24-30376_JA signed_Redacted.pdf

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

CUI

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I. Agency and Contracting Activity.

This Class Justification and Approval (J&A) is to request authority for Other Than Full and Open Competition to support requirements generated for the Air Force Life Cycle Management Center, (AFLCMC), Special Operations Forces (SOF)/Personnel Recovery (PR) & Rotary Division (AFLCMC/WIU). The contracting activity for this requirement is AFLCMC/WIUKA. The purchase request number supporting this contracting action is FD2060-24-30376.

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

Due to the circumstances described herein, the activity requests authority to acquire the services listed in this Class J&A using Other Than Full and Open Competition as prescribed by FAR 6.302-1, "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements." This action will result in the award of a logical follow-on ten (10) year Indefinite Delivery Indefinite Quantity (IDIQ) contract with a basic five (5) year period (5 annual ordering periods), plus a five (5) year option (5 annual ordering periods). The contract will include Firm-Fixed Price (FFP), Cost-Plus Fixed-Fee (CPFF), and Cost Reimbursement No Fee (CRNF) contract line item numbers (CLINs) for Diminishing Manufacturing Sources (DMS) Retro-fit replacement actions and Not Separately Priced (NSP) CLINs for data deliverables. Based on the projected contract award date, orders can be issued from 30 June 2024 through 29 June 2034.

This sole source requirement will be purchased from the following company:

Raytheon Company 2501 W. University Dr.

McKinney, TX 75071-1300

CAGE: 96214

Large Business

This IDIQ contract will be awarded as a Single-Award Task Order/Delivery Order Contract based on FAR 16.504(c)(1)(ii)(B)(1) in which this J&A provides supporting rationale.

III. Description of supplies/services required to meet agency needs.

This acquisition is for ten years of support of DMS Retro-Fit replacement for the Electro-Optical/lnfrared (EO/IR) Sensor for the HC/MC-130J and subsystems (hereafter referred to as AN/AAS-54 EO/IR system) to resolve DMS issues, obsolescence, reliability, and maintainability issues. These requirements include retro-fit kit installations for the AN/AAS-54 EO/IR system, providing hardware, software, repair, and all associated technical data necessary to install into the AN/AAS-54 EO/IR system. There is no IP being procured under this contract.

The total estimated cost of this acquisition is $63,549,574.03. The estimate is based on results from the Sustaining Engineering contract, FA8509-21-C-0004, which provided the Non-Recurring Engineering (NRE) for this effort.

Based on the projected contract award date, orders can be issued on the IDIQ from 30 June 2024 through 29 June 2034. This requirement will be funded with Procurement 3010 funds.

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HC/MC-130J. It provides video and tracking with eye-safe laser range finding and laser marker capabilities in a single package. In addition, the imagery provided by the MTS-A enables the pilot to see in adverse weather conditions day or night. The MTS-A system is used to aid low-level flight navigation as well as search, rescue, and reconnaissance missions.

The services required for this effort include DMS Retro-Fit replacement and resolution of AN/AAS-54 EO/ IR system reliability and maintainability issues and obsolescence.

DMS Retro-Fit replacement includes:

DMS Retro-fit replacement Kits to resolve DMS issues.

Production capabilities for Retro-Fit kit installation, testing, and minor repairs.

Development of solutions for DMS obsolesce parts.

Partnership with repair depot Fleet Readiness Center Southeast

Raytheon was the Original Equipment Manufacturer (OEM) of the AN/AAS-54 EO/IR system.

The agency's minimum needs can only be satisfied by the unique services available from Raytheon. This acquisition is a logical follow-on contract for the continued provision of highly specialized services. The technology and upgraded parts are intellectual property (IP) of Raytheon. They retained proprietary control and rights to the technical data (drawings). A Letter of Assertion was sent to Raytheon on 15 April 2024.

Raytheon responded confirming they own all proprietary rights to the AN/AAA-54 EO/IR system. The Government has reviewed and concurs Raytheon owns all proprietary rights to the AN/AAA-54 EO/IR system. Previously, the Government sent inquiry to Raytheon on 07 September 2023 asking their interest in selling the data rights and IP rights for the AN/AAS-54 EO/IR system but it was rejected. The decision to not sell data rights to the Government is the primary obstacle for removing competitive barriers. This requirement does not include the purchase of any technical data or IP.

The Government awarded sole source Sustaining Engineering Services (SES) contract FA8509-21-C-0004 to Raytheon for NRE in support of the AN/AAS-54 EO/IR. It was awarded on 30 September 2021 and expires on 29 September 2024. The SES NRE contract consisted of DMS studies and identifying viable DMS replacements parts. This instant requirement is a logical follow-on to this predecessor NRE contract.

The Government has determined this system is not a commercial item. In order to perform these services, a vendor must be able to access Raytheon's databases which contain/maintain HC/MC-130J AN/AAS-54 EO/ IR system engineering drawings. Without access to Raytheon's IP, a new vendor would not be capable of supporting this system and its subsystems. There are no other companies that can provide the specific technical knowledge and expertise necessary to support the AN/AAS-54 EO/IR system. Sustainment of the AN/AAS-54 EO/IR by Raytheon is mission critical.

