Redacted_J&A.pdf

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

FOR OFFICIAL USE ONLY

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NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action must be included in the staff package for approval of the instant J&A. This applies to J&A staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

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

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition: < $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

Contracting Activity: AFLCMC/WNKE

Purchase Request / Local ID Number: FA2060-18-32644 / FA2060-18-32645

Program / Project (and PE, if applicable): AFLCMC/WNY EGI IDIQ Production and Sustainment

Program Type (PEO or Other Contracting): PEO

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): $91,300,000 J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date Project Lead / Program Mgr / Requiring Activity Capt Jorge Gonzalez

AFLCMC/WNY /

Signature

Date

25 Jun 2018

Contracting Officer Courtney Yearwood

Signature

Date

26 Jun 2018

Local Legal Reviewer Major Phillip Korman

Signature

Date

27 Jun 2018

Competition Advocate Thomas Eller, D.B.A.

Signature

Date

16 Jul 2018

PEO / Commander (Requirements Cognizance) Col Brady Hauboldt

Signature

APPROVAL (AFFARS 5306.304(a) )

Date

27 Jul 2018

Director of Contracting Thomas D. Robinson

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I. Contracting Activity.

This Class Justification and Approval (J&A) requests authority for Other Than Full and Open Competition (OTF&OC) to support requirements generated for the Air Force Life Cycle Management Center (AFLCMC), Agile Combat Support (ACS) Program Executive Office (PEO), Electronic Warfare/Avionics Program Office, Position Navigation Timing-Program Office (PNT-PO), Robins AFB, GA. The Contracting Activity for these requirements is Air Force Material Command (AFMC) AFLCMC/WNKE. The Purchase Requests supporting these requirements are Honeywell International (HI) FA2060-18-32644 and Northrop Grumman (NG) FA2060-18-32645.

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

Due to the circumstances described herein, this Class J&A is presented to authorize bridge modifications to allow for continued Contractor Logistics Support (CLS) encompassing the procurement, repair and engineering services associated with Legacy Embedded Global Positioning System/Inertial Navigation Systems (EGIs) LN-100/LN-251/LN-260 and H-764 using OTF&OC as prescribed by FAR 6.302-1 Only One Responsible Source and No Other Supply or Service Will Satisfy Agency Requirements. Honeywell International Inc. (HI) and Northrop Grumman Systems Corporation (NG) are the exclusive suppliers for their respective EGI, therefore no commonality exists between the configurations which could be exploited for competitive procurement. These bridge actions will be executed via contract modifications to existing Indefinite Delivery, Indefinite Quantity (IDIQ) contracts in order to avoid a lapse in required support until the award of follow-on IDIQ contracts. The estimated award dates of the follow-on IDIQ contracts are 14 July 2019 for NG and 16 September 2019 for HI.

Existing IDIQ Contract FA8540-13-D-0002 with HI will be modified to incorporate a 13 month ordering period with a validity period from 27 September 2018 to 26 October 2019 at an estimated

. Existing IDIQ Contract FA8540-14-D-0001 with NG will be modified to incorporate a 9 month ordering period with a validity period from 01 January 2019 to 30 September 2019 at an

The primary contract type for the de-centralized delivery/task orders issued under these contracts will be Firm-Fixed-Price (FFP), but with authorization to use Cost-Plus- Fixed-Fee (CPFF) for engineering services task orders.

The sole source requirements associated with these bridge extensions will be performed by the following sources:

Northrop Grumman Systems Corporation (NG) 21240 Burbank Blvd Woodland Hills, CA 91367-6675 Large Business; Cage Code: 06481

Honeywell International Inc. (HI) DBA: Honeywell 13350 US Highway 19 North Clearwater, FL 33764-7226

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Large Business; Cage Code: 0BFA5

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

These bridge actions are for CLS associated with the procurement, repair, and engineering services of the EGI for the Department of Defense (DoD) and Foreign Military Sales (FMS) utilizing variations of National Stock Numbers (NSNs) and part numbers (P/Ns) listed in Attachment 1 of this J&A and as identified in the existing contracts with HI and NG. Continued Sustainment support such as production quantities, repairs, Diminishing Manufacturing Source (DMS) monitoring and upgrades, technical support, travel, asset demilitarization, host platform integration support, all associated data documentation, and engineering/trade studies are required.

