redacted_J&A.pdf_-__-_05-01-2014_Redacted.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

This Justification and Approval is to request authority for Other Than Full and Open

Competition, and supports requirements for the Common Munitions Built-In-Test (BIT)

/Reprogramming Equipment (CMBRE) Program Office, AFLCMC/WNAAC. Purchase Request number for this contracting effort is FD2060-14-30404. Further, the contracting authority for this requirement is AFLCMC/WNKBAB.

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

Due to the circumstances described herein, the activity requests authority to acquire the equipment 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 be awarded as a follow-on contract, firm-fixed price, “D” type, Indefinite Delivery, Indefinite Quantity (IDIQ) requirements contract consisting of a one (1) year basic period plus four (4) one-year options, to replace an existing Firm Fixed Price

(FFP) “C” contract FA8626-06-C-2060. The period of performance for this production buy is estimated from February 2015 through February 2020, if all options are exercised. The total estimated contract value is . This sole source requirement will be the final sole source contract for procurement of the CMBRE Plus configuration and will be purchased from:

Alliant Techsystems Operations, LLC

Defense Electronic Systems Division

13133 34th Street North

Clearwater, Florida 33762

CAGE: 06424

Large Business

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

AGENCY’S NEEDS

The CMBRE system, for the purposes of this contracting effort, is comprised of CMBRE Block

II tester (aka CMBRE Plus), test set adapter units ADU-890 and ADU-891, and all associated cables. Munitions supported include, but not limited to: the Air Intercept Missile (AIM)-9X, Dual Mode Laser Guided Bomb (DMLGB), Miniature Air Launched Decoy (MALD), Joint

Direct Attack Munition (JDAM), Joint Standoff Weapon (JSOW), Joint Air-to-Surface Standoff

Missile (JASSM), Precision Avionics Vectoring Equipment (PAVEWAY), Wind Corrected

Munitions Dispenser (WCMD), Standoff Land Attack Missile-Expanded Range (SLAM-ER), Small Diameter Bomb (SDB) I and II, Advanced Medium Range Air-to-Air Missile

(AMRAAM), Advanced Anti-Radiation Guided Missile (AARGM), and Bomb Rack Unit

(BRU)-61. The CMBRE Plus consists of three cases: a) Test Adapter Unit (TAU) case; b)

Controller Unit Test Set case; and, c) the CMBRE Accessory Kit case. In addition, the ADU-

891 consists of two cases: one case houses a switchbox and munitions unique interface cables and the other case holds the remaining munitions unique interface cables. The ADU-890 is a single case containing a switchbox and the munitions unique interface cables.

The table below provides a list of CMBRE equipment requirements, to include part numbers

(PN) and National Stock Numbers (NSN), the US Air Force (USAF), US Navy (USN) and

Foreign Military Sales (FMS) customers are expected to obtain from Alliant Techsystems (ATK)

Operations, LLC during this contracting period. The CMBRE Program Office forecasted requirements collectively for USAF, USN, and FMS customers, which total approximately

. Requirements for the equipment listed below were calculated to estimate procurement of up to a best estimated quantity (BEQ) for the entire five year contract period.

DESIGNATION PERIOD BEQ UNIT COST TOTAL COST

AN/GYQ-79A CMBRE PLUS

NSN: 6625-01-535-4586KV

PN: 3000112-3

TOTAL

BASIC 15

OPT I 15

OPT 2 15

OPT 3 15

OPT 4 15

ADU-890/E

NSN: 6625-01-533-0798KV

PN: 3005095

TOTAL

BASIC 15

OPT I 15

OPT 2 15

OPT 3 15

OPT 4 15

ADU-891(V)1/E

NSN: 6625-01-543-8090KV

PN: 3005537-1

TOTAL

BASIC 20

OPT I 20

OPT 2 20

OPT 3 20

OPT 4 20

ADU-891(V)3/E

NSN: 6625-01-561-0677KV

PN: 3005537-3

TOTAL

BASIC 5

OPT I 5

OPT 2 5

OPT 3 5

OPT 4 5

CMBRE INITIAL SPARES KIT

PN: 3007862

TOTAL

BASIC 10

OPT I 10

OPT 2 10

OPT 3 10

OPT 4 10

ADU-891 CONVERSION KIT (V3) TO (V1)

