CJA 21-0254 -- IRST MDSI Production_REDACTED.pdf

CJ&A 21-0254

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

10 U.S.C. 2304(c)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

MDSI is the sole source designer, developer and manufacturer of the ECU and is the only known responsible source that possesses the requisite knowledge, technical expertise, special skills, technical data, facilities and experience to produce the ECU. The

Government cannot compete the acquisition for the ECU as it does not own the necessary technical data rights, the process and manufacturing data specifically, to conduct a competitive acquisition.

As approved within CJ&As 12-22706 and 18-0536, Boeing functioned as the prime contractor and lead systems integrator for the IRST program throughout all IRST Block I and II efforts to date. Lockheed Martin Missile and Fire Control (LMMFC) and MDSI have been key sub-contractors and have been manufacturing their components throughout the entire process. One prime integrator was necessary due to concurrent development and production of Block II IRST pods. Since development is nearing completion, the

Government will act as the GFE manager and lead system integrator for the LRIP and

FRP strategy. The Government will procure the ECU from MSDI; the Processor, Inertial

Measurement Unit (IMU), and Infrared Receiver (IRR) from LMMFC; and Sensor

Assembly Structure (SAS), and the Fuel Tank Assembly (FTA) from Boeing. In addition, Boeing will be the final integrator of all components, performing an Acceptance Test

Procedure (ATP), performing final tests, and providing an all-up-pod (AUP). By pursuing three separate contracts, NAVAIR 4.2 estimates a cost avoidance of

The Government did not procure the complete Technical Data Packages (TDP) with unlimited data rights for the IRST system from Boeing and its suppliers through previous contract actions and there is no plan to acquire the complete TDP during these efforts as it is cost and schedule prohibitive. From a cost perspective, in September 2016, Boeing and its suppliers provided a Rough Order of Magnitude (ROM) cost estimate for the complete TDP. The ROM estimate was priced at

The source code for the software is an integral and necessary requirement for the IRST Block II Phase 2 and

CJ&A 21-0254

LRIP efforts. From a schedule perspective, without the TDP, competitively awarding these requirements to another source would take approximately ten years. This estimate is based on the historical data associated with the original procurement of the IRST system. Without the complete TDP, the source would be required to redevelop the IRST

Block I system in order to incorporate the necessary Block II changes. Specifically, it would take approximately one year to compete this effort. A new source would spend another five years developing a production representative system. The Government would spend another four years qualifying the new source. This amount of time would present an unacceptable delay in fulfilling the agency’s requirements due to the acquisition program baseline schedule for Initial Operational Capability (IOC).

MDSI has the only active production line capable of providing these WRAs. For these reasons, the ECU cannot be procured by any source other than MDSI, without resulting in unacceptable cost and schedule impacts in fulfilling the Department of Defense’s

(DoD) requirements to the Government that is not expected to be recovered through competition.

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

A sources sought was posted on Beta.Sam.Gov as a Special Notice under FAR 5.205(c) on 17 March 2021; no responses were received.

As required by FAR 5.201, a synopsis of the proposed Indefinite Delivery contract was published in Beta.Sam.Gov on 16 April 2021 and no responses have been received. Any responses received will be evaluated by the Contracting Officer prior to award.

Additionally, any parties interested in subcontracting opportunities will be referred to

MSDI to maximize competition in subcontracted efforts.

No additional market research was conducted because it is not practicable, for the reasons discussed in section 5 above, for any company other than MDSI to provide the required supplies and services.

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 types of supplies/services covered by this document. If another potential source emerges, NAVAIR will assess whether competition for future requirements is feasible.