Raytheon BOA CJA (ASN)_final Redacted.pdf

THE ASSISTANT SECRETARY OF THE NAVY

(RESEARCH, DEVELOPMENT AND ACQUISITION)

1000 NAVY PENTAGON

WASHINGTON DC 20350-1000

CJ&A 19-0418

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 Raytheon Technologies and its subsidiaries (Raytheon) under the establishment of a basic ordering agreement (BOA). The BOA orders will be for supplies and services required to support U.S. Navy (USN) and foreign military sales (FMS) aircraft weapons systems. The authority to act under this CJ&A expires on August 31, 2025.

3. Description of Supplies/Services.

Orders placed under the BOA will support the development, production, reliability, sustainment, and disposal of avionics, targeting, and sensor systems, including but not limited to the following systems: Advanced Targeting Forward Looking Infrared (ATFLIR), SHAred Reconnaissance

Pod (SHARP) and SHARP Tactical Cueing System, AN/APG-65 and AN/APG-73 radars, AN/APG-79 Active Electronically Scanned Array (AESA) radars, suspension underwing units

(SUU) SUU-62/SUU-63/SUU-78/SUU-79/SUU-80 pylons, and launch adapter unit (LAU) -

115/LAU-116 guided missile launchers.

NAVAIR anticipates acquiring the following supplies and services to support the USN and FMS requirements:

a) Design, development, manufacture, assembly, testing, prototyping, calibration, production and installation efforts associated with engineering change proposals

(ECPs) for configuration changes, forward-fit upgrades and/or retrofit kits, sensors, and breadboards, including but not limited to program management, operations security and cybersecurity compliance, non-recurring engineering, systems engineering, integrated logistics and production support, training, logistics forecasting, life-cycle support, shutdown, and demilitarization efforts; development, validation, verification, and/or revision of technical publications/manuals/engineering drawings/technical directives, and associated logistics impacts; production, modification, calibration, and depot-level repair of retrofit safety and test (ancillary, government-furnished, ground support, support) equipment, life-of-type/spare/repair parts for aircraft, special tooling, subsystems, training devices and support equipment;

training services, repair and modifications of government-furnished property, and related software efforts.

b) Trade studies such as system-level performance analysis, integration/ interchangeability studies, joint strategic planning/roadmap development, cost reduction studies and logistics support/sustainment planning.

c) Software development/infrastructure support related to systems and subsystems including avionics upgrades, training device upgrades, support and any hardware upgrades required to implement software updates.

d) Testing and experimentation and test and evaluation support including but not limited to antenna, computer software, fatigue and ground testing (and associated test plans), avionics system, qualification, characterization, airworthiness, ground and fatigue engineering, modeling and simulation, wind tunnel testing, ground and flight testing, and data reduction/analysis/collection of flight test data, technical publication source data, flight clearance recommendation and tactics development.

e) Engineering sustainment, maintenance, and technical support including but not limited to avionics systems, mission systems, detection systems, air vehicle and weapon test.

f) Worldwide fleet engineering/ancillary/technical support such as engineering investigations, fatigue analysis, and feasibility and integration studies/efforts; service-life assessments/extension support and materials incidental to engineering investigations, inspection, test, and/or repair, modification and restoration/return to ready-for-issue condition.

g) Over and Above efforts.

h) Obsolescence mitigation and management requirements.

i) Delivery of technical, financial, and administrative data associated with the above efforts.

The estimated ceiling value for the five-year BOA is approximately $886.0 million. The contracting officer will define the associated quantities, periods of performance, and delivery requirements for each order. NAVAIR will use fiscal year (FY) 2020 – FY 2025 Research, Development, Test and Evaluation (RDT&E); Aircraft Procurement, Navy (APN-1, APN-5, or

APN-6); and Operations and Maintenance, Navy (O&M,N) appropriations as well as FMS funds as delineated in the table below.

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 Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(ii)(A), NAVAIR has determined any requirements being executed via BOA orders are only available through

Raytheon Technologies in order to facilitate continued development, production, and sustainment of the USN and FMS aircraft weapon system requirements for the AN/APG-65 and

AN/APG-73 radars, ATFLIR, SHARP, AN/APG-79 Advanced Electronically Scanned Array

(AESA) radars, and the SUU pylons. The acquisition of sufficient data to support competitive contract actions would result in substantial duplication of cost to the Government that would not be recovered through competition. Raytheon Technologies is the sole designer, developer, and manufacturer, with the intricate knowledge of various avionics, targeting, and sensor systems installed aboard the USN and FMS aircraft weapon systems. As such, Raytheon Technologies is the only known firm that possesses the requisite knowledge, experience, skills, resources, and data to accomplish the requirements described in section 3.