PN: 3005537RF-3

BASIC 5

OPT I 5

OPT 2 5

OPT 3 5

OPT 4 5

W1 CMBRE CABLE

NSN: 5995-01-458-7040

PN: 3000180

TOTAL

BASIC 8

OPT I 8

OPT 2 8

OPT 3 8

OPT 4 8

W2 CMBRE CABLE

PN: 3004798

BASIC 4

OPT I 4

OPT 2 4

OPT 3 4

OPT 4 4

W3 CMBRE CABLE

PN: 3004799

OPT I 4

OPT 2 4

OPT 3 4

OPT 4 4

W4 CMBRE CABLE

NSN: 6150-01-458-7813

PN: 3000181

TOTAL

BASIC 8

OPT I 8

OPT 2 8

OPT 3 8

OPT 4 8

W5 CMBRE CABLE

NSN: 6150-01-462-5395

PN: 3000184

TOTAL

BASIC 4

OPT I 4

OPT 2 4

OPT 3 4

OPT 4 4

W6 CMBRE CABLE

PN: 3004743

TOTAL K

BASIC 8

OPT I 8

OPT 2 8

OPT 3 8

OPT 4 8

W14 CMBRE MMSI CABLE

PN: 3003876

OPT I 4

OPT 2 4

OPT 3 4

OPT 4 4

W15 AIM-120 CABLE

PN: 3005865

BASIC 3

OPT I 3

OPT 2 3

OPT 3 3

OPT 4 3

W16 AIM-120 CABLE

PN: 3006045

OPT I 4

OPT 2 4

OPT 3 4

TOTAL OPT 4 4

W17 AIM-120 CABLE

PN: 3006046

OPT I 3

OPT 2 3

OPT 3 3

OPT 4 3

W17 AIM-120 CABLE (IN CONTAINER)

NSN: 6150-01-553-6525

PN: 3006046-2

TOTAL

BASIC 110

OPT I 110

OPT 2 110

OPT 3 290

OPT 4 110

W18 AIM-120 CABLE

PN: 3005907

TOTAL K

OPT I 3

OPT 2 3

OPT 3 3

OPT 4 3

W19 AIM-120 CABLE

PN: 3006047

OPT I 4

OPT 2 4

OPT 3 4

OPT 4 4

W9 AIM-9X CABLE

PN: 3006094-2

OPT I 3

OPT 2 3

OPT 3 3

OPT 4 3

W10 AIM-9X CABLE

PN: 3000844-2

OPT I 3

OPT 2 3

OPT 3 3

OPT 4 3

W11 AIM-9X CABLE

PN: 3000845-2

OPT I 3

OPT 2 3

OPT 3 3

OPT 4 3

W12 AIM-9X CABLE

PN: 3006150

OPT I 4

OPT 2 4

OPT 3 4

OPT 4 4

W13 AIM-9X CABLE

NSN: 6150-01-487-6624

PN: 3000847-2

TOTAL

BASIC 3

OPT I 3

OPT 2 3

OPT 3 3

OPT 4 3

W20 BRU-61 CABLE

PN: 3005094

OPT I 3

OPT 2 3

OPT 3 3

OPT 4 3

W21 SDB 4 HEAD CABLE

PN: 3005096

OPT I 3

OPT 2 3

OPT 3 3

OPT 4 3

W23 JDAM CABLE

NSN: 6150-01-557-2538

PN: 3007008

TOTAL

BASIC 8

OPT I 8

OPT 2 8

OPT 3 8

OPT 4 8

TOTALS

BASIC OPTION 1 OPTION 2 OPTION 3 OPTION 4 TOTAL CONTRACT VALUE

Section II above explains the contract type and estimated period of performance of this effort. In addition, estimated costs were determined using previous pricing exhibits (where available) provided by ATK (under contract FA8626-06-C-2060) and applying a “straight line” inflation factor across the contract’s ordering periods. Further, ATK shall provide, for this effort, new pricing exhibits using “ranges” (i.e., 1-5, 6-10, 11-20, etc.) as opposed to pricing by single purchase quantities.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 USC 2304(c)(1), as implemented by FAR 6.302-1. Only one responsible source and no other equipment 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 (APPLICABILITY OF AUTHORITY)

The CMBRE system is highly specialized, and for the purposes of this contracting effort, is comprised of CMBRE Block II tester (aka CMBRE Plus), test set adapter units ADU-890 and

ADU-891, and all associated cables. CMBRE is a common piece of support equipment used to interface with weapon systems to initiate built-in tests (BIT), report BIT results, and upload/download flight software. The CMBRE system represents the first munitions support equipment developed as a “common” system for multiple munitions platforms.

The CMBRE system is a non-Acquisition Category (non-ACAT) program. At this time, ATK is the only known responsible source capable to design, develop, integrate, test, produce and prepare associated documentation, fabricate, integrate, provide logistic support, provide technical support, provide field service support, provide training, develop technical manuals and deliver the CMBRE system.

