Exception_to_Fair_Opportunity_JA_20160603 _H94003-04-D-0003-0081-03_Redacted.pdf

Justification for Exception to Fair Opportunity for

Advanced Technology Support Program III (ATSP3) Indefinite Delivery / Indefinite Quantity (ID/IQ) 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:

The Defense Microelectronics Activity (DMEA) has a requirement to create a Class III clean space capable of supporting 200mm wafer processing. This increase in contract requirement will add the installation of the necessary infrastructure in Building 2 that will be required to create a Class III clean space that can support 200mm wafer processing equipment in the future. This task will expand on the current requirement by installing facility water distribution, electrical systems, structural steel, make-up air, equipment exhaust, Instrumentation and controls, life safety systems, and telecom. A modification to the current task is anticipated; H94003-04-D-0003-0081

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

DMEA posted the requirement for the 10K clean room build for Fair Opportunity in 2015 providing all ATSP3 contract holders the opportunity to propose. The clean room build task consisted of a CPFF CLIN covering the management plan and oversight of the project, and an unpriced FFP option CLIN consisting of the clean room build. DMEA received competitive offers from NGES and GDAIS. The initial award of the CPFF CLIN was made to NGES and the FFP option was to be exercised at a later date. After many months negotiating the FFP requirements it was determined that a fair and reasonable price could not be achieved within the existing budget. Then, on May 26, 2016 DMEA was notified of a core budget reduction that would not permit the acquisition to be completed as planned and the negotiations were suspended.

Due to the core budget reduction, the acquisition strategy was revised to focus on the infrastructure required to prepare the facility for the future clean room and to postpone the clean room build. Due to the change in strategy, it was determined that the infrastructure enhancements were within scope of the existing foundry sustainment task performed by GDAIS under Task Order H94003-04-D-0003-0081. This approach was selected due to GDAIS being uniquely qualified in performing similar DMEA facility infrastructure tasks for the past 18 years, and being able to do so on a timeline which meets Government requirements.

The total estimated cost of this modification will be $27.082M. The task modification will be funded with FY15, FY16 and FY17 dollars.

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 fair 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)(A).

FAR 16.505(b)(2)(i)(A), The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

The building 2 cleanroom requirements specification includes the requirements for cleanroom systems and the facility services to support the cleanroom systems. A facilities scope definition has been created that identifies the facility services portions of the cleanroom specification by individual drawings. Many of the specification drawings define both cleanroom systems and the facility services. The building 2 facilities scope definition includes facility services equipment, facility services distribution and support structures for the equipment and distribution. The facilities services include air handling units, hot water distribution, cold water distribution, electrical, exhaust, and waste water neutralization systems. All activities that are cleanroom systems or that require “clean build” are not included in the facilities scope definition. The complexity of the various elements (such as lateral distribution that connects to both the cleanroom bays, chases, and the equipment platform which is intermixed in the specification drawings, the distribution laterals traverse through the exterior walls, under the floors and above the cleanroom in an effort to maximize the usable space on the main cleanroom floor) of the entire infrastructure makes it not possible to separate the clean room systems specification from the facility services.

All these systems share the same facility supports with make-up air ducts, hot and cold water and electrical conduits. The inability to completely separate the cleanroom requirements from the facility requirements introduces specification uncertainty with resulting performance risk. Asking the performer to assume this risk will introduce significant increased cost at a time with limited government resources.

DMEA’s mission to be the DoD’s assured source of last resort for legacy microelectronic components requires that it implement the capability to fabricate particular microelectronic technologies by the time their life cycles transition to where they are no longer available from commercial suppliers. GlobalFoundries US 2 (GF US2) is currently under agreement with the Government to provide access to certain manufacturing processes

A portion of the work in this added scope is infrastructure to support the future installation of a clean room and 200mm semiconductor foundry. The clean space build was the subject of a previous negotiation which to failed produce an agreement. As a result of this failed negotiations, DMEA has lost nine months and experienced one round of budget reductions.

The Government has an urgent and compelling need to award this add-scope because if it is not awarded in FY16, the total schedule will slip by an estimated two years. This is unacceptable as it leaves DMEA unable to install the manufacturing processes that are under the agreement with GFUS2 before prior to its expiration. Additionally, further delays are extremely likely to lead to further reductions in budget, which jeopardizes the project in its entirety. The processes and capabilities which will be provided by DMEA’s newer foundries are still in high demand for DoD systems and are being used to meet the needs of the future. Only through the award of this add-scope will DMEA continue to be able to fulfill these requirements.

GDAIS has extensive experience in creating the facility services infrastructure necessary to build the clean space required the support a 200mm tool set. They have the necessary experience to perform all the installation activities and understand how to accomplish these tasks on the DMEA campus. Initial facility infrastructure elements were installed by GDAIS in the Building 2 Central Utility Plant. Similar infrastructure elements were installed by GDAIS for the ARMS IV build.

Both of these elements were completed under H94003-04-D-0003-0065. The previous work was completed on time and within budget. Portions of the added scope are a direct extension to the work performed under task order 0065. Based upon this it was determined that GDAIS is uniquely qualified to perform this added scope.

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.

NAME: Joseph Hetrick DATE: 03 June 2016

TITLE: Contract Specialist SIGNATURE: _________________

VI. Additional Fact Supporting this Justification:

N/A

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

The infrastructure and support activities contained in this added-scope modification are within the scope of the current task order and GD is uniquely qualified to perform these services. DMEA is investigating alternatives to future sole source orders for activities related to the DMEA Building 2 Clean Room installation. The acquisition strategy is still being

HETRICK.JOSEPH.J

AMES.1073553179

Digitally signed by

HETRICK.JOSEPH.JAMES.1073553179

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=OSD, cn=HETRICK.JOSEPH.JAMES.1073553179 Date: 2016.06.03 14:44:58 -07'00' developed, but DMEA expects to issue a solicitation for a competitive IDIQ for Building 2 Install Support Services.

Additionally, DMEA expects to compete future ATSP4 task orders for program/project management activities to support the building 2 install contractor(s).

VIII. CONTRACTING OFFICER CERTIFICATION:

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

NAME: Caren Jackson DATE: 03 June 2016

TITLE: Contracting Officer SIGNATURE: _________________

IX. TECHNICAL or REQUIREMENTS CERTIFICATION:

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

NAME: Jerry Tucker DATE: 03 June 2016

TITLE: Process Development Branch Chief SIGNATURE: _________________

JACKSON.CARE

N.A.1275884410

Digitally signed by

JACKSON.CAREN.A.1275884410

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=OSD, cn=JACKSON.CAREN.A.1275884410 Date: 2016.06.03 14:48:42 -07'00'

TUCKER.JEROM

E.R.1229130001

Digitally signed by

TUCKER.JEROME.R.1229130001

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=OSD, cn=TUCKER.JEROME.R.1229130001 Date: 2016.06.03 14:49:22 -07'00'