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PR Number: FD2060‐13‐00842 Page 1

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

This Justification and Approval to request authority for Other Than Full and Open Competition supports requirements generated for the Air Force Sustainment Center (AFSC), 407 Supply Chain Management Squadron (SCMS)/GULB. The contracting authority for this requirement is AFSC/PZABA Robins AFB, GA. The purchase request number supporting this contract action is FD2060-13-00842.

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

Due to the circumstances described herein, the activity requests authority to acquire the repair 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 acquisition is being conducted in accordance with FAR 13.5 – Test Program for Commercial Items. This action will result in the award of a new contract, which will be a firm-fixed price, Requirements-type contract with a basic one-year plus four one-year ordering periods in which additional quantities may be ordered. This requirement will be purchased from the following company:

Raytheon Company, Division EO Innovations (Formally known as ELCAN Optical Technologies) 1601 N. Plano Road Richardson, TX 75081

CAGE 1SDY4

Large Business

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

AGENCY’S NEEDS

(1) The Common Large Area Display Set (CLADS) National Stock Number (NSN) 5980-01- 419-2208CX, Part Number (P/N) 3310031100-30 is a lightweight, high-resolution video monitor designed to provide the clarity and resolution required to support intensive display requirements. The CLADS Display is an E-3 AWACS aircraft peculiar item that uses state-of-the-art Digital Light process electronics to support vivid colors and wide viewing angles for displaying maps, images, sensor station data and command and control information. Work performed under this PWS includes all actions necessary to return National Stock Numbered (NSN) 5980-01-419-2208CX to a serviceable condition.

The contractor shall furnish the services and material necessary for the essential depot level repair, functional testing, inspection, and packaging of the NSN 5980-01-419- 2208CX. Acceptance testing and final inspection shall be conducted at the contractor’s

PR Number: FD2060‐13‐00842 Page 2 facility with the approval of Defense Contract Management Agency (DCMA). The estimated repair cost is based on previous contract price with a three percent inflation rate applied. The estimated quantities are based on historical information pulled from the D200 database. MSD funding will be used to fund these repairs.

(2) The requirements covered by this J&A are as follows:

Period BEQ QTY EST Repair Cost EST Total Cost Basic Ordering Pd. 1 Ordering Pd. 2 Ordering Pd. 3 Ordering Pd. 4

The total estimated value of the contract is $3,199,809.60.

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 last contract, FA8539-12-C-0004, awarded to repair CLADS was sole source to Raytheon Company, EO Innovations Division. This effort required the contractor to furnish the services and materials necessary for the essential depot level repair, functional testing, inspection, and packaging of the NSN 5980-01-419-2208CX. This contract was awarded on 11 Sept 2012 and will expire on 10 Sept 2013. CLADS was originally designed by Battelle Memorial Institute, in collaboration with Raytheon, ELCAN Optical Technologies Division. The division changed from ELCAN to EO Innovations in May 2012. EO Innovations is the original manufacturer of CLADS and has been the sole source of repair for since its inception. The Block 40/45 modification program on the AWACS E-3 Aircraft started in FY11, in which CLADS will be removed from each aircraft and will be replaced with a Flat Panel Display Unit (P/N:

MRFD-354). The Block 40/45 modification program is being funded and managed by the E-3 Program Office at Tinker AFB, OK. The initial modification schedule identified a start date of FY09. Funding constraints have caused the scheduled to be delayed until FY11. The most recent scheduled, provided to 407 SCMS in July 2012, identified the start of the modification in

FY11.

Currently, the modification is on schedule;

however, funding constraints may cause a delay in the identified schedule. If the modification remains on schedule, the last CLADS unit will be removed from the aircraft in FY19. Therefore, this acquisition is for continued performance of a highly specialized service that only EO

PR Number: FD2060‐13‐00842 Page 3

Innovations offers, until the Block 40/45 modification is complete and all CLADS displays have been removed from the E-3 aircraft.

Screening action has resulted in the assignment of the RMC/RMSC of R/3R on NSN 5980-01- 419-2208CX. The CLADS performance specification was developed with an open architecture approach, which would allow future manufacturers to produce new CLADS assets by utilizing current technology that may be totally different from what existed when the system was originally designed. Only the outputs of internal assemblies are controlled by the original specification and the configuration of CLADS has changed with each new production order, rendering any existing test data developed for previous production orders, invalid. Repair done by the OEM would be accomplished in accordance with testing documents tailored around the CLADS Performance Specification with variations to accommodate the specific design of the internal assemblies from past production orders. The Government does not own the data or the rights to the data needed to contract repair of this part from additional sources. EO Innovations has maintained configuration control and owns all of the engineering data that pertains to the past and current configurations of the 620 plus CLADS units that have been manufactured.

