FA8525-13-D-0001-P00011_Redacted_J A.pdf

JUSTIFICATION AND APPROVAL

FOR

OTHER THAN FULL AND OPEN COMPETITION

C-5 AVIONICS MODERNIZATION PROGRAM

(AMP) AND RELIABILITY ENHANCEMENT AND

RE-ENGINING PROGRAM (RERP) SUPPORT

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

The primary contracting organization is Warner Robins Air Logistics Complex (WR-ALC), Galaxy Division (AFLCMC/WLS), Robins Air Force Base (AFB), Georgia, 31098-2122.

Justification for Other Than Full and Open Competition for FD2060-14-32477.

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

C-5 Avionics Modernization Program (AMP) and Reliability Enhancement and Re-engining Program (RERP). This standalone J&A is issued for $_____ to address out of scope cost growth from $_____ to $_____ on contract FA8525-13-D-0001 for continued tasks and duties required in support of AMP/RERP modified C-5 aircraft. This individual J&A is required to fully execute Option Year II on the Indefinite Delivery/Indefinite Quantity (IDIQ) contract. The established Period of Performance (PoP) on the IDIQ is 01 Feb 2013 through 31 Jan 2016 (Basic and two one-year Option periods).The efforts under this contract will be Firm Fixed Price, Cost Plus Fixed Fee, and Cost Reimbursable-No Fee. AMP and RERP requirements are managed and executed by AFLCMC/WLS Robins AFB. This Contractor Logistic Support (CLS) contract with the Original Equipment Manufacturer (OEM) Lockheed Martin Aeronautics (LM Aero), Marietta, Georgia is required to support and sustain the AMP and RERP Programs.

Continuation of sole source contract FA8525-13-D-0001 to:

Lockheed Martin Aeronautics Company 86 South Cobb Drive Marietta, GA 30063-0001 Commercial and Government Entity (CAGE) Code: 98897

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

AGENCY’S NEEDS

The original J&A was approved by Steven J. Zamparelli, WR-ALC/PK on 08 Feb 2012 for AMP and RERP modified aircraft sustainment support to include supply management, base level support, and administration/management. The purpose of this standalone J&A is to cover the additional out of scope workload that transitioned from the RERP Interim Contractor Support (ICS) contract at AFLCMC/WLSK (WPAFB) in Feb and Mar 2014 to the AMP/RERP CLS Contract. Due to uncertainties regarding workload transition from the ICS contract and delays in depot activation and logistics reassignment of Line Replaceable Unit (LRU) and consumable items, the additional workload was transferred to the CLS contract to avoid a gap in C-5 sustainment support. The additional workload includes supply chain management, repair/replenishment of LRUs and consumables, engine warranty administration and product support, and additional Field Service Representative support for Dover and Travis and upcoming requirements for Westover ARB and Lackland AFB.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1(a)(2)(iii)(A). The preceding authority is applicable to services deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services and when it is likely 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.

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 Government does not own technical data rights and computer software to allow for competition. A major portion of technical data and tooling for the C-5 AMP modification is proprietary to the OEM and/or its suppliers. The AMP and RERP software and LRU technical data is 100% proprietary to LM Aero and their vendors. LM Aero is currently the only contractor possessing the certified Systems Integration Laboratory for both the AMP and RERP configurations. LM Aero has the unique ability to test the integration impact of changes to supply items necessitated by obsolescence and other deficiencies identified in service. No other source has the capability or the integration technical data required to establish this capability.

Without successful integration testing of redesigned supply items, the System Program Manager (SPM) cannot approve the use of the redesigned item on C-5 aircraft which will result in grounded aircraft.

Award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition. In order to develop a new source for these services, a complete redesign of the core computer and integration of these changes, with multiple subsystem elements, would be required. For any other capable company to perform these services, a complete redesign of the software integration for the C-5 avionics suite would have to be accomplished. Costly engineering efforts and extensive lead times would be required.

The C-5 System Program Office initiated a redesign effort on a critical LRU, Pilot Assist Cable Servo (PAC) in 2010. This effort was designed to provide the Government technical data rights for increased reliability and competive procurement of the LRU. The Mean Time Between Failure rate was 60% lower than originally projected and negatively impacting the system and aircraft availability. The PAC Servo redesign effort has taken more than four (4) years and utilized two different vendors for the effort. No serviceable asset has been produced that meets Airworthiness Cerfitication requirements for integration on the aircraft. Complex proprietary technical and integration requirements created increased cost and schedule delays for this redesign effort. The AMP/RERP contract has approximately 349 different LRUs that would individually require approximately ~48 months for each redesign effort. The extensive leadtimes required for each NSN would generate a duplication of cost and procurement delays that would negatively impact LRU availability in support of mission requirements.

