AbMN IDIQ JA - Redacted.pdf

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

CUI

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The AbMN Program is currently supported by two sole source contracts with SNC: (1) EMD contract (FA8509-17-C-0002), with a PoP from 12 July 2017 to 31 March 2024, and (2) AbMN Production & Interim Contractor Support (ICS) (under contract FA8509-19-D-0001), with a PoP from 1 April 2019 to 30 September 2026. AFLCMC/PK approved the J&A for EMD/AbMN continued system development (Phases II & III) on 22 March 2017 (17-31388). Subsequent, AFSC/PK-R approved J&A 20-30038 on 3 October 2019 to modify the PSP contract and add a task order for the AbMN Low-Rate Initial Production (LRIP) phase for kits, a trainer, initial spares, technical data, system validation and verification, flight testing, and ICS. The task order (FA8509-20-F-0014) was awarded, thereafter. On 20 December 21, AFSC/ PK-R approved J&A 22-30070 for continuation of the AbMN LRIP effort (FA8509-20-F-0014-P00003).

AFLCMC/PK approved J&A 22-32541 on 14 December 22 to support award of a contract modification (task order FA8509-20-F-0014 P00004) for purchase of AbMN Production Kits, spares, ICS, etc.

Due to the circumstances described herein, the activity requests authority to procure the AbMN kits and associated Production, CLS, Engineering Services, and Sustainment Activities for the MC-130J fleet mentioned in this document using Other Than Full and Open Competition as prescribed by FAR 6.302-1, Only One Responsible Source and No Other Supplies and Services Will Satisfy Agency Requirements.

This action will result in the award of a 5-year IDIQ contract with annual ordering periods. The contract will include contract line item numbers (CLINs) which are Firm-Fixed Price (FFP), Cost-Plus Fixed Fee (CPFF) and Cost-Reimbursement No Fee (CRNF). Based on the estimated contract award date, the ordering period will be 1 Apr 2024 to 31 Mar 2029.

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

This IDIQ contract will be awarded as a Single Award Task Order/Delivery Order Contract based on FAR 16.504(c)(1)(ii)(B)(1), Indefinite-Quantity Contracts, Multiple award preference, with supporting rationale provided in this J&A.

In accordance with FAR 16.504(c)(1)(ii)(D)(1)(iii), Indefinite-Quantity Contracts, only one source is qualified and capable, this J&A will serve as approval for a Single Award Task Order/Delivery Order Contract exceeding $100M. DFARS 216.504(c)(1)(ii)(D)(3) Indefinite-Quantity Contracts, Planning the acquisition, states, “In accordance with Section 816 of the National Defense Authorization Act for Fiscal Year 2020 (Pub. L. 116-92), the determination at FAR 16.504(c)(1)(ii)(D) is not required if a justification has been executed, in accordance with FAR subpart 6.3, Other Than Full and Open Competition, and subpart 206.3 Other Than Full and Open Competition.” Per DAFARS 5316.504(c)(1)(ii)(D)(1), Indefinite- Quantity Contracts, Limitation on single award contracts, this J&A will address the applicable circumstance(s) at FAR 16.504(c)(1)(ii)(D)(1)(i)-(iv) Indefinite-Quantity Contracts. No task or delivery order contract in an amount estimated to exceed $100 million (including all options) may be awarded to a single source unless the head of the agency issues a written determination in accordance with the requirements of that part.

11 Jul 2022 CUI Page 7 of 12 production, integration, testing, modernization, and support as the program completes production and fielding/deployment for MVP and full capability. Therefore, this acquisition will be a follow-on contract for the continued development to achieve full capability, production of highly specialized equipment/ support requirements, and the provision of highly specialized services.

The AbMN Integrated Program Team (IPT) assessed the feasibility of competition in two primary areas:

Production and Sustainment/CLS.

Production:

AbMN kit procurement cannot be competed due to timing, restricted software, and duplication of cost concerns.

Timing Constraints: AbMN is part of the MC-130J CR-2 Modification production effort. There is a fixed production kit procurement and install schedule that is synchronized with Special Operations Command (SOCOM) and Air Force Special Operations Command (AFSOC) through FY32 since the kits are being jointly procured between the two commands as a cost share. There will be approximately 58 additional AbMN kits procured via annual buy lots ranging from two to nine kits per year.