There are multiple configurations of CLADS fielded and only EO Innovations possesses the necessary data to repair each configuration.

A re-engineering effort to produce a competitive data package sufficient to repair all configurations of CLADS would take at least $2M and 5 years to complete, first to identify all configurations, resolve obsolescence issues and then to develop repair procedures. This estimate is based off the System Engineer’s experience working similar projects. The IPT elected not to contact EO Innovations about purchasing data rights because the Program Office is in the process of removing CLADS from all E-3 aircraft within the USAF inventory. The removal of CLADS started in 2012 and is scheduled to be completed in FY19. If the E-3 Program Office experiences another schedule slip or if the Block 40/45 modification program is cancelled, 407 SCMS will work with their product support counterparts to identify a way forward to remove competition barriers on future repair actions.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

This requirement will be synopsized on the Federal Business Opportunities (FedBizOpps) web page as required by FAR 5.201. Although the Government does not own data to support acquisition of this repair effort from any other source, any source who responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential subcontracting possibility.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

The overall cost of this acquisition will be considered fair and reasonable based upon FAR 12 negotiation procedures using price and cost analysis. Methodologies to assure this will be commercial pricing techniques utilizing publicly offered catalogs, comparison to historical contractor sales and/or analysis of limited cost and pricing information which could be made

PR Number: FD2060‐13‐00842 Page 4 available by the contractor. In the event that limited cost and pricing information is made available, the Government’s negotiation objective will be developed using local technical analysis applied to direct and indirect rate factors recommended by the DCAA and/or DCMA.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT

CONDUCTED

The 407 SCMS/GUEA systems engineer conducted market research in accordance with FAR Part 10.001 and 10.002. JEDMICS and PDM Gateway were searched using P/Ns to determine that no technical data is available. WebFLIS, BINCS, PRPS, and the internet, via Google.com, Yahoo.com and Bing.com, were searched using nomenclature, NSNs and P/Ns for background information and to determine current and past sources. The systems engineer completed a vendor survey by contacting POCs at EO Innovations and Battelle. Battelle is a company that provides research and development, analysis and management services for industry and government offices. Battelle co-developed the specification and requirement for CLADS, but is not a valid source of repair as EO Innovations is the actual manufacturer. The Government does not own the technical data required to repair CLADS and the Repair Method Code (RMC) and the Acquisition Method Suffix Code (AMSC) of R3R supports this argument. CLADS is a commercial item that has been modified for military use. There are no small business opportunities available to support this effort as the Government does not possess the technical data required to procure or repair this asset. Market research has returned only one capable source with experience repairing airborne DLP monitors for military application and the technical data for the current USAF approved configuration baseline.

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

OPEN COMPETITION

A Block 40/45 modification program for the AWACS E-3 Aircraft began in FY12 to remove CLADS from each aircraft and replaced with a Flat Panel Display Unit (P/N: MRFD- 354).

Due to this ongoing program, which is projected to end in FY19, it has been determined by the program office that it is not in the government’s best interest to attempt to acquire the technical data which is required to manufacture or repair this item.

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

PR Number: FD2060‐13‐00842 Page 5

A Block 40/45 modification program for the AWACS E-3 Aircraft began in FY12 to remove CLADS from each aircraft and replaced with a Flat Panel Display Unit (P/N: MRFD- 354), which is a commercial-off-the-shelf (COTS) item. This modification program is being implemented by the E-3 Program Office at Tinker AFB and should be completed NLT FY19.

As such, the Government did not attempt to acquire the technical data needed to manufacture or repair this item. The Government estimates that it would cost approximately $2M and 5 years to complete a technical data package to pursue a competitive repair acquisition. The life cycle for CLADS is FY19. Therefore, it is not in the government’s best interest to pursue a technical data package since the life cycle for this asset is coming to a close. Current sustainment plan calls for the replacement system to be classified as a “throw away” item and will be managed by DLA. 407 SCMS communicates and collaborates with the E-3 Program Office quarterly, discussing the block 40/45 modification program schedule and identifying any changes to the sustainment plan for the new/existing equipment. If the sustainment plan for the Flat Panel Display changes, the Program Office would be held responsible for completing a SORA package and completing any actions required to implement the SORA Decision.

If the E-3 Program Office experiences a schedule slip of the Block 40/45 modification for less than 5 years, the 407th will continue to pursue sole source repair with Raytheon Company, Division EO Innovations. If the schedule slip is greater than 5 years or if the modification is cancelled, the 407th will work with LCMC/WNY to purchase data rights required to promote competition.

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)).