FOE_IETM_Sustainment_4_Jun_2014_signed_FD260-14-31419_(3)_Redacted.pdf

FAIR OPPORTUNITY EXCEPTION (FOE) JUSTIFICATION

I. Contracting Activity

The contracting activity responsible for this action is AFLCMC/WIUKA, Robins AFB, GA. The

Contracting Officer is Wendi D. Lough, AFLCMC/WIUKA, DSN 468-4942.

Post award Buyer is Gail Bembry, AFLCMC/WIUKA, DSN 468-2478.

This is an Exception to Fair Opportunity Justification.

Purchase Request number: FD2060-14-31419

II. Nature and/or Description of the Action being processed

This contract is intended to be Sole Source forty six (46) month contract with a twelve (12) month basic and two (2) twelve (12) month options followed by one (1) nine (9) month option ending June 30 th

2018 estimated at Pricing is mixed, CPFF, FFP, and CR. This is a new contract utilizing F2AST (Contract Number FA8530-08-D-0004-0024). F2AST contract expires June 30 th

2018.

III. Description of the Supplies/Services Required to Meet the Agency’s Needs

The contractor will provide the following services in sustainment of the C-130 IETM/IMIS program: Below is an estimated breakdown of Sustainment task’s per year. It is anticipated the

Government will see approximately a 10 percent annual reduction based on the Government assuming more and more organic authoring capability.

Under the contemplated contract with Boeing FT. Walton Beach Corporation will provide the following supplies and services in sustainment of the C-130 IETM/IMIS program:

Appropriations will be 3400 with an estimated 45 month contract value of if option years are exercised. Below is an estimated breakdown of Sustainment task per year. It is anticipated the Government will see approximately a 10 percent annual reduction based on the Government assuming more and more organic (2) authoring capability. We do not anticipate a similar size reduction in the other areas of Sustainment over the two option years. A three year contract vehicle is preferred as the software will require full sustainment and support. It is anticipated at the end of the three years the Government will know for certain if the other MAJCOMs are satisfied with the IETM or is there another avenue they choose to pursue.

(1) Sustain the IETM, wiring, tools, databases, software and process required to ensure the C-130 IETM/IMIS remains safe, operational, accurate, up to date and user friendly when viewed from an approved and properly configured AF electronic viewing device.

(2) IETM Authoring and data sustainment.

(3) IETM Database Coordinator and IETM Information System Integration.

(4) Help Desk functions.

(5) IETM database supporting tools.

(6) IMIS/IETM Supporting software sustainment.

(7) Travel

(8) Material

NOTE: This effort supports all C-130s within the USAF, AFRC and ANG.

F2AST

Fund

Type Basic Option I Option 2

Option 3

FY 14

(12 month)

FY15

(12 month)

FY 16

(12 month)

FY 17

(9 month)

Amount Required Amount

Appropriated

Delta Total

This requirement fits under the scope of the F2AST Performance-Based Work Statement (PWS), dated 29 November 2007, paragraph 4.1.4. This is a sole source requirement for IETM sustainment to Boeing, Fort Walton Beach, FL (CAGE 022T1).

IV. Authority Permitting a Fair Opportunity Exception

FAR 16.505(b)(1)(i) requires the Contracting Officer to provide each 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 16.505(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 16.505(b)(2)(i)(B), “Only one awardee is capable of providing the supplies or services required at the level at the level of quality required because the supplies or services ordered are unique or highly specialized”

The AF mandated digital technical data in the AF by 2012. The AF did not provide any guidance or standards for digital technical data. The C-130 IETM conversion effort resulted in development of a Type II IETM specification which was approved by the AF as MIL-DTL-

87269C but not made mandatory. The authoring tool is COTS, however, the contractor owns the intellectual properties. Since there is no mandatory DoD/AF specification for a Type II IETM, Boeing in coordination with the Government, designed the C-130 IETM specification for the C-

130 IETM conversion effort. The specification was later approved by the AF but many of the existing authoring techniques (Business Rules) used for the C-130 IETM were not enforced as mandatory. Therefore another contractor could interpret the Business Rules differently and deliver incompatible data. The AF still has no universal IETM specification for conversion of legacy technical data. Therefore there is no reasonable alternative other than to retain Boeing for this effort. It is estimated it would cost the Government an additional $30 plus million and wait an additional 5 years for another contractor to develop a Type 2 IETM. Without utilizing

Boeing’s Intellectual Properties, processes and techniques there is significant risk the new IETM data will not be compatible with the existing C-130 IETM. Boeing is not willing to give up those

Intellectual properties, processes and techniques without cost. The Government is transitioning to primarily organic sustainment of the data through partnering which doesn’t require the

Government to purchase the authoring tool or annual licenses. Since the OEM owns the code and intellectual properties it is within the AF best interest to continue to allow the OEM to sustainment C-130 IMIS/IETM.

