17-30007_PDF_JA_00(1)_Redacted.pdf

For Official Use Only

Justification and Approval (J&A) for Other Than Full and Open Competition

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Contracting Activity: AFLCMC/WNKABA

Purchase Request / Local ID Number: FD2060-17-30007

Program / Project (and PE, if applicable): F-16 Viper Memory Loader/Verifier (MLV)

Program Type (PEO or Other Contracting): PEO

Authority (include full title): 10 U.S.C. 2304 (c)(1), as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): J&A Type: Class Individual

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NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action must be included in the staff package for approval of the instant J&A. This applies to J&A staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

Sign and Save Procedure

Date Program Manager

Signature

Date

03 Jan 2017

Contracting Officer

Local Legal Reviewer

Competition Advocate

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Note 1: See guidance at the end of this document for completing the following sections.

Note 2: Each field will expand automatically if additional space is needed.

I. Contracting Activity.

This Justification and Approval (J&A) to request authority for Other Than Full and Open Competition (OTF&OC) supports requirements generated for the Air Force Life Cycle Management Center (AFLCMC), Automatic Test Systems (WNABC). The contracting authority for this requirement is AFLCMC/ WNKABA. The purchase request number supporting this contract action is FD2060-17-30007.

II. Nature and/or description of the action being processed.

Due to the circumstances described herein, the activity requests authority to pursue the actions listed in this document using OTF&OC as prescribed by Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. This action will result in the award of a follow-on new Requirements type contract, which will be Firm Fixed Price (FFP), Cost Plus Fixed Fee (CPFF) and Cost Reimbursable No Fee (CRNF) with a one-year basic, one-year option, and one six-month option. This sole source requirement will be accomplished by the following company:

BAE Systems Information and Electronics Systems Integration Inc.

65 Spit Brook Rd Nashua, NH 03060-6909

CAGE: 94117

Large Business

III. Description of supplies/services required to meet agency needs.

This requirement will provide system sustainment of the F-16 Viper Memory/Loader Verifier (MLV) support equipment and all future derivative systems that support all blocks of the F-16 aircraft. The system sustainment will include production, modification and engineering services for the F-16 Viper MLV. In addition, software sustainment, deficiency studies/analyses, and update of Operational Programs and Operational Systems.

The United States Air Force (USAF), Multinational Fighter Program (MNFP), and Foreign Military Sales (FMS) customers use these support equipment items worldwide. Requirements will be defined in a Performance-Based Work Statement (PWS) on each individual order.

The previous contract, FA8251-12-D-0003, expired on 9 Aug 2016. There are no known or pending requirements for the F-16 Viper MLV until late FY17 so minimal impact is anticipated due to the lapse in contractual coverage.

For those requirements where adequate historical pricing data is available, a FFP pricing arrangement will be negotiated. For those requirements with inadequate pricing history or unknown level of effort, CPFF will be utilized. CRNF will be used for travel, ancillary materials, or Other Direct Costs (ODC). The total estimated cost of this contract, including all ordering periods, is . The period of performance (PoP) is 2.5 years. The Viper MLV components are as follows:

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NOUN

Interface Adapter (IA)

NSN

4920-01-648-3863WF

4920-01-508-0416WF

P/N 8379436P003 8379436P001/2

Cable Sets 6150-10-628-2875WF

6150-01-577-9365WF

6150-01-479-4171WF

6150-01-415-5148WF

16U90A12848-1 16U90A12-839 16U90A12-815 16U90A12-803

Portable Maintenance Aid (PMA) 4920-01-648-3521WF R8300-VIPER-01

The Requirements contract will be structured as follows:

Basic Ordering Period (30 Mar 17 - 29 Mar 18)

Est Qty

Est Price Engineering Services 1 Lot Software Development/Maintenance 4 Lots Production NSN 4920-01-648-4534WF Data

7 ea @ 1 Lot

Basic Ordering Period Total

Option I (30 Mar 18 - 29 Mar 19) Engineering Services

Est Qty 2 Lot

Software Development/Maintenance Data

5 Lots

Option I Total

Option II (30 Mar 19 - 29 Sep 19) Engineering Services

Est Qty 3 Lot

Software Development/Maintenance Data

3 Lots

Option II Total

Total Contract Value

There will be multiple funding types on this contract including Central Asset Management Operations & Maintenance (CAM O&M) and FMS. The Viper MLV production prices will be negotiated and included in the Contract Line Item Number (CLIN) of the Requirements contract. All other negotiations will be done at the delivery order level based on the scope of the sustainment effort.

