20230517_JA V_9 VIPER Redacted.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

CONTROLLED UNCLASSIFIED INFORMATION

11 Jul 2022 CONTROLLED UNCLASSIFIED INFORMATION Page 1 of 511 Jul 2022 CONTROLLED UNCLASSIFIED INFORMATION Page 1 of 5

Was a J&A approved for the preceding acquisition where that acquisition required a J&A? Yes No

! ! Attach the preceding J&A in the staff package for this J&A. The preceding J&A will be used as a reference document.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined at AFFARS 5302.101? Yes No

Contracting Activity: AFSC OL:PZABB

Purchase Request (if available) / Local ID Number: FD20202300073

Program / Project (and PE, if applicable): VIPER MLV Interface Adapter Repair

Program Type (PEO, Enterprise, of Operational): Enterprise

Authority:

6.302-1 – 10 USC 3204(a)(1), Only One Responsible Source - No Other Supplies or Services Will Satisfy Agency Requirements J&A Type: Class Individual

COORDINATION ( AFFARS 5306.304(a) )

Date

14 Mar 2023

Project Lead / Program Mgr / Requiring Activity Gibson, Richard C

416 SCMS/GUMAA, DSN 586-2999

Signature

Date

20 Mar 2023

Contracting Officer Falkner, MSgt Jason D

AFSC OL:H/PZABB, DSN 775-4745

Signature

Date

21 Mar 2023

Local Legal Reviewer Bassett, Michael

75 ABW/JA, DSN 586-4191

Signature

Date

22 Mar 2023

Chief of the Contracting Office (COCO) Stark, David

AFSC OL:H/PZA, DSN 775-6897

Signature

APPROVAL ( AFFARS 5306.304(a) )

Date

28 Mar 2023

Competition Advocate Schmidt, Melinda

AFSC OL:H/PZC, DSN 775-6549

Signature

GIBSON.RICHARD.C.129

0393171

Digitally signed by

GIBSON.RICHARD.C.1290393171

Date: 2023.03.14 10:51:20 -06'00'

FALKNER.JASON.DANIE

L.1296516704

Digitally signed by

FALKNER.JASON.DANIEL.1296516704

Date: 2023.03.20 09:00:35 -06'00'

BASSETT.MICHAEL.D.14

06950111

Digitally signed by

BASSETT.MICHAEL.D.1406950111

Date: 2023.03.21 16:02:21 -06'00'

STARK.DAVID.J.125457

Digitally signed by

STARK.DAVID.J.1254575271

Date: 2023.03.22 13:15:20 -06'00'

SCHMIDT.MELINDA.M.1

144943801

Digitally signed by

SCHMIDT.MELINDA.M.1144943801

Date: 2023.03.28 09:43:20 -06'00'

11 Jul 2022 CONTROLLED UNCLASSIFIED INFORMATION Page 2 of 511 Jul 2022 CONTROLLED UNCLASSIFIED INFORMATION Page 2 of 5

I. Agency and Contracting Activity.

United States Air Force

AFSC OL:H/PZABB

6050 Gum Lane, Bldg 1215 Hill AFB, UT 84056-5825 Contracting Officer: MSgt Jason D. Falkner Phone Number: DSN 775-4745 PR Number: FD20202300073

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

A. Upon approval to use other than full and open competition procedures the Air Force will issue a new follow-on non- Commercial Requirements repair services contract, to prior contract FA8251-18-D-0008 (Awarded: 24 Aug 18, sole source to BAE; Ordering Period: 24 Aug 18 - 23 Aug 23) , to procure repairs and obsolescence updates of the Interface Adapter components listed below, used for the VIPER F-16 program by the US Air Force.

Contract will be awarded to: BAE SYSTEMS 65 Spit Brook Road Nashua, New Hampshire 03060 CAGE Code: 94117.

B. A Firm Fixed Price (FFP) pricing arrangement is anticipated.

. This will be a 5-year Requirements type contract broken out with one 3-year basic ordering period and two 1-year option years (for a total ordering period of five years). The basic ordering period is anticipated for 24 Aug 23 through 23 Aug 26; with the option years taking the ordering period out through 23 Aug 28. The estimated period of performance on the orders placed under this contract can extend up to 12 months after an order is placed, thereby allowing performance to extend from 24 Aug 2023 out through 23 Aug 2029 if all option years are executed and an order is placed on the last day of the contract.

