Redacted_HMIT_ICS_JA_signed_and_approved_20150319.pdf

PR # FD2020-15-50722

COORDINATION AND APPROVAL DOCUMENT

Contracting Activity: AFLCMC/WWMK Program Name: F-16 Helmet Mounted Integrated Targeting Estimated Contract Cost: $2.9M Type Program: PEO program Authority: 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1 Type J&A: Individual

COORDINATION:

X Jared W. Walker Jared Walker, 775-4652 HMIT Program Manager, AFLCMC/WWMPA Signed by: WALKER.JARED.W.1152383750

3/10/2015

X Dwane D. Esplin Dwane D. Esplin, 777-8118 Program Contracting Officer, AFLCMC/WWMK Signed by: ESPLIN.DWANE.D.1387977682

3/6/2015

X Curtis D. Elton Curtis D. Elton, 777-1562 Legal Reviewer, 75 ABW/JA Signed by: ELTON.CURTIS.DELOY.1231542449

APPROVED:

3/19/2015

X Kevin Flinders Kevin G. Flinders, 777-6549 Competition Advocate, OL-H/PZC Signed by: FLINDERS.KEVIN.G.1231477949

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JUSTIFICATION FOR OTHER

THAN FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY:

United States Air Force

AFLCMC/WWMK PK

6072 Fir Ave, Bldg 1233 Hill AFB UT 84056-5825 Contracting Officer: Dwane D. Esplin, DSN 777-8118

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

A. Upon approval to use other than full and open competition procedures, the Government will issue a new contract to repair and replace Helmet Mounted Integrated Targeting (HMIT) equipment. This requirement is for support of the F-16 HMIT program. The contract will be issued to: Thales Visionix, Inc., 1444 North Farnsworth Ave., Aurora, IL 60505, CAGE Code: 3PCR6.

B. Contract Type & Structure: The Air Force will issue a Firm Fixed Price (FFP), Indefinite

Delivery, Indefinite Quantity (IDIQ) services contract to repair and replace F-16 HMIT items. The ordering periods will be three (3) years with an additional 6 months for delivery of assets. Task orders will be completed within 12 months for a total potential Period of Performance (PoP) of three and a half years (3.5) years. The estimated award date is 1 June 2015 with performance and delivery expected through December 2018.

C. Estimated Contract Value: $2.9M

D. Type J&A: Individual

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED MEETING THE

AGENCY’S NEEDS:

A. Under the contemplated contract, Thales Visionix, Inc. (TVI) will provide all of the repair and replacement services for the sustainment of the F-16 HMIT system to include, but not limited to, all components on the Banana Bar Assembly (BBA), all HMIT Vehicles Interface Cables segments (HVI Cables), and Interface Control Unit (ICUs). TVI will also provide all testing and logistical support (to include shipping) from the time an asset is received by the company to the time that it is received by the Government. TVI will provide the following services throughout the Period of Performance of the contract: Configuration management, obsolescence management and engineering support.

B.

This IDIQ contract will service components required to support 217 HMIT-installed F-16 Aircraft. Significant parts needing repairs or calibration will be needed according to the chart below. In addition, the final C-Kit configuration has yet to be determined, and this

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1377189287C Highlight proposed Interim Contract Support (ICS) contract will cover the repair/replacement of components of this final, configuration as well. While this list is not all encompassing, it represents the major repairable/replaceable components within HMIT. All minor repairs will be covered under a separate, generic CLIN as well as future potential C-Kit configurations.

The major part numbers to repair or replace are listed in the table below.

Part Number Description Price/Unit A13015-1 Interface Control Unit $12,563.53 A13055-1 Input Filter Assembly $2,706.86 A13278-1 Front Panel, Backlit $983.97 13022-1 Core Module 800 $4,512.69 13044-1 Baseboard $1,232.79 A13089-R-042 HVI, ICU to IRC $2,892.40 A13090-1 HVI, IRC to QDC $2,165.43 A13091-1 HVI, QDC to HRC $3,204.63 A13092-1 HVI, HRC to Helmet $4,137.39

A12920-1 PD-14 $13,572.00

A13301-1 Source Mounting Blocks $899.15 A13095-1 Mounting Bracket—Quick Disconnect $1,159.28

Using this cost data, along with historical failure rates, the cost, quantity and services required are estimated in the table below using an annual cost escalation rate of 3%. It will be expected that all HVI cables will be replaced by the contractor upon receipt from the government. BBA and ICU units will be sent to the contractor for repair, at which time the contractor will test the equipment and repair or replace the specific part numbers causing the fault in the most cost effective manner. The costs below include testing, tracking, and shipping the assets, as well as the actions taken to repair or replace the unit.

Repair/Replace Unit Average Cost/Unit Estimated Failures Estimated Cost

Repair ICU $3500 (140 total:40,50,50) $140,000/yr1 $180,250/yr2 $185,250/yr3

$505,500/Total Replace HVI $3500 (150 total:50,50,50) $175,000/yr1

$175,000/yr2 $175,000/yr3

$525,000/Total Repair BBA $8,650

(150 total:50,50,50) $432,500/yr1

$432,500/yr2 $432,500/yr3

$1,297,500/Total

C. Estimated Period of Performance (PoP) will be three (3.5) years. This includes three (3) year ordering period plus an additional 6 months for delivery of assets. This PoP is required to

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1377189287C Highlight bridge the gap between the current ICS and the generation of organic capability. A Depot Source of Repair (DSOR) has been signed as of June 2014 with ongoing Depot Maintenance Activation Working Group (DMAWG) meetings to establish this capability. A minimum of two years will be required to stand up this capability as the final C-Kit configuration has not yet been determined, and TVI is the sole owner of the data rights on all current HMIT components.

