NGDS Corp BOA CJA 20_0455 FINAL 1_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 20-0455

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 Northrop Grumman Defense Systems, Inc. (NGDS) under Corporate Basic Ordering Agreement (BOA) N00019-20-G-0005 and any subsequent Agreement. The BOA delivery orders are for supplies and services associated with the Advanced Anti-Radiation Guided Missile (AARGM) and AARGM- Extended Range (AARGM-ER) programs. Authority to act under this CJ&A expires on November 23, 2025.

3. Description of Supplies/Services.

Performance under the associated BOA will start in Fiscal Year (FY) 2021 and covers a five (5) year ordering period. Delivery orders placed under the associated BOA will be for supplies and services to support the United States Navy (USN), United States Marine Corps (USMC), Italian Air Force (ItAF) and Foreign Military Sales (FMS) requirements. Requirements include: test assets, engineering investigations; in-service sustaining, recurring and non-recurring engineering services; data analysis; Engineering Change Proposals; engineering and feasibility studies; hardware and software development and modifications; logistics support requirements for evaluation;

modification and repair of related peculiar support equipment; special tooling and test equipment support; supportability analysis; reliability and depot support; Original Equipment Manufacturer inspection and repair services; capability upgrades; training;

design and integration support; obsolescence; operational and performance analysis;

and programmatic support. In addition, supplies and services are expected to be procured to evaluate, maintain, test, calibrate, modify, repair and/or certify missiles, missile sections, assemblies, subassemblies, and related avionics systems.

The total estimated value of the orders is as set forth in the table below.

CJ&A 20-0455

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

10 U.S.C. 2304(c)(1), One source or limited sources.

5. Rationale Justifying Use of Cited Statutory Authority.

On February 10, 2015, ATK, Inc. merged with Orbital Sciences creating Orbital ATK, Inc. (Orbital ATK). Orbital ATK Defense Electronics System is the original designer, developer, and manufacturer of AARGM and AARGM-ER. The designs utilized by this requirement include components and formulations proprietary to Orbital ATK Defense Electronics Systems, and are unattainable through another source without substantial duplication of costs.

Further, the Government has determined that using any front-end components other than those developed by Orbital ATK Defense Electronics System would result in substantial duplication of cost to the Government not likely to be recovered through competition. Orbital ATK Defense Electronics System developed the front-end components used in the AARGM and AARGM-ER missiles, which were developed under Small Business Innovation Research (SBIR) contracts. The AARGM Phase I and Phase II SBIR contracts were awarded on a competitive basis starting in FY90.

To date, the Government has invested over in their development and over in their production. Specifically, in response to the evolving threat, from 2003 to 2012, the Government invested to adapt ATK Defense Electronics System dual mode seeker technology to, and enable its integration with, existing High Speed anti-Radiation Missile (HARM) components. In addition, the Government has invested over for integration into the AARGM-ER missile. Based on the historical costs of the AARGM and AARGM-ER development, the Government estimates that at least of duplicated costs would be incurred and not expected to be recovered through competition.

Orbital ATK Defense Electronics Systems is not willing to sell their dual mode seeker data rights, or a competitive data package, to the Government. For these reasons, the Government does not possess the necessary technical data to competitively award the requirements under this agreement.

Orbital ATK Defense Electronics Systems has been the only qualified source that has maintained and provided system sustainment and support for the AGM-88E AARGM missile since the inception of the program. On June 6, 2018, Northrop Grumman Corporation acquired as a wholly owned subsidiary Orbital ATK, Inc., which has now

CJ&A 20-0455

been renamed Northrop Grumman Defense Systems, Inc. (NGDS). NGDS currently owns the intellectual property in the AARGM technology.

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

The Program Executive Office for Unmanned Aviation and Strike Weapons (PEO(U&W)) maintains a constant survey of the missile industry, which includes Industry days. A Sources Sought notification for the Northrop Grumman Services Corporate BOA was posted on Beta.SAM.gov website on July 3, 2019 in accordance with DFARS 206.302-1(d). No responses or inquiries were received. As required by FAR 5.201, each delivery order will be synopsized on Beta.SAM.gov website. The Contracting Officer will evaluate all responses received prior to the award of each order.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402, the Contracting Officer shall ensure the anticipated cost to the Government of the supplies/services covered by this CJ&A will be fair and reasonable. The Contractor will submit cost or pricing data in accordance with FAR

15.403.4. Analysis of the proposals will be performed by a multi-discipline team including subject matter experts (SMEs) and technical analysts supporting the program office, NAVAIR cost department and contract specialists with the aid of necessary field pricing support from Defense Contract Management Agency (DCMA), and Defense Audit Agency (DCAA). The Contracting Officer will analyze and perform a detailed cost and price analysis for each element proposed, as the basis for negotiating a fair and reasonable price.

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 types and supplies and services covered by this document. If another potential source emerges, NAVAIR will assess whether competition for future requirements is feasible.

Because this effort is a follow-on for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(i), the prior CJ&A was provided to the approval authority to review. Approval of this CJ&A signifies the approval authority made the determination required by DFARS PGI 206.301(a)(ii).