JA_Redacted.pdf

FD2060-14-30042 BAE-PPS

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

This Justification and Approval to request authority for Other Than Full and Open Competition supports requirements generated for the Department of the Air Force, Life Cycle Management Center, Agile Combat Support, Electronic Warfare/Avionics Division, AFLCMC/WNY. The contracting authority for this requirement is the Air Force Life Cycle Management Center, Electronic Warfare and Common Avionics Division, Contracting Section (AFLCMC/WNKCA).

The purchase request number supporting this contracting action is FD2060-14-30042.

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

Due to the circumstances described herein, the activity requests authority to acquire the engineering services listed in this document 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 new engineering services contract, which will be a firm fixed price that includes a basic period of performance of twelve months and four sequential options; each option will possess a twelve month period of performance. This sole source requirement is valued at , and will be purchased from the following company:

BAE Systems (CAGE 81413) Electronics and Integrated Solution 100 Campus Road Totowa, New Jersey 07512 Large Business

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

AGENCY’S NEEDS

The purpose of this task is to provide for contractor AN/ALR-56M RWR (Radar Warning Receiver) Engineering Services Support. The scope of the task includes providing On-Call Sustaining Support for highly technical deficiency analysis that organic sustainment is not capable of resolving. Provide support for each telecom tasking within 1 working day of initial inquiry (phone call and/or e-mail). Submit a draft problem resolution approach via e-mail that includes a milestone schedule within 5 work days after the initial telecom. Submit the task final problem resolution approach that contains no programmatic and/or technical errors or omissions within 7 work days of the milestone schedule submission. Submit reports of assigned tasks within 10 work days of completion of assigned task. The contractor shall provide all necessary resources required to accomplish and/or support this task, including software and data/databases.

Period of Performance is 1 year + 4 option years, for a total of 5 years. This requirement will use 3400 funds. Estimated funding for each fiscal year is listed below:

FY14-Basic:

FY15-Option 1:

FY16-Option 2:

FY17-Option 3:

FY18-Option 4:

Total:

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 USC 2304(c), 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 THE AUTHORITY

CITED ABOVE

The agency's minimum needs can only be satisfied by the highly specialized services available from the above cited source, which possess unique capabilities demonstrated as follows: BAE is the only source with the specific knowledge of the AN/ALR-56M RWR hardware, software, and software algorithms required to modify the system's Operational Flight Program (OFP) and Mission Data File Generator (MDFG) software. The Government sourcing documents from BAE Systems has been determined by 406 SCMS/GULA, Logistics Data Flight to be insufficient for competition. Additionally, only BAE Systems, as the OEM has the system knowledge required to resolve certain highly technical issues. Any other vendor would require several years to gain the required system knowledge. This support is critical to the overall functionality of the Electronic Warfare of the F-16s and the safety and welfare of our aircraft and aircrew. BAE has been actively supporting the ALR-56M system with a detailed understanding of the system interoperability as well as aircraft systems and interface requirements. To develop an alternate source with the relevant technical experience equivalent to BAE at this time would require an estimated amount in both direct start-up costs and indirect diminished-capability losses of $2,320,000 and represent almost five full years of value on this effort to recreate the depth of ALR-56M capabilities and system knowledge. The cost is derived by estimating another contractor (similar system) operating at of BAE’s capability for the first year (for the same price) and in the second year, in the third year, in the fourth year, for a loss of of one (1) current contract = in lost capability costs where the systems knowledge would take time to build back up to where BAE currently performs. This captures the lost capability to the government while the new contractor builds up to the level of performance of BAE. Accordingly, BAE is the only firm capable of providing the 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 and unacceptable delays in fulfilling its requirements. Therefore, this follow-on acquisition is for continued performance of a highly specialized service; previous contract—F09603-03-D-0001, expired-28 Jun 2013. This support will provide system engineering expertise beyond current organic government capability, and over time, will increase organic capability with software updates and system performance analysis.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

This requirement will be synopsized on the Federal Business Opportunities web page citing conditions that preclude F&OC. Sources expressing an interest as a result of the synopsis will be investigated for their capabilities to perform on this and/or future requirements.

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 contractor will be required to provide certified cost or pricing data to be used in supporting the Government’s evaluation of proposed cost. The proposed skill mix of labor categories, labor hours, types and quantities of materials, other direct costs and direct and indirect rates will be negotiated by the Government based on recommendations from the Defense Contract Management Agency (DCMA) and expert technical personnel supporting the program.

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 on 27 Sept 2013 IAW FAR Part 10 by the ALR-56M engineering staff. Engineering is actively engaged in component product sustainment, staying current with industry developments by reviewing industry reports, trends and product developments, talking with field personnel, reviewing applicable company portfolios on a regular basis.

Review of several industry-wide searches using the Acquisition Center of Excellence (ACE) recommended component search engines, which were utilized in searching for other qualified searches. Also, after a review of Government proprietary component product database (Haystack) and JEDMICS, current contracting activity and interaction with the Subject Matter Expert and Lead System Engineer, it was determined that BAE Systems (CAGE 81413) is the only source that possesses the knowledge and capabilities to meet the Governments requirement.

Market Investigation Technique

The main techniques used for this research was market surveillance, or awareness, and the internet to:

Review lists of member companies on Association of Old Crows websites.

Search for the supporting of this system of companies using Center of Excellence recommended websites:

www.google.com www.gsaadvantage.gov http://privweb.ihsxtra.net (Haystack website) http://www.aerospace-technology.com/contractors.index.html, http://www.electrobase.com/app/flC.niprd/wsprdall, http://www.electronics-oems.com/prodcuets.html, http://www.datasheetlocator.com, http://www.globalspec.com/ProductFinder, http://www.eem.com/, Ongoing Market Surveillance Techniques Attending the annual Warner Robins Electronic Warfare symposiums Review industry publications such as Aviation Week, Military Aerospace Technology, and Journal of Electronic Defense.

The results of the Market Research conducted for the ALR-56M system using www.google.com showed only two companies, Loral (leader) / Litton (follower).

Other market research techniques such as face-to-face, email, telephone contacts, and ThomasNet found no other companies have a history of supporting this system or a similar like system.

Review history of following industry providers supporting this product via face-to-face, email, telephone contacts:

Northrop Grumman Boeing Raytheon Company

ITT

From the results of both research techniques, none of the companies above had a history of supporting the AN/ALR-56M system in the area covered by this effort, nor access to the required proprietary data. The only vendor with the required expertise is the designer of the system, BAE. As the designer of the system they possess the detailed system design knowledge required to provide the required services. Full data is not relevant as this is a reach back capability to the OEM for their expertise, which only resides with the designer.

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

The ALR-56M is a program of record & is funded for the next 10 years.

Loss of the BAE expertise would result in the loss of significant support and analysis expertise and would require significant investment and time to bring another contractor into position to support any urgent/emergency support requirements. In summary, an effort to reverse engineer the ALR-56M engineering program would cost the USG an estimated in both direct start-up costs and indirect diminished-capability losses, and represent almost five full years of value on this effort for another contractor to develop the team and obtain system level knowledge that BAE has already performed, thus creating a significant delay in future benefits of this program. With DoD budget cuts looming in the immediate future, the Air Force cannot afford the associated cost duplications. This would be on top of the current effort which can only be accomplished by the OEM. Plans are in place to upgrade the ALR-56M system within the next 10 years. Any reverse engineering time and costs would be a duplication of costs and have little, if any, return on investment.

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)).