JA_Redacted_.pdf

APPENDIXB

FAIR OPPORTUNITY EXCEPTION (FOE) DETERMINATION AND APPROVAL

Contracting Activity: AFLCMC/WIUKA Purchase Request/Local Identification Number: FD2060-l 4-31973 _____ _ Program Name (and Program Element, if applicable): I 05mm Production Estimated Cost/Price of the Order (including options)~ Type Program: PEO Authority: FAR l 6.505(b)(2)(i)(B) Type Determination: Individual

Program Manager:

Contracting Officer:

Local Legal Reviewer:

Competition Advocate:

Date Signed

• Date Signed

Date Signed

Date Signed

FAIR OPPORTUNITY EXCEPTION (FOE) JUSTIFICATION

I. Contracting Activity The contracting activity responsible for this action is AFLCMCIW:IYKA, Robins Air Force Base, GA. The Contracting Officer i ..

This is an Exception to Fair Opportunity Justification.

Purchase Request Number is FD2060-14-3 l 973.

II. Nature and/or Description of the Action Being Processed This proposed action is a new order on Future Flexible Acquisition and Sustainment Tool (F2 AST) contract FA8530-08-D-0007. The contractor's information is as follows:

L-3 Communications TCS, Inc. (L-3 TCS) 324 Corder Road Warner Robins GA 31088-3606 Cage OF5W6

This 105mm Gun Weapon System (GWS) permanent modification requirement will be comprised of aircraft integration, modification NRE, test support, engineering drawings, technical order source data support and support for system/sub system integration, prototype qualification testing, data processing and analysis on the AC-l 30W Stinger II Gunship for United States Special Operations Command (USSOCOM) and Air Force Special Operations Command (AFSOC). Modification Proposal AF Form 1067 SOC #14005, Permanent modification of the 105mm Gun System on the AC-130W, dated 17 Jan 14, supports this requirement.

This order will have Contract Line Item Numbers (CLINs) for the following:

CUN 001 I Non Recurring Cost Plus Fixed Fee I 1 Lot En ineerin RE CPFF

CUN 002 I Trial Kit Group A Firm Fixed Fee I 1 Kit

FFP

CUN 003 Trial Kit Install Labor FFP 1 Kit

CUN 004 FFP 1 Kit CLIN 005 Kit Prooflnstall Labor FFP 1 Kit

Grou A CUN 006 Testin FFP 1 Lot CUN 007 Production Kit Grou A FFP 1 Kit CUN 008 Production Kit Install FFP 1 Lot

GrouQ A CLIN 009 I Travel and Per Diem I Cost I 1 Lot

Reimbursement-No Fee {CRNF}

CUN 010 I Engineering Data I FFP/Not Separately I 1 Lot Priced <NSP

CLIN 011 I Over and Above

TOTAL

Time and Material (T&M)/To Be Neeotiated <TBN l Lot

$9,925,000.00

III. Description of the Supplies/Services Required To Meet the Agency's Needs The AC- l 30W is a highly modified aircraft featuring improved navigation, threat detection, countermeasures and communication suites. Air Force Special Operations Command (AFSOC) has an operational requirement for the integration and installation of the 105mm GWS on the AC- l 30W aircraft. Current AC-l 30W aircraft weapons/firepower is limited in scope. The AC- l 30W employs a 30mm cannon and Stand-off Precision Guided Munitions (PGM); neither of these weapon systems fulfills the needs of the supported ground force commanders.

The Air Force requires major modification to integrate the 105mm GWS, design and integrate the items as described in the applicable Performance-Based Work Statement (PWS) to permanently modify J) Air Force Special Operations Command (AFSOC) AC-130W aircraft with the production 105mm GWS. The purpose of this effort is to integrate the 105mm GWS, design and integrate provisions for a Mission Operator Panel (MOP), define installation of the government furnished equipment (GFE), provide relocation and install aircrew crashworthy seats (up to 3) along with implementation of threat scanning capabilities. Install auxiliary hydraulic system for gun retraction along with installation of gun port seal with the capability to pressurize to 16 psi, install 105mm blast shield and install AC-130H 105mm misfire shell jettison port. Implement weight reduction and manage aircraft center of gravity, perform consolidation/relocation of gun control computer and gun control panel;

define and install oxygen/communication line drops, perform ALE-47 dispenser relocation, aircraft electrical power distribution, and perform left hand side formation light improvement. Perform and deliver analysis and drawings necessary to substantiate and complete the modification. Finally, acquire the acquisition, logistics, and sustainment support to complete the permanent modification of the fleet.

