DBR_BOA_JA_FBO_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC HULL AVE, SE

WASHINGTON NAVY YARD, DC 20376-0001 IN REPLY TO

CJ&A Number: 53,211 Code: SEA 02532

PR: N0002413NR42048

CLASS JUSTIFICATION AND APPROVAL (CJ&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Surface Systems Contracts Division, SEA 025.

2. Description of the Action Being Approved

This Class Justification and Approval (CJ&A) will include award of a Basic Ordering Agreement (BOA) for the Dual Band Radar (DBR) system as well as separate and defined delivery orders placed under the BOA to Raytheon Company, Integrated Defense Systems (Raytheon IDS), without providing for full and open competition. This BOA will allow for the placement of orders for supplies and services in support of integrating and installing the DBR and Multi-Function Radar (MFR) with volume search capability. The authority to act under this CJ&A expires 30 September 2017.

3. Description of Supplies/Services

The DBR was originally designed as a part of the mission systems equipment (MSE) for DDG 1000 class ships. This radar suite is a single, integrated radar system combining the AN/SPY-3 MFR at X-Band and AN/SPY-4 Volume Search Radar (VSR) at S-Band. This radar suite is a state of the art, high performance radar system with a self-defense Anti- Aircraft Warfare (AAW) mission. It replaces several legacy rotating radars and is the future radar suite for performing Air Traffic Control (ATC) operations on platforms including the CVN 78 class. Now in the production life-cycle-phase, multiple services and supplies are required to complete the integration and interface requirements for ship installation.

The BOA is planned to be awarded in 4th Quarter FY2014 on a sole-source basis, with a period of performance of four (4) years. In this agreement supplies and services will be

CJ&A Number: 53,211 acquired for material and in-service engineering activities as needed to support U.S. Navy requirements for the engineering changes, production and life cycle engineering, and support of the DBR system. Specific items to be procured include: DBR engineering changes; diminishing manufacturing sources and material shortages life-time buys;

logistics support; obsolescence mitigation; system repair and maintenance; spare and repair parts; components;

refurbishment and overhaul; accessories; documentation;

packing, packaging, marking, storage, inventory functions, shipping and handling; and training.

The estimated BOA value is $40,900,000. The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

Total Estimated Dollar Value of this Acquisition Covered by this CJ&A is summarized as follows (in millions):

Appropriation

FY14

FY15

FY16

FY17

TOTAL

O&MN and OPN $7.3 $7.4 $11.0 $15.2 $40.9

It should be noted that this CJ&A is in accordance with DBR Acquisition Plan (AP) number 2013-DBR-1 Rev:0 dated 06 JUN 2013 with the exception of the fiscal years of the ordering period of performance. The AP articulates a FY13-FY17 period of performance but the procurement will be FY14-FY17.

Requisite estimated costs from FY13 have been redistributed to FY14.

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

In accordance with FAR 6.302-1(a)(2)(ii)(B) and (iii)(B), use of statutory authority 10 U.S.C. 2304(c)(1) is justified for the continued production of highly specialized equipment and provision of highly specialized services from the original source in the case of follow-on contracts when it is likely that award to any other source would result in an unacceptable delay in fulfilling the Navy’s requirements.

The original production contract, N00024-05-C-5346 for which this BOA supports, was not competed.

Raytheon IDS is the Original Equipment Manufacturer (OEM) for the DBR and has developed specialized capabilities associated with software and systems engineering of the DBR.

In developing and designing the DBR and MFR systems and integrating them with the CVN 78 and the DDG 1000 classes, respectively, Raytheon IDS has established a unique and interdependent mixture of work agreements with subcontractors, work scope definitions, products and service expected outcomes, intellectual property agreements, technical and programmatic communication processes, configuration management and control processes and subcontract management structures that are defined, maintained and managed by Raytheon IDS. They also provide installation material, ancillary equipment, provisioning items, administrative data, technical data and provisioning technical data. As such, Raytheon IDS understands the system functionality and life-cycle requirements in order to maintain and update the DBR system in a manner that satisfies the specifications and fits within the existing logistical footprint. Therefore, Raytheon IDS is currently the only source with the requisite knowledge and expertise with the DBR (and MFR) system capable of fulfilling the Navy’s requirements.

Award of the DBR BOA to any company other than Raytheon IDS would result in significant schedule delay due to limited data rights. As of result of budgetary restrictions, the Navy does not own Government Purpose Rights (GPR) or Level-3 Technical Data Package (TDP) drawings for all of the DBR data. During early development of the DBR, several critical components which make up the DBR system were developed exclusively at private expense including the MFR (X-band) and VSR (S-band) radar arrays and associated subcomponents.

With no GPR for the proprietary DBR data, it would not be feasible for an alternate source to provide the required life-cycle support services (including engineering software upgrades or radar system repairs) for the current DBR system. The lack of GPR for the DBR would prevent a new contractor from providing technical services, repairs, spares, or obsolescence support for the parts for which the Government does not have GPR. This situation would in essence, require an alternate source to design and develop a completely original radar system. The estimated time to develop, procure and deliver a new radar system with DBR-equivalent capabilities based on the Navy’s previous experience with the DBR development. This estimate includes for competitive requirements definition, for source-selection and for the first full-rate production unit and is inclusive of first article testing on a single array face of that unit. In addition, also includes approval and certification of the radar system’s performance parameters and specifications. Moreover, such a plan would be impractical given an .

The potential benefits to be derived from competition are outweighed by the anticipated drawbacks from substantial schedule delay. First, the estimated delay in acquiring DBR (or similar system) life-cycle support would put the Navy’s ship availability and deployment schedules at risk of significant slippage, which is unacceptable to the Navy.

Alternatively, if ships deployed without the DBR (or similar radar) capabilities in lieu of being delayed, this would put the Navy’s mission readiness in jeopardy, which is also unacceptable to the Navy. For these reasons, Raytheon IDS is the only source with the technical expertise and experience capable of effectively providing the requisite life-cycle engineering support services and supplies for the DBR without substantial and unacceptable delay.

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

NAVSEA Program Executive Office Integrated Warfare Systems Above Water Sensors technical, logistics, and contracting personnel engage in market research on a continual basis, maintaining in-depth knowledge of the DBR system. It will continue to be a priority for NAVSEA personnel to stay up-to-date on industry technical, production, and IR&D efforts.

In accordance with FAR 5.204, NAVSEA synopsized the requirements via Federal Business Opportunities (FedBizOpps) for the DBR BOA on 15 January 2014. No responses have been received as of 09 April 2014.

For the reasons discussed above, it is not practicable for any company other than Raytheon IDS to provide the required supplies and services.

However, individual or classes of orders to be issued under this BOA will be published to the FedBizOpps website. Any responses received will be considered.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies/services covered by the CJ&A will be fair and reasonable. Further, DCMA pricing assistance and/or DCAA audit of contractor’s proposal will be requested along with offeror’s certificate of current cost and pricing to support the fair and reasonable cost determination for each order.

8. Actions to Remove Barriers to Competition

The circumstances surrounding the need to obtain the required supplies/services without providing full and open competition will be reviewed annually by the Procuring Contracting Officer (PCO). The Government will continue to do market research of commercial off the shelf (COTS) components and non-developmental items to determine if there are any opportunities to increase competition.

eliott.lee Typewritten Text eliott.lee Typewritten Text eliott.lee Typewritten Text James G. Lofgren 28 May 2014 eliott.lee Typewritten Text eliott.lee Typewritten Text eliott.lee Typewritten Text eliott.lee Typewritten Text Director, Surface Systems Contracts Division eliott.lee Typewritten Text eliott.lee Typewritten Text