J&A_-_LANTIRN_Eng_Svc_Redacted.pdf

COORDINATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

ACQUISITION GREATER THAN $700K, BUT NOT EXCEEDING $13.5 MILLION

PR Number(s): FD2060-15-90841

Estimated Value:

Category: State PEO

Authority: 10 U.S.C. 2304(c)(1)

Based on the justification provided herein, acquisition of the supplies/services is recommended using Other than Full and Open Competition (OTF&OC) using the authority cited above.

COORDINATION AND APPROVAL

AFLCMC/WNYBAB 2 Dec 2015 Technical/Requirements _____________________________________________________

Symbol Date Phone

AFLCMC/WNYKB

Contracting Officer _________________________________________________________

Symbol Date Phone

Staff Judge Advocate _ ____78 ABW/JAQ___ __ ($650K+) Symbol Date Phone

Competition Advocate _________

00'

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 Life Cycle Management Center, (AFLCMC/WNYBAB), Robins AFB GA 31098. The contracting authority for this requirement is AFLCMC/WNYKB. The purchase request number supporting this contracting action is

FD2060-15-90841.

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

Due to the circumstances described herein, the activity requests authority to acquire Engineering Services 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 result in a follow-on contract award of a Time and Materials (T&M) twelve (12) month basic contract, with two (2) twelve (12) month priced options, for engineering services for sustainment of Support Equipment (SE) for Precision Attack Pods under the Precision Attack Technical Coordination Program (TCP) for Foreign Military Sales (FMS). This sole source requirement will be purchased from the following company:

Lockheed Martin Missions Systems and Training (LMMST) 100 Global Innovation Circle Orlando, FL 32825-5002

(CAGE 16331)

Large Business

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

AGENCY’S NEEDS

The purpose of this acquisition is to provide engineering services for the Precision Attack Pod.

The Pod will encompass the AN/AAQ-33 Sniper Advanced Targeting Pod and the Low Altitude Navigation and Targeting Infrared for Night (LANTIRN) systems. The latter system is comprised of the require engineering support to meet their USG inter-operability commitments. LMMST is the original designer, developer and equipment manufacturer of the Precision Attack Pod SE.

This J&A proposes a basic thirty-six (36) month contract award estimated at , for engineering services support of Precision Attack Pod SE by LMMST.

The estimated contract value is based upon Independent Government Estimate pricing. The proposed contract action shall be funded by TCP member countries which are identified below, , to include the corresponding case and funding line.

Country Case/Line Expiration Date Saudi Arabia SR-D-GAG Bahrain BA-D-GAJ/ Taiwan TW-D-GCI/ Turkey TK-D-GBQ Israel IS-D-GCQ/ Egypt EG-D-QAX/ Greece GR-D-QCH/

Under the contemplated contract, LMMST will provide the following engineering support services for sustainment of TCP member countries’ Precision Attack Pods SE:

a) Provide complex test equipment related action item resolution requiring OEM assistance

b) Provide contractor test equipment familiarization and technical demonstrations (primarily at customer facilities)

c) Provide technical studies for customers as they require such assistance

d) Ensures a support vehicle is available for a member country requesting an engineering change proposal (ECP) for support equipment

e) Provide recommended solutions for customer test equipment hardware and software issues

f) Provide test equipment and related technical order support (within releasability guidelines)

g) Provide TCP/contractor travel for test equipment action item resolution and meeting support, as needed

h) Provide other assistance for test equipment issues as they relate to customer concerns

i) Provide test equipment related technical order support (within releasability guidelines)

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)

A. Foreign Military Sales LANTIRN support equipment is highly specialized and has numerous items which are currently obsolete, posing an even greater challenge in locating competitive sources for sustainment support. LM is the sole designer, developer, and original equipment manufacturer (OEM) of the Precision Attack Pods’ support equipment and test stations. LM is the only vendor that possesses the proprietary technical data and unique test equipment that is required for total package support of existing and legacy equipment. LMMST is presently contracted for engineering support services by the Precision Attack TCP, AFLCMC/WNYBAB, under contract number FA8540-13-C-0007. The existing 33 month contract was awarded sole source to LMMST on 22 Feb 2013 and is due to expire 31 Dec 2015.

