JA SDB I CLS Sustainment Contract PEO signed_Redacted.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

CONTROLLED UNCLASSIFIED INFORMATION

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Was a J&A approved for the preceding acquisition? Yes No

! ! Attach the preceding J&A in the staff package for this J&A. The preceding J&A will be used as a reference document.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined at AFFARS 5302.101? Yes No

Dollar Value of this Acquisition:

Contracting Activity:

Purchase Request (if available): TBD

Program / Project (and PE, if applicable): Small Diameter Bomb-I (SDB-I)

Program Type (PEO, Enterprise, of Operational): PEO-Weapons (ACAT II)

Authority: 6.302-1 – 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): J&A Type: Individual

COORDINATION ( AFFARS 5306.304(a))

Date

09 Nov 2021

Program Manager TAYLOR A. DURAN, Civ, DAF

AFLCMC/EBHTB (DSN: 777-6159)

Signature

Date

06 Dec 2021

Contracting Officer KELLEE D. GROSE, Civ, DAF

AFLCMC/EBHKA (DSN: 777-4245)

Signature

Date

08 Dec 2021

Legal Reviewer JONATHAN R. BRYANT, Civ, DAF

75 ABW/JAQ (777-7453)

Signature

Date

24 Mar 2022

Chief of the Contracting Office (COCO) KEVIN G. FLINDERS, Civ, DAF

AFLCMC/PZK (777-5399)

Signature

Date

31 Mar 2022

Competition Advocate MELINDA M. SCHMIDT, Civ, DAF

AFMC OL:H/PZC (777-6549)

Signature

Date

02 May 2022

Senior Materiel Leader GUY T. SPENCER, Col, USAF

AFLCMC/EBH (777-5435)

Signature

DURAN.TAYLOR.A.1384

417627

Digitally signed by

DURAN.TAYLOR.A.1384417627

Date: 2021.11.09 11:18:50 -07'00'

GROSE.KELLEE.D.11162

92170

Digitally signed by

GROSE.KELLEE.D.1116292170

Date: 2021.12.06 11:26:30 -07'00'

BRYANT.JONATHAN.R.1

470694153

Digitally signed by

BRYANT.JONATHAN.R.1470694153

Date: 2021.12.08 14:07:22 -07'00'

FLINDERS.KEVIN.G.1231

477949

Digitally signed by

FLINDERS.KEVIN.G.1231477949

Date: 2022.03.24 08:48:54 -06'00'

SCHMIDT.MELINDA.M.1

144943801

Digitally signed by

SCHMIDT.MELINDA.M.1144943801

Date: 2022.03.31 09:51:05 -06'00'

SPENCER.GUY.T.107180

Digitally signed by

SPENCER.GUY.T.1071801809

Date: 2022.05.02 09:00:34 -06'00'

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APPROVAL ( AFFARS 5306.304(a))

Date PEO / Commander (Requirements Cognizance) HEATH A. COLLINS, Brig Gen, USAF

AFLCMC/EB (872-5422)

Signature

COLLINS.HEATH.A.1017

411400

Digitally signed by

COLLINS.HEATH.A.1017411400

Date: 2022.06.06 15:22:45 -05'00'

April 2021 CONTROLLED UNCLASSIFIED INFORMATION Page 3 of 7April 2021 CONTROLLED UNCLASSIFIED INFORMATION Page 3 of 7

I. Agency and Contracting Activity.

Ms. Kellee D. Grose (801) 777-4245 United States Air Force, Hill Air Force Base, UT 84056

PR: TBD

II. Nature and/or description of the action being approved.

A. In accordance with FAR 6.302-1 -10 USC 2304(c)(1), Only one Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements, the United States Air Force will be awarding a new, non-commercial Indefinite Delivery/Indefinite Quantity (IDIQ) contract for Contractor Logistics Support (CLS) Services for the Small Diameter Bomb Increment I (SDB-I) Program. CLS includes warranty and non-warranty repairs as well as additional support functions on Guided Bomb Unit (GBU)-39/B, GBU-39A/B, GBU-39B/B, Bomb Rack Unit (BRU-61), Reliability Assessment Vehicles-Inert (RAV-I), Guided Test Vehicles (GTV), other related equipment, and future variants. The Small Diameter Bomb-I (SDB-I) program is a United States Air Force (USAF) Acquisition Category (ACAT) II major program. There is only one current source: The Boeing Company - Defense, Space, & Security (BDS), CAGE: 76301.

B. Contract Type: This contract will be a new IDIQ with a 5-year ordering period. The contracting arrangement will utilize Firm Fixed Price (FFP) Contract Line Item Numbers (CLINs). FAR 52.247-8 option 6-month extension will be added. The total estimated value of all orders is The estimate is based on expenditure trends from the current SDB I CLS contract to which this contract will be a follow-on. Estimated Award Date 1 APR 2023.

C. Type of J&A: Individual

D. Previous Contract Number: FA8672-18-C-0001, Sole Source contract awarded to The Boeing Company 6 Aug 2018, Performance Period through 31 Mar 2023.

