CDU_FOE_15_Jan_2013_Redacted.pdf

APPENDIXB

FAIR OPPORTUNITY EXCEPI'ION (FOE) DETERMINATION AND APPROVAL

Contracting Activity: AFLCMCIWIU Purchase Request/Local Identification Number: FD2060-12-31507 Program Name I Program Element: -jsplay Unit (CPUl for HH-600 Aircraft Estimated Cost I Price of the Order:

Type of Program: _w Authority: fAR 16.505(bl(2Xil£B) Type Determination: Individual

Program M

Contracting Officer:

Local Legal Reviewer:

Competition Advocate:

J(jm cDonald DSN: -Com: (478)---

/ L AFLCMC/WIUBB Date Signed

78ABW/JAQ Date Signed

FAIR OPPORTUNITY EXCEPTION (FOE) JUSTIFICATION

I. Contracting Activity

The contracting Contracting Officer responsible for this action is AFLCMC/WIK.AB, Robins AFB, GA. The

AFLCMC/WIK.AB,

This is an Exception to Fair Opportunity.

Purchase Request number is FD2060-12-31507.

ard, Firm Fixed Price, to Support Systems Associates, Inc., CAGE --~cquisition and Sustainment Tool (F2AST), contract number irement is for the procurement of 10 prototype and 200 production Control Di~·~·~its (CDU) for the HH-60G aircraft. Under this effort the contractor shall design if btr ld 10 ea. prototypes and 200 ea. production CD Us to replace the legacy CDUs.

III. Description of t'j,I8JPiies Required to Meet the Agency's Needs

a. This requireme or 10 ea. prototype . production CDUs to replace the legacy CDU, part# CMA 882-5, on the HH-60G aircraft. The CDU provides integrated navigation solut'oos, flight plan displays, and tactical inputs from on-board systems on the HH-60 helic r :. The legacy CDU ha emory/processing capability, obsolescence issues, and a high failure rate. The new CDU must have the same form, fit, and function as CDU with no configuration change to aircraft wiring or structure. The is to deliver a complete engineering drawing and technical data package (TD , II drawings (suitable for competitive actions). The contractor shall also dev · re and provide extensive technical/engineering services to support the development and testing required for the CDU modification and integration efforts. The testing consists of laboratory, ground, and flight testing to ensure the new CDU meets user requirements. Total number of aircraft to be supported is 99 ea (2 ea.

CDUs per aircraft). AFLCMC/WIUBB is the System Program Office (SPO) for the HH- 60G aircraft. The Period of Performance for this effort is 24 months. Because this effort is a weapon system modification, it falls under the scope of the F2AST IDIQ contract.

The HH-60G Pave Hawk Helicopter is operated by the United States Air Force (USAF).

The HH-60G accomplishes Combat Search and Rescue (CSAR) missions for the following seven (7) Air Force commands:

1. HQ Air Combat Command (ACC)- Lead Command

2. HQ Air Education & Training Command (AETC)

3. Air Force Materiel Command (AFMC)

4. HQ Air Force Reserve Command (AFRC)

5. National Guard Bureau (NGB) b.

6. United States Air Force Europe (USAFE)

7. Pacific Air Command (P ACAF)

Type of Order: CLIN Costs:

Associated

Per Unit Quantit)\~~~~J , CLINs

Non-Recurring Engineering/Software 1 Lt 0001 Development

Technical/Engineering 90% complete 0002

(Requires Data

Validation) .. 0003

LRIPs Testing 1Lt 0005

Trial Install(TI)/Kit 0006 1 Lt

Proof (K.P)Labor ,. 0007

Flight Test support 1Lt 0010

LRIPS 10 ea 0004 .. 0008

Production CDUs 200 ea

Travel & Per Diem 1Lt 0011

Total Estimated Cost

Note: Each aircraft requires 2 ea CDUs (2ea CDUs per kit); 99aircraft = 198 CDUs + 2

ea. spares = 200 production CDUs.