B. Follow-On Contract Configurations peculiar to foreign militaries require sustainment support not commonly available commercially or organically. In addition, over-arching obsolescence issues make parts difficult to find and often they cannot be supported through normal acquisition and/or repair channels.

LANTIRN test and support equipment is complex and highly specialized in nature and critical to the operation and maintenance of the major [targeting and navigation] systems which they support as mentioned in paragraph III above.

. LM has proven qualified to deliver total package support providing engineering services to the TCP for over a decade. Test equipment, test procedures, specifications, and requirements are delineated in individual drawings, and other technical packages. This includes pod(s) drawing data which is part and parcel to hardware, software, test equipment, and procedures. These are of a proprietary nature to Lockheed Martin and related contractors. The drawings that possibly could be released for potential third party use, outside current vendor / Government arrangements, present complex data acquisition issues that could result in adverse support obstacles. The Government has requested a Lockheed Martin position for the sale of technical data for use by other contractors in supporting FMS programs. As a result, a negative response was received from the LANTRIN and Sniper Original Equipment Manufacturer OEM, Lockheed Martin Missiles and Fire Control (LMMFC) that they are not willing to sell technical data and/or other associated rights to the USG for FMS customer support purposes outside LMMFC channels in a 16 Jul 2015 letter, (LMMFC (Separate Division of Lockheed Martin in Orlando) letter ). In addition, AFLCMC/WNYKB sent a letter to Lockheed Martin Missions Systems and Training, (LMMST, on 13 August 2015 requesting LANTIRN and Sniper engineering data rights clarification for LMMST/TCP FMS customers. The premise of this letter is that the USG does not currently possess the appropriate data to compete the work required by the proposed contract through another vendor. As such it was requested that LMMST provide AFLCMC/WNYKB with a cost estimate for the technical data rights which could be used for FMS customers support beyond the current LMMST sources.

The reply was requested to be submitted NLT 19 August 2015 or a non-response, by that date, would be interpreted as a no-bid for data rights. LMMST failed to meet the required date and therefore no bid the request.

The majority of Precision Attack Pods SE identified herein (with the exception of SNIPER), was retired from AF use in Dec 2014. All of our FMS customers’ SE is not part of the active USAF inventory which makes these requirements FMS unique. As such, no organic engineering services exist, or are anticipated in the future, to support TCP customers’ sustainment and repair requirements. Thorough market research has determined there are no other qualified vendors available for consideration, largely due to proprietary data rights held by LMMST; therefore, it is proposed that this J&A cover the subject contract action to the extent of the longest standing LOA term currently in place as of date of award (estimated 36 months).

C. Unacceptable Delays: The existing engineering services contract ends on 31 December 2015.

In addition, our FMS customers have plans to draw down their LANTIRN assets by 2025.

There are no other qualified companies currently available to provide the necessary services for our FMS customers since LMMST is not willing to sell the necessary technical data and drawings which a new vendor would need. Based on similar previous project data and contract efforts, the Government estimates that, without this data package, it would be at least four to six years for a second contractor to reverse engineer the current LANTIRN test equipment used by FMS clients. This would include the development of procedures, software and test program sets required by mainframe testers. The time necessary to have another source obtain the equipment, ancillary software, and engineering expertise necessary to meet customer requirements is not effective or feasible. A four to six year delay is unacceptable to the Precision Attack TCP because this delay would leave our FMS customers unable to provide repair and test support for the failed pods of their attack aircraft for several years. In addition, the signed Letter of Acceptance’s (LOAs) for our FMS customers will be in violation between our Governments for not providing the support that was agreed upon. The inability to keep their support equipment serviceable means inoperative pods cannot be repaired and this will severely impact mission capability and operation requirements of their Air Forces.

