CET_15-502_Exception_to_Fair_Opportunity_JA.pdf

Justification for Exception to Fair Opportunity for

Advanced Technology Support Program Ill (ATSP3) Indefinite Delivery /Indefinite Quantity (IDIIQ) Task Order Contract

I. Agency and Contracting Activity: Office of Secretary of Defense, Defense Microelectronics Activity (DMEA)/ MEEB Contracting Office Justification for an Exception to Fair Opportunity in accordance with 16.505(b)(2) .

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

This is a new task order under the basic IDIQ contract, H94003-04-D-0001 (Lockheed Martin) to resolve obsolescence and vanishing vendor issues with the B-2 Defensive Management System (OMS) equipment requi red for the repair and test of critical Shop Replaceable Units (SRUs) , Sub-shop Replaceable Units and Circuit Card Assemblies in the ZSR-63 Threat Emitter Location Set (TELS) A cost plus fixed fee engineering serv ices order is anticipated with FY14 57 43010. The estimated program value is $3 ,600 ,000. The effort is being fu nded with USAF Procurement Funds. These funds are available until completely expended .

The purpose of the basic ATSP3 contract is to develop solutions for the reliability , maintainability, obsolescence, avail ability, supportability , manufacturability, capability , and performance needs or deficiencies of items that range in complexity from discrete electronics through integrated circuits , circuit boards, modules, assemblies , subsystems, systems, and systems of systems. ATSP3 engineering approaches included advanced technology engineering and advanced hardware and software engineering.

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

The purpose of this task, HBMU Increment 6, is to build , integrate, and test PPF3 Calibration Source SRUs, Hybrids and Circuit Card Assemblies (CCA) Test Sets based on the existing HBMU Lite and Digital Receiver Development (DRD) Roll Around Testers . This CET also builds a tester and upgrades software to calibrate the Calibration Source SRU with the delivered HBMU testers under Increment 1 and 2. The estimated value of this task is $3,600,000. The estimated period of performance is (12) twelve months after receipt of order (MARO).

IV. 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 fa ir opportunity to be considered for each order exceeding $3 ,000 unless a statutory exception applies The specific exception that precludes the fair opportunity process for this acquisition is FAR 16.505(b)(2)(i)_.

FAR 16. 505(b)(2)(i)(8) , 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.

v. FAIR AND REASONABLE COST DETERMINATION:

"I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable." Actions to insure 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.

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VI. Additional Fact Supporting this Justification:

DMEA CET 09-950 reverse engineered the existing HBMU equipment, identified its operational and functional requirements, determined new requirements , and provided a detailed design for the new HBMU equipment that is fully functional and supportable. Five (5) HBMU increments have been established to address legacy LRUs, SRUs and SSRUs. B-2 Program Office has determined a requirement exists to implement the test and repair capability for the Preprocessor Form/Fit/Function (PPF3) LRU replacement and the associated SRUs and CCAs within the HBMU framework. PPF3 is currently being redesigned under DMEA CET 11-149. HBMU Lite tester was developed under HBMU Increment 5 under DMEA CET 12-267. All previous increments have been awarded on a sole-source contractual arrangement This increment is justified as a sole-source effort.

Lockheed Martin, Owego NY, is the original equipment manufacturer, current source of repair for the equipment and holder of all data and processes necessary for the effort The data/documentation and processes are proprietary. This contractor has declined to sell system data rights , making competition impracticable . No other supplier (contractor) is capable (nor would be capable) of providing the specialized background, expertise, or services required at the level and quality necessary to meet the requirements without incurring substantial duplication of cost and unacceptable schedule delays.

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

Since Lockheed Martin owns the rights to several elements of the technical data and with this task being the last increment of development, little can be done to remove the existing barriers to competition.

VIII. CONTRACTING OFFICER CERTIFICATION:

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

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IX. TECHNICAL or REQUIREMENTS CERTIFICATION:

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