III. Description of supplies/services required to meet agency needs (including the estimated value).

The Government plans to award a 5-year IDIQ service contract with an anticipated total cost of for CLS. The SDB-I program requires continuous CLS throughout production, fielding, and sustainment in accordance with the Life Cycle Sustainment Plan (LCSP). Sustainment will require the contractor to provide all personnel, equipment, supplies, facilities, transportation, tools, materials, management, supervision, and non-personal services. SDB-I sustainment also includes: Operational Safety, Suitability, and Effectiveness (OSS&E) testing, technical support for fielded items, Weapon System Evaluation Program (WSEP) test support, technical orders, software and integration support, maintenance, repair, and line replacement unit (LRU) spares.

The Government is contemplating a 5-year ordering period. The CLS environment requires maximum flexibility to allow the Government to quickly react to repair requirements and a 5-year ordering period will allow for this necessary flexibility. Without option years, pricing for contract requirements will be agreed to on a calendar year basis in order to account for escalation. The Period of Performance (PoP) for task orders will be established at time of award dependent on the type of repair required.

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Contract Summary

Category Estimated Annual Cost Estimated Total Cost Estimated Period of Performance

Basic (5 yr ordering period) 1 Apr 23 - 31 Mar 28

CLIN 0001-Non-Warranty Repairs Specified with Task Order Award

CLIN 0002- Operation Specified with Task Order Award

CLIN 0003- Technical Support Specified with Task Order Award

CLIN 0004- WSEP Support (4 per year) Specified with Task Order Award

CLIN 0005- Technical Orders Specified with Task Order Award

CLIN 0006- Software Support Specified with Task Order Award

CLIN 0007- Line Replaceable Unit (LRU) Support Specified with Task Order Award

CLIN 0008- Over and Above Repairs Specified with Task Order Award

FAR 52.247-8 Option; 6-Month Extension 1 Apr 28 - 30 Sep 28

Estimated Total Contract Value 1 Apr 23 - 30 Sep 28

Due to the continued logistics support required for the SDB-I weapon system, a contract duration for a period of 5-years is the minimum feasible term for this effort. On 31 Aug 2021, the OEM and current CLS provider, The Boeing Company, notified the Government that the Technical Data Package required to increase competition will not be available for purchase. As a result, opportunities for increased competition is not anticipated during this 5-year contract term.

IV. Statutory authority permitting other than full and open competition.

The statutory authority for this action is 10 U.S.C. 2304(c)(1) or 41 U.S.C. 3304(a)(1), as implemented by FAR 6.302-1(a)(2)(iii), required by FAR 6.303-2(b)(4).

V. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above (applicability of authority).

1. The SDB-I is made up of highly specialized hardware and software. The specialized nature of SDB-I is derived from the original acquisition approach and the enhanced capabilities achieved from multiple software revisions over the program's life time. The SDB-I weapon system has been designed, built, tested, produced and supported by Boeing since 2006. The technical support and sustainment services needed to maintain the OSS&E of SDB-I are intrinsic to the hardware and software designs of the system. Boeing is also the only source who possesses the necessary skill sets, technical data, special test/inspection/maintenance equipment, flight simulation models and computer programs to provide the required technical support services and analysis.

2. All SDB-I weapon system production and sustainment contracts have previously been awarded to the original equipment manufacturer (OEM), The Boeing Company. The previously approved acquisition strategy called for sole-source awards to The Boeing Company based on Class J&A document dated 6 May 2005. The J&A was approved with a total ceiling of and authorized the sole-source award of the previous CLS contract, FA8672-18- C-0001. Therefore, this acquisition will be a follow-on contract for the continued performance of a highly specialized service.

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3.The Government attempted to acquire Technical Data Package (TDP) on 3 Aug 2021. The OEM responded on 31 Aug 2021 stating that the requested data is not for sale.

4. The program office believes that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the Air Force's requirement. The Government expects a competitor to take more than 70 months to develop, test and integrate an equivalent system meeting DoD requirements at an additional cost of more than $1.49B. Assuming a potential 15% lower price from competition, the Government would not recoup the duplicative RDT&E cost. If competition is required, the Government would be required to procure the SDB-I technical data package (TDP) and provide it to interested vendors. Boeing owns SDB-I data rights and maintains the original design. Boeing has specialized knowledge and engineering expertise of the weapon hardware and software as the OEM. Boeing performed development and verification of production tooling and test equipment required to assemble, test, and deliver the SDB-I weapon system

5. Accordingly, The Boeing Company is the only firm capable of providing Contractor Logistics Support (CLS) to the SDB-I weapon system described in Section III above without the U.S. Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling requirements.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under

FAR 5.202 applies.

On 28 Jul 2021, posted a Sources Sought Synopsis on Beta Sam stating the Government was soliciting contractors capable of maintaining the SDB-I weapon system. The synopsis included, but was not limited to non-warranty repairs, Operational Safety, Suitability and Effectiveness Testing (OSS&E), technical support for fielded items, WSEP test support, technical order updates, software and software integration support, and repair or replacement of line replaceable units (LRU). The Government received two (2) responses to the Sources Sought Synopsis. One (1) response was from the current provider of the SDB-I system, The Boeing Company; ASCI Federal Services also submitted a response. ASCI is not registered under the NAICS code 332993, Ammunition (except Small Arms) Manufacturing and does not display the capabilities required to maintain the SDB-I weapon system as they perform general business support, packing, shipping, and logistics services.

