FBO_JA_F-16_MMC_Repair.pdf

FD2020-10-80286

11 Jan 2010

COORDINATION AND APPROVAL DOCUMENT

(Also known as Justification Review Document)

Contracting Activity: 748 SCMG/PKAB

Purchase Request Number: FD2020-10-80286

Project/Program Name: F-16 Modular Mission Computer (MMC) Remanufacture / Repair

Estimated Program Cost: $ 17,500,000

Type Program: Other Contracting

Authority: 10 U.S.C. 2304 (c) (1) as implemented by FAR 6.302-1

Type J&A: Individual

1/12/2011

X

Program Manager 1/12/2011

X

Contracting Officer 1/12/2011

X

Legal Reviewer 1/19/2011

X

Competition Advocate

APPROVED:

3/16/2011

X AFGLSC Center Command

Designated Acquisition Official

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY:

United States Air Force

748 SCMG / PKAB

Hill AFB, UT 84056-5820

Contracting Officer:

Purchase Request Number: FD2020-10-80286

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

A. Upon approval to use other than full and open competition, the Air Force will issue a new contract for F-16 Modular Mission Computer (MMC) Line Replaceable Module (LRM) remanufacturing, to: Raytheon Corporation, 2501 W. University Dr., Mckinney, Texas 75071, Cage: 96214.

B. Contemplated Contract Type & Structure: A five-year ID/IQ repair using a Firm Fixed Price pricing arrangement is anticipated. The estimated award date is 01 April 2011 with performance expected through 31 March 2016.

C. The option to extend services clause (FAR 52.217-8) will be included and evaluated in the resulting contract. If exercised, this option will extend the period of performance through 30

Sep 2016.

D. Type: Individual

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

AGENCY’S NEEDS:

A. The purpose of this effort is to establish contractual remanufacturing support for the MMC

LRMs. There are currently six different configurations of the F-16 MMC LRUs, made up of seventeen to nineteen LRMs, and there are twelve types of LRMs in each LRU.

B. The estimated fiscal year breakout in millions is:

FY11 FY12 FY13 FY14 FY15

$3.5 $3.5 $3.5 $3.5 $3.5

C. The total estimated cost of the five year contract is $17,500,000.00. This estimate is based on the previously negotiated five year contract (FA8212-05-D-0029), Maintenance Planning and

Execution data (MP&E), D200 Computations, and the Delivery Order Register maintained by the contracting office. Inflation factors are also included in this estimate. Primary funding is expected to be 4930, Working Capital Funds. However, this estimate also includes FMS and

EPAF requirements using 4F Direct Cite funds which may be directly funded or reimbursed by various Air Force Foreign Military Sales (FMS) customers.

MMC LRM Estimates

PART NO NSN NOMENCLATURE ESTIMATED

QTY

5 YEARS

ESTIMATED

COST

5 YEARS

3129301-3 5975013880807 Chassis 282

3129302-1 5975013880808 Tray 8

3129307-5 6130014571188 MMCPS 327

3129308-4 6130013886637 HLVPS 99

3129343-3 5998013898440 PC 67

3140200-3 6130013880263 DDC 28

3147492-805 5998014570694 AIO1 290

3147493-805 5998014566014 AIO2 234

3147494-805 5998014566016 AIO3 174

3184745-20 5998014398110 WM32 * 30

3184746-21 5998013878889 ADS * 25

318474-211 5998013878883 MB32 * 55

3223009-100 5998014705325 MB64 * 35

3223016-100 5998014704579 WM64 * 10

3223023-100 5998014704578 AD64 * 20

3223064-100 5998015235762 MB70 * 80

3223065-100 5998015235763 WM70 * 35

3223066-100 5998015235761 AD70 * 80

4995427-100 5998015484187 AD70A 213

4995425-100 5998015484188 MB70A 177

4995426-100 5998015484190 WM70A 160

* USAF is moving away from these items. EPAF/FMS will continue utilizing all 21 components and will continue to utilize the Raytheon remanufacturing support for the foreseeable future.

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. The system described here, the MMC is unique to the F-16 block 40 - 50 aircraft. Raytheon is the OEM (original equipment manufacturer) for the MMC. Raytheon was awarded a remanufacture contract to restore all LRMs to a serviceable condition. The processor LRMs are unique based on the fact that the three processor modules have been upgraded through four different configurations for which the OEM has all the data required to repair and monitor any diminishing, manufacturing and material resources that might occur. The current FA8212-05-D-

0029 contract was awarded 01 October 2005 and will expire 30 September 2010.