Accordingly, the OEM is the only contractor capable of providing the supplies and services described in Section III without the Air Force experiencing substantial duplication of cost that is not expected to be recovered through competition. Based on this conclusion, the original AMP/RERP CLS contract was awarded sole source to the OEM. This same rationale applies to the support and sustainment of the additional out of scope requirements.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

The AMP system was originally developed on a competitive basis; however, the developer was not required to sell the technical data to the Government. The development and production contracts did not include Government data rights therefore the OEM has been the only source of supply and repair for the C-5 AMP/RERP fleet. The RERP production contract includes data right clauses, but data has not been procured. The technical data required for depot level maintenance is not available to the Government. AFLCMC/WLS has not yet determined if any technical data can be obtained under DFARs 252.227-7027-Deferred Ordering of Technical Data or Computer Software on the RERP production contract. Between 2003 and 2014, four separate efforts to procure data rights for future competition were unsuccessful.

In order to transition sustainment of AMP/RERP related items to a competitive environment, the Government would be required to re-engineer all items from bottom up and ensure the Government has complete and unlimited rights to the technical data and software.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

AFLCMC/WLS has resources available to accomplish engineering, technical analysis, and quality assurance. Defense Contract Management Agency (DCMA) will provide direct and indirect rates in the form of Forward Pricing Rate Agreements (FPRAs) or Forward Pricing Rate Recommendations (FPRRs). Cost and price analysis will be accomplished by AFLCMC/WLS to ensure repricing of all additional out of scope items are negotiated and awarded at a fair and reasonable price. Lockheed Martin will be required to submit certified cost and pricing data in accordance with FAR 15.403-4. A comprehensive analysis will include technical evaluations of the contractor’s proposal by the program office. The final contract price will be negotiated in accordance with procedures in FAR Part 15 to ensure negotiated prices are fair and reasonable to both parties.

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 for this standalone J&A pursuant to FAR Part 10.001 in June 2014 by the Multi-Functional Team (MFT) and concluded Lockheed Martin is the only source with expertise to provide these continued CLS sustainment services to the C-5 Aircraft Program.

Techniques employed in this market research include extensive internet searches, vendor survey and engineering technical expertise. LMA is the original equipment manufacturer and the only source that possesses the technical, engineering knowledge and expertise to complete the required production and sustainment services while maintaining configuration and schedule control. The logistics necessary to support the C-5 AMP and RERP fleet requires the prime developer and integrator to continue in the Contractor Logistics Support (CLS) role while the program continues transition to an organic/contractor partnership. Technical data is not owned by the Government. The AMP and RERP software and Line Replacement Units (LRU) technical data is 100% proprietary to LMA and their subcontractors. LMA is the only vendor possessing the Systems Integration Laboratory for both the AMP and RERP configurations.

LMA has the unique ability to test the integration impact of changes to supply items necessitated by obsolescence and other deficiencies identified in service. No other source has the capability or the integration technical data required to establish this capability. Without successful integration testing of redesigned supply items the System Program Office cannot approve the use of the redesigned item on C-5 aircraft which will result in grounded aircraft.

The AMP/RERP CLS market research identified Lockheed Martin as the only source with the technical, engineering knowledge, and expertise to provide CLS sustainment services to the C-5 Aircraft Program. The logistics necessary to support the C-5 AMP and RERP fleet requires the prime developer and integrator to continue in the CLS role while the program continues transition to an organic/contractor partnership. Lockheed Martin is the only source possessing the Systems Integration Laboratory (SIL) for both the AMP and RERP configurations.

Lockheed Martin has the unique ability to test the integration impact of changes to supply items necessitated by obsolescence and other deficiencies identified in service. No other source has the capability or the integration technical data required to establish this capability. Without successful integration testing of redesigned supply items, the System Program Manager (SPM) cannot approve the use of the redesigned item on C-5 aircraft, which may result in grounded aircraft.

The technical data and tooling for the C-5 AMP and RERP modifications are proprietary to Lockheed Martin for the production and sustainment of the C-5 AMP and RERP modifications.

Therefore, without the required safety considerations, software process information, labs, software tools, drawings and training, another source would not be able to continue performance of the services currently provided by Lockheed Martin.

The websites listed below are some of the sites found by internet searches during the compilation of this market research. These searches were completed for large aircraft manufacturers and for companies that are experienced in providing specialized engineering services for large aircraft, both commercial and military. These searches resulted in a closer vendor survey of five potential sources, however only Lockheed Martin possesses all of the required capabilities.

• www.ThomasNet.com searches manufacturers, distributors and service providers and is built off of the Thomas Registry.