Currently, a blanket waiver authorizes users to continue receiving new legacy EGIs until the EGI-M assets become available via the follow-on IDIQs. This waiver expires on 14 September 2019. Upon the expiration of this waiver, follow-on waiver requests are the responsibility of each individual platform.

The requirements are derived from actual and forecasted requirements from the platform program offices for ordering periods FY12-17 and historical demand where no forecast was received. The estimated cost was derived from user forecast and year five pricing table from the current contracts.

These requirements will be funded with Central Procurement (CP) 3010, Operation and Maintenance (O&M) 3400, Research, Development, Test & Evaluation (RDT&E) 3600 and/or FMS funds. The CP 3010 and O&M 3400 funds are sourced from platform programs. The RDT&E 3600 funds are anticipated to be from platforms and PNT-PO.

The Contract Line Item Number (CLIN) structure will not change from the basic contracts. The HI ordering period will be extended for up to an additional thirteen (13) months. The NG ordering periods will be extended for up to an additional nine (9) months. The maximum ordering validity period for the HI extension is projected to be 27 September 2018 to 26 October 2019. The maximum ordering validity period for the NG extension is projected to be 01 January 2019 to 30 September 2019.

The information below summarizes the requirements under the categories of supplies and services for each contract:

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Statutory authority permitting other than full and open competition.

10 U.S.C. 2304(c) (1) as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supply or Service Will Satisfy Agency Requirements, and required by FAR 6.303-2(b) (4)

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

The minimum needs associated with the continued sustainment of the EGI systems can only be satisfied by the unique supplies or services available from HI and NG. The EGI is considered a highly specialized system.

here is no similar product (integrated GPS and INS) customarily used for non-Governmental purposes.

In addition, modifications to the EGI are not of a commercial nature. They revolve around such military applications as:

These changes/modifications are not minor; nor do they have commercial applications.

The Government does not own the technical data or rights to the data required for production or sustainment of either contractor's EGI system. A complete technical data package (TDP) is not available for competitive solicitation due to proprietary rights asserted by both Original Equipment Manufacturers (OEMs), HI and NG. The program Source of Repair Analysis (SORA) was completed on 04 August 2011 and designated this workload as Contractor Logistics Support (CLS). Therefore continuation of sustainment support associated with these highly specialized EGI systems via these bridge extensions to HI and NG are necessary in order to continue mission critical needs while follow-on acquisitions are in work.

HI and NG uniquely possess highly specialized capabilities, to include trained personnel, experience, knowledge base, facilities, technical data, and tooling/manufacturing equipment necessary to sustain

The core hardware and software for the EGIs are not interchangeable between the different platforms or the contractors. They are not functionally

March 2018 FOR OFFICIAL USE ONLY Page 5 of 15 equivalent as each EGI is integrated to satisfy a specific platform requirement. The proprietary nature of the designs and the non-developmental phase of each EGI contributes to the non-commonality between the HI and NG EGI designs. Due to this lack of commonality, it is not feasible to compete these bridge actions between HI and NG. HI and NG are the only sources capable of fulfilling all requirements for their unique EGI and providing a wide range of mission support capability, manufacturing expertise, and contractor field support capability.

The unique and highly specialized capability possessed by HI and NG is further demonstrated through: 1) exclusive familiarity with the EGI system specification and related systems engineering processes to translate operational needs into system requirement documents and sub-specifications, 2) unique engineering expertise to research EGI system problems, develop and test engineering changes associated with modifications, enhancements, and upgrades, and 3) robust support infrastructure (manufacturing, production, test, and repair equipment) to continue the existing two-level maintenance concept and relationships, and furnish field support for operational customers.