The cost and schedule for a reverse engineering effort for the AN/AAS-54 EO/IR system is estimated at greater than $470M and estimated to take 7.5 years to complete. This estimate is based on a similar reverse engineering effort for the MX-25DR EO/IR Sensor System. There are no samples available for a potential supplier to evaluate to perform a reverse engineering analysis. Unique and specialized system configurations contribute to the complexity of a reverse engineering effort. This timeline is based on three years to complete the reverse engineering and an additional 4.5 years for integration, re-qualification, and flight testing. Plus, an additional five years for delivery of a new replacement system. AFLCMC/WIU has determined that award to any other source would result in an unacceptable delay in meeting our Air Force Requirements and is, therefore, not feasible.

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The AN/AAS-54 EO/IR is required to fly and support missions on HC-130J aircraft. Not supporting the DMS retrofit solutions would greatly impact capability as it would lead to the unsupportability and obsolescence of the AN/AAS-54 EO/IR system, rendering the HC-130J only partially mission capable. Not supporting the DMS retrofit as soon as possible would only prolong the testing and replacement of the system, as currently there is already a 3-year long-lead time on parts to replace DMS in the AN/AAS-54 EO/IR system. Additionally, aircrews would be severely at risk of losing the capability of detection, recognition, and identification of targets, runways, or friendly ground parties, resulting in the loss of the aircrew, aircraft, and field survivors. Aircrews would lack the capability to operate in low light, under the weather, or obscured conditions risking both personnel, equipment, and future operations. It would also cause a supply shortage until the system becomes completely unsupportable across the HC-130J fleet. Currently, the system averages around 15 Mission Imparted Capability Awaiting Parts annually.

Accordingly, Raytheon is the only firm capable of providing the requirements described in Section III above without the U.S Air Force experiencing unacceptable delays in fulfilling its requirements.

V. 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.

A Sources Sought (SS) / Request for Information (RFI) synopsis was posted to SAM.gov on 11 October 2023, with a response date of 10 November 2023 under Notice ID FA8509-24-RFI-AN(AAS)-54. The SS/ RFI requested responses from interested vendors that possess the expertise, capabilities, and experience to meet qualification requirements for this effort. The following vendors responded to the SS/RFI:

Raytheon Company (CAGE: 96214)

Service Respect Results (SRR) International (CAGE: 6CNX5)

The vendors were evaluated for their capability and determined to be capable or not capable based on whether they have access to the proprietary data necessary to support this repair effort. After review of SRR International, they were determined not capable to meet the requirements needed. SRR International does not have access to Raytheon's proprietary data required for DMS Retro-Fit replacement. The incumbent, Raytheon was determined to be the only capable vendor.

The requirement will be synopsized on SAM.gov in accordance with FAR 5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis. Any source who responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential subcontracting possibility.

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

Based upon (1) certified cost or pricing data provided in the offeror's proposal in accordance with FAR 15.403-4; (2) the program office or expert technical personnel analysis of the offeror's Basis of Estimates;

(3) inputs from the Defense Contract Management Agency; (4) review of past actuals, the contracting officer expects to determine the anticipated cost to the Government to be fair and reasonable.

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

Market research was conducted beginning 29 October 2023 and completed on 13 December 2023 in accordance with FAR Part 10.001 and 10.002. The Market Research Report was completed on 13

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December 2023. The market research techniques used were as follows:

A Small Business Administration Dynamic Small Business Search query and Google search was conducted utilizing North America Industry Classification System (NAICS) code 334511, Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing. Keywords used were Electro-Optical System and Infrared Optical System. Searches using a combination of the NAICS code and keywords yielded some matches. This query produced approximately 50 potential vendors. The market research performed revealed potential sources within various Small Business (SB) categories. Those SB categories include: 8(a), Woman-Owned Small Business, HUBZone, Small Disadvantaged, Veteran Owned, Service-disabled Veteran and Minority Owned companies. Initial analysis indicated several small businesses potentially matched the NAICS code and keywords of Electro-Optical System and Infrared Optical System. Upon further review, it was identified that these small businesses did not meet the basic criteria required to support the AN/AAS-54 EO/IR DMS Retro-fit, therefore were determined not capable.

The Integrated Product Team concluded no other vendor was capable of supporting the AN/AAS-54 EO/ IR System due to lack of access to Raytheon's IP, including tools and equipment required to support DMS part replacement.

As described in Section V above, a SS/RFI was posted to SAM.gov advising industry of the pending acquisition and soliciting inquiries from interested vendors. The SS/RFI was posted on 11 October 2023 with responses due by 10 November 2023. Only two responses were received, which were from Raytheon and SRR International. After further review, only Raytheon was determined a capable vendor.

Procurement of the AN/AAS-54 EO/IR System does not meet the definition of commercial per FAR Part

2.101. This system is defined as military unique and is not customarily used by the general public or by non-Governmental entities. The Government requires parts that meet an exact form, fit and function as determined by the specific mission. There are no aircraft in the commercial market with the same or similar components.

The market research concluded Raytheon is the only vendor capable of fulfilling the Government's requirement.

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

None.

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

See Section V above.

X. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisitions for the supplies or services required.

Raytheon's decision not to sell data rights to the Government is the primary obstacle for removing barriers to competition. While the current market research indicates a sole source environment for the AN/AAS-54 EO/IR system, the Government will continue to engage with the OEM on an annual basis, prior to each ordering period to determine the feasibility of procuring the technical data.

The plan to break barriers to competition in the SES contract that supported NRE for the AN/AAS-54 EO/ IR was to continue engaging Raytheon on selling the technical data package and IP to the Government.

Raytheon continues to decline to sell to the Government.

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XI. Certification by the Contracting Officer.

As evidenced by my signature, I certify that this justification is accurate and complete to the best of my knowledge and belief.

XII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.