• https://www.sam.gov/ http://www.thomasnet.com/ https://www.sam.gov/

• http://www.lockheedmartin.com/us/aeronautics/mmro/c5m.html

• http://www.lockheedmartin.com/us/aeronautics/materialmanagement/scm-terms/scm-terms_c5.html

• http://www.lockheedmartin.com/content/dam/lockheed/data/aero/documents/c5/c5_broch ure_m11-1132343b.pdf

• http://www.boeing.com/boeing/defense-space/military/c17/index.page

• http://www.boeing.com/defense-space/military/c17/c17spec.htm

• http://www.services.zodiacaerospace.com/content/services-en/Product_and_Services/Range_of_services/

• http://www.zodiacaerospace.com/en/zodiac-northwest-aerospace-technologies-0

• http://www.airbus.com/company/americas/

• http://www.l-3com.com/is/waco/index.html

• http://www2.l-3com.com/is/isBackground.html

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

OPEN COMPETITION

See Section VI above.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE

ACQUISITION

See Section VIII 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

Lockheed Martin continues to decline offers by the Government to procure proprietary C-5 data for use by other competitors. However, per Title 10 U.S.C. 2466, the Government is required to assign all repairable assets as organic source of repair to determine if items can be organically repaired instead of contract depot level repaired and to limit contract depot level maintenance to no more than 50% of depot maintenance funds. The Government has only limited data available, such as cataloging and usage data, and is continuously working on transitioning the Lockheed Martin managed items to organic repair capability or Private Public Partnerships (PPP). On average, it takes over two years to logistics reassign a repair asset and once logistics reassignment has occurred, the Government begins the process of evaluating whether the asset can be organically repaired based on the limited data available or if a PPP can be established. To date the Government has logistics transferred seven of the twenty-one AMP items and fourteen http://www.lockheedmartin.com/us/aeronautics/mmro/c5m.html http://www.lockheedmartin.com/us/aeronautics/materialmanagement/scm-terms/scm-terms_c5.html http://www.lockheedmartin.com/us/aeronautics/materialmanagement/scm-terms/scm-terms_c5.html http://www.lockheedmartin.com/content/dam/lockheed/data/aero/documents/c5/c5_brochure_m11-1132343b.pdf http://www.lockheedmartin.com/content/dam/lockheed/data/aero/documents/c5/c5_brochure_m11-1132343b.pdf http://www.boeing.com/boeing/defense-space/military/c17/index.page http://www.boeing.com/defense-space/military/c17/c17spec.htm http://www.services.zodiacaerospace.com/content/services-en/Product_and_Services/Range_of_services/ http://www.services.zodiacaerospace.com/content/services-en/Product_and_Services/Range_of_services/ http://www.zodiacaerospace.com/en/zodiac-northwest-aerospace-technologies-0 http://www.airbus.com/company/americas/ http://www.l-3com.com/is/waco/index.html http://www2.l-3com.com/is/isBackground.html

RERP items from contractor to AFSC. The remaining three hundred and forty one AMP/RERP items will transition by FY18. AFLCMC/WLS leads quarterly DMAWG meetings and a representative from each Air Logistics Complex (ALC) is present. As items are transitioned to organic or PPP, they will be removed from the CLS contract . The CLS contract is projected to be required for the the C-5 aircraft fleet until the fleet’s scheduled retirement in FY2040.

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 in accordance with 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 in accordance with FAR 6.303-2(c).

http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/af_afmc/far/Far06.doc%23b63032 http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/af_afmc/far/Far06.doc%23b63032

STAFF SUMMARY SHEET

TO ACTION eSIGNATURE SIGNER COMMENTS

1 Jeffrey Bridger Coord

Signed by BRIDGER.JEFFREY.L.1229932612 View details on Monday, August 25, 2014 12:26 PM (Eastern Standard Time)

2 Walter Wolfe Coord

Signed by MAULDIN.LINDA.P.1230983271 View details on Friday, August 29, 2014 9:43 AM (Eastern Standard Time)

Acting Branch Chief

3 Michele Cranford Sign

Signed by CRANFORD.MICHELE.W.1229929697 View details on Friday, September 12, 2014 1:44 PM (Eastern Standard Time)

4 Bradley Adams Sign

Signed by ADAMS.BRADLEY.S.1016901063 Vi details on Tuesday, September 16, 2014 2:47 PM (Eastern Sta Time)

5 Kim McDonald Sign

There is a problem with this signature View details

Rosalind

Coord

Harper

Signed by HARPER.ROSALIND.R.1074201713 details on Friday, December 19, 2014 3:49 PM (Eastern Stand Time)

7 Col John Newberry Coord

Signed by NEWBERRY.JOHN.P.1154625867 View details on Friday, January 16, 2015 5:07 PM (Eastern Standard Time)