HI and NG have a long standing history with the Government of developing and producing EGI systems and providing CLS and sustainment. Since 1999, both companies have been awarded sole source contracts associated with their respective EGI systems. As referenced in Section III, HI and NG have existing sole source IDIQ contracts specific to CLS activity for their EGI. IDIQ Contract FA8540-13-D-0002 with HI was awarded on 27 September 2013 and expires on 26 September 2018 and IDIQ Contract FA8540-14-D-0001 with NG was awarded on 24 January 2014 and expires on 31 December 2018. Each Basic contract will be extended via the bridge modifications in order to continue with sustainment support to mitigate a lapse in coverage until the follow-on efforts are awarded.

The Government contacted HI and NG via e-mail and through verbal communication on 11 August 2016 to request estimates for sell of technical data required to produce a functional EGI. Both HI and NG (HI letter 19 Aug 2016 and NG letter 6 Sep 2016) advised they would sell partial data, however proprietary software code and Kalman Filter data were nonnegotiable. Without the proprietary software code and Kalman Filter data, the remaining limited/partial data was not sufficient to perform government re-engineering of the LRU or provide data to other vendors to produce EGI and/or future EGI-M units.

Award to any other source will result in unacceptable delays in fulfilling the Air Force's requirements.

In order to qualify a new contractor to support these extensions for CLS for the EGIs, they would be required to develop their own unique highly specialized EGI specific to platform requirement(s) or reverse engineer the existing legacy EGI. The effort to develop the comprehensive software and hardware interfaces necessary in order to understand and provide ongoing CLS activity would be an unacceptable delay impacting mission success. It is estimated that such a development effort would take a minimum of 48-months.

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DoD users and directly impacts platforms that have on-going testing, modification, and integration efforts which require continuous contractor support. In addition, any delay would further postpone fielding the EGI's Global Positioning System (GPS) weapons targeting and operational theater combined operations capability. It is critical to have EGI GPS capability for accurate weapons delivery on intended target(s) in the current Areas of Responsibility (AOR) in the Middle East.

Accordingly, HI and NG are the only sources capable of providing the supplies and services described in Section III above without the DoD experiencing unacceptable delays in fulfilling its requirements.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

A Sources Sought (SS) / Request for Information (RFI) synopsis has been posted via the Federal Business Opportunities (FedBizOpps) website on 13 October 2016 under Solicitation Number FA8523-17-R-AAAA and 7 November 2016 under Solicitation Number FA8540-17-R-AAAAA.

Response dates were 12 November 2016 and 6 December 2016 respectively. The SS/RFI requested responses from interested vendors that possess the expertise, capabilities, and experience to meet qualification requirements for this effort. NG and HI were the only respondents to the RFIs. The vendors were evaluated for their capability and determined capable sources.

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

The overall cost of this acquisition will be fair and reasonable to the Government. In accordance with FAR 15.403-4, the contractors will be required to provide certified cost or pricing data to be used to support the Government's evaluation of the proposed costs. The proposed skill mix of labor, labor hours, types and quantities of material, other direct costs, and direct/indirect rates will be negotiated by the Government based on recommendations from the Defense Contract Audit Agency (DCAA) and/or Defense Contract Management Agency (DCMA) and expert technical personnel supporting the program. The contract price will be negotiated in accordance with the procedures in FAR Part 15 to ensure the ultimate costs to the Government will be fair and reasonable.

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

Market Research was conducted and completed 17 November 2017 in accordance with FAR Part

10.001 and 10.002. The following market research techniques were used:

As referenced in Section VI, two separate SS/RFI synopsis were posted on the FedBizOpps website at https://www.fbo.gov on 13 October 2016 under solicitation number FA8523-17-R-AAAA and 07

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November 2016 under Solicitation Number FA8540-l 7-R-AAAAA for the legacy EGI systems with responses due on 12 November 2016 and 07 December 2016 respectively. NG and HI were the only respondents to the RFIs and were deemed capable based on the proprietary data associated with their EGI systems and their knowledge and expertise.