The Acquistion Method Code (AMC)/Acquisition Method Suffix Code (AFSC) for the Simulator-Verifier is 3/R: This code means to acquire, for the second or subsequent time, directly from the actual manufacturer. The Simulator-Verifier (NSN 4920-01-508-2714WF) is the end item that includes all the component parts listed above. The components parts are all managed by 416 Supply Chain Management

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Squadron (SCMS). The Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined uneconomical to buy the data. It is uneconomical to reverse engineer the part.

IV. Statutory authority permitting Other than Full and Open Competition.

10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services 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 agency's minimum needs can only be satisfied by the unique supplies and services available from BAE Systems. This is a follow-on requirement for sustainment of highly specialized equipment and services.

This equipment and the services required to sustain it are highly specialized due to the complex technical software and data that are proprietary to BAE Systems.

BAE Systems is the only source with the technical knowledge and data to fulfill the Government's requirement for this highly specialized equipment. While the predecessors to the F-16 Viper MLV were originally developed and produced by Lockheed Martin Aeronautics in the mid 1990's, Lockheed Martin purchased Sanders Electronic Systems and transferred support equipment to the new division, Sanders a Lockheed Company. Subsequently, Lockheed Martin sold Sanders to BAE Systems. In 2002, the U.S.

Government contracted with BAE Systems to develop the F-16 Viper MLV as replacements based on obsolete technology of both hardware and software. As a result of these corporate moves, the USAF supply and acquisition systems show both Lockheed Martin and BAE Systems as sources for F-16 Viper MLV hardware and software. In actuality, BAE Systems is the only capable source.

Contracting hardware or software with any company other than BAE Systems will result in additional pass-through costs, as any prime contractor will be required to sub-contract the actual production to BAE Systems. BAE Systems has developed hardware and software data to support engineering and production that are not available to the Government. No other manufacturer would be able to produce or support F-16 Viper MLV systems without access to the BAE Systems hardware and software data. Therefore, this acquisition will be a follow-on contract for the continued life cycle support of highly specialized equipment. The current life cycle of the F-16 Viper MLV is through 2040.

The Government is currently pursuing an organic solution. The long-term acquisition plan is to transition all F-16 Viper MLV workload to the Common Aircraft Portable Reprogramming Equipment (CAPRE) system; a system that is Government owned. At this time, that transition is estimated to be complete in FY 20.

A reverse engineering cost estimate was conducted by the F-16 Viper MLV Integrated Product Team (IPT).

A cost of was estimated by calculating the time and cost for software design, hardware design, hardware prototypes, hardware and software testing and integration, Technical Order (TO) changes and production to replace current assets. It is estimated to take 33 years for the Government to recoup this type of investment. This is not a viable solution due to the long-term plan to transition to the CAPRE system in

FY20.

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In 2010, BAE Systems gave a quote of to sell the F-16 Viper MLV data. It was not economically feasible for the Government to pursue purchase of the data in 2010. When BAE was contacted about the Government purchasing data or data rights, BAE Systems responded on 1 Nov 2016 that they were not interested in selling the data rights at this time

Accordingly, BAE is the only firm capable of providing the supplies and services described in Section III above without the USAF experiencing substantial duplication of cost that could not be expected to be recovered through competition in fulfilling this requirement

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

On 19 Jul 2016 a Sources Sought (SS)/Request for Information (RFI), FA8519-VIPER_MLV, was posted through Federal Business Opportunities (FedBizOpps) with responses requested by 20 Aug 2016. The RFI included a listing of the National Stock Numbers and corresponding part numbers as well as a brief system overview of the F-16 Viper MLV. The RFI requested business information as well as a capability survey to gauge the suitability of a company to provide the services. No responses were received to the SS/RFI.

