24_407 RFFE Exception to Fair Opportunity JA.pdf

DMEA #24-407

6/11/2018

Justification for Exception to Fair Opportunity Process For

Advanced Technology Support Program IV (ATSP4) Indefinite Delivery / Indefinite Quantity (ID/IQ) Task Order Contract

1. Agency and Contracting Activity:

Defense Microelectronics Activity (DMEA) Contracting Division/MECB Attn: Amber Molina, Contracting Officer amber.a.molina.civ@mail.mil 4234 54th Street McClellan, CA 95652

2. Nature and/or Description of the Action Being Approved:

This is a new task order award being made to Northrop Grumman Defense Systems (NG DS) under the basic IDIQ contract, HQ0727-16-D-0004; CET #24-407 dated 12-Oct-2023, for B-2 Band 1 Radio Frequency Front End (RFFE) Form, Fit & Function (F3) Redesign

3. Description of the Supplies/Services Required To Meet the Agency’s Needs (including the total estimated value, including options, if any):

The B-2 RFFE is a mission critical asset and is in critical need of obsolescence resolution to prevent mission impact. Since the RFFE is part of the DMS system, any failure to the RFFE would interrupt receiving and transmitting reliable communication during missions. New procurement of the RFFE is not possible due to significant component obsolescence. The obsolescence has been confirmed by NGDS. The current average back-order age on the RFFE is 568 days. Currently there is 1 Mission Impaired Capability Awaiting Parts (MICAP). Failure to take any action will result in additional MICAP conditions and generation of additional spares requirements that the supply chain will be unable to fulfill. Delay of B-2 Consolidated Sustainment Activity Group (CSAG) initiation will push get-well dates by a minimum of one year. Northrop Grumman is the B-2 platform Original Equipment Manufacturer (OEM) and is responsible for the qualification of any configuration changes on the platform and the only approved Source. The purpose of this task is to design and develop advanced technology microelectronic solutions to resolve the obsolescence issues of the microelectronics-based B-2 Band 1 Radio Frequency Front End (RFFE) system. Estimated value of the effort is $30.6M.

4. Identification of the Exception to Fair Opportunity (Authority Cited):

FAR 16.505(b)(1)(i) requires the Contracting Officer to provide each awardee under a multiple award contract, a fair opportunity to be considered for each order exceeding $3,500 unless one of the following statutory exceptions apply. The specific exception that precludes the fair opportunity process for this acquisition is:

FAR 16.505(b)(2)(i)(B), Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/16.htm#P399_69627 http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/16.htm#P399_69627

5. Identification of requirement for the procurement of items peculiar to one manufacturer: N/A

6. Rationale for authority cited:

Northrop Grumman is the only known source that has access to the data, equipment, and expertise necessary to perform the engineering services required to develop a solution to obsolescence issues for the B-2 RFFE. The Band 1 RFFE was originally developed by General Electric (GE), Utica, New York, but the repair capability was bought and maintained by Lockheed Martin (LMCO), Owego, New York. LCMO is the subcontractor for the Band 1 RFFE redesign. The government does not have the funds to purchase the technical data for the Band 1 RFFE from LCMO. Northrop Grumman Defense Systems is the B-2 platform Original Equipment Manufacturer (OEM) and is responsible for the qualification of any configuration changes on the platform and the only approved source. NG DS is the prime contractor for the Band 1 RFFE redesign. This design contains LMCO internally funded Independent Research and Development (IRAD) technology. LMCO will not share this information with NG since they are competitors in this arena. LMCO will not share the technical data with the government for free, and the government does not have the funds to purchase the proprietary material/technical data. Northrop Grumman owns the intellectual property and proprietary technical data as well as the tooling, manufacturing and design processes required to design, integrate, test and validate the engineered solution for the B-2. Due to these specialized technical requirements, associated with the health of the B-2 Bomber fleet, Northrop Grumman is the only source capable of providing these engineering services for the US. Air Force.

7. Additional Facts Supporting this Justification:

The RFFE is a key component of the Defensive Management System (DMS) on the B-2 and is in need of replacement. The LRU requires a Form, Fit, and Function (F3) redesign, complete with appropriate qualification, system integration, and ground/flight test.

NGDS maintains a specialized workforce with the requisite skills to maintain the B-2 aircraft, enabling this effort to define the specific obsolescence case of RFFE and determine a design and qualification path that will extend the life of the RFFE and ultimately provide for spares replenishment. This workforce will define the specific obsolescence and supportability constraints to address the optimal approach to resolve supportability issues, life-cycle costs, and reliability.

8. Actions to Remove or Overcome Any Barriers that Led to this Exception to Fair Opportunity

NG provided the only response on prior Market Research efforts. Sources Sought Synopsis (SSS) was posted to FedBizOps 30 Apr 18, NG was the only response received. Business Case Analysis (BCA) was finalized in 2015 and concluded that a competitive based strategy would have significant costs and high risk due to production-level tech data packages being unavailable. B-2 Division will continue to look for future opportunities for competition to support B-2 sustainment and will aggressively manage subcontracting opportunities with NG. The B-2 platform is unique and due to Northrop Grumman being responsible for B-2 configuration management and integration of the B-2 platform, designs that require integration must involve NG. Subprime contractors can be other businesses. The proprietary technical data prevents this project from being open to other businesses as the prime contractor. No actions to develop future competition will be feasible during the period of performance of this acquisition because these engineering services are a pre-requisite to develop future competition.

9. Redaction

IAW FAR 16.505, the justification must be posted within 14 days after contract award. Project Engineers shall check appropriate box based on coordination with the customer for screening IAW 16.505(b)(2)(D)(4):

____ No redaction is necessary. This J&A will be posted in its entirety.

____ This J&A contains information that cannot be publicly posted (i.e. proprietary contractor data).

A redacted copy will be sent to PCO for posting after customer input.

__X__ Disclosure of information contained in this J&A would compromise the national security (e.g., would result in disclosure of classified information) or create other security risks. As a result, this J&A will not be posted. Rationale has been provided to the PCO to document the contract file.

10. Technical / Requirements Certification

I certify that the supporting data under my cognizance that are included in the justification are accurate and complete to the best of my knowledge and belief.

NAME: ___Andrew Anselmi_________________ TITLE: Project Engineer

SIGNATURE: ____________________________ DATE: ______________________

11. Technical / Requirements Supervisor Certification:

NAME: ___John Cotterill_____________ TITLE: Chief, Systems Branch

SIGNATURE: _______________________ DATE: ______________________

12. Contracting Officer Determination

I certify that this J&A is accurate and complete to the best of my knowledge and belief.

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. Actions to ensure reasonableness of the price will be accomplished using procedures and criteria contained in FAR 15.4. Cost and pricing data will be requested. Detailed documentation and justification of price reasonableness will be set forth in the Price Negotiation Memorandum.

NAME: ___Amber Molina TITLE: Contracting Officer/MECB

SIGNATURE: ____________________________ DATE: ______________________

13. Chief, ATSP Branch

NAME: ____Colten Murray___________ TITLE: Chief, ATSP Contracting Branch

SIGNATURE: ______________________ DATE: ______________________

14. Sr. Procurement Analyst / MECA

NAME: ____Anna Madden____________ TITLE: ______________________

15. Office of Counsel

NAME: ____William Davis___________ TITLE: ______________________

16. Head of Contracting Activity

NAME: __Nicholas Martin____________ TITLE: Director, Defense Microelectronics Activity