Internet query searches using keywords "Embedded GPS/INS" were used to research for potential sources. Google and Yahoo search engines were used to accomplish the search. NG and HI were the only sources identified in the queries. No other suppliers were found that have the capability of combining both GPS and INS into a single LRU, nor did they possess the proprietary data or knowledge to properly support the CLS associated with this requirement.

The GSA Advantage website was queried using keywords "Embedded GPS/INS receiver" and "GPS/ INS receiver." The "Embedded GPS/INS receiver" query identified NG, HI, and Trimble. Trimble's role in the Embedded GPS/INS receiver is the development and manufacture of the Military GPS User equipment (MGUE) card, a component that will be used in the EGI-M internally. Trimble is currently under contract with the GPS Directorate (Space and Missile Center) for the development of the MGUE card. Trimble is not a viable source in regard to the legacy EGIs and the continuation of CLS activity.

The "GPS/INS receiver" query identified six vendors, including NG and HI. Vendors other than NG and HI manufacture internal components of the GPS/ INS receivers or their products were not designed for use in large scale platforms. NG and HI were determined the only capable vendors to support the bridge extensions to continue CLS activity as they possess the proprietary data, knowledge and experience with their respective EGI system.

Commercial Opportunity: The Legacy EGI cannot be acquired, nor can it be modified or upgraded, in the commercial market sector. EGI systems are not commercial items as defined in FAR 2.101. The EGI systems do not meet the definition of a commercial item since there is no similar product. There are sub-components of EGI, INS, or GPS that have commercial applications; but these are modified and integrated for Government use in such a way that they lose any similarity to the aforementioned commercial products. The EGI systems do not meet the FAR definition of a commercial item because the changes made to the GPS card could not be classified as a "minor modification." The EGI systems use a Precise Positioning Service (PPS) GPS as opposed to the commercial Standard Positioning Service (SPS). PPS is not available commercially and is accessed using crypto keys and decryption hardware controlled by the Air Force GPS PNT-PO and the National Security Agency.

The market research concluded that due to the lack of proprietary data on the legacy EGIs, NG and HI as the OEMs, are the only capable sources. No other sources are capable of fulfilling this requirement to continue CLS activity to mitigate or prevent a lapse in coverage while the follow-on IDIQs associated with the modernization of the EGI are awarded.

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

None.

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

As previously mentioned in Section V above, the Government does not possess or have rights to the TDP for the unique EGIs supported by NG and HI. In August 2016 the Government sent a request to both NG and HI on the sell of technical data in which both declined to provide the necessary data in order for the government to properly proceed with other vendors as viable solutions. The software source code and Kalman Filter data were deemed nonnegotiable by the OEMs.

In order to qualify a new contractor, they would be required to develop their own unique highly specialized EGI specific to platform requirement(s). This type development effort is estimated to take a minimum of 48-months. A 48-month delay in contract coverage is unacceptable to operational requirements and not considered feasible.

The prior Class J&A included steps to overcome barriers to competition such as plans to release a sources sought synopsis for any future procurement for new core EGI configurations. This effort is for continuation of CLS activity associated with the legacy EGIs and not the acquisition of new core EGI configurations. The Government intends to continue to follow the plan specified in the prior Class J&A when new core EGI configuration procurements are anticipated. Therefore higher level approval in accordance with DFARS PGI 206.304(a)(S-70)(ii) is not applicable. The Government however, is continuing actions to overcome barriers to competition. As part of the EGI-M Engineering and Manufacturing Development (EMD) effort, the Government is pursuing acquisition of the TDP and associated rights from both NG and HI.

Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

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XIII. 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.

Northrop Grumman Model LN-260

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