A Notice of Contract Action (NOCA) synopsis will be posted on FBO at least 15 days prior to issuance of the final solicitation. In accordance with FAR 6.302-1(d)(2), any responses received will be considered. A synopsis of contract award will be posted to FBO in accordance with FAR 5.301.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer will ensure that the negotiated prices awarded under this J&A are fair and reasonable to the Government. The following steps will be taken to ensure the final contract price is fair and reasonable: (1) Obtaining a DCAA audit of the Contractor's proposed costs, if necessary; (2) Getting a technical evaluation from the technical team familiar with the past and current effort and qualified to make a recommendation on proposed labor hours, materials, and other direct costs for reasonableness; (3) Conduct price analysis using Defense Contract Management Agency recommended rates; (4) Compare the proposed prices with the program office's independent Government estimate; (5) Using the Weighted Guidelines (WGL) tool to determine the appropriate profit/fee; (6) In accordance with the Truth in Negotiations Act (TINA) and FAR 15.403-4, upon conclusion of negotiations, the Contracting Officer will obtain a Certificate of Current Cost or Pricing Data from the Contractor. The Price Negotiation Memorandum (PNM) will detail the cost and price analysis as well as document how the price was determined to be fair and reasonable.

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VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

There are no known sources of supply other than The Boeing Company that can support the SDB-I weapon system.

This effort is sole source due to the Technical Data package being proprietary to the Boeing Company. Sources Sought were used to determine if any other vendors believed they could provide support to the weapon system. The following companies responded to the sources sought notice posted on Beta Sam:

ASCI Federal Services, LLC, CAGE: AZNA7

The Boeing Company - Defense, Space, & Security (BDS), CAGE: 76301

ASCI Federal Services, LLC responded to the Sources Sought notice posted on 15 Sep 2021. In addition to not having access to the required SDB-I technical data to meet these requirements, ASCI did not show the capability to perform maintenance on munitions systems in order to be considered a viable source.

In addition, the Government team has determined that the supplies cannot be obtained through the Ability One Procurement List or the Federal Prison Industries Schedule.

This is a fielded weapon system with almost no commercial items in the design. Service is dependent on knowledge of and provisions for the system that are not available commercially and are proprietary to The Boeing Company.

In addition to the Sources Sought, members of the program office continue to attend trade and industry conferences in order to identify other sources capable of meeting SDB-I requirements. The above market research confirmed Boeing is the only industry partner that can meet the Government's SDB-I requirement.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

The OEM of the SDB-I weapon system, The Boeing Company, currently owns all tech data associated with the weapon system and have stated that the tech data package will not be available for purchase. As a result, The Boeing Company continues to be the only viable source for SDB-I CLS. The Government realizes that it has unlimited rights to form, fit, and function data, including source qualification data, as well as data related to operation, maintenance, installation, and training. However, such rights are insufficient to satisfy the current need. Access to the SDB-I TDP is necessary to accomplish the tasks for this acquisition. Efforts by the Government to acquire a license from the OEM have been unsuccessful. The most recent attempt by the Government to acquire the data or rights to the data occurred on 3 Aug 2021 when the Contracting Officer sent The Boeing Company a request for the SDB-I TDP. The OEM responded on 31 Aug 2021 stating that the requested data is not for sale.

X. List of any sources that expressed, in writing, an interest in the acquisition.

The following companies responded to the Sources Sought notice posted on Beta Sam:

ASCI Federal Services, LLC, CAGE: AZNA7 The Boeing Company - Defense, Space, & Security (BDS), CAGE: 76301

ASCI Federal Services, LLC responded to the sources sought notice posted to Beta Sam on 15 Sept 2021. In addition to not having access to the required SDB-I technical data to meet these requirements, ASCI does not show the capability to perform maintenance on munitions systems in order to be considered a viable source.

The Boeing Company has been determined to be a viable source as they are the SDB-I OEM, own all data pertaining

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April 2021 CONTROLLED UNCLASSIFIED INFORMATION Page 7 of 7 to the weapon system, and are the current sole-source provider of this requirement.

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.

As a result of continued refusal by the Sole Source contractor to provide or license data as well as the substantial duplication of cost and unacceptable delay of developing additional sources per Sections V and IX, there are no known additional actions which can be taken to remove barriers to competition and therefore, specific actions and milestones cannot be established. However, the Government will continue to pursue the purchase of the SDB-I TDP required to support this weapon system in an effort to increase competition in the future.

XII. Certification by the Contracting Officer.

The Contracting Officer's signature on the Coordination and Approval Document evidences that they have determined this document to be both accurate and complete to the best of their knowledge and belief.

XIII. Certification by the technical/requirements personnel.

By their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified as accurate and complete all supporting data, which is their responsibility, contained herein IAW FAR 6.303-2(c).

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