modification in the FY20-FY22 timeframe. The recurring M-Code capability engineering change is expected to be incorporated into the LRIP production hardware/software and is anticipated to be incorporated in FY22. F-35B/C and MQ-25 testing and operations may result in engineering changes which will be integrated into production hardware. The F-35B/C and MQ-25 production cut-in period is anticipated to be between FY21 and FY23.

The expected total estimated value of these requirements is $_______ and is expected to be funded with multiple types of funds, as follows:

Estimated Dollar Value in Thousands

The dollars associated with the anticipated engineering changes are included in this CJ&A and were estimated by AIR-4.2 based on history.

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

The statutory authority permitting other than full and open competition is Title 10 of the United States Code, Section 2304 (c)(1) as implemented by 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.

Raytheon is the original designer, developer, and manufacturer of the JPALS. Raytheon has the unique knowledge, experience, special skills, facilities and manufacturing techniques required to produce or modify the JPALS.

Full and open competition for the JPALS requirements addressed in this CJ&A would result in an unacceptable delay in fulfilling the agency’s requirement to meet ship install periods needed to support operational deployments of F-35B/C. The Navy must begin receiving the first LRIP units by May 2020 in order to complete the workup required to support the deployment dates of CVN-72, CVN-73, LHA-6, and LHA-7. The initial JPALS Technical Data Package (TDP) will not be delivered to the Government until September 2018 at the earliest and the final TDP is not anticipated until April 2019 after the Production Readiness Review. Also, it would not be possible for another source to execute the anticipated ECPs without the TDP. It would take approximately 15 months to conduct a source selection for JPALS production units and award a contract. The production lead-time is 12 months. A contractor other than Raytheon would require a minimum of an additional six months to deliver a first article due to the time necessary to standup a production line, establish a subcontractor base, build up personnel expertise, and incorporate changes discovered throughout ongoing testing concurrent with the contract competition. Finally, completion of the First Article Test (FAT) is estimated to take an additional three months for a new contractor. The 36 months required for a new contractor through FAT would result in a delayed delivery to the Fleet of the JPALS units until April 2022, which is 23 months later than required, and would result in a minimum of 12 CVN and LHA/D-type ships deploying without JPALS. Accordingly JPALS, the primary precision approach and landing system for F-35B/C, would not be available for multiple deployments. Without the JPALS capability, F-35B/C would need an alternate landing system which is not currently in development.

As stated above, an alternate source would not be able to deliver a production unit until April 2022 at the earliest, missing a minimum of 12 CVN and LHA/D-type ships of the total 23 required deliveries. Also, award to a source other than Raytheon for the remaining JPALS quantity would result in substantial duplication of costs not expected to be recovered through competition. AIR-4.2 estimates that an award to a source other than Raytheon would result in approximately $_____ of duplicative costs to include the standup of a Contractor System Integration Laboratory, modifying the Government lab to add the new configuration, FAT, Functional Configuration Audit, Physical Configuration Audit, and the update of all associated logistics documentation. Also included in the duplicative costs are additional Government costs associated with these efforts for logistics costs associated with maintaining multiple configurations throughout the Fleet. There are no planned JPALS procurements beyond the 23 units. The Government does not anticipate it would be able to recoup the duplicative costs detailed above based on the limited number of total JPALS units being procured over this short period of time. As a result, Raytheon is the only responsible source capable of providing supplies and/or services to satisfy Navy requirements.

The Navy must begin receiving the LRIP units by May 2020. The interim sustainment requirements will be negotiated and incorporated into the production contract via a modification in time to support the fielded units. The initial JPALS TDP will not be delivered to the Government until September 2018 at the earliest and the final TDP is not anticipated until April 2019 after the Production Readiness Review. A competition for interim sustaiment requirements could not begin until the TDP is available. It would take approximately 15 months to conduct a source selection for the JPALS interim sustainment requirements for Engineering Technical Services Representatives, interim Repair-of-Repairables, spares and support equipment and award a contract. The lead-time for a new source to be able to perform the interim sustainment requirements is approximately 12 months. A contractor other than Raytheon would require a minimum of 12 months to become a qualified repair source and establish a repair facility, establish a subcontractor base, and build up personnel expertise. The 27 months required for a new contractor to be ready to provide interim support would result in a delayed delivery of support to the Fleet. The new contractor would not be available for support until July 2021 and units will start delivering to the Fleet in May 2020.

Engineering changes must be integrated into the Raytheon production line at the time when hardware is being produced. It would be inefficient to accept production hardware from Raytheon, provide the hardware to another contractor, have the new contractor incorporate the modification, and then accept the hardware again. Waiting until a production unit is delivered from the Prime for an engineering change to be incorporated via a new contractor would delay delivery of the production units to the Navy and result in duplication of cost. Competing the engineering changes would cause unacceptable delays in fulfilling the agency’s requirement to meet the ship install periods.

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

A waiver of DFARS PGI 206.302-1, Request for Information/Sources Sought Requirement, was approved. In accordance with FAR 5.201(b), the requirements for these efforts were synopsized in Federal Business Opportunities on 13 December 2017. One response was received from Engility Corporation. It was determined that this company would not be able to meet the Government’s requirements as described in paragraph five above and the Government has addressed Engility’s concerns. No other responses have been received. Any responses received prior to contract award will be evaluated by the contracting officer.

7. Determination of Fair and Reasonable Cost.

The contracting officer has determined the anticipated costs to the Government associated with the supplies and services covered by this CJ&A are fair and reasonable. In accordance with FAR 15.402(a), the Contracting Officer shall ensure that all supplies and services authorized under this CJ&A are procured at a fair and reasonable price. Adequate information exists to determine fair and reasonable prices in accordance with FAR 15.402(a). The contractor will submit cost or pricing data in accordance with FAR 15.403-4. Analysis of the proposals will be performed by engineers supporting the Program Office and contract specialists, with the assistance of the Defense Contract Management Agency, and the Defense Contract Audit Agency, as necessary. The contracting officer will analyze various cost elements that are presented in the proposals and requests for information, and use data from previous contracts and other programs for comparison. The contracting officer will utilize cost and price analysis findings as the basis for negotiating fair and reasonable prices.

8. Actions to Remove Barriers to Future Competition.

There are no planned future Navy JPALS production procurements at this time. NAVAIR will examine future sustainment procurements to identify potential subsets of the overall effort which could be feasibly broken out to other contractors. Because this is a follow-on effort for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(i), the prior J&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)(ii).

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