Establishing a new production contract with a vendor other than SNC, assuming that competition was possible, would entail an approximate 6-year delay. This period of time includes the following: time it would take to compete and award a new contract (2 years), allowing a new prime contractor to navigate the volatile AbMN supply chain with little-to-no experience and await delivery of required components (2 years), assemble and integrate kits (~1 year), and conduct First Article test (1 year).

Any delays to the fielding of this capability on the MC-130J will have a direct impact on meeting critical milestones related to Initial Operation Capability (IOC) and Full Operational Capability and the MC-130J SOF CR-2 aircraft production schedule. The capabilities provided within the AbMN program are mission essential and, if delayed, will impact AFSOC operations. Without AbMN, AFSOC will not have an MC-130J Situational Awareness System that provides Force Identification, Mission Tracking, Threat Identification and Correlation, Full-Motion Video, Secure Chat, and E-Mail via Data Links as required in many operating areas. Currently, IOC is scheduled to occur in 3QFY24. In addition, a delay would have a direct impact as the last MC-130H retired in 2023 and the MC-130J is responsible for taking over the MC-130H mission.

Restricted Software: SNC developed portions of TRAX® and other AbMN software elements with private expenses and the Government only has restricted rights to those items. Competitors would need to acquire licenses or sufficient rights to perform. SNC is unwilling to sell or license its rights to other vendors.

The AbMN TDP is a deliverable under contract FA8509-17-C-0002. The Government is on contract to receive a Level 3 TDP for the AbMN material. For software, the Government will receive a mix of Unlimited, Government Purpose, and Restricted rights depending on the source of the software. As noted previously, for the AbMN material, it is anticipated that there will be no proprietary carveouts associated with the TDP and it is anticipated the Government will receive either Unlimited or Government Purpose rights. The development testing and TDP delivery for MVP is scheduled in 3QFY24. The solicitation and subsequent contract will include DFARS clauses 252.227-7013 (Rights in Technical Data - Other Than

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Commercial Products and Commercial Services), 252.227-7014 (Rights in Other Than Commercial Computer Software and Other Than Commercial Computer Software Documentation), 252.227-7026 (Deferred Delivery of Technical Data or Computer Software), 252.227-7027 (Deferred Ordering of Technical Data or Computer Software) to ensure the Government's data rights are protected. Commercial computer software will be addressed in accordance with 227.7202-3 (rights in commercial computer software or commercial computer software documentation). The TDP will provide the necessary design, engineering, manufacturing, testing and quality assurance requirements information necessary to enable the procurement (or manufacture) of an interchangeable item that duplicates the physical and performance characteristics of the original product without additional design engineering effort or recourse to the original design activity or any third party. The TDP shall represent the approved, tested, and accepted configuration of the defined delivered items, and accurately depict the final product. The TDP will be used to augment AbMN support in areas that are not proprietary to SNC. Once complete, all drawing packages will be utilized to create an Organic/OEM partnership for life cycle support of the AbMN capability. The life cycle of the AbMN system is 30 years with technology refreshes and resolution of obsolesced components, as required.

Based on previous conversations, SNC is not willing to sell software license rights to other vendors. A new vendor would be required to reverse engineer or redevelop the AbMN system. SNC maintains proprietary software (i.e., TRAX®) and integration knowledge that a new vendor would not have access to; therefore, a reverse engineering effort by a new vendor would be high risk. The Government is unable to share the TRAX® software with third parties under the license rights it currently holds. SNC TRAX® is software that provides integrated data-sharing capabilities and considered the backbone to the AbMN system. Any attempts to compete requirements during the production phase of the program would significantly increase technical, schedule, and cost risk. This would drive networking and integration complexities each time a DMS, End of Life component, or mandated capability modification is performed.

With the TDP the Government will acquire in 3QFY24, a new contractor would not be able to produce a functional AbMN system as they lack the required software and engineering knowledge to integrate the system into the aircraft. AbMN is part of the MC-130J CR-2 block modification upgrade that also includes Terrain Following (MCTF) Auxiliary Flight Deck System (AFDS), Defensive Counter Measures (DCM), and Radio Frequency Countermeasures (RFCM). AbMN functionality is integrated within the CR-2 sub-systems which drives dependencies amongst the CR-2 sub-systems. A source other than SNC would be unable to achieve the full AbMN capability and integrate within the MC-130J and CR-2 sub-systems. A new vendor will not receive proprietary software to integrate changes associated with Diminishing Manufacturing Sources (DMS) or efforts to optimize the capability of the system. This means that moving to a new vendor would result in the Government paying for development of a new system or dependencies to establish subcontract agreements for proprietary software. In addition, a new vendor would not have the expertise to complete the AbMN development from MVP to full capability. SNC produced 22 AbMN Modification kits (quantity of two Trial Kit Install kits, 18 production kits, and two operational spares kits) from FY19 to FY23.

