Redacted CJA.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_21-0191

Amendment (1)

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

(Amendment (1))

The purpose of this Amendment is to change Justification and Approval (J&A) 21-0191 from a J&A to a Class J&A (CJ&A). This J&A, 21-0191, approved on 16 November 2021 by the Principal Civilian Deputy Assistant Secretary of the Navy (Research, Development and Acquisition), authorized orders on a sole source basis under an Indefinite Delivery/Indefinite Quantity (ID/IQ) contract with Insitu, Inc. for RQ-21A Blackjack Unmanned Aircraft Systems (UASs) and ScanEagle UASs, hardware and services in support of the United States Marine Corps (USMC), Naval Special Warfare (NSW) and Foreign Military Sales (FMS) customers including Building Partner Capacity (BPC). This Amendment changes the J&A number to CJ&A_21-0191 with an expiration date of June 30th, 2026 and authorizes the issuance of sole source contract actions with Insitu, Inc. The description of supplies/services and rationale for other than full and open competition remains unchanged.

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:

J&A_21-0191

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 Justification and Approval (J&A) authorizes and approves the issuance of orders on a sole source basis under a Firm Fixed Price (FFP) Indefinite Delivery Indefinite Quantity (IDIQ) contract to Insitu, Inc. (Insitu) of Bingen, WA, for RQ-21A Blackjack Unmanned Aircraft Systems (UASs) and ScanEagle UASs, hardware and services in support of the United States Marine Corps (USMC), Naval Special Warfare (NSW) and Foreign Military Sales (FMS) customers including Building Partner Capacity (BPC).

3. Description of Supplies/Services

The Navy and Marine Corps Small Tactical UAS Program Office (PMA-263) has a requirement for two (2) FMS RQ-21A Blackjack UASs during the fourth quarter of Fiscal Year (FY22). The out year requirements under this J&A for FY23 through FY26 include spare and sustainment air vehicles, payloads, turrets, support equipment, launchers, ground control stations, and recovery systems. Related service requirements to be procured consist of training, test and engineering, sustainment support, integration of change requests and associated engineering change proposals, development of noncommercial technical data and software, operations support, field service representative services, land and ship site surveys, site installation and activation, hardware and repairs. The Period of Performance (POP) for this IDIQ is 01 July 2022 through 30 June 2026.

All orders will be performed in accordance with FAR 52.216-22 Indefinite Quantity clause and all services and deliveries will be completed by 31 July 2027.

The estimated value under the authority of this J&A is $538,840K, which is based on domestic budgets, FMS letters of offer and acceptance and historical data. These actions are anticipated to be funded with Aircraft Procurement Navy (APN), Research, Development, Test and Evaluation, Navy (RDT&E, N), Operation & Maintenance Navy (O&M, N) and FMS/BPC through FY26.

Estimated Dollar Value in Thousands

Q4FY22 FY23 FY24 FY25 FY26 Total

APN 6,000 0 0 6,394 6,520 18,914

RDT&E,N 0 3,696 6,768 5,921 6,019 22,404

O&M,N 8,500 26,652 27,535 28,003 28,492 119,182

FMS/BPC 102,708 67,940 69,554 70,164 67,974 378,340

Total 117,208 98,288 103,857 110,482 109,005 538,840

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)(A), NAVAIR has determined that procurement of these follow-on IDIQ requirements from a source other than Insitu, the Original Engineering Manufacturer (OEM), would result in substantial duplication of cost to the Government that is not expected to be recovered through competition.

Insitu is the sole designer, developer, and manufacturer of the RQ-21A UAS, as well as the sole integrator of the avionics systems. In 2010, under full and open competition for a Non- Developmental Item (NDI), the Small Tactical UAS Engineering and Manufacturing Development (EMD) contract was awarded to Insitu. As an NDI, the Government primarily obtained special license and limited/restricted data rights for the RQ-21A UAS. However, Insitu retains the data rights on many critical system components. As such, the Government would not be able to use the technical data to compete the RQ-21A UAS with a second source. The NAVAIR Cost Department conducted a life cycle cost analysis of the RQ-21A UAS and concluded the cost to develop a new source, based on the RQ-21A UAS EMD costs escalated to FY22 dollars, would be $76.14 million (RDT&E contractor cost only). The substantial duplication of cost to the Government is not expected to be recovered through competition.

Insitu is the OEM for the ScanEagle UAS, which was initially procured as a commercial-off-the-shelf system. As the sole designer, developer and manufacturer, Insitu developed the system exclusively at private expense and the Government retains only Limited or Restricted data rights.

The Government has not obtained the data rights required to train and certify operators as Insitu has been unwilling to sell such data. As such, no other source has the requisite knowledge, expertise or technical data to fulfill these requirements. Therefore, award to another source would require the replacement of existing systems, because no other source can provide the supplies or services required. The current FMS ScanEagle UAS case portfolio is $230.9M, supporting 19 countries and 34 cases. Based on the ScanEagle UAS historical data, the approximate cost to replace the ScanEagle UAS is estimated at $10 million per system. The substantial duplication of cost to the Government is not expected to be recovered through competition.

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

PMA-263 maintains a constant survey of the UAS Industry and has not identified any other sources capable of performing the RQ-21A UAS suite of capabilities or delivering the ScanEagle UAS hardware and service requirements within the schedule and fiscal constraints of the program. Insitu is the only source known to possess sufficient knowledge and familiarity with the design and related specifications to manufacture the RQ-21A and ScanEagle UASs and perform associated services. In accordance with FAR 5.201, this procurement was synopsized on the Federal Business Opportunities website on 09 April 2021. No responses were received. A waiver of DFARS PGI 206.302-1 was approved by V24 Director, Procurement Group, Naval Air Systems Command, Serial 243-21-046.

7. 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.

8. Actions to Remove Barriers to Future Competition

For the reasons set forth in paragraph 5, NAVAIR does not have plans to compete future contracts for the types of supplies/services covered by this document. 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 J&A was provided to the approval authority for review. Approval of this J&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(ii).