8 Kevin W.

Buckley Approve

Signed by BUCKLEY.KEVIN.W.1033262708 View details on Thursday, January 22, 2015 10:01 PM (Eastern Standard Time)

9 Click here to sign this section

0 Click here to sign this section

1. PURPOSE:

2. BACKGROUND:

3. DISCUSSION:

4. VIEWS OF OTHERS:

SURNAME OF ACTION OFFICER

AND RANK OFFICE PHONE SUSPENSE DATE

J. Everett/12 AFLCMC/WLSAC 497-7060 8/18/2014

YYYYMMDD

SUBJECT DATE

FD2060-14-32477

FD2060-14-32477 FD2060-14-32477 AMP/RERP Option II Ceiling Increase is ready for your action.

8/18/2014

YYYYMMDD

SUBJECT

This AMP/RERP standalone J&A is issued for $23.6M to fully execute Option Year II of an Indefinite Delivery/Indefinite Quantity (IDIQ) contract for continued task and duties of an in scope cost growth from $74.9M to $98.5M.

This contract effort prevents a gap in C5 sustainment generated from transition of uncertain workloads from the Interim Contract Support contract, depot activation delays and logistic reassignment of Line Replaceable Units and consumables. The additional workload includes supply chain management, repair/replenishment of LRUs and consumables, engine warranty administration and product support, and additional Field Service Representative support requirements.

Coordination and signatures are needed for J&A approval required for successful award of the AMP/REPR Option II sustainment contract.

5. RECOMMENDATION:

11 Tabs

The PEO, Mr. Buckley is aware of the criticality of the AMP/RERP sustainment Option II contract effort for sustainment support of mission requirements and increased aircraft availability. AMC concurs with the intent and scope of the AMP/RERP sustainment effort.

Recommend signature from legal, the competition advocate and the PEO on Tab 2.

COL JAMES R. ECHOLS

CHIEF, C5 GALAXY DIVISION

----------------------------------------Tab 1 Click to access:AMP/RERP CAD

AMP/RERP CAD

https://cs.eis.af.mil/airforcecontracting/records_contract/JA/JA_Doc_Library/FD20601432477/Final%20CADv3.pdf

----------------------------------------Tab 2 Click to access:AMP/RERP Market Research AMP/RERP Market Research https://cs.eis.af.mil/airforcecontracting/records_contract/JA/JA_Doc_Library/FD20601432477/Market%20Research%20R...

----------------------------------------Tab 3 Click to access:FD20601432477

FD20601432477

https://cs.eis.af.mil/airforcecontracting/records_contract/JA/JA_Doc_Library/FD20601432477/Draft%20Planning%20PR%...

----------------------------------------Tab 4 Click to access:AMP/RERP QASP

AMP/RERP QASP

https://cs.eis.af.mil/airforcecontracting/records_contract/JA/JA_Doc_Library/FD20601432477/Draft%20QASP%20Rev%2...

----------------------------------------Tab 5 Click to access:AMP/RERP RAD

AMP/RERP RAD

https://cs.eis.af.mil/airforcecontracting/records_contract/JA/JA_Doc_Library/FD20601432477/Draft%20RAD11347%2027...

----------------------------------------Tab 6 Click to access:AMP/RERP WAD

AMP/RERP WAD

https://cs.eis.af.mil/airforcecontracting/records_contract/JA/JA_Doc_Library/FD20601432477/Draft%20AMP%20RERP%2...

----------------------------------------Tab 7 Click to access:Exhibit Master Listing Exhibit Master Listing https://cs.eis.af.mil/airforcecontracting/records_contract/JA/JA_Doc_Library/FD20601432477/Copy%20of%20Final%20M...

----------------------------------------Tab 8 Click to access:AMP/RERP PWS

AMP/RERP PWS

https://cs.eis.af.mil/airforcecontracting/records_contract/JA/JA_Doc_Library/FD20601432477/PWS%20Rev%2004%20(15...

----------------------------------------Tab 9 Click to access:AMP/RERP J&Av1

AMP/RERP J&Av1 https://cs.eis.af.mil/airforcecontracting/records_contract/JA/JA_Doc_Library/FD20601432477/JA%20111414v1.docx

----------------------------------------Tab 10 Click to access:AMP/RERP ASP

AMP/RERP ASP

https://cs.eis.af.mil/airforcecontracting/records_contract/JA/JA_Doc_Library/FD20601432477/AMP_RERP%20ASP%20Fin...

----------------------------------------Tab 11 Click to access:Previous J&A Previous J&A https://cs.eis.af.mil/airforcecontracting/records_contract/JA/JA_Doc_Library/FD20601432477/JA%20Signed.pdf