BAE_JA_Redacted.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

This Justification and Approval to request authority for Other Than Full and Open Competition supports requirements generated for the Defense Logistics Agency (DLA). The contracting authority for this requirement is Defense Logistics Agency (DLA) Aviation, Strategic Acquisition Directorate at Ogden.

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED

Due to the circumstances described herein, this activity requests authority to acquire sole source BAE spares items for the weapon systems listed in paragraph three 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 new contract, which will be a firm-fixed price, Requirements contract with a base period of five years and a single five year option.

This sole source requirement will be purchased from the following company and associated BAE Incorporated CAGEs:

BAE SYSTEMS CONTROLS INC

2000 TAYLOR STREET

FORT WAYNE, IN. 46802

CAGE 63760

Associated CAGEs (to include but not limited to):

BAE SYSTEMS CONTROLS INC.

5140 GOLDLEAF CIR

LOS ANGELES, CA 90056-1268

CAGE 07690

BAE SYSTEMS NATIONAL SECURITY

SOLUTIONS INC.

10920 TECHNOLOGY PL

SAN DIEGO, CA 92127-1874

CAGE 12436

BAE SYSTEMS INFORMATION AND

ELECTRONIC SYSTEMS INTEGRATION INC.

6500 TRACOR LANE

AUSTIN, TX 78725-2151

CAGE 19397

BAE SYSTEMS AEROSPACE & DEFENSE

GROUP INC.

7822 S 46TH ST

PHOENIX, AZ 85044-5313

CAGE 54786

BAE SYSTEMS CONTROLS INC.

5140 W GOLDLEAF CIR

LOS ANGELES, CA 90056-1299

CAGE 63631

BAE SYSTEMS INFORMATION AND

ELECTRONIC SYSTEMS INTEGRATION INC.

450 PULASKI RD

GREENLAWN, NY 11740-1609

CAGE 72314

BAE SYSTEMS INFORMATION AND

ELECTRONIC SYSTEMS INTEGRATION INC.

450 PULASKI RD

GREENLAWN, NY 11740-1609

CAGE 80249

BAE SYSTEMS CONTROLS INC.

1098 CLARK ST

ENDICOTT, NY 13760-2815

CAGE 89954

BAE SYSTEMS INFORMATION AND

ELECTRONIC SYSTEMS INTEGRATION INC.

65 SPIT BROOK RD

NASHUA, NH 03060-6909

94117

BAE SYSTEMS TECHNOLOGY SOLUTIONS &

SERVICES INC. DBA BAE SYSTEMS

520 GAITHER ROAD

ROCKVILLE, MD 20850-6198

99789

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS

Support is required for Depot Level Repairable (DLR) items and consumable items used in multiple weapon systems to include, but not limited to, the F-15, F/A-18, F-16, B-52, KC-130, and e-3 aircraft, as well as the CH-53A/D/E helicopter. Non-availability of many of these items could lead to grounded aircraft.

The estimated dollar value for the support of all items is $383 Million (See Attachment 1) for the full ten year length of the contractincluding the five year base and the five year option. The items described in Attachment 1 include a projection of DLR spend based on prior year actuals. This method of estimation was chosen because projections from the services over a ten year period are limited and subject to change. The estimate for consumables includes (but is not limited to) the list of 140 NSNs included in Attachment 1. The estimated award date of the basic umbrella is March 2015. The initial award will not contain any items. Subsumable contracts will follow, which will include populations of items for additions to the contract.

The DLR requirement is estimated to be over the life of the contract. The value of the consumable items for the length of the contract is estimated to be . The type of funding will be specified on individual orders and is anticipated to be Defense Working Capital, Material Support Division, designated program funds, and FMS country funds.

Under the proposed contract, the contractor will provide spares support under a Requirements corporate contract type for a 10 year base period. No guaranteed minimums are anticipated. The government will seek a reduction to historic PLTs for both DLRs and consumable items.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN COMPETITION

10 USC 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

This Class J&A covers sole source NSNs that may be added subsequently in phases, only after a review, screening, and certification process has been verified. The Acquisition Method Codes (AMC)s that apply are 3, 4, and 5 which all require acquisition directly from a sole source contractor. Items with temporary AMSCs, such as AMSC A or H, will not be added until such time as they have been assigned a permanent AMSC.