The following modifications are reguiredand will be performed as part of the I 05mm GWS Installation:

* New Ammo Rack Design/Manufacturing and 105mm Ammo Rack Placement

* MOP Replacement

* Gun Port Structural Installation and enclosure

* 1 OS mm Air Blast Shield Installation

* ALE-47 Dispenser Relocation

* Auxiliary Hydraulic System Modification for gun retraction system

* Oxygen/Communication line Drops

* Aircraft and Electrical Power Distribution

* Crashworthy Seating Evaluation and relocation (up to 3 additional seats)

* Left Hand Side Formation Light Improvement

* 105mm Miss-fire Shell Jettison Port Installation

* Threat Scanning Capability

* Weight Reduction/Redistribution to manage aircraft center of gravity

* Group B Considerations to adapt to all above changes

The AC-l 30W 105mm GWS will be a permanent aircraft modification for immediate installation with targetee This effort includes one (1) trial kit installation, one (1) kit proof installation, and one (l) production l 05mm GWS aircraft integration kit. All modifications for the l 05mm GWS must be completed together and no part of the modification is stand alone. Estimated dollar amount is $9. 925 M. FY 14 0300 funds will be used and projected Period of Performance (PoP) is 24 months. The services specified in this requirement are performance based.

IV. Authority Permitting a Fair Opportunity Exception FAR l 6.505(b)(l)(i) requires the Contracting Officer to give every awardee under a multiple award contract a fair opportunity to be considered for each order exceeding $3,000 unless a statutory exception applies. The specific exception that precludes the fair opportunity process for this acquisition is FAR l 6.505(b){2)(i)(B).

V. Demonstration of the Contractor's Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above to Provide the Required Supply/Service (Applicability of Authority)

FAR l 6.505(b )(2)(i)(B) Only one awardeeis capable of providing the supplies oe services required at the level of quality required because the supplies or services are unique or highly specialized.

L-3 TCS's ongoing experience with designing Group A interfaces for the 105mm Demonstration effort, Feasibility Study and the MOP means that switching to another contractor would induce intolerable cost/schedule/performance risks. The Government has already invested over $12M in previous efforts with L-3 TCS (plus an additional $6.8M in NRE) that would have to be re-invested with any new contractor in order to complete the 105mm GWS modification. A new contractor would expend a minimum of 18 months in schedule to reach the learning curve that L-3 TCS has already accomplished and would be unable to deliver the required capabilities in time to meet the operational need. The knowledge L-3 TCS has already gained from the 105mm Demonstration, Feasibility Study and the upcoming flight tests are not transferrable to a new contractor since there will not be another 105mm Demonstration or Feasibility Study. The basic Stinger II package drawings were delivered and loaded into JEDMICs in June 2014.

With successful completion of the 105mm Demonstration, the decision was made to go into full production for the AC-130 W fleet. There will be significant technical changes to the current Stinger II model with the addition of a 105mm GWS inclued PSP.

Knowing the amount of changes the l 05mm will create in the technical drawing packages, the government will not procure the complete data package until the entirety of the changes are made. Because we do not have the l 05mm and PSP technical data this effort will not be able to be competed. L-3 TCS is currently working the Technical Data Package (TDP) for the 105mm GWS and will incorporate data gathered from the studies;

however, a complete TOP will not be available until after July 2016.The United States Air Force (USAF) invested in L-3 TCS for the demonstration and need to leverage off that experience for the 105mm Production and Feasibility Study, to attempt to bring another contractor up to the current level of L3-TCS would create a substantial (at least an additional $ l 2M) duplication of cost to the government. The demonstration effort did not include a delivery of a complete procurable data package. The demonstration of the PSP GWS included the 105mm cannon, upgrade and integrati~n of the 30mm cannon, MOP pallet upgrade, control software upgrade, and integration of

-. This modification touches over 80% of aircraft systems, making it a monumental task to update all of the associated T.0.s (over 18,000 pages with changes).

