20-31507 JA Redacted.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. Contracting Activity.

The Justification and Approval is to request authority for Other Than Full and Open Competition supporting requirements generated tor the Air Force Life Cycle Management Center (AFLCMC), Agile Combat Support Directorate, Electronic Warfare and Avionics Division (WNY). The contracting activity for this requirement is AFLCMC Electronic Warfare and Avionics Division (WNKD). The purchase request number supporting this contracting action is FD2060-20-31507

II. Nature and/or Description of the Action Being Processed. [FAR 6.303-2(b) (2)]

Due to the circumstances described herein, the activity requests authority to acquire Sustaining Engineering Services (SES) and Deficiency Analysis (DA) for the AN/ALQ- 155(V) listed in the document using Other Than Full and Open Competition as 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 the award of a follow-on Indefinite Delivery Contract (IDIQ), which will consist of Firm-Fixed Price (FFP) and Cost Reimbursable-No Fee (CRNF) contract line item numbers (CLINs) with a basic 6-month plus four 1-year Options. The period of performance (PoP) is projected to be 30 September 2020 – 2 April 2025.

The sole source requirements will be obtained from the following source:

Northrop Grumman Systems Corporation (NGSC) DBA Defense Systems Sector 7575 Colshire Drive McLean VA 22102-7508

CAGE: 5FVX5

Large Business

III. Description of the Supplies/Services Required to Meet Agency Needs. [FAR 6.303- 2(b) (3)].

This requirement is to acquire Sustaining Engineering Services (SES) for software support of highly specialized services by assisting the 579 SWES/MXDPBC on the AN/ALQ 155(V), SI Operational Flight Plans (OFP), Mission Data Tools and Tools software for both the legacy and new signal processors, as well as sustainment of the AFLCMC/WNY ALQ-155(V) software development lab. In addition, this effort includes Line Replaceable Unit (LRU), Shop Replaceable Unit (SRU) and other system software (SW) tools and support equipment. The AN/ALQ -155(V) Power Management System supports low to mid-band jamming capability on the B-52H aircraft. The AN/ALQ-155(V) support requirements include investigation of Operational Change Requests (OCR) and Software Problem Reports (SPR) submitted against the AN/ALQ-155(V). This requirement will also determine the scope and complexity of the OCR or

V. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (Applicability of Authority).

[FAR 6.303-2(b) (5)]

The agency's minimum needs can only be satisfied by the unique services available from NGSC as identified on the design requirements and source controlled drawings (SCD).

NGSC is the Original Equipment Manufacturer (OEM) of the AN/ALQ-155(V). The OEM possess unique capabilities and is the only source providing these services since the inception of the AN/ALQ-155(V) system into the Air Force inventory. In addition, AFLCMC/WNY currently lacks a complete engineering data package for the legacy AN/ALQ-155(V) system.

Some data was never purchased and some of the data that was delivered to the Government has been lost. To prevent degradation in support, any effort to qualify another source would be extensive and would have to be accomplished while continuing on-going sustainment support from the OEM. The system is also considered highly specialized due to its software configuration which consists of specific warranty associated with the OEM. A substitute item must be approved by the OEM and the Operational Safety, Suitability, and Effectiveness (OSS&E) activity.

NGSC owns the technical data package (TDP) and a complete TDP is required in order to repair the AN/ALQ-155(V). The Government has no repair data and does not possess any commercial product sheets, test data, qualification data, support manuals or related data that defines the performance and manufacturing characteristics of the AN/ALQ-155(V), precluding organic and competitive repair. The Government contacted Northrop Grumman via email on 7 April 2020 to inquire on their interest in selling the TDP to the Government. Northrop Grumman responded on 7 April 2020 and stated they were not interested in selling the data rights at any cost.