All items will have been certified sole source to BAE by the cognizant technical authority before being incorporated in this contract. The spare parts covered under this proposed contract have been procured from BAE on a sole source basis for the life of the applicable systems. Thus, only BAE has the capacity and capability required to fulfill these requirements. As the Original Equipment Manufacturer (OEM), BAE has the requisite engineering expertise, data, tooling, qualification testing capability, and configuration control knowledge required to ensure that performance specifications conform to the proper form, fit and function and the ability to resolve technical issues associated with performance. BAE is the only contractor that can leverage the production capability and in-depth knowledge of the vendor base required to support these weapon systems while driving down overall cost to the Government.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS

MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

This requirement will be synopsized on Federal Business Opportunities (FedBizOpps) as required by FAR

5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis. Although the Government does not own data to support acquisition of this BAE sole source items from any other source, any source who responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential for subcontracting possibilities.

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 and pricing data to be used in supporting the Government’s evaluation of the proposed cost. The proposed skill mix of labor, labor hours, types and quantities of material, other direct costs, and direct and indirect rates will be negotiated by the Government based on recommendations from the Defense Contract Audit Agency (DCAA) and expert technical personnel supporting the program. The contract price will be negotiated in accordance with the procedures in FAR Part 15. In such cases where applicable, prices for items added to contract will be determined reasonable in accordance with FAR 15.404, through negotiations that will be conducted using information other than cost and pricing data from the contractor. Thorough price analysis will be conducted using available information and approved pricing techniques that will support the contracting office in making a determination that the price paid to the contractor is fair and reasonable to the Government. Based on the foregoing, the Contracting Officer hereby determines the anticipated cost to the Government will be fair and reasonable.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS, OR

STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT CONDUCTED

Efforts were made to conduct market research both at the time of the sole source BAE contract preceding this proposed effort, and for the current effort. For the J&A obtained under the previous contract, a Type 1 Business Case Analysis (BCA) was performed as well as a synopsis announcing to industry the intent to award a long term, corporate contract for sole source BAE items. No source other than BAE expressed interest. For this J&A, a synopsis has been issued through FedBizOpps on August 28, 2014 announcing DLA’s intent to award a new sole source BAE umbrella long term contract. No source other than BAE has expressed interest. Additionally, the Engineering Authority for each NSN lies with the DoD Services that manage the affected aircraft. As the Engineering Authority, the Services conduct continuous market research and maintain market awareness relative to the specific items under their control. Their findings are well documented and a record is created and regularly updated for each NSN. This documentation includes the item’s procurement history, the AMC assigned, and the rational for procuring the item through any means other than full and open competition. For the items to be acquired here, the responsible Engineering Authority has determined that no source other than BAE can satisfy the Government’s requirement. History supports that these items have been and will continue to be sole source to BAE.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION

This OEM is not willing to sell data rights to the Government, which means the technical data package, specification, and engineering description suitable for Full and Open Competition cannot be developed. The Government has determined that reverse engineering is cost prohibitive at this time.

Additionally, the articles to be procured are complex and flight critical. The Government has not yet acquired or developed the technical data necessary to insure that the critical operational and reliability requirements for these flight critical items can be met by any other source than BAE.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE ACQUISITION

As explained in section VI, only BAE has expressed an interest in the acquisition.

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

There currently are no plans to compete this procurement. BAE is the only source with the capability of furnishing the required supplies. DLA Aviation will continue to synopsize future requirements to allow industry the opportunity to identify competitive items. The cognizant Competition Advocates will review both the initial requirements and all potential add-on items. Any items that subsequently become competitive after award will be removed from the contract in accordance with the Addition/Deletion of Items clause in the contract, pursuant to Defense Logistics Acquisition Directive 52.216-9006.

XII. CONTRACTING OFFICER’S CERTIFICATION

The contracting officer’s signature on the Coordination and Approval Document evidences that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

Technical and/or Requirements Personnel will certify for accuracy and completion any future data used in support of items to be added to contract. As no items are being added at this time, no certifications have been obtained for the current action.

Attachments:

Attachment 1 - Spend Projections