Redacted JA.docx

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center Aircraft Division (NAWCAD) Lakehurst, NJ.

2. Description of the Action Being Approved.

This Class Justification and Approval (CJ&A) authorizes and approves a five-year Basic Ordering Agreement (BOA) on a sole source basis with Communications & Power Industries LLC (CPI), the Original Equipment Manufacturer (OEM) of Precision Approach Landing Systems (PALS) Radio Frequency (RF) components and assemblies. This action will procure the support and supplies associated with engineering and technical services to tear down, evaluate, repair, restore, modify, and procure spare parts for the legacy PALS RF components and assemblies in support of the NAWCAD Webster Outlying Field Air Traffic Control & Landing Systems (ATC&LS) Division. Orders will be issued on a Firm Fixed Price (FFP) and Cost Plus Fixed Fee (CPFF) basis. Authority to act under this CJ&A expires on 31 January 2025.

3. Description of Supplies/Services.

The function of PALS is to provide precision landing information to air traffic controllers and the final approach controller while landing aircraft aboard aircraft carriers and amphibious assault ships. If this equipment is not operational, the fleet will be directly and adversely affected as the Government’s capability to track and land aircraft aboard vessels will be severely restricted. Per Assistant Deputy Chief of Naval Operations, Integration of Capabilities and Resources Decision Memorandum, all legacy ATC&LS (inclusive of legacy PALS) are required to remain operational through 2040. Therefore, the ATC&LS Division has a requirement to maintain the legacy PALS at an operational mode to ensure maximum fleet readiness.

This procurement action will provide tear down and evaluation, repair, restoration, modification, and spare parts for the PALS RF components and assemblies. The PALS that are applicable to this BOA include AN/SPN-35C Precision Approach Radar, AN/SPN-43C Air Surveillance Radar System, AN/SPN-46(V) PALS, and AN/TPN-31A Air Traffic Navigation Integration and Coordination System systems.

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.

The services and materials being procured under this BOA are integral to CPI who is the OEM of the ATC&LS RF components and assemblies for the ATC systems listed in paragraph 3. CPI is the only company that maintains the data rights, technical expertise, and production level data necessary to support the repair, restoration, modification, and spare parts of these components and assemblies without extensive reverse engineering efforts. The Government does not have specifications and/or detailed drawings for the systems; only CPI possesses the proprietary technical data that is essential for the manufacturing and depot level repair of the systems RF components. The Government requested the Level III drawings from CPI; a negative response was received, stating that they have no intent to sell the drawings. In addition, awarding to another source other than CPI would cause extensive reverse engineering costs and schedule delays resulting in unacceptable programmatic risks and failure to fulfill the Navy’s requirement of maintaining the legacy PALS systems at a full operational mode. After successfully passing these tests, the new equipment would need to be certified on an aircraft carrier. If this equipment is not operational, the Government’s capability to track and land aircraft aboard vessels will be severely restricted resulting in potential mission failures for fleet aircraft carriers. It is imperative that the original source be used for AN/SPN-35C, AN/SPN-43C, AN/SPN-46(V), and AN/TPN-31A system procurements to maintain system operability through the required timeframe of 2040.

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

The ATC&LS Division conducted market research via Google searches and the required Federal Procurement Data System - Next Generation and Dynamic Small Business search sites to ascertain what vendors were capable of providing the required supplies and services. There was a part number search and CPI was the only company found capable of meeting all of the requirements.

A Request For Information for this requirement was posted via the Federal Business Opportunities website on 17 April 2019 and closed on 23 April 2019. No responses were received. A pre-solicitation synopsis was posted on 24 October 2019 and closed on 8 November 2019. No responses were received. The ATC&LS Division will update the market research every 18 months during the BOA ordering period to verify CPI is the only company capable of still meeting the requirements.

7. Determination of Fair and Reasonable Cost.

As part of this BOA, individual orders will be negotiated on a FFP and CPFF basis, as applicable. In accordance with (IAW) FAR 15.402, the Contracting Officer shall ensure that all supplies and services provided under this contract are procured at a fair and reasonable price. The Contractor will submit a formal price proposal with certified cost or pricing data and sufficient information to support the accuracy and reliability of the estimate. Experienced technical analysts, cost analysts, and Contract Specialists will review CPI’s proposal with the aid of necessary field pricing support. The Contracting Officer will utilize cost and price analysis techniques IAW FAR 15.404-1as 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, the ATC&LS Division has no plan, at this time, to compete future contracts for the types of supplies and services covered by this CJ&A. As the OEM, CPI is the only company that currently possesses the technical expertise and special tooling required to design modifications and upgrades, and repair associated parts for these complex systems. There are no other sources for spare parts. If another potential source emerges, or the ATC&LS Division is capable of receiving the Technical Data Package required for repairs of the ATC&LS components and assemblies, the ATC&LS Division will assess whether competition for future requirements is feasible.

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

LAKEHURST, NEW JERSEY 08773

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