C. Type of J&A: Individual

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

A. This is to procure a new follow on non-commercial Requirements repair services contract for repairs and obsolescence updates of the Interface Adapter components listed below, used for the VIPER F-16 program by the US Air Force. This component is a subassembly of a system that is used to provide flight line loading and diagnostic testing of F-16 aircraft Avionics System software as well as flight line diagnostic testing of F-16 Avionics Systems.

B. The Air Force estimated unit repair and obsolescence update cost and quantities for five years are shown below:

Line Item Base Opt 1 Opt 2 Est. Ea. Cost Subtotal cost Qty Qty Qty 0001 Repair & Upgrade 4920-01-508-0416 to 42 14 14

4920-01-648-3863 0002 Minor Adapter Repairs 4920-01-508-0416 3 1 1 0003 Minor Repairs Plus CPU CCA Repairs 3 1 1

4920-01-508-0416

0004 TT&E / RTOK / BER 4920-01-50-0416 9 3 3

0005 Minor Adapter Repairs 4920-01-648-3863 6 2 2 0006 Minor Plus PIO & CPU 4920-01-648-3863 6 2 2 0007 Minor Plus PIO & CPU 4920-01-648-3863 6 2 2

0008 TT&E / RTOK / BER 4920-01-50-0416 9 3 3

0009 CDRL Comm Asset Visibility Report - NSP $0 0010 CDRL Mx Data Collection Record (MDCR) - NSP $0

11 Jul 2022 CONTROLLED UNCLASSIFIED INFORMATION Page 3 of 511 Jul 2022 CONTROLLED UNCLASSIFIED INFORMATION Page 3 of 5

0011 CAV AF Updates 1 0012 CDRL Ctr Quarterly Status Report (QSR) - NSP $0 0013 CDRL Ctr Counterfeit Prevention Plan - NSP $0 .

NOTE1: Optional year CLINs will be numbered 1XXX for optional year 1, and 2XXX for Optional year 2 Note2: NSN 4920-01-508-0416 = PN 8379436P001 Note3: NSN 4920-01-648-3863 = PN 8379436P003

C. Sufficient pricing data, procurement history, and performance data are available which will permit realistic estimates. This estimate is based on prior repair price history and current market research. The contracting action will use 4930 CSAG-S Working Capital funds.

D. Approval is requested for more than one fiscal year as there are no feasible actions that could be taken to develop future competition during the course of this contract. The government does not possess or have the rights to the OEM's Intellectual Property which consists of the complete technical package needed to repair these end items. The government has requested to purchase the OEM's Intellectual Property and BAE has refused. Reverse engineering would be required by any potential source to develop a repair process. It has been determined that reverse engineering the complete data package is not economically feasible. The government will continue to request the data package and the rights to the data necessary to repair these end items from the OEM during the period of performance.

E. Statutory Authority permitting Other than Full and Open Competition: 10 USC 2304(c)(1), as implemented by the Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

IV. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above.

The above authority was selected because this requirement is for the continuation of unique and highly specialized repair services via follow-on contract award and BAE is the only capable source that can perform these repairs due to lack of data rights.

The OEM possesses critical manufacturing and repair knowledge and engineering skills to maintain the quality of the parts.

The government does not possess sufficient data and the rights to the data to establish additional sources of repair.

Reverse engineering (RE) the VIPER IA tester to establish repair technical data to be used at an organic repair depot or by competitive commercial repair sources would result in very limited success due to OEM proprietary firmware, software, source code, drivers, and embedded code developed and installed on the VIPER IA system. The source code for the firmware was not provided by the OEM and reverse engineering firmware cannot be achieved with any measure in accuracy. BAE Systems, Inc. has returned no-bids as a result of rough order of magnitude (ROM) requests for technical data including firmware or firmware source code.

Warner-Robins has stated they are one year away from fielding a CAPRE version that will replace the VIPER LMV with an organically-developed test set with unlimited Data Rights. The modified CAPRE is estimated to take 3 years total to work through any "bugs," which is why this contract is a 3-year Base with 2 one-year options (to account for schedule slip risk management).