Northrop Grumman is the only qualified source capable of repairing the AN/ALQ-155(V) due to their proprietary rights. Northrop Grumman has previously provided repair services in the form of testing, repair, functional check and certification of items under multiple sole-source contracts for the past decade. The last sole source contract executed with Northrop Grumman was contract FA8523-15-D-0002. This contract was awarded on 30 September 2015 and will expire on 29 September 2020. The services provided by Northrop Grumman are not available in the commercial marketplace because the system has a military application only. Technical documentation is restricted Distribution D data and is not available to the general public (For Official Use Only), so no other sources are anticipated to be qualified to perform this effort within the schedule and financial constraints. Any source other than the system integrator will have little to no understanding of the AN/ALQ-155 system architecture. Available data on the AN/ALQ-155(V) is not adequate to provide for Full and Open Competition. The repair service sustainment of the AN/ALQ-155(V) is required to ensure availability of the assets necessary to support mission requirements of B-52H aircraft. Therefore, this acquisition is necessary for the continued repair performance of a highly specialized system.

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. This is a follow-on contract for highly specialized support. Currently the Air Force does not possess a technical data package with sufficient rights to disclose the technical data outside the Government for the purposes of competitive procurement or the ability to authorize others to do so. In response to an Air Force inquiry, the contractor indicated that it would not sell the technical data package to the Air Force. However, the Air Force could decide to reverse engineer the technical data package in order to conduct a competitive acquisition but WNY engineering estimates that a reverse engineering effort is expected to take 5 years to complete and estimated to cos . The delay in fulfilling the Air Force’s requirements would be unacceptable in fulfilling the agency’s requirements. Furthermore, even assuming a cost savings factor of , the Air Force could not expect to recover the costs of the reverse engineering for 84-96 months. Therefore, accomplishing a reverse engineering effort in order to develop a complete and adequate technical data package would not be economically feasible and would be a substantial duplication of costs that is not expected to be recovered through competition.

Accordingly, Northrop Grumman is the only firm capable of providing the requirements described in Section III above without the Air Force Government experiencing substantial duplication of cost that could not be expected to 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. [FAR 6.303-2(b) (6)]

A Request for Information (RFI) synopsis was posted to Federal Business Opportunities (FedBizOpps) on 11 December 2019 with a response date of 10 January 2020 under Solicitation Number FA852320R0012. The RFI requested responses from interested vendors that possess the expertise, capabilities, and experience to meet qualification requirements for this effort.

Five responses were received in which only one, Northrop Grumman, was determined capable based on their ability, intimate knowledge and experience with the theory and operation of the AN/ALQ-155(V). They also are the OEM for the AN/ALQ-155(V) system and are currently successfully supporting Operational Flight Line software and Government lab maintenance for the ALQ-155(V) under contract FA8523-15-D-0002.

The requirement will be synopsized in betaSAM in accordance with FAR 5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis. Any source who 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. [FAR 6.303-2(b) (7)]

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 be used 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 the Defense Contract Management Agency (DCMA) and expert technical personnel supporting the program.

The contract price will be negotiated in accordance with the procedures in FAR Part 15 ensuring 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. [FAR 6.303-1(b) (8)]

Market Research was conducted on 11 December 2019 and completed on 10 January 2020 in accordance with FAR 10.001 and 10.002. The market research techniques used are as follows:

As described in Section VI above, a RFI was posted to FedBizOpps advising industry of the pending acquisition and soliciting inquiries from interested vendors. The RFI was posted on 11 December 2019 under Solicitation Number FA852320R0012. Five responded to the RFI; out of the five vendors, Northrop Grumman was the only one that was determined to be capable based on its intimate knowledge and experience with the theory and operation of the AN/ALQ- 155(V).

Engineering reviewed four historical efforts for potential sources that responded to the RFI.

The first was the sole source contract to TriQuint for the development of a form, fit, and function solid state transmitter to replace the AN/ALQ-155(V) Backwards Wave Oscillator.

