Bert C-130_CWB_JA_LM_Effort_(V23 approved)_Redacted.pdf

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 3204(a)(1); Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

LMC is the Original Equipment Manufacturer (OEM) of the C/KC-130 aircraft and developed the C/KC-130 aircraft at private expense as a commercial item. The Government originally procured the C/KC-130 under a FAR Part 12 contract in 1997 and the Government has only those rights in technical data and computer software that would be provided to commercial customers. LMC has repeatedly declined to sell the necessary C/KC-130 technical data to the Government.

LMC, as the sole designer, developer, and manufacturer of the C/KC-130 aircraft and ESL CWB kits 3368600-5, 3368600-7 and 3368600-9, is the only known source with the necessary technical data, proprietary drawings, knowledge, experience, and expertise required to complete the efforts called for hereunder. In order to successfully install the ESL CWB, the Government requires kits 3368600-5, 3368600-7 and 3368600-9. The CWB is a critical component of the aircraft and comprises of the structure that attaches the wings to the fuselage. Without these specific kits, the CWB cannot be upgraded and replaced while maintaining airworthiness certification, and there are no known alternatives to these parts available, as LMC is the only known manufacture of these parts. As a result, these kits are essential to the Government�s requirements, thereby precluding consideration of another product manufactured by another company.

This procurement also requires NRE to design a specific conversion kit to BUNO 170000 and the technical data required to install that kit. The procurement will also include the production of the BUNO 170000-specific conversion kit. LMC, as the aircraft OEM, owns the associated design drawings and related data, and possess the requisite knowledge and expertise, training and experience, production facilities, and tooling regarding the aircraft design and documentation requirements to complete the required NRE and conversion kit production. This, coupled with LMC's proprietary data rights, limit the Government to obtaining the peculiar services and supply from LMC as the OEM. The Government does not own or possess the technical data rights to enable the Government to compete these services and supply. As the OEM, LMC is the only known firm capable of the conducting the NRE and manufacturing required to produce the BUNO 170000-specific conversion kit and accompanying technical documentation required for installation into the aircraft, and without LMC�s capabilities, the aircraft will not meet the Government�s specifications.

As such, without this contract to LMC, the only way for the USG to provide a C-130 aircraft to the Blue Angels to meet the ESL CWB requirement would be to purchase a new production C-130 aircraft with sufficient service life remaining. Current production prices for a new C-130J are , which represents an unacceptable cost to the Government that would not be recouped through competition. To date, the Government has spent approximately acquiring and modifying BUNO 170000. Due to the substantial duplication of costs that would be required to replace this C-130J for the Blue Angels, LMC is the only responsible source with the technical data and expertise capable of providing data and kits to extend the service life of the current airframe and satisfy Navy requirements.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

Market research was conducted to determine if any sources other than LMC exists that can satisfy the agency's requirements. This effort included discussions with subject matter experts within the government as well as industry. A Sources Sought notice was published via the System for Award Management (SAM.gov) website on 28 March 2023. Responses were received from Marshall Aerospace and from Cascade Aerospace, Inc. Both companies indicated they did not have the capability to independently complete the Government�s requirement and would be reliant on subcontracting arrangements with LMC for the NRE and accompanying technical data, as well as the production of the three identified top ESL CWB kits and the conversion kit. After evaluation of the submitted information by the Program Office, the contracting officer informed both companies in writing that the Government had determined that they were not capable of meeting the Government�s requirement. In particular, because both companies submitted information suggesting they were capable of the installation of the CWB, the Government informed both companies that the installation of the CWB kits was not part of this procurement. Representatives of the Program Office and the contracting officer then held discussions with Marshall Aerospace and Cascade Aerospace. Subsequently, both companies, based on a better understanding of the Navy's requirements, agreed with the Government's assessment that they would need to subcontract for the full effort to LMC in order to meet the Government's requirements. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than LMC to provide the required supplies and services. The proposed contract was synopsized for informational purposes on 8 May 2023. The posting closed on 23 May 2023 with no responses from industry received.

Additionally, any parties interested in subcontracting opportunities will be referred to LMC to maximize competition in subcontracted efforts.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NAVAIR has no plans at this time to compete future contracts for the requirements covered in this document. If another potential source emerges, NAVAIR will determine whether competition for future requirements is feasible.