J A_Redacted.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

United States Air Force, AFLCMC/WNKC (Bldg. 301) 420 Richard Ray Blvd., Suite 100 Robins AFB, GA 31098-1638 Kristen Campbell, Contracting Officer

Justification for Other Than Full and Open Competition

PR Number: FD2060-16-90783

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

The purpose of the this individual J&A is to gain approval to use other than full and open competition procedures to award a new sole source Sustaining Engineering (SE) contract to Raytheon Space and Airborne Systems.

The Electronic Warfare (EW)/ Avionics Division plans to award an Indefinite Delivery/Indefinite Quantity (ID/IQ) with a 1 – year base ordering period and (4) 1 – year options to Raytheon Space and Airborne Systems (SAS) Division, Cage Code 96214, located at 2501 West University Drive, McKinney, Texas 75071, as they were the activity that originally designed and maintained the AN/APN-237A/ radar subsystems of the AAQ-13 Low Altitude Navigation and Targeting Infrared for Night (LANTIRN) Navigation Pods. Estimated cost is

, with an estimated award date of 19 Sep 2016. The primary contract type delivery orders issued under the contract will be Cost Plus Fixed Fee (CPFF).

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

AGENCY’S NEEDS

The Raytheon AAQ-13/LANTIRN Navigation Pod Sustaining Engineering Services contract will address sustaining engineering and logistics support services to include Class I Engineering Change Proposals (ECP), Prime Mission Equipment (PME), Line Replacement Unit (LRU) sustainment analysis and reporting, maintenance analysis and support of repair process, and technical services to support future LANTIRN analyses and planning by Air Force Material Command (AFMC) and the Precision Attack System Program Office (PASPO). The contractor engineering services support maintenance and sustainment activities at Robins AFB, GA;

Langley AFB, VA; and F-15 operational bases. The contractor’s engineering services will assure the AAQ-13 Pod meets or exceeds the required 85% mission capability rate. This contract period of performance will parallel comparable vehicles for other engineering services to provide the Government with options out year integration of engineering services for sustainment support at lower cost. The estimated total cost for APN-237A TFR engineering services, including travel and reports, is . The total estimated cost is based on the historical FY 15 Engineering Sustainment Contract data. The period of performance of this effort will be 19 September 2016 thru 18 September 2021, and 3400 appropriations will fund this effort.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

The statutory authority permitting Other Than Full and Open Competition is 10 U.S.C. 2304 (c)(1) as implemented by paragraphs 6.302-1(a)(2)(ii)(A) and (iii)(A) of the Federal Acquisition Regulation (FAR), “Supplies and Services from Only One Responsible Source.”

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE

QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES THE USE OF

THE AUTHORITY CITED ABOVE (APPLICABILITY OF AUTHORITY)

“Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized”.

a) Raytheon Technical Services Company is the sole provider of engineering services support for the APN-237A radar set which meets all the sustainment support requirements for ACC’s, F15E platform. Raytheon is the only source able to provide the unique and highly specialized engineering services that can meet the Government’s AAQ-13 LANTIRN Navigation Pod requirements. Therefore, this acquisition will be for the follow-on contract for continued sustaining engineering services of highly specialized services and continued performance of sustainment support.

b) The AAQ-13, currently, has an expected lifespan until the year 2040 and as the original developing activity for the APN-237A, Raytheon has been the only source able to address resolution of system maintenance deficiencies, resolution of parts obsolescence deficiencies, development of engineering change proposals, review of Government engineering change proposals, performance of sustainment studies, and technical services in support of the analysis and resolution of system supportability deficiencies, which are all defined in the Performance Work Statement (PWS). The original sustaining engineering contract was awarded 29 July 2011 to Raytheon. As such, this individual J&A requests approval to enter into a follow-on, sole source acquisition to Raytheon for performance of highly specialized services, where award to any other source would result in substantial duplication of costs that would not be recovered through competition.

c) Raytheon has the engineering expertise required to provide the quality and timely engineering services defined in the Performance Work Statement. The unique and highly specialized engineering services required to meet the Government’s requirements were developed by Raytheon with the APN-237A TFR. Raytheon’s engineering service capabilities and experience were further expanded during the twenty-seven years they have been providing quality and timely engineering, logistics, supply, repair, field, and MAJCOM support for the AAQ-13 LANTIRN Navigation Pods. Those highly specialized services include;

In addition, when the Organic depot has encountered repairs beyond their capability for the APN-237A, Raytheon has been able to provide recommendation to the PASPO for repair.

d) The Government owns the legacy Technical Drawing Package (TDP) to the components currently operated on the APN-237A; however successful sustainment will require upgrading the TDP. There are currently seventy obsolete components on the legacy APN- 237A with mitigations established through the upgraded TDP. The upgrade TDP is proprietary to Raytheon which is currently supporting Foreign Military Sales (FMS), but was not purchased by USAF. To address this lack of upgraded TDP, PASPO requested cost estimate Rough Order Magnitude (ROM) from Raytheon for the upgraded TDP.

