20-30644 - JA FINAL Redacted 21 Sep 20_Redacted.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. Contracting Activity.

This Justification and Approval (J&A) is to request authority for Other Than Full and Open Competition (OTF&OC) to support requirements generated for the Air Force Life Cycle Management Center, Special Operations Forces (SOF)/Personnel Recovery & Rotary (AFLCMC/WIU) Division. The contracting activity for this requirement is the SOF/PR & Rotary Division Contracting Division, (AFLCMC/WIUK). The purchase request number supporting this contracting action is FD2060-20-30644.

II. Nature and/or description of the action being processed.

Due to the circumstances described herein, the activity requests authority to procure the supply listed in this document using Other Than Full and Open Competition prescribed by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. This action will result in a contract modification to the AC-130W/AC-130J/MC-130J Support and Sustainment, Indefinite Delivery Indefinite Quantity (IDIQ) contract FA8509-19-D-0001 to increase the ceiling by to award two new delivery orders. The first delivery order will be for Non-Recurring Engineering. The second delivery order will be for Production. The projected award date for the first delivery order is 30 September 2020. The projected award date for the second delivery order is 31 March 2022. This contract action will result in the award of two delivery orders, which will have multiple pricing arrangements to include Cost Plus Fixed Fee (CPFF), Firm Fixed Price (FFP), and Cost Reimbursable No Fee (CRNF). The anticipated period of performance for the first delivery order is 30 September 2020 – 30 March 2022 (18 months). The anticipated period of performance for the second delivery order is 31 March 2022 – 30 March 2023 (12 months). The ordering period for FA8509-19-D-0001 is 01 April 2019 – 30 September 2026.

This sole source requirement will be procured from the following company:

Sierra Nevada Corporation (SNC) 444 Salomon Circle Sparks, NV 89434-9651

CAGE: 8X691

Large Business

III. Description of supplies/services required to meet agency needs.

This requirement is for the procurement and integration of a permanent (P) LOS Link 16 capability on three (3) EC-130J Commando Solo aircraft using the Airborne Mission Networking (AbMN) system developed for the MC-130J to ensure compatibility between the AbMN and the LOS Link 16 on the EC-130J aircraft. This effort includes integrating one (1) Multifunctional Information Distribution – Joint Tactical Radio System (MIDS- JTRS) link 16 radio, developing and installing Group A (to include antennas, control panel, equipment rack, and wiring), and integrating two (2) MIDS-JTRS Link 16 J-Voice channels, initial spares, technical data, system validation/verification, and flight testing. In addition, this effort replaces the Interference Blanker Unit (IBU) with a Programmable Interference Blanker Unit (PIBU which upgrades the Specialized Automated Mission Suite - Enhanced Situational Awareness (SAMS-ESA) hardware/software to an AbMN software and architecture. The Government will provide a MIDS-JTRS (same version as MC-130J) radio and PIBU as Government Furnished Equipment (GFE). The Contactor will provide Interim Contractor Support (ICS) during

UNCLASSIFIED

This modification will increase the total estimated value by an additional revising the new contract total to $414,065,999.00. The basis for the total value increase is based on the Independent Government Estimate of the total effort. These requirements will be funded with Procurement (0350/0300) and Operations & Maintenance (0100) appropriations with an anticipated period of performance of 30 September 2020 – 30 March 2022 for the first delivery order (18 months), and 31 March 2022 – 30 March 2023 for the second delivery order (12 months). The ordering period for FA8509-19-D-0001 is 01 April 2019 – 30 September 2026.

IV. Statutory authority permitting Other than Full and Open Competition.

10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, Only one Responsible Source and No Other supplies or Services Will Satisfy Agency Requirements.

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

The USAF’s minimum needs can only be satisfied by Sierra Nevada Corp as identified on the design requirements and Source Controlled Drawings (SCD). The Link 16 is a highly specialized LRU that is used on Navy, Air Force, and Special Operations fighter, transport, tanker, and special mission aircraft with an expected lifecycle through 2050.

Sierra Nevada Corporation (SNC) owns the proprietary AbMN software data, knowledge, and expertise, which is required to display LOS Link 16 data to the aircrew and enable chat function. The Government does not own or have access to the data for these items. These items are currently in development by the Contractor.

Therefore, cost for the data rights of these items is unknown at this time. They are anticipated to be completed with the second trial kit install on the MC-130J in FY22. It is the Government’s intent to request estimated costs for data rights of these items upon their completion in FY22.

Award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the Air Force’s requirements. SNC possesses the qualifications and data required to meet USSOCOM’s timeline for this requirement. The EC-130J LOS Link 16 capability is the same as the sub-set of requirements included in the current MC-130J AbMN program in which SNC is working. Leveraging non-recurring engineering, development of technical data and cyber security, and sustainment from the MC-130J AbMN system will eliminate substantial duplication of cost (approximately $32M) associated with designing a new system, in addition to alleviating an unacceptable delay of 40 months (See table below). Furthermore, pursuit of redevelopment or an alternate solution would result in $49M of sunk costs already invested in the AbMN system design, software development, and system support through flight test. Given the status of the MC-130J AbMN program and direction from HQ AFSOC to develop a path forward on AbMN, the best strategy is to use the AbMN Phase 1 portion of the engineering design and analysis recently completed to-date. This approach will enable the USG to successfully deliver the required capability in order to avoid unacceptable time delays and reduce technical risk preventing mission failure and/or loss of life.

