Redacted JA 26-0204 PACRM MAC Ceiling Increase.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER TRAINING SYSTEMS DIVISION

12211 SCIENCE DRIVE

ORLANDO FLORIDA 32826-3224

J&A NUMBER: 26-0204

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

Naval Air Warfare Center Training Systems Division (NAWCTSD)

2. Description of Action Being Approved This Class Justification and Approval (J&A) authorizes and approves a ceiling increase for the existing Pilot and Aircrew Curriculum Revision and Maintenance Contract (PACRM) Multiple Award Contract (MAC) Indefinite Delivery/Indefinite Quantity (IDIQ) from $90M to $160M. The contract has a base ordering period of five years, 18 May 2021 through 30 April 2026, and one, two-year option ordering period, running through April of 2028.

Authority to act under this class justification expires on 30 April 2028.

3. Description of Supplies/Services To counter aggressive military modernization by near-peer adversaries seeking dominance in the global environment, a robust training capability is paramount for United States (U.S.)

deterrence and force effectiveness. Curriculum Revision and Maintenance offers an expedited and cost-effective sustainment of tactical courseware which greatly enhances Department of War (DoW) training budgets. The PACRM MAC is vital for enabling this critical training throughout all United States Navy (USN) and United States Marine Corps (USMC) Pilot and Aircrew training squadrons and weapon schools. Further, by minimizing reliance on military personnel for support roles, PACRM MAC allows the military to focus on core warfighting tasks, ultimately contributing to a more lethal and adaptable force prepared to meet future challenges.

Specifically, the PACRM MAC provides emerging and long-term curriculum revision or maintenance for Pilot and Aircrew Curriculum for the squadrons at 31 United States Navy (USN) and United States Marine Corps (USMC) sites, as well as foreign military sales customers, delivering comprehensive curriculum and training delivery services for 17 weapons platforms. The competitively awarded PACRM MAC features 100% small business set-aside, ensuring robust small business industry participation and competitive, performance-based task orders with strict availability requirements. Its efficiency and vendor expertise result in minimal performance deductions and allow for flexible responses to emerging fleet needs.

The current PACRM MAC has a $90M ceiling, which was based on a January 2020 Independent Government Cost Estimate that utilized 5% escalation and 5% growth factor.

The requested $70M ceiling increase is driven by strategic USN and USMC decisions that have increased reliance on this vehicle for training system support. The primary growth drivers are:

Increased demand on PACRM MAC due to major updates to Naval Air Training and Operating Procedures Standardization (NATOPS) resulting in an additional 78% Fleet requirement in curriculum updates.

Increased demand on PACRM MAC for cybersecurity, a uniquely skilled technical field.

Increased demand on PACRM MAC due technical refreshes required to maintain cybersecurity certifications across all platforms.

Increased Service Contract Act labor and classroom material costs resulting from market forces independent of the PACRM MAC.

This ceiling increase will ensure the PACRM MAC can continue delivering mission-critical training for all requirements identified in the approved PACRM acquisition strategy.

Without it, the training curriculum will rapidly fall out of sync with real-world fleet operations. Aircrew would be evaluated and certified based on outdated tactics, techniques, and procedures (TTPs) and superseded aircraft configurations, rendering them tactically deficient upon reaching the fleet. Furthermore, operating without the most current procedural guidelines degrades the foundational safety of the training environment, posing an unacceptable risk of catastrophic mishaps and loss of life.

Estimated Dollar Value

FY26 – FY32

O&MN $70M

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 3204(a)(1), The supplies or services needed by the agency are available only from a limited number of responsible sources and no other type of supplies or services will satisfy the needs of the agency.

5. Rationale Justifying Use of Cited Statutory Authority

Increasing the ceiling of the PACRM MAC is necessary and appropriate to continue performance by the contractors who have PACRM MAC contracts, to complete the approved PACRM acquisition strategy. Doing so also avoids unacceptable schedule delays in fulfilling training requirements and duplication of costs associated with establishing new acquisition strategies for the remaining two, yet to be awarded, task order requirements.

After nearly five years of task order performance and the associated growth drivers discussed above, without a ceiling increase, NAWCTSD can no longer award new task orders, and existing task orders risk incompletion, forcing premature recompetes. Market research confirms that there are no commercially available services that can meet the unique needs of this U.S. Navy and Marine Corps training. Continuing to award to the responsible

PACRM MAC sources under 10 U.S.C. § 3204(a)(1) ensures continued, high-quality training while avoiding unacceptable delays, cost duplication, and readiness risks.

Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable The PACRM MAC was awarded under FAR part 15 procedures in May 2021. PACRM Task Order opportunities are presented annually at the Interservice/Industry Training, Simulation and Education Conference (I/ITSEC) and Training and Simulation Industry Symposium (TSIS). NAWCTSD also briefs all PACRM opportunities at NAWCTSD Procurement Acquisition Lead Time (PALT) meeting and published on the NAWCTSD website. The PACRM ceiling increase was briefed at TSIS in June and PALT in 2026.

In accordance with PGI 206.302-1, a Special Notice regarding the ceiling increase was published on 22 April 2026, closing on 07 May 2026. No sources objected to the ceiling increase. In accordance with FAR 5.101, a Synopsis was posted on 07 May 2026 with a closing date of 22 May 2026; no responses were received. Market research confirmed that all eligible PACRM MAC awardees remain interested in pursuing future PACRM Task Orders, maintaining a capable and competitive industrial base. All remaining task orders issued under the increased ceiling will be completed among the eligible PACRM MAC holders, providing a fair opportunity to be considered in accordance with FAR 16.5 procedures.

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.

Actions to Remove Barriers to Future Competition There are no known barriers to competition. This contract action only increases the PACRM MAC ceiling to accommodate the full breadth of requirements included in the PACRM acquisition strategy and provides fair opportunity to the awardees from the PACRM MAC competitive award – it does not modify the PACRM MAC scope, nor does it extend the PACRM MAC ordering period. The government is in the process of competitively awarding the follow-on MAC, PACRM II. Under the acquisition strategy for the PACRM II MAC, all eligible contractors will have an opportunity to propose, and award will be made to all qualifying offerors.