AGM65JA_Redacted.pdf

COORDINATION AND APPROVAL DOCUMENT

Contracting Activity: AFLCMC/EBHKA Purchase Request Number: FD2020-16-50845 Program Name: AGM-65 Maverick Missile Repair Estimated Program Cost:

Type Program: PEO Program Authority: 10 USC 2304(c) (1), as implemented by FAR 6.302-1 Type J&A: Individual

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FD2020-16-50628

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

United States Air Force

AFLCMC/EBHKA

Contracting Officer: Daniel Rusch 6072 Fir Ave, Building 1233 Hill AFB, Utah 84056-5825

DSN: 777-4161

Purchase Request: FD2020-16-50628

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

A. Upon approval to use other than full and open competition procedures, the U.S. Air Force will issue a new contract for the repair/refurbishment of Maverick Missile Cryoengines (NSN 1420-01-152-4363 CTI P/N 3806070-1) & (NSN 1420-01-370-2130 HUGHES P/N 3806070-2), Detector Optics Assemblies (DOA) (NSN 6615-01-195-4020 P/N 3829045-1), and AGM-65L Guidance Control Sections (GCS) (NSN 1420-01-587-4713 P/N 2299100-100) to Raytheon Missile Systems (RMS), 1151 E. Hermans Road, Tucson Arizona, 85756-9367 (CAGE Code 15090).

B. Contract Type: C-type contract for repair of approximately 60 CTI or Hughes Maverick Missile Cryoengines, 120 DOAs, and 15 AGM-65L GCSs. The pricing structure will be Cost Plus Fixed Fee (CPFF) for the Cyroengine, DOA and GCS repairs. The evaluation of the GCS will be Firm Fixed Price (FFP). The rationale for CPFF is the condition of the DOAs, Cryoengines and GCSs are currently unknown and the cost to repair cannot be reasonably determined. The contractor will evaluate the GCSs to determine the condition of the units and provide a cost estimate to the SPO for the repair of the units. The contract period of performance will start in September of FY16 and will be a one year basic contract with two one-year options.

Year one estimated value is total estimated contract value with options is

Approximate contract award date is 19 Aug 2016.

C. Type of J&A: Individual.

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY NEEDS

This contract will be for repair services for the Maverick AGM-65 Cryoengines, DOAs, and AGM-65L GCSs.

The AGM-65D and AGM-65G/G2 Maverick Missiles use Infrared (IR) Guidance and Control Sections (GCS) which require extreme cooling by the Cryoengine and the DOA. Maverick AGM-65L Air-to-Ground Missile (AGM) GCSs are critical components of the system to maneuver and guide the missile to an intended target. The contractor receives one or both Cryoengine variants (NSN 1420-01-152-4363 CTI) & (NSN 1420-01-370-2130 HUGHES) in lots of 10 - 20 units, DOAs (NSN 6615-01-195-4020) in lots of 30 - 40 units, and/or AGM-65L Guidance Control Section (NSN 1420-01-587-4713) in lots of 1 - 5 units and performs an initial inspection and screening process to determine whether the end item should be repaired, refurbished, rebuilt, or condemned. Screening will determine the repair status/criterion category (i.e., Minor; Major, Beyond Economical Repair (BER), etc.).

The contractor evaluates Government furnished DOAs (P/N 3829045-1), and determines if the DOA can be repaired or refurbished. DOAs which pass the evaluation shall be refurbished and functionally tested by removing the F1/F2 lens (P/N 3805840-2), decontaminating the Detector (P/N 260037-10), and installing and realigning the F1/F2 lens at the DOA level and return the items back to Tobyhanna Army Depot (TYAD) in a serviceable condition IAW Raytheon Drawing 2253512-1.

AGM-65L GCSs are to be inducted at the contractor’s facility and evaluated to determine the condition of the unit. The contractor will provide a cost estimate to the SPO for the repair of the GCS. If the SPO and Contracting Officer determine the cost is acceptable, the contractor will then repair the unit and return the GCS to serviceable condition.

A.

The contractor will furnish all facilities, parts, materials, data, equipment, and services required to inspect, screen, repair, upgrade, and/or refurbish the following end items:

CLIN NSN Noun Quantity Estimated Cost 0001 1420-01-142-4363 or

1420-01-370-2130 Cryoengine Repair 1 (Lot)

0002 6615-01-195-4020 Detector Optics Assembly Repair

1 (Lot)

0003 1420-01-587-4713 Over and Above Repairs

1 (Lot)

0004 1420-01-587-4713 AGM-65L GCS

Repair

1 (Lot)

0005 N/A Data 1 (Lot) 1001 1420-01-142-4363 or

1420-01-370-2130 Cryoengine Repair, Option Year 1 1 (Lot)