Breakdown of Cost ($32M) and Months (40) is as follows:

DESCRIPTION COST ($/M) MONTHS NOTES

Additional Time for Full and Open Competition 0.0 12 Software SIL 1.6 6 Link 16 Integration Software 14.2 Hardware 3 Integrate Hardware and Software 8.6 Familiarization Training 0.5 6 Additional Testing 1.2 2 Program Management

2.9 Duration from

"Software SIL" to "Additional Testing"

TOTAL 32.0 40

14 Accomplished at the same time

Accordingly, SNC is the only firm capable of providing the requirements described in Section III above without the U.S. Air Force experiencing substantial duplication of cost that will not be recovered through competition and unacceptable delays in fulfilling its requirements.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

A Request for Information (RFI) was posted to Beta.SAM.gov (formerly Federal Business Opportunities (FedBizOps)) on 5 December 2019 with a response date of 26 December 2019 under title FA8509-20-R-Link-

16. The RFI requested responses from interested sources that possessed the expertise, capabilities, and experience to meet qualification requirements for this effort. No vendors responded to the RFI.

This requirement will be synopsized on the Government Point of Entry (Beta.SAM.gov) in accordance with FAR 5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis. Any source that responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential subcontracting possibility.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The overall cost of this acquisition will be fair and reasonable to the Government. In accordance with FAR 15.403-4, the contractor will be required to provide certified cost or pricing data to support the Government's evaluation of the proposed cost. The proposed skill mix of labor, labor hours, types, and quantities of material and other direct costs, and direct and indirect rates will be negotiated by the Government based on recommendations from Defense Contracting Management Agency (DCMA), Defense Contract Audit Agency (DCAA), and expert technical personnel who support the program. The contract price will be negotiated in accordance with procedures in FAR Part 15 which will ensure the ultimate cost to the Government is fair and reasonable.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

Market research was conducted in accordance with FAR Part 10.001 and 10.002. Market research was completed on 25 March 2020. Market research techniques used are as follows:

As described in Section VI above, an RFI was posted on Beta.SAM.gov (formerly FBO.gov) advising industry of the pending acquisition and soliciting inquiries from interested vendors. The RFI was posted under FD2060- 20-30644 on 5 December 2019 for 15 days. There were no responses from interested parties.

Queries were conducted within Government data bases and various internet searches (Small Business Administration (SBA) Dynamic Small Business Search (DSBS) and Google) to identify potential small business candidates for this requirement. Search criteria included keywords “Link 16”, “Avionics”, “sustaining engineering”, and “C-130” under North American Industry Classification System (NAICS) Code 336411 “Aircraft Manufacturing”. This search criteria returned a total of eight (8) matches. Of the eight (8) vendors identified, three (3) were Veteran owned businesses, three (3) were Woman Owned, one (1) was Alaskan Native, and one (1) was Asian American. None of the eight (8) potential candidates possessed the skill set or services necessary for United States Air Force (USAF) design, development, integration, and test of the aircraft mission networking modification.

Additional market research techniques used were one-on-one industry sessions, system reviews sharing key characteristics, similar programs, and discussions with Government engineers supporting AFSOC avionics.

Through the market research techniques conducted at the time, two (2) large businesses with systems that contained a sub-set of the extent required were assessed and determined non-capable of meeting the technical requirements associated with this acquisition.

The LOS Link 16 Phase 1 system and overall program does not fit the definition of a commercial item or service in accordance with FAR 2.101. This item is defined as military unique and is not customarily used by the general public or by non-Governmental entities. The Government requires parts that meet an exact form, fit, and function as determined by the specific mission. There are no aircraft in the commercial market with same or similar components.

Market research concluded that SNC is the only source that has the knowledge, expertise, and capability of meeting the Government's requirements associated with the completion of the LOS Link 16 Phase 1.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

None.

X. List of sources, if any, that expressed interest in the acquisition.

See Section VI above.

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

The plan to break barriers to competition includes the procurement of a Level III production drawing package at the completion of LRIP. SNC will be queried at that time of data procurement costs; thereafter, a decision will be made by the USG on whether to pursue those costs through the program objective memorandum (POM).

This data package is intended to be used to support all production and fielding requirements on a competitive basis. The technical data and formal training would also be procured once the system has passed validation/verification and has completed flight testing which is estimated for completion in FY22. The life cycle of the AbMN system is 30 years with technology refreshes and resolution of obsolesced components, as required.

Since the Government does not currently possess a complete technical data package and the AbMN system still requires additional development, reverse engineering is not an option for this program. It may be possible to overcome barriers to competition for future software sustainment once Link 16 passes operational test, modification is complete, and software stabilizes. At that time, the Government will perform appropriate analysis and market research to explore full and open competition for sustainment of the Link 16.

Based on the information stated above, the current J&A does not require higher level approval in accordance with DFARS PGI 206.304(a) (S-70) (ii).

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I certified that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.