The Government does not possess the AN/APG-65 and AN/APG-73 radar production-level

TDPs that would be required to support competitive efforts. NAVAIR estimates the cost to qualify and manufacture the AN/APG-65 and AN/APG-73 radars is approximately $823.5 million based on original development cost. NAVAIR does not plan to procure TDPs for

AN/APG-65 and AN/APG-73 radars because these systems are out of production.

The Government has limited technical data rights to the ATFLIR, SHARP, and the AN/APG-79

AESA radar systems; however, these rights are not sufficient to support competitive efforts for these systems. The NAVAIR analyst estimates the cost to qualify and manufacture the ATFLIR system using another source is approximately $294 million based on the original development cost. NAVAIR estimates the cost to design, test, qualify and manufacture the AESA Radar using another source is $792 million based on the original development cost. NAVAIR estimates the cost to qualify and manufacture the SHARP system using another source is approximately $175 million based on the original development cost.

Raytheon is the only commercial repair facility with the expertise, facilities, and test equipment necessary to repair the SUU family of pylons. The pylons require engineering source approval by the design control activity in order to maintain the necessary level of quality. All alternate sources for the items must be qualified in accordance with the design control activity’s procedures, as approved by NAVAIR prior to contract award. The Government has determined the available data (including but not limited to repair publications, associated drawings, and specifications required to accomplish the repair in addition to supporting test equipment availability) for the pylons is not adequate to support full and open competition. Furthermore, the

Government knows of no additional commercial repair facilities other than Raytheon that have the expertise, facilities, or the test equipment necessary to repair the pylons. No other sources have expressed an interest in becoming an approved repair source. NAVAIR estimates the cost to stand-up an alternate repair source is $42.3 million, a cost that would not be recovered through competition.

In accordance with FAR 6.302-1(a)(2)(ii)(B), NAVAIR determined the LAU-115 and LAU-116 requirements being procured under the BOA are available only from the original source in the case of a follow-on contract for the continued production of guided missile launchers because award to another source would result in unacceptable delays in fulfilling the agency’s requirements. Raytheon is currently the only vendor with the requisite technical data, expertise, tooling, and existing production line to manufacture the LAU-115 and LAU-116 guided missile launchers necessary to meet the USN operational and aircraft production requirements. The estimated time to conduct a competition is 12 months. An alternate source would require an estimated 38 months to procure the necessary tooling and prepare for production (3 months), build prototype units (14 months), complete the first article testing (7 months) and check flights

(2 months), and begin initial production of fleet units for delivery (12 months). This timeline is based on the Advanced Anti-radiation Guided Missile (AARGM) production as an analogous process and subject matter expertise analysis of historical data related to recent production lot testing, vendor qualification of AARGM cables, prototype production schedules from similar efforts, and market research including vendor quotes of actual production timelines. The F/A-

18E/F program of record procurement profile ends in FY 2021. The estimated 50-month delay would prevent the USN from delivering guided missile launchers to the fleet to align with the

F/A-18E/F aircraft deliveries.

For these reasons, NAVAIR has determined Raytheon is the only responsible source capable of meeting the Government’s minimum needs.

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

In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance, and Information (PGI) 206.302-1(d), NAVAIR posted a source-sought notice/request for information on beta.SAM.gov for the Raytheon Technologies BOA on January 29, 2020, and has not received any responses. In accordance with FAR 5.201 and 16.703(d)(2)(iv), the contracting officer posted a synopsis on June 22, 2020 on www.fbo.gov and no responses were received. The contracting officer will evaluate any offers received prior to contract award and will refer any interested parties to Raytheon Technologies subcontracting managers for possible subcontracting opportunities.

In addition, the integrated product teams will conduct market research for each anticipated order to determine if alternate sources exist to satisfy the requirements. The market research process involves posting sources sought announcements on beta.SAM.gov for each order in accordance with FAR 16.703(d)(2)(iv), conducting internet searches using common search engines and government sources, and contacting government and industry sources for information related to the proposed requirement. The extent and results will vary for each BOA order. However, NAVAIR will only execute orders on the BOA after determining Raytheon Technologies is the only responsible source for satisfying the requirements.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402, the contracting officer shall ensure that all supplies and services acquired using this BOA are procured at a fair and reasonable price. In accordance with FAR

15.4, the contracting officer will establish fair and reasonable prices based on historical contract cost and pricing information. The contractor will submit cost and pricing data for each order in accordance with FAR 15.403-4. Engineers supporting the program office, NAVAIR analysts, and contract specialists, with the assistance of Defense Contract Management Agency and

Defense Contract Audit Agency auditors as required, will assist with the proposal analyses. 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 use cost and price analysis as the basis for negotiating a fair and reasonable price.

8. Actions Taken to Remove Barriers to Competition.

http://www.fbo.gov/ http://www.fbo.gov/

For the reasons set forth in section five, NAVAIR has no plans at this time to compete future contracts for the types of supplies/services covered by this document. NAVAIR will continue to assess the market and determine if competitive acquisitions for these requirements are feasible.

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 CJ&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).