The Interactive Electronic Technical Manual (IETM) and C-130 Integrated Maintenance

Information System (IMIS) comprise the C-130 solution to meeting the AF mandates of paperless technical data. C-130 IETM/IMIS is currently fielded at all AFSOC C-130 units and beginning to field across other MAJCOMS. The Government must retain the OEM to continue to assist the Government in assuming the primary organic IETM data sustainment role. The contractor must continue to sustain the data until the transition to primary organic sustainment of data is complete. As the Government assumes more organic data authoring capability, the annual contract amount for Sustainment is projected to reduce accordingly. The Government intends to retain some contractor authoring expertise to mitigate production delays encountered during the normal attrition process for Government personnel. Additionally, by partnering with the contractor and retaining some contractor authoring expertise, the Government avoids costs associated with annual user license fees.

This sustainment contract includes sustaining all tools and software supporting IETM development, integration, fielding and sustainment. The software is owned by the contractor but available commercially as Commercial off the Shelf (COTS). The intellectual properties belong to the contractor. The Government could purchase the software but, would have to contract again with the OEM every time the AF IT security software changed. This would cause disruption of service in our ability to provide the most current and accurate data for C-130 aircraft maintainers. Retaining the contractor to sustain the software operational would mitigate the risk to minimal and significantly reduce delays and potential loss of sorties induced by AF

Information Security software upgrades.

VI. Description of Efforts Made To Ensure Competition Between All Awardees

FAR 16.505(a)(1), orders under indefinite-delivery contracts do not have pre-award synopsis.

IAW 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 16.505(b)(2)(ii)(B) and (D).

The Government looked into to purchasing the software code. The Government determined that purchasing the software would increase the risk of the system becoming inoperable as a result of Government software upgrades. The Government updates IT software on a regular basis. Some of these software updates affect C-130 IMIS operations. If a software push from the Government renders C-130 IMIS inoperable the Government would have to re-contract with the OEM for an upgrade. This could take a significant amount of time and could affect and/or halt USAF C-130 operations due to unavailability of technical data for several hours, days or weeks depending on the significance of the software update. Retaining the OEM has already proven to be beneficial to the Government as the contractor has prevented disruption of services thus far. Purchasing the software would also require the Government to purchase annual software licenses to continue Government organic sustainment of the data. Since the

Government has partnered with the OEM annual licensing cost have not been required. This partnering has resulted in cost avoidance for the varying licenses fees of approximately $1M annually for the Government.

VII. Determination by the Contracting Officer That The Anticipated Cost to the Government Will Be Fair and Reasonable

The Government has had multiple contracts spanning several years with this contractor performing similar requirements and have a solid history of cost estimates and comparisons to reasonably determine fair and reasonable contract is issued.

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 completed on 20 May 2014 as required by FAR Part 10. However, based on OEM ownership of the software code and Boeing possessing the authoring capability and intellectual properties the government cannot organically meet these requirements.

Additionally, although there are numerous other contractors capable of producing a Type II

IETM there is 100% certainty another contractor IETM will not integrate with the current C-130

IETM as the specification used allowed for too many interpretations of meeting suggested requirements. The OEM owns the software code/intellectual properties and will not allow other contractors use of the code without cost.

IX. Other Facts Supporting the Justification

NONE

X. List of Any Awardee That Expressed Interest in the Acquisition

NONE

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

The Government can purchase the software approximately $3M and annual licenses $1.6M. It is estimated it would take approximately two to three years for another vendor to achieve the same level of quality in authoring. That is assuming Boeing provides them the intellectual properties.

However, there is far too much risk purchasing the software because the system operates on the

AF Global Information Grid (GRID). The AF IT/SC community is constantly upgrading numerous software programs and security. This will require the Government to have full time software support to be able to adapt the IMIS software upgrades and changes that will be required to restore operational capability.

Without full time Government software support C-130 IMIS/IETM may become inoperable and

USAF technicians would not have access to the most current technical data. Partnering with the contractor and retaining limited authors and software support that can react to AF IT security updates has thus far ensured uninterrupted availability to IMIS/IETM. It is anticipated this effort may go on beyond FY 2025.

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.