While previous J&As contemplated competing AbMN production, further analysis indicates that is not a possibility. Even with the envisioned fully delivered TDP, the Government lacks sufficient rights to enable true competition of AbMN kit production and integration.

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Accordingly, SNC is the only firm capable of providing the supplies and services described in Section III above without the USAF experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

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.

A Sources Sought (SS) synopsis was issued on SAM.gov under Notice ID FA8509-23-R-AbMN_CLS on 7 June 2022 with responses due by 28 June 2022. The SS requested responses from interested vendors that possess the expertise, capabilities, and experience to meet qualification requirements for this effort.

Lockheed Martin (CAGE: 622B7) and Alexcom LLC (CAGE: 8ABS9) responded to the SS. Both vendors were evaluated and determined not capable. The rationale for both vendors not being capable is due to the amount of subcontracting they would need with SNC to fulfill requirements that need access to SNC proprietary data. Lockheed Martin and Alexcom LLC do not possess the data rights and SNC is unwilling to sell the rights or become a sub-contractor in support of AbMN. The TDP has not been released to the Government and will not be available until 3QFY24. Portions of TRAX® and other AbMN software elements were developed with private expenses and the Government only has Restricted rights to these items.

In accordance with FAR 5.201, the requirement will be synopsized on SAM.gov. Any vendor who expresses interest will be identified to the prime contractor as a potential subcontracting possibility.

In accordance with AFFARS 5306.304 (a), the Senior Contracting Official authorizes release of the solicitation concurrent with forwarding the justification package to SAF/AQC for review and SAF/AQ for approval. An early solicitation release is required to ensure contract award aligns with the MC-130J AbMN Program need date.

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 in accordance with FAR 15.403-4; (2) the program office's or expert technical personnel's analysis of the offeror's Basis of Estimates;

and (3) inputs from the Defense Contract Management Agency, the contracting officer expects to determine the anticipated cost to the Government to 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.

Market research was conducted 7 Jun 2022 to 30 Nov 2022 in accordance with FAR Part 10.001 and

10.002. The Market Research Report was completed on 1 Dec 2022. The market research techniques used are as follows:

Queries were conducted using the Small Business Administration Dynamic Small Business Search (DSBS) engine to identify potential small business candidates for this requirement. Search criteria included quality assurance standards certified with keyword “engineering design” under North American Industry Classification System code 336411 “Aircraft Conversions.” The DSBS search returned no potential small business vendors.

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Vendor survey was conducted on the following vendors. Only one vendor, SNC, was shown to possess the skill set or services necessary for USAF design, development, integration, and test of the aircraft mission networking modification. Vendors identified are documented in the table below.

Name CAGE/DUNS Socioeconomic Status Location

Sierra Nevada Corp 8X691 Large Business 444 Salomon Cir Sparks, NV 89434

Lockheed Martin Inc 622B7 Large Business 5479 Briar Hill Rd Lexington, KY 40516

Alexcom LLC 8ABS9 Small Business 7777 Washington Village Dr, Ste 270 Dayton, OH 45459

A SS synopsis was issued on SAM.gov on 07 June 2022. Lockheed Martin and Alexcom LLC, responded to the SS. Both vendors were evaluated and determined not capable due to the amount of subcontracting they would need with SNC to fulfill requirements dependent upon access to SNC proprietary data. Portions of TRAX® and other AbMN software elements were developed with private expenses and the Government only has restricted rights to those items. Lockheed Martin and Alexcom would need to acquire licenses or sufficient rights to perform. Based on conversations with SNC, they are unwilling to sell or license its rights to other vendors.

Additional market research techniques used were reviews of systems sharing key characteristics with the requirement, similar programs, and discussions with Government engineers supporting Air Force Special Operations Command avionics.

The AbMN 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.

The market research concluded that SNC was the only vendor capable of meeting the requirements of the MC-130J AbMN program.

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.