SALSS IDIQ JA - Redacted.pdf

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

CUI

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APPROVAL ( AFFARS 5306.304(a) )

Date Director of Contracting Charles A. Braswell (SES)

AFLCMC/PK

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252.246.7001 Warranty of Data

52.227-21 (a and b) FAR Clause - Technical Data, Declaration, Revision, and Withholding of Payment- Major Systems

The total estimated contract value is . The basis for the estimated cost was derived from an Independent Government Estimate completed 06 June 2023. A escalation factor was applied for each out-year. Orders will be funded through AC/HC/MC-130J platform using Procurement and Operations & Maintenance.

The overall SOF C-130J program acquisition strategy is supported by the conclusion of this J&A to support future sustainment by establishing Open Architecture configuration(s) so there are opportunities to support competitive acquisition.

In accordance with FAR 16.504(c)(1)(ii)(B)(1), only one contractor is capable of providing performance at the level of quality required because the supplies or services are unique or highly specialized, and therefore a sole source IDIQ contract was determined to be the most effective and efficient vehicle with which to procure the supplies and services necessary, given the Government cannot predetermine the precise quantities of supplies and services within a definite period.

This Class J&A covers the award of the basic IDIQ contract and all delivery/task orders issued against it.

IV. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above.

The agency's minimum needs can only be satisfied by the unique supplies or services available from LMAC. They are the only company with the technical expertise, data/drawings, equipment, software, and other utility programs needed to diagnose failures and sustain these SOF variants (AC/HC/MC-130Js).

Access to the proprietary information encompassing design and source data, testing history, evaluation tools and models for the C-130J aircraft is required. It is essential that all sustained aircraft meet the specifications to ensure aircraft availability across the various SOF fleets.

As the Original Equipment Manufacturer (OEM) and sole C-130J design authority, LMAC exclusively maintains the entirety of C-130J design and IP along with all testing and evaluation tools and models. This data combined with the expertise of 600+ engineers with 20 plus years of combined expertise on the C-130J makes them uniquely qualified for providing the highly specialized services for this contract's requirements.

Therefore, this acquisition will be for the continued provision of highly specialized services.

LMAC modified the C-130 to create and sell a commercial variant. As a result, the Federal Aviation Administration certified the C-130 as a commercial aircraft. Since the FAA certification, FAR Part 12, “Acquisition of Commercial Products and Commercial Services” has applied. As such, FAR 12.211, Technical Data, unless expressed otherwise, the Government is limited when acquiring the technical data and the rights in that data customarily provided to the public with a commercial item or process. The Government's non-commercial variants are based on the LMAC commercial variant. In October 2006, the Government transitioned the C-130J program with LMAC into a FAR 15 negotiated non-commercial

March 2023 CUI Page 8 of 10 contract to facilitate collection of data on costs and pricing on the remaining aircraft procured. The military SOF C-130J variant aircraft are non-commercial; however, IP continues to be problematic. Market research in Section VII supports the reliance on LMAC for the commercial proprietary data.

The Air Force (AF) has repeatedly asked LMAC to sell IP for the purpose of promoting open competition, where possible, growing the industrial supply base, and innovation. The last attempt was in December 2020; however, LMAC denied the AF's IP request.

Although the Government is competing common products used on other platforms, items, parts, and components to the maximum extent practicable, the lack of C-130J technical data and source codes prevents the ability to stand-up organic capability and compete sustainment requirements where technical data is specifically owned by LMAC. In order to estimate the cost of organic capability or competing sustainment activities, in November of 2020, the Government requested LMAC provide a Rough Order of Magnitude for the estimated cost of procuring the full technical data package and unlimited data rights for the entire C-130J aircraft system, source code, configurations, and support equipment. LMAC declined to provide any assistance.

While LMAC asserts to own all C-130 and variant technical packages, the Government continues to assess and evaluate projects to determine whether circumstances exist where the Government may have provided partial funding and therefore, may have Government purpose right. As new requirements are defined for SOF modifications on SOF C-130Js, the Government will continue to request technical data rights.

The SOF Fixed Wing Program Office has determined 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 Government's requirements.

Reverse engineering the C-130J system and subsystems is not a technically or financially feasible proposition. The initial development of the C-130J weapon system and subsystems was accomplished by LMAC private investment. LMAC amortized approximately in development cost over the first 180 C-130Js sold to its various customers to include Government, Foreign Military Sales, and commercial buyers. The 180th aircraft milestone was reached in early 2005. After completing a cost savings and benefit analysis, the Government estimates it would cost approximately to reverse engineer the C-130J for competitive procurement and sustainment purposes and it would take approximately 104 years to recoup those costs. That number of years far exceeds the remaining 25 life cycle years of the C-130J and would cause vulnerabilities, delayed modifications, and grounding of aircraft awaiting the completion of reverse engineering efforts. All of this negates the Government's ability to keep up with adversaries.

Accordingly, LMAC, is the only firm capable of providing the supplies and services described in Section III above without the Government experiencing substantial duplication of cost that could not be expected to be recovered through competition and 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 19 August 2022 with a response date of 19 September 2022, under Notice ID FA8509-22-R-0001. The SS/RFI requested responses from interested vendors who possess the capability to provide the sustainment

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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.

The plan to remove or overcome barriers to competition is to inquiry with LMAC their interest in selling the technical data package to the Government. LMAC will be contacted prior to the end of the contract.

There was no prior J&A.

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.