1002 6615-01-195-4020 Detector Optics Assembly Repair, Option Year 1

1 (Lot)

1003 1420-01-587-4713 AGM-65L GCS

Evaluation, Option

Year 1

1 (Lot)

1004 1420-01-587-4713 AGM-65L GCS

Repair, Option Year 1

1 (Lot)

1005 N/A Data, Option Year 1 1 (Lot) 2001 1420-01-142-4363 or

1420-01-370-2130 Cryoengine Repair, Option Year 2 1 (Lot)

2002 6615-01-195-4020 Detector Optics Assembly Repair, Option Year 2

1 (Lot)

2003 1420-01-587-4713 AGM-65L GCS 1 (Lot)

Evaluation, Option Year 2

2004 1420-01-587-4713 AGM-65L GCS

Repair, Option Year 2

1 (Lot)

2005 N/A Data, Option Year 2 1 (Lot)

B. This contract is estimated to award by Aug 19, 2016. The Period of Performance for the base year is 19 Sep 16 – 18 Sep 17, with two one-year options. This contract is a service, using 3400 funds. Request approval for more than one year as there is a recurring requirement to repair these components year to year. Market Research has shown that there are no other vendors with the capability or proprietary processes/data in order to compete this requirement. There are no feasible actions that could be developed during the Period of Performance of this contract. A multi-year contract will provide the Government with a more strategic contract vehicle to account for future requirements while reducing the administrative burden of performing contract requirements each year.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 U.S.C. 2304 (c) (1), as implemented by FAR 6.302-1, Only One Responsible Source.

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS

OR NATURE OF THE ACQUISITION REQUIRES THE USE OF AUTHORITY CITED

ABOVE (APPLICABILITY OF AUTHORITY)

A. Cryoengine and DOA This is a follow-on contract for the continued repair of highly specialized equipment. RMS was selected because the government does not possess the data or rights to the data to procure the AGM-65 Cryoengine, DOA, or AGM-65L GCS from a source other than RMS. The data is proprietary (Vendor Design) which precludes the manufacture of the item from other sources.

Cryoengines and DOAs require special test and inspection equipment to determine and maintain ultra-precision quality for the components’ functions and Maverick Missile Weapon System integrity. Specialized equipment is required to purge and fill the Cryoengines post rebuilds and validate the DOA repair process. Post fill of the units are proof- pressure tested on the Cryoengine acceptance test station. DOA repair requires energizing the DOA and vacuuming out nitrogen/argon that may be leaking in from the malfunctioning asset. Currently the only entity with energizing capability and process is currently at RMS. Due to the lengthy heritage of the Maverick program all test equipment is unique, singularly historical, and would require a minimum of to develop and qualify on the Maverick program. Due to these reasons, the Cryoengine and DOA test and inspection equipment are considered special and unique.

AGM-65L GCS

RMS is the only current supplier for AGM-65 IR and AGM-65 LASER Maverick missiles. Due to the limited availability of technical data other suppliers would require an extensive bottom up development effort, including certification and other Government evaluations above what would be required by the supplier which would result in a substantial duplication of costs estimated at

Government attempted to obtain the data rights in Aug 2015; the Program Director for Maverick indicated that RMS is currently not willing to provide a price or sell the data rights to the Weapon System 319, Maverick. The RMS Program Director requested that the SPO pursue the request for the data rights at a later date. The GCS requires special test and inspection equipment to determine and maintain ultra-precision quality for Maverick Missile Weapon System function and integrity.

Bottom line: GCS manufacture and/or repair cannot be accomplished without the specialized tooling , test equipment and inspection at the repair facility or the technical capabilities and knowledge possessed by RMS. Raytheon was selected because the GCS is part of the AGM-65 Air-to-Ground Missile (a.k.a. Maverick Missile). Therefore, this acquisition will be for the follow-on contract for the continued repair of highly specialized precision guided missile components.

B. RMS, the original equipment manufacturer (OEM), was contacted in Dec 2008, Feb 2009, Feb 2010, Mar 2011, Nov 2012, Jan 2013, Jan 2014, and most recently in Feb 2015, during a joint PMR with RMS. RMS confirmed their intent not to sell the Government data rights (data rights, government purpose rights, or OMIT data) on Feb 2015. The Government received written notification that RMS is not willing to sell or release data rights to specific critical data to the government (reference Para. VIII) To allow competition for AGM-65 Maverick Cryoengine, DOA, and AGM-65L GCS.

C. The Maverick SPO, Engineering Team has conducted a reverse engineering Basis of Estimate (BOE) for repair of the AGM-65 Maverick Missile Cryoengine. The government does not own the specific Cryoengine test equipment to accomplish this work. This BOE was developed using past contracted efforts for similar Maverick taskings. The evaluation found the reverse engineering costs (duplication costs) would equate to

The AGM-65L LASER GCS is a critical component of the system to maneuver and guide the missile to its intended target. The OEM for the AGM-65L is RMS and was developed at their own expense which resulted in their acquiring significant proprietary data to the technology.