Only L-3 TCS meets all these requirements and can deliver a complete drawing package in a manner to meet the operational need. Another contractor cannot do this work because we have no technical drawing package at this time, and is not scheduled to be delivered until at least July 2016.

The only chance of meeting th Ts date is to Teverage off existing effortS and contractoreXperience.

SOCOM also requires minimal disruption to the AC- l 30W teaming arrangement to allow them to maintain a highly aggressive timeline as they have over the last 4 years. L-3 TCS's teaming arrangement with other Composite Acquisition Detachments (CAD) is stable and very efficient. It is high risk to change the team dynamics on such a critical modification so far into the project. Doing so would cause unacceptable delays to the program that would make it impossible·····

There are several other ongoing/planned modifications that L-3 TCS is working on that will not be completed by the time this 105mm Production effort must begin. The below listd items all have on-going work that tie in directly to the I 05mm GWS being added to the aircraft. #I showed demonstrated the ability of PSP to be upgraded with a 105mm cannon. #2 will add the majority of wiring upgrades for the 105mm GWS and remove the remaining left over air refueling components. #3 upgrades power wiring and associated systems to cover the increased amperage requirements for the 105mm GWS and the upgraded MOP. #4 covers all the design Deltas from the 105mm Demonstration.

#5 is determining all the weight reduction and weight and balance considerations that must be accomplished on the aircraft in order to install the 105mm GWS .

Previous and On-Going Contracts:

1) Rapid Response Capabilities Contract (R2C2) Contract Number F A8509- l l

D-OOO l-0010, Value $2,879,600.68, L-3 TCS; Cage Code OF5W6 PoP: 5 May 2012 to 5 May 2013 (105mm GWS Demonstration)

2) R2C2 Contract Number FA8509-1 l-D-0001-0016, Value $4,086,722.69, L-3 TCS, Cage Code OF5W6 PoP: 30 September 2013 to 30 April 2016 (Wing Rewire)

3) R2C2 Contract Number FA8509-l l-D-0001-0016-0l, Valued $3,114,141.40, L3-TCS, Cage Code OF5W6 PoP: 27 Mar 2014 to 26 Sept 2015 (Wing Rewire Additions)

4) R2C2 Contract Number FA8509-l l-D-0001-0010-07, Valued $4,321,808.00, L3-TCS, Cage Code OF5W6 PoP: 23 May 2014 to 22 Apr 2016 (105m GWS Feasibility Study)

5) R2C2 Contract Number FA8509-l l-D-0001-0010-08, Valued $2,952,799.00, L-3 TCS. Cage Code OF5W6 PoP: 23 May 2014 to 22 Apr 2016 (105mm GWS Demo Weight Reduction)(Total R2C2 Funded $17,355,071.77)

The previous R2C2 contracts were awarded based upon: FAR 6.302-2, Unusual and Compelling Urgency, Class J&A approved 15 Jul 2010 and FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Sati'Sfy Agency •· &.»' .. :

~equirement~ )&A for R2C2 extension approved 17 Jun 2013.

The drawings for these modifications will not be completed in time to share with a new contractor and a complete TOP will not be completed until at least July 2016. Any issues with the existing modifications, the drawings and technical data package will not be corrected/completed on time and will impact the 105mm Production Modification.

Switching to a new contractor would necessitate re-accomplishing these analyses vs.

immediately leveraging off results via a less \han full and open competition contract to L-

,.·3 TCS. '' '' ··.

VI. Description of Efforts Made To Ensure Competition Between All Awardees FAR l 6.505(a)(l) states that orders under indefinite-delivery contracts do not require pre award synopsis. IA W FAR 5.301 ( d)(3) post award posting of the justification is required for task or delivery orders greater than the simplified acquisition threshold and awarded without providing for fair opportunity in.accordance with FAR 16Sd5(b)(2)(ii)(B) and ill1.

Paragraph V, above, justifies why competition among all awardees is not possible for this acquisition.

VII. Determination by the Contracting Officer That The Anticipated Cost to the Government Will Be Fair and Reasonable A fair and reasonable price will be obtained through comparison of the proposed labor rates with the rates established on the F2AST contract. The proposed labor hours and materials will be evaluated by the government technical team. The resulting technical evaluation will be used as the basis of negotiations for labor hours and materials. A certificate of current cost or pricing data will be obtained IAW FAR 15.406-2 upon completion of negotiations.