The second contract was International Enterprises Inc., which is currently repairing the AN/ALQ-155(V) Flow Protect valve for Air Force Supply Chain. The third contract was Meggitt Defense Systems Inc., which is currently repairing the AN/ALQ-155(V) pump and motor for Air Force Sustainment Center (AFSC). Although these three vendors had experience with a specific component of the ALQ-155(V), none had whole system or software experience on the AN/ ALQ-155(V). The fourth contract was Principle Information Technology Company. Their areas of expertise per their RFI response are electronic repair services, drafting services, and depot activation. These reviews did not result in additional sources because none of these vendors had the experience to repair the ALQ-155(V) system or maintain the software due to lack of data rights.

Queries were conducted within Government data bases and various internet searches (FBO, GSA Advantage, SBA Dynamic Small Business Search, and Google) were performed of the item description “AN/ALQ-155(V)” "Electronic Warfare" and "test" in search of potential sources with the technical ability for the required services.

http://www.google.com https://www.fbo.gov http://www.gsaadvantage.gov http://www.dsbs.sba.gov

Each search site was reviewed for potential vendors. Each vendor’s webpage resulting from the web search was examined for their service capabilities and for similar systems they are currently supporting or have produced in the past. Vendors without AN/ALQ-155(V) system past performance hardware operation and software engineering services experience were eliminated from the vendors list. Sources without experience with the AN/ALQ-155(V) were not qualified timely to perform the services. These searches did not result in additional sources that could perform the repairs.

In addition, discussions were held with system experts and other knowledgeable individuals along with a technical review of the original OEM’s current capabilities and it was determined that there was no significant change in their capabilities within the last year. Due to the unique operational purpose and complex nature of the ALQ-155(V) hardware and software, no sources other than the system OEM, Northrop Grumman, have the specific knowledge of the AN/ALQ-155(V) hardware and software required to modify the system OFP software. As such, Northrop Grumman, the AN/ALQ-155(V) OEM, was the only capable source identified with intimate knowledge and experience with the theory and operation of the AN/ALQ- 155(V).

The AN/ALQ-155(V) does not fit the definition of a commercial item as defined in FAR Part

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 the same or similar components.

The market research concluded that Northrop Grumman is the only vendor capable of fulfilling the Government’s requirement.

IX. Any Other Facts Supporting the Use of Other Than Full and Open Competition.

[FAR 6.303-2(b) (9) (i)]

None.

X. List of Sources, if any, That Expressed Interest in the Acquisition. [FAR 6.303-2(b) (10)

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. [FAR 6.303-2(b) (11)]

The Government does not possess the TDP for the AN/ALQ-155(V) to support full and open competition. An inquiry for sale of the TDP was sent to the OEM on 7 April 2020. The OEM responded on 7 April 2020 and declined interest in selling the TDP. The life of the AN/ALQ- 155(V) program is through 2062.

Given the planned longevity of the AN/ALQ-155(V), there is a high probability that Northrop Grumman will be tasked to provide services to maintain this system in the foreseeable future.

Currently, Northrop Grumman remains the only company that has the knowledge, facilities equipment, and personnel to satisfy the Government's needs for sustainment of the AN/ALQ-

155(V). No other vender or Government agency has ever provided AN/ALQ-155(V) Software Configuration and Engineering Services support as described by this acquisition.

The plan to break barriers to competition in the prior J&A included the fielding of a new Signal Processor in 2018 and the receipt of the System Subsystem Specification (Production Level 3) drawing package which would allow the Government to compete for full and open competition on future engineering services contracts by fourth quarter FY18.

The new Signal Processor did not get fielded in FY18 but will be flight tested in May or June 2020. After the new Signal Processor passes flight test, Air Force Supply Chain will award the production contract which is estimated to be on contract in FY21. Production of boxes will begin in FY22 and take about 48 months to produce all of the Signal Processors. The Government will continue to support the Legacy Processor until all are replaced by the new Signal Processor.

As such, the plan to overcome competitive barriers in the prior J&A was not achieved and higher level approval in accordance with DFARS PGI 206.304(a)(S70)(ii) is required.

XII. Certification by the Contracting Officer. [FAR 6.303-2(b) (12)]

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

XIII. Technical/Requirements Personnel’s Certification. [FAR 6.303-2(c)]

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