J A for release.pdf

OCT 3 0 2007

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND

RADM WUUM A. MOFFEll BUILDING

47f23 BUSE ROAD, BLDG 2272

PANXENT M R . MARYUND 20670-1 547

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activitv.

Naval Air Systems Command Headquarters

2. Desqjption of the Action &inn 1Qpproved. Award of a contract on a sole source basis for Tomahawk Block IV All Up Round (AUR) missiles and support with Raytheon Missile Systems.

Authority to act under this class justification expires on 3 1 July 2013 with the delivery of the last FYl 1 procured missile.

3. Descrivtion of Sug@.ios/Service~, This Class Justification and Approval (CJ&A) authorizes the issuance of a contract with Raytheon Missile Systems (RMS) of Tucson. AZ for the FYOP- 11 Full Rate Rodudion (FRP) of the Tactical Tomahawk (Block IV) missile. The FY09-11 ptocuremnt contract is anticipated to be a single, annual contract for FRP in FY09 with options for the following two fiscal years (FYI0 and FYI 1). This authorization also provides for FMS quantities as approved through an international agreement as well as plus-ups that may be provided by Congress. The proposed contract will provide for the procurement of missiles within an estimated quantity range of 200-500 missiles per year and will be a f m fixed price contract, A follow-on annual-buy contract for production is anticipated in FY12 and beyond.

In addition to the Block IV missiles, the contract will provide b r recurring and non-recurring production engineering and logistics tasks, repair of Government Furnished Equipment (GFE), procurement of Range Safety Systems (RSS) and Flight Test Kits, Composite Capsule Launching System (CCLS) capsules, Guidance Test Sets (GTS), and tooling and test equipment.

Engineering, hardware and other support required for Production Verification Testing (PVT), Functional Ground Testing (FGT) and opctational flight testing will also be included as well as any engineering, including non-recurring, required to support new platform requirements.

4. Statutory Authority Permitting Other Than Pull and Open Corntition. The statutory authority permitting other than full and open competition is Titk 10 U.S.C. 230Q(c)( I) , as implemented by Federal Acquisition Regulation 6.302-1, which states that only one responsible source and no other supplies or services will satisfy agency requirements.

5. m n a l e Justifvinn Use of Cited Statutorv Authority. As a result of a competitive, single-up mcuremnt in 1994. RMS was selected as the sole ~roducer of_?'omahavrk All-Uo-Rounds.

m13. is estimated to be reauiffd to achieve a return on investment. These additional missile &antitls are currently not kntified in the Future Ycsrs Defense Plan (FYDP).

RMS has successfully completed three Low Rate Initial Production contracts and is currently delivering missiles on the FRP, multi-year (MY) contract. MY contract awards for FY04, FY05, FY06 and FY07 have been executed for a total of 1448 missiles. The final MY award (FY08 - 5 17 missiles) is planned for January 2008. As of 1 September 2007, approximately 904 Block IV missiles have been delivered to the Navy.

Current Tomahawk inventories remain below Non-Nuckar Ordnance Requirements (NNOR) as determined by OPNAV. RMS is the only responsible source with the technical knowledge, expertise and currently available facilities required to produce the Tictical Tomahawk missiles within the scheduled time-frames to met the Fleet's needs as determined by Combatant Commanders.

6. Description of E f f o a s e to Solicit Offers from as Manv Offerors as Practicable. The proposed contract was synopsized on the FEDBIZOPS website on 26 February 2007 and no other potential sources expressed an interest in this requirement. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than RMS to provide the required supplies and services.

7. Determination of Fair and Rcasowle Cost, Thc Contracting Officer has determined the anticipated cost to the Government of the suppliedservices covered by this Class J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Cometition, For the reasons set forth in paragraph 5, the Naval Air Systems Command has no plans at this time to compete future contracts for the types of supplies and services covered by this ducument. If another potential source emerges, the Naval Air Systems Command will assess whether competition for future requirements is feasible.