This requirement will be synopsized in FedBizOpps, website as required by FAR 5.201, citing conditions which preclude full and open competition. Sources expressing an interest as a result of the synopsis will be investigated for their capabilities to perform on this and/or future requirements and identified to BAE Systems for possible subcontracting opportunities.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The anticipated cost of this acquisition will be determined fair and reasonable based upon FAR 15 negotiation procedures using price and cost analysis. The contractor will be required to submit certified cost or pricing data in accordance with FAR 15.403-4 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 and indirect rates will be negotiated by the Government based on recommendations from the Defense Contract Audit Agency (DCAA), the Defense Contract Management Agency (DCMA) and expert technical personnel supporting the program. In addition to cost analysis, price analysis will be utilized by comparing the proposed rates, labor categories, and labor hours to previous contracts/orders for the same effort. The Government will negotiate a fair and reasonable price, for both the Government and the contractor.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

In accordance with FAR Part 10, Market Research (MR) was conducted. Qualified individuals within the appropriate Government organizations were contacted and assisted with the gathering of product background information. The Viper MLV IPT reviewed previous contract files, to include the MR reports, justification and approvals and other correspondence/documentation relative to the acquisition history of the Viper MLV from 2005 to date. A formal MR Report (MRR) was concluded on 10 Nov 2016. Market techniques used included synopsis of the proposed acquisition on FedBizOpps, advising industry of the pending acquisition and soliciting inquiries from interested parties, internet searches of Google, Small Business Administration using Dynamic Small Business Search (DSBS) search engine, ThomasNet, and GSA Advantage. Each market research techniques used is detailed below:

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SS/RFI: FA8519-VIPER_MLV was posted on FedBizOpps 19 Jul 2016. No responses were received.

Internet Searches: Google Internet search was conducted on 17 Oct 2016 using the words "F-16 Viper MLV" which yielded information derived from BAE Systems website as well as articles discussing the United States Air Force's acquisition of the F-16 Viper MLV from BAE Systems. A search of ThomasNet as well as the General Services Administration Advantage online shopping marketplace was conducted on 21 Oct 2016 using the words "Viper MLV". It yielded zero qualified results. Additionally, a search on DSBS using the keywords "Viper MLV" was conducted on 21 Oct 2016 and revealed no capable sources.

Commerical Opportunities: Although this system may have functionally similar counterparts in the commercial sector, this is a uniquely developed item designed specifically to integrate and operate within a specialized purpose. This requirement cannot be fulfilled in the commercial marketplace.

The MRR results concluded BAE Systems is the only source available with the technical and historical experience, expertise, equipment, and facilities to satisfy the Government's requirements.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

None.

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.

In 2010, BAE Systems gave a quote of to sell the F-16 Viper MLV data. It was not economically feasible for the Government to pursue purchase of the data in 2010. The F-16 Viper MLV IPT contacted BAE Systems on 1 Nov 2016 and requested an updated cost estimate for the data. BAE Systems responded, same day saying they were not interested in selling the data at this time.

The Government has developed a long-term organic solution in order to move away from this sole-source contract solution. All F-16 Viper MLV capabilities are currently transitioning over to the CAPRE system, a system that is Government owned. This transition is estimated to be complete by FY20. The current life cycle of the F-16 Viper MLV is through 2040.

A reverse engineer effort is estimated to cost . Since the F-16 Viper MLV capabilities are transitioning to the CAPRE system, there is not enough time to recuperate the costs expended for a reverse engineering effort, therefore it was determined not feasible.

XII. Certification by the Contracting Officer.

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.

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XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.

Remove the Guidance pages below. Remove the IACR pages below.

Total Contract Value $9,500,000