D. Total Contract Ceiling: $2.9M. This estimate is based on past repair history data, and will be funded using appropriated procurement funds (NGREA).

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION:

10 USC 2304 (c) (1) as implemented by FAR 6.302-1 - Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS

OR NATURE OF THE ACQUISITION REQUIRES THE USE OF AUTHORITY CITED

ABOVE (APPLICABILITY OF AUTHORITY):

A. This ICS is a follow-on to an integration and production contract with Raytheon—using TVI as a subcontractor—for servicing of highly specialized equipment which was developed exclusively by TVI. The data rights and equipment are proprietary to TVI and cannot be replicated by any other source. Therefore, this acquisition is for a follow-on for continued performance of a highly specialized service.

B. TVI’s Scorpion™ HMIT components were not developed at the government’s expense and are proprietary solely to TVI. TVI developed the components at their sole expense and the government could get no more than limited rights. The Scorpion™ sytem was developed to specifically to address a United States Central Command (USCENTCOM) geographic deficiency per request of U.S. Air Forces Central Command (AFCENT). Prior to the development of this cueing system, the capability had not existed and thus the branded product is the only suitable option to meet the needs of the warfighter.

C. Communications have been ongoing with TVI to obtain the data rights. Their position remains firm that they are not willing to sell Level III data with unlimited rights because the information was developed at private expense and is part of TVI’s ongoing product line.

Nevertheless, they are willing to discuss options for future partnerships upon a stand-up of an organic capability and have already entered into discussions to do so as part of the ongoing DMAWG. Attached to this JA is an attachment to the current contract listing the technical data restrictions to be furnished as part of the current contract.

D. TVI is not willing to sell data rights for HMIT, and thus to seek competition, we would need to employ a separate technology to deliver the same capability to the warfighter. The Government has not begun, nor has the authority at this time to acquire another technology, thus schedule delays would be estimated at 8 years to Full Operating Capability (FOC) at a

1377189287C Highlight cost of $100M, as this is the time it has taken to implement HMIT technology. If HMIT becomes unsustainable, the warfighter will be forced to accept increased risk during Close Air Support (CAS) combat operations. F-16 HMIT capability will become unsustainable for the combat Area of Responsibility (AOR) or pre-deployment spin-up training. The absence of HMIT on the F-16 will lengthen the kill chain and result in increased time for the Pilot to Find, Fix, Target, Track, Engage and Assess Close Air Support targets or Forward Air Control (Airborne), locate survivors in combat search and rescue, and deconflict friendlies and non-combatants in all missions. Additionally, reverse engineering is being considered by the DMAWG, however has not yet been successful in replicating the repair capability. The Request for Proposal (RFP) also revealed that industry did not possess the capability to thoroughly service the HMIT technology.

E. The last obtained ICS support was through Raytheon and passed on to TVI as a subcontractor. With Raytheon, as the prime vendor, there was not a need to compete this requirement; it was already part of the basic contract. Upon expiration of this ICS contract in March 2015, a new ICS contract will be required.

F. Accordingly, Thales Visionix, Inc. is the only company capable of providing the services described in Section III above without the government experiencing unacceptable delays in fulfilling HMIT repair/replacement service requirements, and substantial duplication of cost 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:

A. Sources Sought Synopsis: A sources sought synopsis was posted to FedBizOps on 2 Oct 14, under notice FA8232-15-R-F-16-HMIT, requesting maintenance, repair, and rebuilding of HMIT equipment. The posting closed on 16 Oct 14. Three responses were received:

i. Thales Visionix, Inc. responded with sufficient information to validate them as being able to effectively carry out the work desired as a prime contractor.

B. This requirement has been synopsized in FedBizOpps, as a notice of proposed contract action IAW FAR 5.201. If other sources express interest as a result of this synopsis or other actions, they will be listed in the official contract file.

C. Other Actions: None

D. Qualifying Country Sources: None

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE:

The following steps will be taken to ensure that the anticipated cost of this acquisition will be fair and reasonable. The Contracting Officer will comply with the 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; to include technical evaluations and audits, as appropriate. Additional steps to ensure price reasonableness 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 office will obtain certified cost and pricing data IAW FAR Subpart 15.403, when required. The final step is to include the Price Negotiation Memorandum (PNM). This detailed documentation and justification of price reasonableness will be disclosed in the official PNM, 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.

B. Market research was conducted from 2-16 October 2014 by AFLCMC/WWMB, and continues to be ongoing through the joint efforts of the F-16 and A-10 DMAWG. Market research consisted of the Request for Information (RFI) mentioned in section VI and the collaboration to replicate the service organically by efforts of engineers within the OO-ALC.

The results showed that TVI was the only entity capable of repair and replacement of the HMIT equipment. This aligns with how the repair has been accomplished in the past.

Following selection of the permanent C-Kit configuration, the DMAWG will aggressively pursue purchase of data rights or partnership with the contractor to stand up organic capability to provide support NLT 31 Mar 17.

After review of industry sources, it was determined there were no alternate sources, nor substitutions available to fill the government’s needs. IAW FAR Part 10, engineering has determined there are no commercial services, or non-developmental services available that could be modified to satisfy the agency’s needs.

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 Government Program Manager is currently working with multiple contractors to develop the final configuration of the HMIT C-Kit to mitigate problems caused by electro-magnetic interference (EMI). The ultimate goal of the program manager is to establish an organic capability to provide this service, however it will require partnership with TVI to attain the data rights necessary to accomplish the depot activation transition.

XII. CONTRACTING OFFICER’S CERTIFICATION:

The Contracting Officer’s signature on the Coordination and Approval Document evidences that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief (FAR 6.303-2(b)(12)).

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION:

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 (FAR 6.303-2(c)).