The most essential sub-component of the CMBRE Plus is the Digital Computer System

Assembly (DCSA). The DCSA is a highly specialized, self-contained, ruggedized computer that provides system central control, unique system-operational information processing capabilities and required system interfaces to external resources. ATK owns the detail design data for the

DCSA computer. The DCSA computer design is ATK proprietary and was not developed under a Government contract; therefore, the Government does not own the CMBRE DCSA data rights.

As of 1 Jul 2013, ATK has stated they will not sell those rights to the Government or its competitors. Moreover, ATK has made multiple product improvement capability updates to the

DCSA computer through the company's own Independent Research and Development efforts.

In addition, another piece of vital equipment is the ADU-890, which is a highly specialized, weapon-unique adapter unit, designed and developed by ATK to provide signal and power control for BIT/reprogramming of multiple miniature munitions and weapons carriage system.

Again, ATK owns the detail design data for the ADU-890 and has stated they will not sell those rights to the Government or its competitors.

ATK developed, manufactured, and now maintains the CMBRE system in its facilities in

Clearwater, FL. All of the CMBRE depot-level support equipment and technical data needed to produce, repair, and retest all of its subassemblies resides at the Clearwater Plant as well. Over the years, ATK has cultivated numerous manufacturing processes that are proprietary and are not included in the drawing packages. These processes are used to facilitate the ease of repair, test and manufacture of the CMBRE system. The production of the CMBRE system depends greatly on the knowledge and expertise of its highly skilled workforce.

At this time, award to another contractor, other than ATK, would add approximately $1M in duplication of costs because the Contractor presently has Contractor Acquired Property (CAP) being utilized under the current contract. CAP consists of: Processor CCA Test Fixture (GFE);

Power Monitor CCA Test Fixture (GFE); DITMCO Test Programs and fixtures for both TAU and W1-W6, W9-W19, W20-W21, and W23 cable assemblies; TAU Vibration and Thermal ESS

Fixtures; Leakage Current Test Fixture; Calibration Test Fixture; and TAU Holding Fixture.

Consequently, there would be a significant learning curve and start-up costs for any new source to assume this capability.

As an example, the Government paid to qualify ATK as the W17 and W23 cable manufacturer; these cables are integral components of the CMBRE system. There are more than twenty cables associated with the CMBRE System, to qualify other sources to manufacture each cable would not be worth the time or the cost to do so. Five of these cables are coded AMC 2G because the Government owns the data. However, if the Government purchased cables from a nonqualified source, the CMBRE system's warranty would be voided and ATK would not accept responsibility for the system's performance. Incidentally, early on, the initial CMBRE acquisition strategy never anticipated procurement of individual cables. No provisioning conference was completed to eventually have all cables stock listed. At present, the only requirement for any non-stock listed cables is from our FMS customers.

As previously mentioned, the Government does not own the data for the computer (DCSA) and the ADU-890 adapter test set. A new Contractor would be required to reverse engineer both the computer and ADU-890 for production, which would take at least six months to accomplish.

Using best case scenario of reverse engineering estimates for repair of the DCSA, another contractor would need to develop test procedures and develop assembly/disassembly procedures for seven (7) Commercial Off-the-Shelf (COTS) Circuit Card Assemblies (CCAs) and three (3)

ATK designed CCAs, in addition to development of dies to manufacture 35 ATK-designed mechanical parts and fasteners. The Government conservatively estimates it would take 18 months and cost . As a second repair example, to reverse engineer the ADU-890, another contractor would again need to develop test procedures and assembly/disassembly procedures for four (4) COTS CCAs. They would also have to develop drawings to fabricate the wiring harness and transit case. Complicating matters, the government does not have source data for the ADU-890 firmware. Once more, the USG conservatively estimates it would take over eight (8) months at a cost of . Both scenario estimates above were formulated with respect to repair in July 2013. Reverse engineer analysis was not performed for production because the USG is planning a competitive replacement effort as stated in Section XI. However, reverse engineering costs for production would be substantially higher than the repair estimates and most likely not achievable. One important factor to consider is in order to manufacture, a contractor would have to develop build to print drawings plus first article testing would be required before fielding could be accomplished. Also, due to the firmware within the computer and ADU-890, the possibility of building to the present configuration may not be achievable.

Moreover, due to obsolescence, the Government would incur additional support delays because of the learning curves a new Contractor would experience resolving these issues. Since this tester is critical for testing JDAM, WCMD, MALD, PAVEWAY, JSOW, JASSM, SLAM-ER, SDB, BRU-61A, AIM-9X, and AMRAAM munitions, the Government cannot take the risk of production delays. At present, the CMBRE Program Office believes to award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the Air Force’s requirements described in Section III above. Therefore, this acquisition is for continued procurement through ATK of this highly specialized equipment. ATK has continuously evolved the CMBRE system design in order to incorporate product improvements to rapidly support and meet the operational capability requirements of the Government. These include demanding environmental requirements for system use in support of worldwide DoD operations and the ability to interface with and support the latest generation of munitions.