B. Repair of these items is highly specialized, key drawings and specifications are owned by

Raytheon and have been classified as proprietary. The company also has developed specialized tooling, diagnostic equipment (a “T-Tester” and a Personal Computer – Computer Development

System (PC-CDS) and test software that is peculiar to this remanufacturing effort). The source code/data for the LRM firmware is proprietary to Raytheon, as well as unique knowledge pertaining to how the test software and firmware interacts with the Operational Flight Program

(OFP) software which is proprietary to Lockheed Martin Corporation. The OFP is a program used on the F-16 for communication of the avionic systems to the main bus controller to identify failures that occur. The LRMs that retain the information (fault codes) then can be downloaded with the acceptance test software to identify problems within the system which in turn helps isolate to the particular item at fault. The OFP is classified! Therefore, this acquisition is for continued performance of a highly specialized service. All equipment, software, and firmware used for this effort was funded and developed by the OEM.

C. The government contacted Raytheon 12 May 2010 to purchase the limited rights data.

Raytheon stated no data has or will be sold to the government or any vendor other than the limited data procured by the United States Air Force, OO-ALC (309th SXMG) to stand up organic repair for the current configuration. A data rights challenge letter was submitted 13

September 2010, response is pending from the OEM.

D. Duplicate costs associated with qualifying and outfitting a secondary vendor to perform this work are estimated to exceed dollars. This estimate is based on costs experienced by the government standing up similar organic OO-ALC organic repair facilities and capabilities. As such, the 416 SCMS Program Office believes that award to any other source would result in substantial duplication of cost to the Government and is not expected to be recovered through competition in fulfilling the Air Force’s requirements.

E. Accordingly, Raytheon is the only firm capable of providing the supplies and services 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.

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 issued 03 August 2010, #FA8251-10-

R-MMC, to identify potential vendors to be qualified as a repair source of the MMC. As of 03

September 2010 no responses have been received.

B. This requirement will be synopsized in FedBizOpps, as a notice of contract action IAW FAR

5.201. If other sources express interest as a result of this synopsis or other action, 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 Air Force 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. The Systems Program Office (SPO) was contacted to determine if there were other defense contractors that may have partnered with Raytheon in the research and development of the

MMC or who might be co-owners of the proprietary design. The SPO responded that Raytheon is the sole developer of the MMC and no other viable candidates were identified.

C. The IPT also reviewed the Modular Mission Computer (MMC) Modules Market Research

Report completed 17 Dec 2009. The market research report indicates no commercial items or non-developmental items are available or can be modified to satisfy this requirement. Further based on a vendor survey, the operational software is maintained by Lockheed Martin (Ft.

Worth, TX) under a contract with the SPO at Wright Patterson AFB, OH. Only Raytheon

(McKinney, TX) is used to integrate and sustain the modules of the F-16 MMC components.

No other vendor (large, small, disadvantaged, Section 8A, woman-owned and this includes the government) has the capability of re-manufacturing any of these modules for the MMC.

D. As the configuration of this assembly is constantly changing as new components and capabilities are introduced, market research and analysis is and will continue to be conducted on an ongoing basis for these items.

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

OPEN COMPETITION:

The F-16 MMC LRU support was part of the Common Configuration Implementation Program as listed in paragraph III and will be in production until 2018. The SPO designated this system as a

Contractor Lifetime Technical Support and data was not purchased and no depot remanufacturing capability or field support test equipment was developed.

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:

This workload has been designated as core and organic. Ogden Air Logistics Center (ALC) has been identified as the source of remanufacturing for the future USAF Fleet only. A team has been established to implement the Depot Activation Plan. Funding was identified for this effort in FY08, FY09, and FY10. The SORAP required Ogden ALC to formally establish a USAF F-16 organic depot repair capability for the USAF Modular Mission Computer by late FY10/11. The SPO has purchased some technical data, data rights and hardware from the OEM, Raytheon, in order to establish a USAF depot repair for the MMC 7000A LRMs. However, only 11 of the 21 LRMs will be stood-up for organic repair. The 309 th

SMXG is developing a depot level for eleven of the twelve items that make up the MMC 7000A LRU configuration. MMC LRMs TPS, for the SPO, have various start-up projections, with all eleven starting by the end of November 2013. This contract is to support all six different MMC LRU configurations being flown by the

USAF/EPAF/FMS aircraft, the USAF depot capability is anticipated for just the USAF requirements, and this contract is to support all MMC LRMs required by FMS and EPAF countries and support the USAF as they transition to Ogden ALC support.

XII. CONTRACTING OFFICER’S CERTIFICATION:

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