Accordingly, LMMST is the only company capable of providing the engineering services described in Section III above without FMS customers experiencing unacceptable delays in fulfilling their military requirements.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

This requirement will be synopsized in the Federal Business Opportunities web page citing conditions which preclude Full and Open Competition (F&OC). Sources expressing an interest as a result of the synopsis will be investigated for their capabilities to perform on this and/or future requirements.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

The price of this acquisition will be fair and reasonable to the government. The contractor will be required to provide certified cost or pricing data to be used to support the government’s evaluation of the proposed cost. Engineering Service prices will be negotiated by the government based on recommendations from the Defense Contract Audit Agency (DCAA) and Defense Contract Management Agency (DCMA). The contract price will be negotiated in accordance with the procedures in FAR Part 15 to ensure that the 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 Oct 2015 and pursuant to FAR Part 10. Market Research consisted of Precision Attack Pod Support Equipment research specific to LANTIRN requirements using internet resources and NAICS code 541330. Major Website sources used for research and evaluation were www.thomasnet.com and Thomas Net Industrial Directory, www.industrynet.com, www.google.com, and www.gmini.iqsdirectory.com. This research also included a review of vendor catalogs and bulletins located in other web site links. Extensive use was made of program records for past contractors involved in test upgrade and testing support of depot related efforts. In addition, available market survey and analysis information was utilized for efforts tied to previous international customer contractor support.

Major Precision Attack Pod Support Equipment production companies were examined to determine the degree that they could provide the necessary support needed to sustain TCP customer's specific equipment and software at high mission capability levels. These companies represent the top market offerings at the present time. Important considerations in the market research of engineering services for SE of targeting and navigating pods included: long time experience with customer LANTIRN legacy pod SE operation and maintenance; capability to support Sniper ATP transition issues; available technical data resources, including access to causality report resolution databases required for the solution of SE problems; available engineers, technicians, and program managers familiar with customer programs and technical features; highly developed existing program infrastructure needed to support member SE for peculiar foreign military configurations.

Sources sought synopsis was posted on 16 Sep 2015 with suspense of 1 Oct 2015. No response was received by the suspense date of 1 Oct 2015 and it's recommended that the effort be awarded to Lockheed IAW FAR 6.302-1 "Only One Responsible Source".

Extensive market research was conducted into available and competent logistics support service suppliers. This included a historical search of military equipment vendors providing technical and program support services. Precision Attack System Engineers and Equipment Specialists (USAF and FMS) with past experiences of known contractors’ performance were consulted to help determine appropriate vendor capabilities pertinent to this effort. Also researched were current and archived technical journals, magazines, and periodicals for information that might lead to other viable sources of support. One hundred and seventy-five plus vendors were found via web searches which provided technical services for various types of test equipment logistics support. In depth research, as documented fully in the Market Research Report, determined that, with one exception, none of the contractors were deemed acceptable providers offering all the services, technical expertise, facilities and special tooling required for adequate support to TCP requirements; particularly in light of obsolescence issues surrounding the LANTIRN system and waning demand in US markets. Therefore, after all research, Lockheed Martin is the only source capable of providing the engineering services.

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

The systems supported by this contract are due to be replaced by modified versions and new systems. All major components of equipment supported by this effort are currently or will be unsupportable via traditional repair techniques. Efforts to reverse engineer these systems in order to provide the necessary technical assistance services required by this effort would not be timely in light of the waning technology of the LANTIRN system and the limited remaining life expectancy of the system. Lockheed Martin has also declined to sell the data rights for this effort.

In addition, our FMS customers are planning to draw down LANTIRN assets by 2025. As outlined in this J&A, there is currently only one qualified source with all the equipment, data and expertise necessary to meet the minimum requirements of the Government.

Prior to the next follow-on effort, engage with LMMST for sale of technical data/drawings for engineering services for SE and if necessary elevate to the CEO of the company to see if a favorable response can be received.

XII. CONTRACTING OFFICER’S CERTIFICATION

The contracting officer’s signature on the Coordination and Approval Document evidences that he has determined this document to be both accurate and complete to the best of his 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)).