Lastly, relating to cable qualifications and reverse engineering, with a re-design of the CMBRE system and competitive contract on the horizon, it is not prudent to proceed with a course of action that is both timely and costly to the government for a short term benefit. In other words, this is the final sole source production contract effort. Section XI below, provides additional details.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

This effort will be synopsized in Fed Biz Ops as required by FAR 5.201 citing conditions which preclude full and open competition. A sources sought synopsis was not conducted since the

Government does not own technical data for key components of the CMBRE system, as stated above in Section V. A result of this synopsis will be maintained in the official contract file.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

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 and pricing data to be used in supporting the Government’s evaluation of the proposed cost. The proposed skill mix of labor, labor hours, types and quantities of material, other direct costs, and direct and indirect rates will be negotiated by the Government based on recommendations from Defense Contract

Audit Agency (DCAA) and expert technical personnel supporting the program. Contract price will be negotiated in accordance with procedures in FAR Part 15 ensuring ultimate cost to the government is fair and reasonable.

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 as required by FAR Part 10. Competition/small business set-aside is not possible without access to all CMBRE (DCSA, specifically) and ADU-890 technical data. Similarly, market research was limited to an examination of the acquisition history and experience with the marketplace under previous acquisitions for the same or similar items.

CMBRE Program Office also requested information and costing estimates from Original

Equipment Manufacturer (OEM) and the Navy CMBRE Program Office at China Lake, CA, and received expert opinions from engineering supervisor and other engineers within the Automated

Test Systems Division. Due to the facts outlined below, extensive market research, to include

Requests for Information (RFI), vendor surveys, or industry days were not conducted. In the past, the Government did not purchase sufficient data to manufacture the CMBRE system. ATK currently owns the technical data for two integral parts of the CMBRE system: CMBRE digital computer system assembly (DCSA) and the ADU-890. Without this data, the Government is unable to manufacture the present CMBRE configuration. For another source to manufacture the

CMBRE System, the Government would either have to procure the technical data package for the controller and ADU-890 or purchase a re-designed unit. As of 1 Jul 2013, ATK is not willing to sell the data to the Government. In addition to above, numerous parts within the

CMBRE System are no longer procurable, and it is the intent of the government to Program

Objective Memorandum (POM) for sufficient funds to start a replacement program as stated in

Section III above leading to the next generation CMBRE production contract, which will be competitive.

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

OPEN COMPETITION

As stated in Section V, there are no other munitions tester products available in the commercial market due to its unique military application. Also, the government does not own the complete technical data package for the CMBRE computer (DCSA) or the ADU-890. Due to the dollar amount of this effort, the investment to obtain this data would not be recoverable through competition. Alliant Techsystems, Inc. (ATK) is the only contractor that possesses all current technical data, an experienced workforce, specialized equipment and facilities required to provide procurement for the CMBRE Test equipment.

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

ACQUISITION

See Section VI above. A sources sought synopsis was not conducted since the technical data is unavailable for key components of the CMBRE system. It is not possible to repair or produce the CMBRE computer or the ADU-890 without the technical data owned by ATK.

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

The cost, schedule, and performance risk of sustaining the present configuration of CMBRE systems by ATK, would be considered low due to their 16 plus years’ experience with the

CMBRE system and supported munitions. The cost, schedule, and performance risk by a new

Contractor would be considered high. That said, to remove competitive barriers, the

Government must obtain Joint Engineering Data Management Information and Control System

(JEDMICS) metadata to facilitate uploading drawings into JEDMICS. With the exception of the

Digital Computer System Assembly (DCSA) and the ADU-890, the government owns the drawings for all the remaining items. The government must acquire data for the DCSA and

ADU-890; however, as stated in Section V, ATK will not sell the rights to the proprietary designed DCSA computer and the detail design data for the ADU-890 to the Government or its competitors. In addition, ATK has made multiple product improvement capability updates to the

DCSA computer through the company's own Independent Research and Development (IR&D) efforts.

Accordingly, with respect to the Government’s actions to resolve deficient data issues, the

CMBRE Program Office (PO) is preparing to competitively upgrade the CMBRE system to the next generation model with new capabilities and modernization of present configurations starting in FY16/17, if funding permits, with Low Rate Initial Production estimated to start in FY18.

With this future production contract, the government will end up with unlimited rights to all the data. The production contract will also have a Contract Data Requirements List (CDRL) to develop metadata for new drawings. Timeline for delivering the metadata will be within the first two years of the competitive production contract. Should the competitive contract materialize as depicted above (Government’s best case estimation), the need to exercise the remaining options for this final sole source effort will not be necessary.

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)).

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