c. Contract Data Requirements Lists (CDRL):

A001 Integrated Master Schedule (IMS) A002 Status Report A003 Funds and Man-Hour Expenditure Report A004 Meeting/Conference Minutes A005 Meeting/Conference Agenda A006 Engineering Change Report (ECP) A007 System Safety/Health Report (SSHA) A008 Technical Report-Study/Services A009 Test Procedures

AOOA Test/Inspection Report AOOB Contractor's Progress Status and Management Report AOOC Software Development Plan (SDP) AOOD Software Design Description (SDD) AOOE Software Test Plan (STP) AOOF Software Test Description (STD) AOOG Software Product Specification (SPS) AOOH Software Version Description (SVD) AOOJ Software/Subsystem Design Description (SSDD) AOOK Interface Design Description (IDD) AOOL Accident/Incident Report AOOM Firmware Support Manual (FSM) AOON Interface Control Document

d. The basis for the Government's estimate is derived from actual costs estimated from the previous contract effort.

IV. Authority Permitting a Fair Opportunity Exception

FAR 16.505(b)(l)(i) requires the Contracting Officer to provide every 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 of quality required because the supplies or services ordered are unique or highly specialized."

SSAI owns the data and possess TDP and expertise required to meet the schedule/modification requirements to complete the CDU. The Government does not possess adequate engineering and/or TDP for a timely competitive contract. The TDP consists of engineering drawings and technical data. Under the previous effort the HH-60G Program Office decided to discontinue funding the effort because of aircraft non-availability and time constraints so the remaining TDP (time and material contract) task order 0190 SSSCII (F09603-02-D-0065) was only 90% completed. The Government did not accept the 90% TDP because the testing, validation, and verification were required prior to development and modification. Level III drawings are expected to be completed under this effort.

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

In accordance with FAR 16.505(a)(l), orders under indefinite-delivery contracts do not have pre award synopsis. lAW 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). Paragraph V, above, justifies why competition among all awardees is not in the best interest of the government. The previous order, 0190, was competed among all four (4) SSSCII prime contractors. Requests for Order Proposal were submitted to all the contractors; however, only one offer was received.

The contractor's performance is expected to be a two (2) year firm fixed price effort. The baseline CDU Operational Flight Program (OFP) for the replacement CDU and 100% of the data for this effort are expected to be accepted by the Government upon successful completion of kit proof. Currently the data is not available to be furnished as Government Furnished Information in a competitive solicitation at this time. SSAI has data gathered during the CDU re-host and re design efforts. This data will be used to develop LRIP units. After validation/acceptance of the LRIPs, SSAI shall deliver, to the Government, the HH-60 CDU level III drawing package. The level III drawing package will be used to complete the development and procurement of the 200

ea. production CDUs. These initial production units will be provided by SSAI to prevent aircraft downtime and lapse in critical search and rescue missions. For future requirements the Government will provide contractors the complete technical and engineering data for use in future competitive efforts.

Future Competitive Effort: It is anticipated the spares will be procured via a small business competitive contract. Engineering and technical data, required of the contractor, will be provided by the Government. A complete engineering drawing and technical data package shall be provided by SSAI after contract award. Other contractor/s shall use this data to develop and/or repair production CDUs according to the drawings and/or specifications provided by the Government. SSAI shall deliver the drawing package to the Government 2-4 months after contract award.

VII. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable

This effort will be FFP using established contract labor rates. In accordance with FAR 15.403-4, the Contractor will be required to provide certified cost or pricing data for hours, material, and other direct costs, to be used supporting the Government's evaluation of the proposed cost.

Negotiations will utilize recommendations from Defense Contract Audit Agency (DCAA) and expert technical personnel from the Defense Contract Management Agency (DCMA) if required.