VIII. Description of Market Research Conducted Among All Awardees and the Results Or A Statement of the Reason Market Research Was Not Conducted Market Research was conducted as required by FAR Part 10 on 19 June 2014. Research was conducted using the internet to search the Dynamic Small Business Search (DSBS) database, the United States Census Bureau database for North American Industry Classification System (NAICS 336411, Aircraft Manufacturing), and specific company web sites.

ive (5) large companies and twenty five (25) small businesses were identified that would provide the spectrum from low to high risk to the program if there was enough time/funding for them to re-accomplish the NRE that went into the 105mm GWS demonstration effort of $6.8M.

Of the 25 companies considered, five (5) do not provide adequate information on their website to determine their ability to provide the required capabilities. Eight (8) of the companies data show they have none of the capabilities required. Eight (8) of the companies available data show they have very little of the required capabilities. Two (2) of the remaining companies available data indicate they could be capable of providing some of the required capabilities.

Given L-3 TCS (Cage OF5W6) current success and knowledge with the AC-130W 105mm GWS demonstration effort, only L-3 TCS can deliver the required products and data without re-accomplishing the expensive NRE requirement. L-3 TCS provides a very low risk modification effort due to their previous experience. Also, L-3 TCS has been subcontracted by SNC for integration of the AC-130W MOP to the Mission Interface Panel (MIP) and communications suite. L-3 TCS has worked hand in hand with Navy Dahlgren for interface of the GAU-23 30mm Gun System through MIP to the MOP to fully integrate the PSP onto the AC-130W

Only L-3 TCS can meet the contractual requirements without additional costs and time associated with 105mm Demonstration and Feasability Study by leveraging work previously accomplished to provide the best value to the USAF.

IX. Other Facts Supporting the Justification The AC-130W is a very dynamic and fast-paced proof of concept platform for exploring new mission capability modifications. However; it is not practical nor acceptable to have 2 or more different contractors accomplishing the engineering and configuration management on the same aircraft/system real estate (Interface control documents, electrical loads analysis, CG management, wire routing, and physical equipment locations) at the same time. For example; multiple contractors cannot install a new LRU in the same physical location or change LRU functionality simultaneously. The government requires configuration management for this modification be completed by one entity (company/contractor).

This modification effort is extremely complex and essential to the AC-130W..mt This modification must occur without any major cost/schedule/perforrrnince setbacks. The risk is extremely high and overlapping design mistakes will occur if multiple contractors are involved. Since the 105mm GWS installation effort is so large and impacts numerous systems on the AC- l 30W there needs to be one sole configuration manager throughout the entire modification to enable a single comprehensive/precise engineering source data delivery.

The agency's needs can quickly be satisfied by L-3 TCS as they are the only source that can quickly and economically modify the aircraft in time to meet the operational need and deliver engineering/technical data. L-3 TCS will not be able to deliver the TOP until at least July 2016.

The description of supplies/services in Section III supports the selection of L-3 TCS without the USAF experiencing substantial duplication of prior costs. L-3 TCS has previously performed the initial NRE baseline design for the integration of the MOP and 105mm GWS into an AC-130W which allows the contractor to complete the task faster and cheaper than other contractors. This fact in itself is a major factor in selecting L-3 TCS, which will also avoid many of the learning curve activities of other contractors.

Additionally, it will also minimize unacceptable delays in fielding the required technical orders to reduce reliance on contractor field service representatives to maintain the installed gun system. L-3 TCS is developing the TOP; however, the TOP will not be completed until at least July 2016.

X. List of Any Awardee That Expressed Interest in the Acquisition See Section VI above.

XI. Actions the Agency May Take to Remove or Overcome Any Barriers To Increasing Fair Opportunity Before Any Subsequent Acquisition For the Supplies or Services Engineering and technical data will be delivered for this effort in FYI 7. The USAF will have the necessary data to compete any future necessary Group A component re-designs.

XII. Contracting Officer's Certification The contracting officer's signature on the signature page evidences that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

XIII. Technical/Requirements Personnel's Certification As evidenced by their signatures on the signature page, the technical and/or requirements personnel have certified that any supporting data contained herein which is their responsibility is both accurate and complete.