Substantial duplication in costs estimated at $16M would result in order to stand up a new repair source.

Accordingly, RMS is the only firm capable of providing the repair services described in Section III above without the U.S. Air Force incurring substantial duplication of costs that could not be expected to be recovered through competition.

VI. DESCRIPTION OR EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

Sources Sought for repair of the AGM-65 Cryoengine within the Maverick Missile System.

a. Sources Sought was posted 05 Nov 2015 – Closed 20 Nov 2015.

Synopsis Number- FD2020-16-50628

b. No responses received.

c. This requirement will be synopsized in the FedBizOpps (FBO), as a notice of Contract Action IAW FAR 5.201

d. No other actions to report

e. No qualifying country source.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

A. The following steps will be taken to ensure that the anticipate cost of this acquisition will be fair and reasonable. Actions anticipated to ensure reasonableness of the price will be accomplished with procedures and criteria contained in Federal Acquisition Regulation (FAR) under Part 30 - Cost Accounting Standards, Part 31 - Contract Cost Principles and Procedures, Subparts 15.4 - Contract Pricing, as appropriate. Further actions will be under the guidance of the Contract Pricing Reference Guides, jointly developed by the Federal Acquisition Institute and the Air Force Institute of Technology. The Contracting Officer will obtain certified cost and pricing data IAW FAR Subpart 15.403, unless the proposal meets one of the exceptions specified in FAR 15.403-1(b). Detailed documentation and justification of price reasonableness will be disclosed in the official PNM/PCM, to be prepared upon completion of negotiations.

VIII. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS

OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT

CONDUCTED

A. As described in Section VI above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. In Nov 2009 through Nov 2015 no other sources have come forward to repair the Maverick Missile Cryoengine, DOA, or AGM-65L GCS.

Market research consisted of reviewing existing Government programs to identify other USAF weapons that utilize IIR and LASER technology, general inquiries to industry to identify a Form, Fit, Function (FFF) option, and general internet searches via Google, ThomasNet, and similar listings in FedBizOps. Additionally, review of commercial catalogs and other product literature was completed and determined this part to be “non-commercial.” The review indicated no other alternate commercial items or non-developmental item (NDI) will meet the requirement, nor can the requirement be modified to permit use of existing commercial items or NDIs.

The OEM is RMS, in Tucson AZ and the Government does not possess the technical data or rights required to qualify a source for Cryoengine manufacture and/or repair. However, the Government is intimately involved throughout the qualification process to ensure Air Force Maverick Missile System integrity. As with previous contracts we have inquired of industry for interest in this type of work. There is no interest from industry in general because these are highly specialized items and the equipment to repair and test is not available.

In Nov 2008, the Cryoengine manufacturer Raytheon Vision Systems (RVS) in California announced its intent to divest itself of all Cryoengine business. Early 2009 Raytheon Missile systems had requirements from both Foreign Military Sales / Air Force customers for Cryoengine repairs. Within a year RMS set up a new repair facility primarily with their own funding. RVS is no longer part of RMS.

Government Engineers were queried, and program historical documentation examined to determine a path forward. In Dec 2009, weekly teleconferences began between the Maverick System Program Office (SPO), the Maverick OEM, Cryoengine entities; RMS, Raytheon Electronics Division. The Maverick SPO discussed the time frame for the new German built Cryoengine on April 7 2014. RMS estimates availability for the German built Cryoengine for FMS sales in 2016.

B. The Maverick Missile Cryoengine, DOA, and AGM-65L GCS are non-developmental items for which there are no known commercially available items that meet the specific requirements currently required by the AGM-65 Maverick Missile. No other sources are available; no companies came forward during sources sought which closed 20 Nov 2015.

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

OPEN COMPETITION

NONE

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

ACQUISITION

See Section VI above.

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 OR SERVICES REQUIRED

The Designated Source of Repair (DSOR) for the Cryoengine workload requires contract repair.

The Government does not have sufficient data rights required to allow for competition of this requirement.

However, the Maverick SPO will continue to perform market research for this asset, to include annually posting notices seeking sources interested in becoming qualified. Additionally, the Government will continue to attempt (at least annually) to purchase data rights necessary to foster competition.

XII. CONTRACTING OFFICER’S CERTIFICATION

“IAW FAR 6.303-2(b)(12)” The contracting officer’s signature on the Coordination and Approval Document (CAD) evidences that he has determined this document to be both accurate and complete to the best of his knowledge and belief.

XIII. TECHNICAL/ REQUIREMENTS PERSONNEL’S CERTIFICATION

“IAW FAR 6.303-2(c) As evidenced by their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.