Although the total ROM cost was approximately the contractor acknowledged in their 6 July 2015 email response that the ROM was provided for planning purposes only and should not be construed as a firm offer to sell. PASPO is making the recommendation to ACC to purchase the upgrade TDP and will input cost of TDP in future requirements. Since the Government does not own the upgraded TDP, reverse engineering is cost prohibitive and impedes competition from other sources, therefore, directs the solicitation be made to the approved source only. In addition, Raytheon is the only firm capable of providing the services described in Section III above without the U.S. Air Force experiencing substantial delays.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

a) Sources Sought Synopsis (SSS), was released on 7 January 2016 and was used to identify potential sources for the LANTIRN Navigation Pod TFR SE requirements.

There were no respondents to the SSS. Raytheon is the only source identified that can provide the needed services for this requirement. AFLCMC/WNYED documented the results in a Market Research Report, dated 1 February 2016, which confirms that Raytheon is the only responsible source with the requisite engineering, programmatic expertise, developing, supply, and unique experience required at the level of quality required.

b) Synopsis of Proposed Contract Action: This requirement will be synopsized on the Federal Business Opportunities web page as required by FAR 5.201 citing conditions which preclude Full and Open Competition. Any sources expressing an interest as a result of synopsis will also 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

In accordance with FAR 15.403-4, the contractor will be required to provide certified cost or pricing data to be used supporting the Government's evaluation of the proposed cost. The contract price will be negotiated in accordance with the procedures in FAR Part 15 ensuring the ultimate cost to the Government is fair and reasonable. Additionally, an informal analysis of prices for each delivery order will be performed to ensure prices are the most advantageous to the Government. The proposed skill mix of labor, labor hours, types and quantities of material and other direct costs, and direct and indirect rates will be negotiated by the Government based on recommendations from DCAA 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

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. The EW/Avionics Division conducted the latter assessment dated 31 December 2015 confirming Raytheon is the only responsible source with an ability to provide the required highly specialized services without incurring a substantial duplication of cost not expected to be recovered through competition. This assessment encompassed a review of the LANTIRN Navigation Pod TFR acquisition history, requirements, technical data availability, and industry capabilities, and employed the following market research methods:

Market Research Investigation: An iterative investigative process has been utilized in order to help keep abreast of all information, data, capabilities, etc. on precision attack/precision engagement product, service or capabilities.

Market Research Surveillance: A continuous effort has been maintained to provide awareness of the market or markets related to the mission area or capabilities being acquired.

Market Research Techniques Utilized: Internet searches; sites used include:

www.thomasregister.com, www.eem.com, www.bigyellow.com, www.yahoo.com, using key words searches such as “LANTIRN repair” and “LANTIRN spare parts” as well as the national stock numbers, LANTIRN, LANTIRN parts replacements and Laser Transmitter Receiver (LTR).

No suppliers other than the OEM, Raytheon, were found that is qualified to provide LANTIRN Navigational pod radar subsystems engineering support and sustainment. No commercial sale of this item exists as this weapon system is used solely for military applications.

Market research has clearly concluded that only company with this expertise for Sustaining Engineering of the AAQ-13/LANTIRN Navigation Pod is Raytheon Space and Airborne Systems.

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

OPEN COMPETITION

Raytheon has provided repair materials and repair services to the organic depot. The radar subsystems of the LANTIRN Navigational Pods have experienced a high failure rate recently repairing these sub-assemblies has become increasingly difficult due to incomplete/incorrect drawings and outdated test procedures.

Raytheon maintains the data rights to key component upgrades of the radar system. No other potential candidate suppliers were found based on their previous LANTIRN radar set specific work experience.

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

While the Government is the major user of LANTIRN assets, there are several other countries (Israel, Greece, Twain) that contribute to the market share. As such, the U.S. Government does possess significant leverage in the area of improvements/upgrades, modifications, and obsolescence resolution.

Reverse engineering is a desirable and viable avenue whenever applicable and practical.

However, because upgrades have already been conducted by Raytheon, duplication of cost, at the estimated value of and length of time, estimated between 5 to 7 years, to reverse engineer would not be in the best interest of the government.

The current Market Research indicates a sole source environment for the sustaining engineering services effort; the Government will take the following steps to overcome barriers to competition for future acquisitions.

1. Recommend U.S. Air Force to purchase the essential upgrade TDP necessary for competition

2. Encourage Raytheon to optimize the use of commercial practices and Commercial-Off- The-Shelf (COTS) items.

Once the TDP is available the Government will compete future requirements for the engineering services.

XII. CONTRACTING OFFICER’S CERTIFICATION

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.

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

As evidenced by my (our) signatures on the signature page, I (we) have certified that any supporting data contained herein which is my (our) responsibility, is both accurate and complete.