Accordingly, BAE is the only firm capable of providing the highly specialized repair services described in Section III above without the U.S. Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

11 Jul 2022 CONTROLLED UNCLASSIFIED INFORMATION Page 4 of 511 Jul 2022 CONTROLLED UNCLASSIFIED INFORMATION Page 4 of 5

V. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under

FAR 5.202 applies.

Market research indicates that only a repair source with access to and highly specialized experts can successfully fulfill the needs of the Air Force to repair the Interface Adapter Assembly.

The team posted a Sources Sought on SAM.gov (Notice ID FA8251-23-VIPER) on 9 Nov 2022 which closed on 9 Dec 2022, with no responses. Using any other vendor or any other part not approved to repair these items is prohibited.

This requirement will be synopsized on https://www.sam.gov as a notice of proposed contract action IAW FAR 5.201

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

Based upon (1) certified cost or pricing data provided in the offeror's proposal, (2) the program office's technical analysis of the offeror's Basis of Estimates (BOE), and (3) inputs from the Defense Contract Management Agency (as necessary), including from the Administrative Contracting Officer, the contracting officer expects they will be able to determine that the anticipated cost to the Government will be fair and reasonable.

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

A. As described in Section V above, market research, in accordance with FAR Part 10, has been conducted by sources sought synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties.

B. In accordance with FAR part 10, and in addition to ongoing market surveillance performed by the integrated product team, acquisition specific market research has been conducted by 416 SCMS and concluded 16 Dec 2022. The Market Research Strategy focused on gathering information to support the efficacy of establishing additional repair sources for the Viper MLV Interface Adapter. Research included vendor surveys, commercial opportunities evaluation, product data and data rights evaluation, review of past and current terms and conditions of repair, performance requirements, engineering skills and techniques required, repair history, additional and existing sources for the system. Additionally, Internet based searches were conducted via Google, SAM.gov, and FPDS pursuant to FAR Part 10.0019(a)(2)(v).

C. Market research concluded that there are no alternate/additional sources capable of meeting the government's requirement at this time and BAE (94117) is the only known company capable of satisfying the government requirements.

D. The Viper MLV Interface adapter is unique to the F-16 fighter aircraft and does not have commercial off-the shelf sources of manufacture. No commercial or non-developmental items are available with similar form, fit, or function parameters that can be used or modified to satisfy the agency's need.

E. The Viper MLV Interface Adapter is currently not a candidate for organic repair due to the US government's lack of data rights sufficient for organic repair stand-up, and inability to purchase it from the OEM. DSOR #07-56 also dictates contract repair. Cost to reverse-engineer Tester IA not cost/time effective with pending organic replacement tester INW at Robins AFB (deliveries to begin 2024 and fully fielded by 2026), given the over-30-year break-even point for reverse engineering.

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

None.

IX. List of any sources that expressed, in writing, an interest in the acquisition.

See Section V above.

11 Jul 2022 CONTROLLED UNCLASSIFIED INFORMATION Page 5 of 5

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

f the USG were to reverse engineer this IA, the break-even point is more than 30 years. Long after the Robins AFB IPT, who manages the entire VIPER MLV Tester, is scheduled to sunset the tester in 2026 - two years after the CAPRE completes it's modifications to replace VIPER and is fielded.

As a result of continued refusal by the Sole Source contractor to sell or license the required data as well as the duplication of cost and unacceptable delay of developing additional sources per Section V, there are no known additional actions which can be taken to remove barriers to competition for these highly specialized repairs.

USAF will continue to explore the marketplace for innovative solutions to reverse engineering challenges, although reverse engineering is deemed unfeasible at this time due to duplication of costs, unacceptable schedule delays, and the inability for the government to realize a return on investment before the systems end of life (currently forecasted as 2026).

Per PGI 206.304(a)(S-70) and as indicated by signature on the Coordination and Approval Document, the previous J&A has been reviewed and the Approval Authority determines that all cost-effective actions, yielding a positive return on investment, to remove barriers to competition have been validated and vetted. Due to the impending sunset of the VIPER MLV Tester in the next 3-5 years, the decision to pursue a sole source acquisition at this time is in the best interest of the

USAF.

XI. Certification by the Contracting Officer.

As evidenced by my signature above, I certify that this justification is accurate and complete to the best of my knowledge and belief.

XII. Certification by the technical/requirements personnel.

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