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 under the original contract identified a competitive award under SSSC II contract to SSAI to design and build a prototype CDU to replace the legacy CDU, part# CMA 882-5 used on MC-130, AC-130, and HH-60G aircraft. It would not be economical, cost effective, or efficient for another contractor to re-accomplish the drawings and data already developed by SSAI. The cost to the Government to develop the prototype CDU for the HH-60G aircraft is estimated at $2M. This is based on a combined cost from the original effort plus estimated cost to be paid by HH-60G Program Office. This effort would have to be re accomplished if a contractor other than SSAI was used to support this effort. Market research, dated 15 Jan 2012, is considered still current by the program office.

IX. Other Facts Supporting the Justification

HQ ACC has submitted a requirements document (AF Form 1067, Modification Proposal), urging rapid support for this effort. The CDUs must be procured as soon as possible to support Special Operations/Personnel Recovery operations. The aircraft requires a new CDU prior to the installation of a new Global Positioning System/ Inertial Navigation System (GPS/INS) and Identification of Friend/Foe system (IFF). The new GPS/INS and IFF systems are required to enhance safety and provide additional capabilities in support of the war-fighter. The CDU is the bus controller and the key processing unit for the aircraft. Numerous other systems are dependent upon its memory capacity and processing capability. Without the CDU modification, there is a critical risk of upgrading/modifying the aircraft with other essential systems:

Navigation System Upgrade (NSU), Identification of friend or Foe (IFF), Lightweight Airborne Recovery System (LARS), and Multi-Function Color Display (MFCD). The CDU modification is required prior to full implementation of the NSU, IFF, and LARS programs. The IFF system is used to distinguish between enemy and friendly aircraft. The system advises the crew to take appropriate action/s. The MFCDs provide increased situational awareness and decreases the strain on aircrews. Without the timely implementation of the CDU modification, the HH-60G aircraft mission effectiveness will be critically hampered.

The Current/Legacy CDU will not be sustainable past FY13. The repair source will cease operations for this unit. If the new CDUs are not procured in a timely manner, aircraft will be grounded. The Air Force's Special Operations/Personnel Rescue mission effectiveness will be negatively impacted.

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

Large and Small Businesses responded to sources sought. The companies are as follows:

(1) Support Systems Associates, Inc. (SSAI)

(2) Rockwell Collins

(3) Advanced Aerospace Engineering Concepts (A2)

(4) Elbit Systems of America-Airborne Solutions

(5) Interface Displays and Controls

(6) Esterline

(7) Lockheed Martin

(8) Sechan Electronics

(9) BAE Systems

(10) Miro Technologies

(11) Boeing

(12) Advanced Modification Solutions Joint Venture (AMS JV)

(13) Engineering & Software Systems Solutions, Inc (ES3)

(14) Scientific Research Corporation (SRC)

(15) TeleDevices

(16) Westwind Technologies, Inc (WTI)

The Market research (dated 15 Jan 2012) revealed companies with the capabilities to develop software and manufacture hardware, however, only SSAI has the data to develop the LRIPs and production units in a timely manner under the original requirement. SSAI was the only contractor, which submitted a proposal. Since SSAI had experience with the CDU redesign on other aircraft, it was logical to add the HH-60G CDU design and prototype development to the contract. SSAI possesses the required engineering data, technical data, and expertise to most efficiently provide the Government with an effective solution at a reasonable cost.

XI. Actions the Agency May Take to Remove or Overcome any Barriers to Increasing Fair Opportunity Before any Subsequent Acquisition for the Supplies or Items

Currently the only capable source is SSAI. This acquisition serves to attain the full data package necessary to compete the procurement of the Control Display Unit (CDU). This contract will enable the Government to execute future competitive contracts to procure additional CDUs required to meet immediate mission requirements.

XII. Contracting Officer's Certification

The Contracting Officer's signature on the signature page evidences that he I 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 I or requirements personnel have certified that any supporting data contained herein which is their responsibility are both accurate and complete.